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Management of working capital is a challenging task particularly in developing countries like India. In developing countries generally, there is shortage of funds, frequent changes in the monetary policy as an instrument of controlling inflation, vast demands on bank. Funds, high interest rates, shortage of goods and services luring both business houses and consumers to hoard and maintain large inventories and existence of parallel black economy. A large part of finance managers is devoted in managing working capital to get day-to-day needs of an organization. His prime attention is devoted to maintain sufficient liquidity in the form of cash, marketable securities, accounts receivables and inventories to grease the operations of business adequately. But at the same time he is to Take care of the profitability of the organization. Too much liquidity is a burden on profitability, as these are inversely related to each other. It is to balance between these two conflicting objectives of liquidity and profitability. For the organization it is a Continuous process.
are practically implemented. Also the various types of ratios were studied which helps in analyzing the Financial statements.
METHODOLOGY
Research in common parlance refers to a search for knowledge. Research may be defined:As manipulation of things, concepts or symbols for the purpose of generalizing to extent, correct or verify knowledge, whether that knowledge aids in construction of Theory or in the practice of an art. Research objectives: The main objectives of research in management are: 1. To verify and to test the existing facts and theories. 2. To gain familiarity with a phenomenon or to achieve new insights into it. 3. To establish generalization in various fields of knowledge. 4. To bring to limelight information that could have never been brought to the Knowledge under normal course.
LIMITATIONS
This project is not far from limitations. The limitations are: A Company generally cannot disclose its internal policies to outsiders. In such Case, it is very difficult to find out and gather complete and true information in The forms of figures regarding financial matters.