PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA                                COURSE BREAK UPName of Instructor: Ms. Shee...
ASSIGNMENTASSIGNMENTSA1                                                Select any company (Local, National or Internationa...
PRESENTATION TOPICS               •       Do the firms prefer to keep surplus cash?               •       Eat or Be Eaten:...
3.               •   Management of working                     capital                 •   Forecast/estimate of working   ...
28              •   Dimensions of receivable                    management29              • Factoring and Receivables     ...
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Banking and working capital mgt course module


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Banking and working capital mgt course module

  1. 1. PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA COURSE BREAK UPName of Instructor: Ms. Sheenu Gupta Subject Name: Banking and Working Capital Ms. Shilpa Jain Subject Code: BB-605COURSE INFORMATION • Working Capital explains how money enables a company to function. It covers inventory, accounts receivables and payable and cash. This course explains why they are crucial to the businessLEARNING OUTCOME • Analyze the working capital cycle • Assess the costs and benefits from holding various levels of inventory • Apply the economic order quantity to optimize the trade-off between these costs and benefits. • Apply standard cash management techniques to optimize the credit control function • Design and apply a cash budget which avoids failure through cash shortfallCOURSE TOPICS • Working Capital Management • Cash Management System • Credit Management • Inventory ManagementTEXTBOOKS • Towards Better Working Capital Management Gopala Krishna Murthy • Working Capital Management N.p. Agarwal; B.k. Mishra • Working Capital Management: Strategies And Techniques Bhattacharya HrishikesBREAK UP OF INTERNAL ASSESSMENTBREAK UP WEIGHTAGEMSE’s 15Presentation 5Assignments (2) 10 ( 5 each)Tests (2) 10 (5 each)TOTAL 40 1
  2. 2. ASSIGNMENTASSIGNMENTSA1 Select any company (Local, National or International) and draw the Working capital cycle of the companyA2 Inventory Management. Students will be select the different area and will conduct the VED analysis and Reorder Level of 5 selected consumer goods, available in those areas, in the group of two.TESTSTESTST1 First 25% of the total courseT2 First 50% of the total courseSOME DO’S TO BE FOLLOWED IN THE SEMESTER • Assignments that are late will not be accepted. • You are require to put the source of information. It can be the visiting card. • In case, you have got the information from the journal, the source of the same should be put in APA format which will be discussed in the classACTIVITY • Working Capital cycle • Students will be asked to form themselves in the group of two and have to select any area. They have to check the Weekly Inventory cycle of given consumer goods in particular areas at various shops where the given consumer goods are available.PRESENTATION 1. The students will be divided into groups of 2. 2. The presentations will start at 9 a.m. 3. The duration of each presentation will be 10-15 minutes. 4. The preceding group will ask questions to the succeeding group and will get marks, depending upon the validity of the question being asked. 5. The students are supposed to submit the synopsis of the material beforehand. 6. The evaluation criteria for presentation is as follows:- Formals : 10 Presentation skills: 10 Querry handling: 10 Questions Asked: 10 Content : 10 2
  3. 3. PRESENTATION TOPICS • Do the firms prefer to keep surplus cash? • Eat or Be Eaten: A Theory of Mergers and Firm Size • Agency Problem in the Corporate • Do Hedge Fund Managers Misreport the returns • Tax Benefits from ESOP • Financial Innovations • The Corporate Governance: Role of the Media • Trusting Stock Exchange • Foreign Banks in Poor Countries • Local Bank Financial Constraints and Firm Access to External Finance • Blurring Firm Boundaries: The Role of Venture Capital in Strategic Alliances • Indian Taxation System • How Costly Is External Financing? • Risk Management • Banking Deregulation • Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance • Why Do Firms Issue Equity? • Money Laundering and how it is linked with terrorist activities • Does religion matter in corporate decision making? • What do investors want? • IRFS • Retail Banking Relationships • The colors of investors money: The role of institutional investors around the world • Effects of bank competition on firm borrowing and investment • The Real Effects of the Euro • Energy Management • Behavioral Finance • Role of Corporate Governance in Emerging EconomyLECTURE BREAK UPLECTURE TOPICS TESTWORKING CAPITAL MANAGEMENT1. • Meaning • Concept • Kinds of working capital2. • Importance of Working Capital Announcement of • Factors determining the A-1 working capital requirement 3
  4. 4. 3. • Management of working capital • Forecast/estimate of working capital requirements. • Percentage of sales method4. • Regression analysis method5 • Cash Forecasting method6 • Operating cycle method7 • Projected Balance sheet method8 Case Study-1 Case Study-1 Case Study-19 • Approaches to estimation of working capital, total and cash cost approach10 • Financing of working capital11 • Determining the working capital financing mix12 • Zero working capital approach Collection of A-1 • New trends in financing working capital by banks13 Test-1CASH MANAGEMENT SYSTEM14 • Nature of cash • Motives of cash15 • Cash Management16 • Determining optimum Cash Balance17 • Practical Problems18 • Practical Problems19 • Practical Problems20 • Cash Management Models • William J. Baumol’s Model21 • Miller and Orr Model22 • Investments of Surplus Funds23 Case Study-2 Case Study-2 Case Study-2CREDIT MANAGEMENT24 • Meaning of receivable Announcement of • Costs of maintaining the A-2 receivables25 • Factors influencing the size of receivables26 • Forecasting the receivables27 • Meaning and objectives of Receivable Management 4
  5. 5. 28 • Dimensions of receivable management29 • Factoring and Receivables Management30 • Practical Problems31 • Practical Problems Collection of A-232 Case Study -3 Case-Study-3 Case Study-3INVENTORY MANAGEMENT33 • Meaning and nature of inventory • Purpose/Benefits of holding inventory.34 • Risks and costs of holding inventory • Inventory Management • Objects of Inventory management • Tools and Techniques of Inventory Management.35 • Determination of Stock levels36 • Determination of Stock levels (Contd)37 • EOQ38 • VED analysis • Inventory Turnover Ratios • Aging Schedule39 • Classification and codification of inventories • Inventory Reports • Lead time40 • Perpetual Inventory system41 • JIT42 • FIFO43 • LIFO44 • Average Cost45 • Base Stock price • Standard Price stock 5