Working Capital Management

WORKING CAPITAL MANAGEMENT

Course No. FSF-2        

UNIT-I

Principles of Working Capital Management: Concept and Importance of Working Capital, Types of Working Capital, Determinants of Working Capital, Principles of Working Capital Management Policy, Estimating Working Capital Requirement.

UNIT-II

Accounts Receivables Management: Meaning, Cost of Maintain receivables, factors influencing size of receivables. Formation and Execution of Credit Policy (Credit Standard, Credit Period, Cash Discount, Collection Efforts).

UNIT-III

Management of Cash-Motives of Holding Cash, Managing Cash Flows, Cash Management Models, Investment of Surplus Funds, Calculating Operating Cycle.

UNIT-IV

Inventory Management: Meaning and Nature of Inventory, Purpose and Benefits of Holding Inventory, Inventory Management Techniques-Determining Stock Levels and Safety Stocks, EOQ, VED, and ABC Analysis, Just in Time Inventory, Classification and Codification and Valuation of Inventories.

UNIT-V

Working Capital Financing: Sources of Working Capital Finance, Determining the Working Capital Financing Mix, New Trends in Financing of Working Capital by Banks.

Unit 1: Principles of Working Capital Management

Unit 2: Accounts Receivables Management

Unit 3: Management of Cash

Unit 4: Inventory Management

Unit 5: Working Capital Financing

Model Papers