Impact of Treasury and Financial Management Practices on Organizational Performance: A Study of NLC India Limited

Abstract

This study investigates the influence of treasury and financial management practices on the organizational performance of NLC India Limited (NLCIL), a central public sector undertaking operating in India's mining and power generation sector. Treasury operations—spanning cash flow management, liquidity control, and financial risk management—constitute critical determinants of a firm's financial health and strategic resilience. Using primary data gathered from 111 respondents through a structured questionnaire, the study employs percentage analysis, mean score analysis, and Pearson correlation analysis via IBM SPSS Statistics. Results demonstrate that robust treasury practices, particularly disciplined cash management, proactive liquidity planning, and integrated financial control mechanisms, positively influence organizational performance. The correlation coefficient (r = 0.501, p < 0.01) confirms a statistically significant moderate relationship between treasury practices and performance outcomes. On this basis, the study recommends that NLCIL invest in treasury automation, strengthen risk management protocols, and adopt advanced financial information systems to sustain operational efficiency and long-term growth.