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The cash available for day-to-day operations of an organization. Strictly speaking, one borrows cash (and not working capital) to be able to buy assets or to pay for obligations. Also called current capital.
Working capital is the funds required for day to day runing the establishment such as purchase of raw materials,manufacturing and other Expense (Direct Expenses),Sales and Admn Expenses,payment of Interest and Taxes.We can say it is the life blood of the industry for running.
Current Ratio is Total Current Assets/ Total Current Liability, As per Indian standard the ratio should be at least 1.33 of the total liability