10-04-2017, 09:12 PM
Small industry (SSI) plays an important role in the economy of the Rajasthan state of India. Despite all the odds, the SSI sector has emerged as India's engine of growth in the new millennium. The SSI sector in India contributes almost 40% of the gross industrial value added, the study is carried out taking 5 years of data of secondary origin. Based on this study, it has been found that the management of working capital is to decide the pattern of financing of current assets, which is one of the major problems of working capital management. SSI has to decide on the sources of funds that may be useful to make the investment in the current assets.
The problem of managing the working capital of small industries is not new. Working capital management is the lifeblood for every small industry, hence the management of working capital considered as one of the most important in the field of financial management. Working capital management is the most important area in the field of financial management. Each small-scale industry as well as large-scale industry requires a certain amount of fixed capital to obtain fixed assets such as plant and machinery, land and construction, furniture, vehicles, loose tools, etc. along with fixed capital. Each small-scale industry and large-scale industry require additional capital to finance daily activities known as "working capital". Working capital is very important for the smooth running of business activities. Working capital is very crucial to dictate the success or failure of an industry. The researcher is interested in examining the small-scale industry working capital management and determine the performance of management in certain small-scale industries, the efficiency of working capital management is determined by the efficient management of its various Components such as cash management.