Current assets in the balance sheet of a company are known as gross working capital. Current assets are those short term assets which can be converted into cash within a period of one year. The grey area in the management of current assets or gross working capital is its unpredictability i.e. it is very difficult to ascertain the exact time of conversion of such assets. Why such a nature is problematic? It is because the liabilities occur at their time and do not wait for our current asset to realize. This mismatch or the gap creates a need for arranging working capital financing.