Working capital

1. PROGRAM NAME : BBA
Course : Financial Management
Topic : Working Capital
Management

2. Group members
NAME REGESTER NO.
1. Harish N. 172002415
2. M.sadik 172002426
3. M.Shakir 172002421
4. Shanthi pinto 172002418
5. Sayana M S 172002443
6. Flavi Rodrigues 172002413
7. Hemalatha 172002416
8. Vijetha 172002451
9. Ashwitha 172002404
10. Jayalaxmi 172002418
11. Geetha A 172002414
12. Isthafa 172002427
13. Divya 172002412

3. WORKING CAPITAL
MANAGEMENT

4. CONTENTS
• Nature of Working capital
• Concepts of working capital
• Kinds of working capital
• Operating cycle
• Determination of working capital
• Factors of working capital requirement
• Types of WC finances
• Factoring in India
• Tondon committee report
• Chore committee

5. NATURE OT WORKING CAPITAL
• The goal of working capital management is to
manage the firm's current assets and liabilities in
such a way that a satisfactory level of working
capital is maintained.
• The interaction between current asset and current
liabilities is, therefore , the main theme of the
theory of working management.

6. CONCEPTS OF WORKING CAPITAL
a. Gross working capital
b. Net working capital

7. KINDS OF WORKING CAPITAL
a. Permanent or Fixed Working Capital
b. Variable or Seasonal Working Capital

8. NEEDS FOR WORKING CAPITAL
Operating cycle

9. DETERMINATION OF WORKING
CAPITAL
1. General nature of business
2. Production cycle
3. Business cycle
4. Production policy
5. Credit policy
6. Growth and expansion
7. Vagaries in the availability of Raw material
8. Profit level
9. Level of Taxes
10. Dividend policy
11. Depreciation policy
12. Price level policy
13. Operating efficiency

10. FACTORS OF WORKING
CAPITAL/APPROACHES OF
WORKING CAPITAL
a. Hedging approach or Matching approach
b. Conservative approach
c. Aggressive approach

11. TYPES OF FINANCE
1. Short -term finance
Source s of short term finance
a. Trade credit
b. Bank credit
c. Tactoring

12. FORMS OF TRADE CREDIT
a. Open account credit
b. Account backed by Bill of Exchange
c. Account backed by promissory note.

13. MERITS OF TRADE CREDIT
1. Automatic availability
2. Lack of formalities
3. Cash discount
4. Standard terms
5. Interest free finance

14. DEMERITS OF TRADE CREDIT
1. Higher price
2. Limited availability
3. Restricted amount
4. Sellers in convenience

15. BANK CREDIT MANAGEMENT
Forms of bank credit
a. Direct loans
b. Overdraft facility
c. Cash credit facility
d. Discounting of B.O.E

16. MERITS OF BANK CREDIT
1. Universal access
2. Various forms of credit
3. Flexibility in operations
4. Combining multiple function

17. IMPORTANCE
1. Strict rules
2. Security bias
3. High rate of interest
4. Monitory policy of RBI

18. FACTORING
Service rendered by a factor are given below
1. Management of sales ledger
2. Collection of book debts
3. Debtors evaluation and credit information
4. Credit protection
5. Advisory services
6. Financing

19. TYPES
1. Maturity factoring
2. Invoice discounting
3. Advance factoring
4. Resource factoring
5. Underclosed factoring
6. Full factoring

20. FACTORING IN INDIA

21. TONDON COMMITTEE REPORT

22. CHORE COMMITEE