Working capital management in electronics industry in India

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INTRODUCTION Working capital has been described as the lifeblood of a business enterprise. It denotes the funds which are required for the day-to-day operations of the enterprise. It represents the capital invested in current assets viz., cash, receivables, and inventory. In many business enterprises working capital forms, a substantial portion of the total capital employed. Fixed capital in the form of productive facilities cannot be utilized fully without an adequate supply of motive power i.e. working capital. The amount of working capital in a business should be neither more nor less than what is required. Inadequate working capital means a shortage of raw materials and other inputs resulting in underutilisation of machinery, ultimately leading to the failure of business and frustration of objectives through lack of funds.