Working Capital Management of Indian Automobile Industry

Abstract

DEVELOPING ECONOMIES ARE confronted with the problem of inefficient utilization of resources available to them. Capital is the limited productive resource in such economies and proper utilization of these resources promotes the rate of growth, cuts down the cost of production and above all improves the efficiency of the productive system. The total capital of a country comprises fixed capital and working capital. Fixed capital investment generates production capacity where as working capital makes the utilization of that capacity possible. Thus, the study of working capital occupies an important place in financial management.