Liquidity refers to the ability of a company to pay in cash to its current obligations when they become due for payment by realizing amounts from current assets. Liquidity implies conversion of current assets into cash during the normal course of business and to have regular uninterrupted flow of cash to meet outside liability as and when due or payable. Keeping these theoretical backgrounds in view, a modest attempt has been made to make an in-depth study in respect of liquidity management and liquidity, risk and profitability trade-off of Garden Silk Mills Limited, an emerging textile company in Gujarat. The study covers a period of ten years i.e. from financial year 1999–2000 to 20008-2009.
