A STUDY ON WORKING CAPITAL MANAGEMENT PRACTICES IN EMERGING MARKETS: STRATEGIES FOR NAVIGATING ECONOMIC VOLATILITY WITH REFERENCE TO HERO MOTOCORP Ltd.

Abstract

Working Capital may be regarded as the most important factor of a business. Its effective provision and utilization can do much to ensure the success of a business. While the efficient management may not only lead to loss of projects but also to the ultimate shown fall of what otherwise would be considered as promising concern. A study on working capital is of major importance, because of its close relationship with current day-today operations of a business. The team working capital stands for that form of capital which is required for the financially of working or current need of the company. It is usually invested in raw material work in progress finished goods accounts receivable and saleable securities. Management of working capital usually involves planning and controlling current assets, namely cash and marketable securities, assets receivable and inventories and also administration of current liabilities. Working Capital or current assets management is one of the most important aspect of the overall financial management. It is concerned with the problem that arises in attempting to manage the current assets. The current liabilities and the inter relationships that exists between them. Current assets are the assets, which can be converted into cash with in an Accounting year and includes cash short-term securities, debtors, bill receivable and inventories. Current liabilities are that claim of outside, which are expected to mature for payment with in an Accounting year and includes creditor’s bill payable and outstanding expenses. The goal of working capital management is to manage the firms current assets and current liabilities in such a way enough to cover its current liabilities in order to ensure that they are obtained and used in the best possible way.