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- Working capital management in electronics industry in India
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.
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