II YEAR – III SEMESTER

COURSE CODE: 7MBA3EC

ELECTIVE COURSE – FINANCE-WORKING CAPITAL MANAGEMENT

Unit I

Working capital concepts: components of current assets & liabilities – working capital policies – determining factors – estimating the working capital needs – operating cycle analysis.

Unit II

Cost management: Rationale – cost budgeting – cash management models – strategies for managing marketable securities.

Unit III

Receivable management: credit terms – credit analysis – impact of credit policy changes – monitoring receivable management.

Unit IV

Inventory management: types of inventory – inventory costs – inventory labels – overview.

Unit V

Sources of working capital: Bank credit – Tandon & chore committee recommendations – commercial papers – inter corporate deposits – bills discounting – certificate of deposits – factoring – control of working capital: ratios for controlling working capital – fund flow and cash flow analysis.