An efficient management of cash is an essential requirement for the success of the enterprise. Cash is the most liquid of all current assets; its management is the most crucial. Cash is always needed, but holding of excess cash is not only unprofitable but may also lead to loss. The dairy industry is different from other industry. It plays a vital role in maintaining and promoting the health of the people. The main purpose of dairy industry is to provide milk and milk products at reasonable cost that satisfy the consumer’s needs and fulfills consumer’s nutritional requirements. So, the cash management in Dairy sector is also important aspect under working capital management .This paper presents and analyses statistically the important ratios for highlighting the cash management of selected Milk Unions of COMFED in North Bihar.

KEYWORDS: Cash Management, Bihar State Milk Co- Operative Federation Limited (COMFED), Dairy co-operatives, Cash Turnover, Milk Unions, Cash Holding Period, Quick Ratio.