Authors: C.Ravi Kumar, Zeba Mahin N
Abstract: Working capital management is essential for maintaining a company’s liquidity, operational efficiency, and overall financial health. This study examines the working capital management practices of Amara Raja Batteries Ltd., a leading player in India’s automotive and industrial battery sector. The objective is to assess how effectively the company manages its current assets and current liabilities to ensure smooth day-to-day operations. The analysis focuses on key components such as inventory management, receivables and payables turnover, and cash conversion cycle, using financial tools like the current ratio, quick ratio, and working capital turnover ratio. Over a specific period, the company’s annual reports and financial statements were analyzed to understand trends and performance. The findings reveal that Amara Raja maintains a strong working capital position, aided by efficient inventory control and receivables management. However, there is scope for improvement in reducing the cash conversion cycle and optimizing payables. The study concludes that sound working capital strategies can significantly improve profitability and long-term sustainability. Recommendations include the adoption of digital inventory systems and tighter credit control policies to further enhance working capital efficiency
