Working capital management is significant in financial management because it plays a pivotal role in keeping the wheels of a business enterprise running. Working capital management is concerned with short-term financial decisions. Shortage of funds for working capital has caused many businesses to fail and, in many cases, has retarded their growth. Lack of efficient and effective utilization of working capital leads to earning a low rate of return on capital employed or even compels to sustain losses. The need for skilled working capital management has thus become more significant in recent years. A firm invests a part of its permanent capital in fixed assets and keeps a part of it for working capital, i.e., for meeting day-to-day requirements. We will hardly find a firm that does not require any working capital for its normal operations. Work capital management will ensure an organization’s health if carried out effectively, efficiently, and consistently. A company invests its funds for long-term purposes and short-term operations. That portion of a company’s capital, invested in short-term or current assets to smoothly carry on its day-to-day operations, is called the ‘working capital. Working capital refers to a firm’s investment in short-term assets, viz., cash, short-term securities, amount receivables and inventories of raw materials, work-in-process (W/P), and finished goods. It refers to all aspects of current assets and current liabilities (CL). The management of working capital is no less important than the management of long-term financial investment. Sufficient liquidity must be achieved and maintained to provide funds to pay off obligations as they arise or mature. The adequacy of cash and other current assets and their efficient handling virtually determines the company’s survival.