Management of Working Capital in National Aluminium Company

Working capital may be regarded as the lifeblood of a business. Its effective provision can do much to ensure the success of a business, while its inefficient management can lead not only to loss of profits but also to the ultimate downfall of what otherwise might be considered as a promising concern. Much has be rightly made of the long term planning of capital projects, but the cost to industry due to inadequate planning in the use of working capital is immeasurable. A study of working capital, therefore, is of major importance to internal and external analysis because of its close relationship with current day to day operations of a business. This paper is an attempt to prove the importance of working capital management in National Aluminium Company. For this purpose all the major components of working capital are taken and for proving its importance statistical analysis has been used