Volume: 3, Issue: 1
ABSTRACT
The term working capital refers to current assets, which may be defined as those, which are convert ible into cash or equivalents within a period of one year, and those which are required to meet day-to-day operations. The working capital management refers to management of the working capitaL or to be more precise the management of current assets. A firms working capital consist of its investments in current assets which includes short term assets such as cash and bank balance, inventories receivables and marketable securities. So the working capital management refers to the management of the level of all these individuals current assets. Keeping this in view, we have tried to evaluate working capital and working capital management policy of B.H.E.L. during the period from 1993-94 to 2002-03. This research article highlights concept of working capital, working capital policy, components of working capital and factors affecting working capital of B.H.E.L. during the last 10 years and identify which factors are responsible for the improvement of work ing capital of the company. Working capital position ofB.H.E.L. has been analyzed under four categories eg. Analysis of liquidity ratio, analysis ofliquidity position, component wise analysis working capita] and analy sis of liquidity ranking Finally wefind that working capital position ofB.H.E.L. is not very satisfactory during the study p'eriod, inventory and loans and advances which are one of the major part of gross working capital of the company is not in satisfactory position. The company should have control over these items.
