Monday, July 18, 2022



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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