A STUDY ON ADMINISTRATION OF WORKING CAPITAL WITH REFERENCE TO HEMADRI CEMENTS LIMITED VEDADRI , JAGGAYAPETA, AP INDIA

Abstract

This paper is making you sure about the prerequisite of working capital administration; this study has done at HEMADRI CEMENTS LIMITED vedadri, jaggayapeta, AP India. Working capital is a part of capital, which is meant for funding day to day operations of organization. We can simply define working capital importance as a richest person does not have cash in his/her wallet. It means a person is having number of fixed assets but he/she does not have currency in their wallet so he/she cannot purchase anything i.e., purchasing power is zero even they have no of fixed assets and he/she can’t able to satisfy their short term needs because of poor maintenance of current assets. Similarly an organization position is also same like above a firm might strong in fixed assets but if they are not concentrating on current assets i.e., working capital administration; they may also face different situations and smooth functioning of business is not possible moreover sustaining in the market is also biggest challenge to them. Inefficient working capital management not only pulling down the profitability of business but also ultimately show the way to financial disaster. Upholding more liquidity is another trouble i.e., excessive working capital means inoperative money won’t generate profit for the business and hence the business can’t earn a proper rate of return. Adequate working capital plays vital role in the success as well as growth of the business. Hence HEMADRI CEMENTS LIMITED has been maintaining proper working capital and it leads to became profitable one.