All business firms need assets for its foundation and to do its tasks easily on regular schedule. So, the firm must manage its short term assets and liabilities efficiently. Mainly any business company should make sure that it is handling its production and trade operations properly. A company requires a capital in order to produce the product before selling them. It has to monitor the production expenses, administration expenses as well as selling expenses. The firm starts with a credit so there will be a time lag in sale and revenues. Considering this all, it’s important for the firm to have the availability of sufficient capital to ensure its running. So before it converts, all its efforts into cash, the firm should ensure the availability of capital. This paper aims to study the working capital position of NMDC which also help in identifying the areas that can be improved.