A Study of the Operating Cycle and Cash Cycle of Sterlite Ind

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Sterlite Industries India Limited ( SIIL ) is the chief subordinate of Vedanta Resources plc, a diversified and incorporate FTSE 100 metals and excavation company, with chief operations located in India and Australia. Sterlite ‘s chief operating companies comprise Hindustan Zinc Limited ( HZL ) for its to the full integrated Zn and lead operations ; Sterlite Industries India Limited ( Sterlite ) and Copper Mines of Tasmania Pty Limited ( CMT ) for its Cu operations in India/Australia  and Bharat Aluminium Company ( BALCO ) , for its aluminum and alumina operations and Sterlite Energy for its commercial power coevals concern.

Sterlite is India ‘s largest non-ferrous metals and excavation company and is one of the fastest turning private sector companies. Sterlite is listed on BSE, NSE and NYSE. It was the first Indian Metals & A ; Mining Company to name on the New York Stock Exchange.

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Sterlite has continually demonstrated its ability to present major value making undertakings, offering alone growing at lowest costs and bring forthing superior fiscal returns for its stockholders. At the same clip, it ensures that its enlargement undertakings meet high conservative fiscal norms and do non put an indefensible load on its balance sheet and fiscal resources.

A bulk of company ‘s operations are certified to the International Standards like ISO 9001, ISO 14001 and OHSAS 18001. SIIL research labs at Tuticorin and Silvassa have been recognized with ISO 17025:2005 enfranchisement from National Accreditation Board for Testing and Calibration Laboratories ( NABL ) . The company is LME approved Cu examiner. Our Cu merchandises meet the demand of Restriction of Hazardous Substances ( RoHS complied ) and certified by Underwriters Laboratories Inc. SIIL ‘s Central lab at Silvassa is a GoI approved R & A ; D research lab. The company has besides won legion awards for safety and environment.

Sterlite develops and manages a diverse portfolio of excavation and metals concerns to supply attractive returns to its stockholders whilst transporting out its activities in a socially and environmentally responsible mode and making value for the communities where it operates. As one of the largest metals and mining groups in India, Sterlite remains continually committed to pull offing its concern in a socially responsible mode. The direction of environment, employees, wellness and safety and community issues, in regard of its operations is cardinal to the success of company ‘s concern.


  • 1986-Sterlite Cables Limited, acquires the Shamsher Sterling Corporation, changes the name to Sterlite Industries ( India ) Limited.
  • 1988-Sterlite Industries makes an initial public offering of its portions on the Indian stock exchange.
  • 1991-Sterlite Industries establishes India ‘s first uninterrupted Cu rod works.
  • 1997-Commissions foremost in private developed Cu smelter in India at Tuticorin in Tamil Nadu.
  • 1999 -Acquires Copper Mines of Tasmania Pty Ltd. -Acquires Thalanga Copper Mines Pty Ltd.
  • 2005-Expansion of Tuticorin Smelter to 300,000 TPA and Successful ramp up of ISA furnace in a record period of 45 yearss.
  • 2006-Expansion on Tuticorin smelter to 400 KTPA through advanced debottlenecking.
  • 2007-Sterlite Industries primary naming on NYSE in June 2007


  • To construct a cognition and procedure driven organisation through TPM
  • To make sustainable value through safe, clean and green procedures
  • To prolong leading place in domestic and planetary market through market development and client delectation.
  • To be the best and most respectable corporate citizen
  • To leverage engineering to its full potency across the concern rhythm
  • To tackle the profitable and turning CCR/value added merchandise from 240KMT to 600 KMT per annum.
  • To accomplish Zero cost and beyond
  • To procure natural stuff through long term contracts and confined mines


Working Capital refers to that of house ‘s capital which is required for financing the short term or current assets such as hard currency, debitors, stock list. Fundss, therefore, invested in current assets keep go arounding fast and are being invariably covered into hard currency and this flows out once more in exchange for other current assets. The mean length of clip between when a company purchases points for stock list and when it receives payment for sale of the points. A long operating rhythm tends to harm profitableness by increasing adoption demands and involvement disbursal.

In instance of STERLITE INDUSTRIES, the Gross Operating Cycle was high in 2005 i.e. it was 72 yearss but in 2006 72 yearss than 79 in 2007 and increase to 81 yearss in 2008 but eventually in 2009 it is 48 yearss which is rather low from ab initio in 2005. This is positive mark as the length of Operating Cycle is diminishing and it is eventually reduced to 48 yearss that means the money is collected easy from debitors within the period of 48 yearss.

For CASH CYCLE besides the length is reduced in 2009 to 24 yearss from 62 yearss in 2008, 56 yearss in 2007, 37 yearss in 2006 and 36 yearss in 2005. The mean clip taken by a STERLITE INDUSTRIES in change overing ware or natural stuff back into hard currency starts worsening in 2009 which is good index and it means that it is following good recognition policy. A short hard currency rhythm reflects sound direction of working capital. On the other manus, a long hard currency rhythm denotes that capital is occupied when the commercial entity is anticipating its clients to do payments.

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A Study of the Operating Cycle and Cash Cycle of Sterlite Ind. (2016, Nov 15). Retrieved from


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