Post liberalization and the consequent opening up of
the Indian economy has brought the emergence of
competitive forces to operate for many corporate.
Value as we all know emanates from growth in
revenue, reduction in cost of manufacturing,
efficient use of resources, i.e. (assets employed to
earn the revenue) profits, operating cash flows and
return on investment to the stakeholders.
While revenue growth is subject to the vagaries of
the external environment, yet, what seemingly
remains within the ambit of the management is cost
control through efficient use of resources employed
(i.e. productivity).
Investment in fixed assets needs thorough planning.
However, once done, they lend themselves to certain
levels of inflexibility as they become sunk costs.
The focus should therefore be on Working Capital
Management since, they lend themselves to or are
more amenable to certain degree of control in the
hands of the Management.
In view of the focus on working capital as a
significant tool for cost reduction in the hands of
the Finance Manager, Princeton Academy is pleased
to announce a one day program in the area of
“Working Capital Management”
Course Outline
(Timings- 9:30 AM -5:15 PM)
I.
Introduction to Working Capital
Operating cycle – Production cycle – distribution
cycle – pipeline inventories. Factors determining
Working Capital requirements – Importance of optimum
Working Capital – Working Capital policy &
Management – Profitability v/s liquidity.
Types of Working Capital
Permanent-Temporary – Financing Working Capital –
Working Capital Monitoring and control.
II.
Working Capital Estimation
- Estimation procedure – Working Capital as a % to
net sales, as a % to total assets, or fixed assets –
Working Capital based on operating cycle – Different
components of Working Capital – Estimation of
Working Capital requirements.
III.
Management of Cash and Marketable Securities
§
Motives for holding cash.
§
Cash Management – objectives, Factors affecting Cash
Needs, Cash Budget, Control aspects – Outflows and
Inflows, Managing the float, Investment of Surplus
Cash.
§
Management of Marketable Securities.
IV.
Receivables Management
§
Costs and benefits of receivables
§
Credit Policy
§
Credit Evaluation
§
Credit Control
§
Factoring and Receivables Management
§
Forfaiting
§
Evaluation of Credit Policies.
V.
Inventory Management
§
Types of Inventories
§
Inventory Management
§
Rationale to hold inventory
§
Cost of Maintaining Inventory
§
Techniques of Inventory Management :
a)
ABC analysis
b)
EOQ Model
c)
Re-order level
d)
Safety stock
e)
Quantity Discounts & Order Quantity
f)
Just-In-Time Inventory.
§
Risks in Inventory Management
VI.
Financing Of Working Capital
§
Types of spontaneous sources
·
Trade Credit – Implicit cost of cash discount
·
Accrued expenses.
§
Commercial Paper- Annualized cost of financing.
§
Bank credit- Types of Bank Credit
§
Other sources of Short Term Financing
§
Regulation of Bank Credit in India
Dehejia Committee, Tandon Committee, Marathe
Committee
Nayak Committee, Kannan Committee
Registration Fee
Please send an email to admin@princetona.in with
name of participant, company, contact details and
cheque no. Registration fee is Rs. 6,300 + 12.36 %
Service Tax (Service
Tax No- AAECP5617MST001) per participant which
includes lunch, tea, course material etc. Cheque
should be drawn in favour of “Princeton Academy
Mumbai II Pvt. Ltd.” payable at Mumbai
