Working Capital Management and Financing of Units at Vitthal Udyognagar, GIDC Anand : An Empirical Perspective

Fundamental financial health and operational success of any enterprise depends upon the sound management of working capital. Adequate amount of working capital is very critical for the smooth running of any business. The innovations in the financial sector have led to the contemporary practices and instruments of financing the working capital requirement. The study is an attempt to empirically understand the current practices followed by the units of Vitthal Udyognagar, GIDC, Anand with respect to management of working capital and it’s financing. The findings revealed that the units are mostly relying upon conventional sources for funding the working capital requirement such as retained earnings, trade credit, income received in advance, bank loan and overdraft facility. The awareness towards the contemporary sources was observed to be less. There is a scope for enhancing the working capital management and financing practices followed by such units in Anand