Investment in fixed assets needs thorough
planning. Once done, these ,however, lend themselves to certain levels
of inflexibility as they become sunk costs. The focus, therefore, should
move to Working Capital since it lends itself to and is more amenable to
certain degree of control in the hands of the management.
In view of the focus on working capital as a significant tool for cost
reduction in the hands of the Finance Manager.
- Introduction to Working Capital
- Operating Cycle, Production Cycle, Distribution Cycle, Pipeline
Inventories, Factors Determining Working Capital Requirements,
Importance of Optimum Working Capital, Working Capital Policy and
Management, Profitability v/s Liquidity.
- Types of Working Capital
Permanent-Temporary, Financing Working Capital, Working Capital
Monitoring and Control.
- Working Capital Estimation
Estimation Procedure, Working Capital Based on Operating Cycle,
Different Components of Working Capital, Estimation of Working Capital
- Management of Cash and Marketable Securities
Cash Management, Factors Affecting Cash Needs, Cash Budget, Control
Aspects, Managing The Float, Investment of Surplus Cash.
- Receivables Management
Costs And Benefits of Receivables, Credit Policy, Credit Evaluation,
Credit Control, Factoring and Receivables Management, Forfeiting,
Evaluation of Credit Policies.
- Inventory Management
Types of Inventories, Cost of Maintaining Inventory, Techniques of
Inventory Management, Risks in Inventory Management.
- Financing Of Working Capital
Types Of Spontaneous Sources, Trade Credit, Commercial Paper, Annualized
Cost Of Financing, Types Of Bank Credit, Other Sources of Short Term
- Regulation of Bank Credit In India.