$ 0 0 Introduction Working Capital in simple term refers to Funds available for day to day operations of the company. However, the effective management of it plays a pivotal role in success of the Organization. It affects the various lines of the business involving Treasury, Finance, procurement, Collection and Supply chain etc. The Organization must strategically consider the current level and anticipate future requirement while determining the optimal level of working capital needed. The Working capital should be adequate in the sense that it should be neither abundant nor scarce.