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The management of capital is one of the most important areas of management in a firm. Working capital plays a vital role on day to day expenses. Capital management is a neighborhood which emphasizes on the productive utilization available funds created out of excellent financial solvency, cash flows and growth strategies in a company. The working capital is also known as short term capital or circulating capital. It is required for investing in short term assets like bank, cash, receivables and inventory. Working capital is the difference between current assets and current liabilities. When the current assets of the company are more than the current liabilities it indicates that the position of the company from the point of working capital is sound and satisfactory.