1. Concept & importance of Working capital
management, types of working capital, factors affecting working capital
requirements.
2.
Meaning & significance of operating cycle and cash cycle, estimation of
working capital requirements, liquidity vs. profitability.
3. Financing of working capital needs: Commercial
banks, Commercial papers, Factoring, Trade credit, Accrued expenses, Deferred
income as source for working capital.
4. Approaches
to determine an appropriate financing mix, working capital and banking policy
(Recommendations of Dahejja Tandon, Chore & Marathe & Kannan
committees.) MPBF norms, Managing credit risk, Disbursement and follow up of
working capital finance by bank.
5. Cash
Management: Aspects of cash management, Motives for holding cash and marketable
securities.
6. Factors
determining the optimum cash balance, Models-Baumol, Miller Orr, Stone,
Beranek.
7. Cash
Planning, Cash budget simulation and cash balance uncertainties, hedging vs.
interest rate, future & options. Treasury management, Reasons for Cash flow
problems.
8. Receivable
management: Introduction, Objectives of trade credit, credit policies.
Dimensions of receivable management, collections from receivables, role of
factoring in receivables management.
9.
Inventory Management: Introduction, tools & techniques of inventory
management. Inventory control models, valuation of inventories, Inventory
management and cash flow time line.
10. Integration
of working capital and capital investment process. Working capital management
practices in India.
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