Strong financial management is mandatory for a company to survive. Financial management is getting complex day by day in the era of globalization. Effective financial management tools are required for optimum utilization of available funds, the balance between liquidity and use of assets, streamlining of liabilities, pay ability of short-and long-term debts etc. to sustain company growth. The recession in the industry adds further pressure on the management for the effective utilization of limited resources. In this paper, the effect of recession on liquidity and funds efficiency of POWERGRID (Power Grid Corporation of India Limited) is studied. Power Grid is chosen for the study as POWERGRID is the premiere power transmission company in India and has constantly maintained the system availability above 99%, matching worldwide transmission utility standards. In this paper, we discuss the liquidity ratios-current ratio and the quick ratio. Activity ratios, such as debtor turnover and inventory turnover ratios are also calculated for the POWERGRID's efficiency. We also identify whether there is any effect of the subprime crisis and subsequent recession in 2007-2008 on the liquidity and funds efficiency of POWERGRID.POWERGRID data from 1999 to 2019 is taken into account from the company's website. The whole data of 20 years is divided into two phases 1999-2008 (pre-recession Phase-1) and 2008-2019 (post-recession Phase-2).