Operating Cycle, Production Cycle, Distribution Cycle, Pipeline Inventories, Factors Determining Working Capital Requirements, Importance of Optimum Working Capital, Working Capital Policy and Management, Profitability Vs Liquidity.
Permanent and Temporary, Financing Working Capital, Working Capital Monitoring and Control. Estimation Procedure, Working Capital Based on Operating Cycle, Different Components of Working Capital, Estimation of Working Capital Requirements.
Inventory Control, Types, Safety Stock, Service level, Inventory control systems (simple problems).
Cash Management, Factors Affecting Cash Needs, Cash Budget, Control Aspects, Managing the Float, Investment of Surplus Cash. Costs and Benefits of Receivables, Credit Policy, Credit Evaluation, Credit Control, Factoring and Receivables Management, Forfeiting, Evaluation of Credit Policies.
Types of Spontaneous Sources, Trade Credit, Commercial Paper, Annualized Cost of Financing, Types of Bank Credit, Other Sources of Short Term Financing, Regulation of Bank Financing of Working Capital.
Reference Book:
1 M.Y. Khan & P.K.Jain, “Financial management, Text, Problems and Cases”, Tata McGraw Hill, 6th edition, 2011. 2 Brigham, Ehrhardt, “Financial Management Theory and Practice”, 11th edition, Cengage Learning, 2012. 3 Prasanna Chandra, “Financial Management”, 7th edition, Tata McGraw Hill, 2011. 4 G.Sudarsana Reddy, “Financial Management Principles & Practices”, 2nd revised Edition, Himalaya Publishing House Private Limited, 2010.
Text Book:
1. Bhalla.V.K. “Working Capital Management: Text and Cases”, Anmol. 2. I. M. Pandey,“Financial Management”, Vikas Publishing House Pvt. Ltd., 10th edition, 2010.
