Working capital is the lifeblood of the business organization. Merely having the investment infixed assets does not determine the success of a business organization, it is also important to have efficient management of working capital. The objective of working-capital management is to maintain a satisfactory level of working capital through the management of current assets and current liabilities. If a satisfactory level of working capital is not maintained the organization is likely to become insolvent and may even be forced to bankruptcy. Therefore, for the smooth running of the business efficient management of working capital is required. This paper highlights on concepts of working capital, working capital policy, component of working capital and factors affecting working capital of Mahindra & Mahindra Ltd during last seven years and identifies which factors are responsible for the improvement of working capital of the company.