Working Capital Management in Ancillary’s of BHEL, Tiruchirappalli, Tamil Nadu

Abstract

The amount of profit largely depends on the magnitude of sales. However sales do not converted into cash instantaneously in this concern. There is always a time gap between the sales of goods and receipt of cash. Working capital is required for this period in order to sustain the conversion activity. In case adequate working capital is not available for the period, the company will not be in a position to sustain the sales since it may not be in a position to purchase raw materials, payment of wages and other operating expenses that required for manufacturing the goods that to be sold. It is a descriptive that capital which is to consider the difference between book value of current asset and current liabilities. This study has to analysis the working capital management in ancillary units of BHEL.