Synopsis The management of working capital is an important and time consuming aspect of managerial finance. Sufficient working capital must be provided in order to take care of the normal process of purchasing raw materials and supplies, turning out finished products, selling the products, waiting for payments to be made. If the original estimates of working capital are insufficient, some emergency measures must be restored to or the business will come to a dead stop. Inadequate levels of working capital can result in serious financial difficulties, and even bankruptcy; excessive levels are likely to reduce corporate profitability and ultimately cause the firm’s effectiveness and market value to decline. For the students of MBA/Commerce/Business Economics at various Universities/Institutes, Chartered Accountants, company Secretaries and other professional courses, the text is designed to fill the gap and also transmit some of the excitement of current thinking and controversy. The detailed knowledge gained by the reader should make him more conversant with the discipline and should provide a strong conceptual foundation.