Executive Summary

One can acquire knowledge by learning in classroom but generally there is a significant difference between practical situation and theoretical knowledge. To bridge this gap practical experience must be acquired besides theoretical knowledge. In order to achieve this experience we are handed over with this field work by our honorable course teacher Ms. Afia Akter, Assistant Professor of Finance.
It is a combined arrangement of gathering knowledge from classroom and from the practical situation what is happening actually.
The prime objective of the study is to produce learner’s practical knowledge in organizational environment and we can tune up ourselves for the job market interview session in future. We are able to collect information from “Square Textile Limited” to complete the study. We survey in our way to know about their working capital management procedure.
Our main concentration of this study is to find out how organizations generally manage their capital. So we make organizational profile, consider the cash collection, financing, and liability related functions and also take some knowledge from internet. We hope that our work will be benefitted for everyone because we tried our best to make the report effective.

Chapter one

Introduction

Introduction:
Working capital management is one of the major issues of corporate finance. The success of any manufacturing company largely relies on the efficient management of working capital. There are different theoretical developments and empirical issues but there is no unified rule that can determine the optimal level of working capital. From the viewpoint of developing country like Bangladesh the role of working capital should be highly emphasized. But our country is characterized by low level of capital market development and inefficiency of financial market. In such a situation, it