This document discusses key aspects of financial management and working capital. It defines financial management as planning, organizing and controlling financial activities such as procuring and using funds. It notes that financial management involves investment, financing and dividend decisions. The objectives of financial management are to ensure regular funding, adequate returns for shareholders, optimal fund utilization and safety of investments. Key activities include budgeting, financial reporting, variance analysis and internal controls monitoring. The document also defines working capital as the difference between current assets and current liabilities, and notes it has both permanent and temporary components. Factors that influence working capital requirements are discussed as well.
Working capital decisions in Financial management Dr Naim R Kidwai
This presentation covers the topics of working capital decisions.It covers types of working capital, determinants of working capital, cash management, inventory control and account recievables
Working capital decisions in Financial management Dr Naim R Kidwai
This presentation covers the topics of working capital decisions.It covers types of working capital, determinants of working capital, cash management, inventory control and account recievables
it is useful for MBA 2nd semister students. they didn't know the proper information about the working capital management. so , that's why i prepare the some introduction part for this concept.
Introduction
Working capital typically means the firm’s holding of current or short-term assets such as cash, receivables, inventory and marketable securities.
These items are also referred to as circulating capital
Corporate executives devote a considerable amount of attention to the management of working capital
Definition
Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such a cash marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow out again in exchange for other current assets. Working Capital is also known as revolving or circulating capital or short-term capital.
Nature Of Working Capital
Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelations that exist between them.
Current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm.
Examples- cash, marketable securities, accounts receivable and inventory.
Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or the earnings of the concern.
Examples- accounts payable, bills payable, bank overdraft and outstanding expenses.
A study of working capital management in ajanta pharma limitedkudalemangesh
Study of Working Capital Management, Ratios of Working Capital,
Feasibility analysis of working capital management, utilization of working capital management, best utilization of working capital
it is useful for MBA 2nd semister students. they didn't know the proper information about the working capital management. so , that's why i prepare the some introduction part for this concept.
Introduction
Working capital typically means the firm’s holding of current or short-term assets such as cash, receivables, inventory and marketable securities.
These items are also referred to as circulating capital
Corporate executives devote a considerable amount of attention to the management of working capital
Definition
Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such a cash marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow out again in exchange for other current assets. Working Capital is also known as revolving or circulating capital or short-term capital.
Nature Of Working Capital
Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelations that exist between them.
Current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm.
Examples- cash, marketable securities, accounts receivable and inventory.
Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or the earnings of the concern.
Examples- accounts payable, bills payable, bank overdraft and outstanding expenses.
A study of working capital management in ajanta pharma limitedkudalemangesh
Study of Working Capital Management, Ratios of Working Capital,
Feasibility analysis of working capital management, utilization of working capital management, best utilization of working capital
This chapter included, Meaning and concepts of working capital Management , Operational environment for working capital Management and Determinants of working capital
Here is all about what you seek on Working Capital Management.類類
Wide Areas about : Introduction,Meaning,Definition,Components,Factors influencing,
Working Capital management: Cash management(, Inventory management, Receivables Management, Inventory management and about factoring.
Managing balance sheet liquidity & long term funding Dr Rajeev Jain
Managing balance sheet liquidity and long term funding
• Do the company have the right cash management processes?
• The importance of accurately forecast company cash flow with liquidity management
• Looking at your balance sheet frequently: Do the company has sufficient funding sources?
• Ensuring the right balance of credit and non-credit service utilisation for funding process
• Learning about rebuilding the balance sheet and turning their problem into growth
• Establishing long term stability and security of our funding in turn helps protect our liquidity position in the crisis
• Building necessary tools and methods to achieve properly structured balance sheet
• Managing complex situations precisely through flexible values (general direction), values with longer lifespan than goals or objectives and past and present corporate actions
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2. Financial Management means planning,
organizing, directing and controlling the
financial activities such as procurement
and utilization of funds of the enterprise. It
means applying general management
principles to financial resources of the
enterprise.
3. Investment decisions includes investment in
fixed assets (called as capital budgeting).
Financial decisions - They relate to the
raising of finance from various resources
which will depend upon decision on type of
source, period of financing, cost of financing
and the returns thereby.
Dividend decision - The finance manager
has to take decision with regards to the net
profit distribution.
4. The objectives can be-
To ensure regular and adequate supply of funds to
the concern.
To ensure adequate returns to the shareholders
which will depend upon the earning capacity, market
price of the share, expectations of the shareholders.
To ensure optimum funds utilization.
To ensure safety on investment, i.e, funds should be
invested in safe ventures so that adequate rate of
return can be achieved.
To plan a sound capital structure-There should be
sound and fair composition of capital so that a
balance is maintained between debt and equity
capital.
5. Estimation of capital requirement
Determination of capital composition
Choice of sources of funds
Investment of funds
Disposal of surplus
Management of cash
Financial controls
6. Key activities nclude budgeting, internal financial
reporting, cost analysis and monitoring of internal
controls, systems and procedures.
Budgeting. ...
Financial Reporting. ...
Variance Analysis. ...
Internal Controls Monitoring.
7. Financial Services are concerned with the design and delivery
of financial instruments, advisory services to individuals and
businesses within the area of banking and related institutions
Banking Services Includes all the operations provided by
the banks including to the simple deposit and withdrawal of
money to the issue of loans, credit cards etc.
Foreign Exchange services Includes currency exchange,
foreign exchange banking or the wire transfer.
Investment Services: It generally includes the asset
management, hedge fund management and the custody
services.
Insurance Services: It deals with the selling of insurance
policies, brokerages, insurance underwriting or the
reinsurance.
8. MEANING:
financial Instruments can be defined as
a market for short-term money and
financial assets that is a substitute for
money. The term short-term means
generally a period of one year substitutes
for money is used to denote any financial
asset which can be quickly converted into
money.
9. Call /Notice-Money is the money borrowed on
demand for a very short period. When money is lent
for a day it is known as Call Money.
Term Money deposits with maturity period beyond
14 days is referred as the term money.
Treasury Bills are short-term (up to one year)
borrowing instruments of the union government.
Certificate of Deposits is a money market
instrument issued in dematerialised form or as a
Promissory Note for funds deposited at a bank, other
eligible financial institution for a specified period.
Commercial Paper is a note in evidence of the debt
obligation of the issuer.
10. Capital market is an organised market
which provides long-term finance for
business.
Corporate Securities Market
Government Securities Market
Long-Term Loans Market.
Money market is the market for short-term
funds.
Unorganized Market.
Organized Money Market
11. Indian Financial System aids in increasing the
national output of the country by providing funds
to corporate customers to expand their
respective business. It helps economic
development and raising the standard of living of
people and promotes the development of weaker
section of the society through rural development
banks and co-operative societies. These are the
important facts about Indian Financial system.
13. It such as:
Payback Period.
Discounted Payback Period.
Net Present Value.
Accounting Rate of Return.
Internal Rate of Return.
Profitability Index.
14. Decisions are based on cash flow not
accounting income
Timing of cash flow
Opportunity cost should be considered
Cash flow should be adjusted for taxes
Financing Costs Should be Ignored
15. Payback period in capital budgeting
refers to the period of time required to
recoup the funds expended in an
investment, or to reach the break-even
point
The payback period is the length of time
required to recover the cost of an
investment.
16. Payback Period = Investment Required/Net
Annual Cash Inflow
Payback Period = Number of years prior to full
recovery of investment + Unrecovered cost at
start of year/Cash flow during full recovery
year
17. discounted cash flow (DCF) analysis is
a method of valuing a project, company, or
asset using the concepts of the time value
of money. All future cash flows are
estimated and discounted by using cost of
capital to give their present values (PVs).
18. It was assumed that those investment
proposals did not involve any kind of risk,
i.e., whatever the proposal is undertaken,
there would not be any change in the
business risk which are apprehended by
the suppliers of capital.
decisions are taken on the basis of forecast
which again depends on future events
whose happenings cannot be
anticipated/predicted with absolute
cer-tainly due to some factors.
19. It can be a conflict between the two
methods because of implicit assumptions
with respect to reinvestment of cash
flows.The NPV method is based on the
assumption that all cash inflows are
reinvested at a rate equal to the cost of
capital (or whatever discount rate is
chosen as the cut-off rate).
20. The rate of return on investment,
defined by equations (1) and (2) above,
goes by the name, margi-nal efficiency of
capital or internal rate of return. These two
concepts are identical only for a uniform
series of cash flows. However, it is very
difficult to apply these concepts in practice
because the solution for r depends on both
the amounts and the timings of the cash
flows, both of which are estimates.
21. The decision maker must specify at the outset
the degree of risk in a particular investment
decision. If the risk exceeds the risk of an
„average‟ invest-ment, a risk premium has to be
added into the „average‟ discount rate. This risk-
adjusted discount rate is to be used to calculate
net present values. It follows quite logically that
investments with less than the average risk are
discounted at lower rates.
22. The probability distribution approach is
slightly better than the previous two methods. It
calculates an NPV amount for each possible
outcome related to an investment.
Assume that these periods are possible with
the following probabili-ties:
(1) two year, p = .2,
(2) three years, p = .5; and four years, p = .3.
24. Working capital is the life blood of the
business funds required for the purchase
of raw materials payement of wages and
other day to day expenses are known as
working capital.
It is part of the firms capital which is used
for financing shortterm operations.hence
it is also known as circulating capital or
shortterm capital
25. “Any acquisition of fund which the
current asset increases working capital
for they are one and the same”.
-Bonne ville
26. Working capital means excess of current
asset over current liabilities
Funds invested in current asset is known
as “GROSS WORKING CAPITAL”.
The difference between current asset
and current liabilities is known as “NET
WORKING CAPITAL”
27. There are 2 components of
working capital namely
*** PERMANENT ( OR) FIXED WC
***TEMPORARY (OR) VARIABLE WC
28. It is a minimum amount of current assets
required for conducting a business
operations
This capital will remain permanent in
current assets and should be financed out
of long-term funds the amount varies
from year to year depending upon the
growth of the company
29. It is a amount of additional current assets
required for a short period
It is needed to meet the seasonal
demands at different time during the
year
The capital can be temporary and should
be financed out of short term funds
The wc starts decreasing when the peak
season is over
30. Nature of business
Credit policies
Manufacturing process
Changes in technology
Rapidity of turnover
Business cycle
Seasonal variations
Fluctuation of supply
Dividend policy
31. Working capital depends upon the nature
of business.
service oriented concern like
electricity,water supplies,need limited
working capital.
whereasvthe manufacturing concerns
required sufficient wc.
since they have to maintain stocks and
debtors
32. A company allows credit to its customer
shall need more amount of working capital
like wise a company enjoying credit
facilities from its supplieries will need
lower amount of wc.
33. Manufacturing process involves
convention of raw materials
intoinfluencing wc requirement finished
product.
Longer the proces higher the
requirement of wc. Therefore the length
of manufacturing period is one of the
factor
34. Changes in technology affect the
requirement of wc
If the firm adopt labour intensive process
it requires more working capital
If the firm adopt automation then it
improves the raw material processing
reducing the wastages and make fast
production hence the requirement of wc
is less
35. High rate of turnover requires low
amount of wc and lower and slow moving
stocks needs a larger wc
Examples- jewellary shop have to
maintain different types of jewellary
which requires high wc but high moving
grossary shop requires low wc
36. Change in a economy also influences the
wc. when a business prosperous with
requires huge amount of capital also
during depression huge amount of wc
required for unsold stock and
uncollected debtors.
37. Industries which are manufacturing and
selling goods seasonally requires large
amount of wc during the season.
38. Firms have to maintain large reserves of
raw in stores to avoid unintrupted
production reqired large amount of wc
39. If a conservative dividend policy is
followed by an management the needs for
wc can be met with the retained earnings it
consequently drains of large amount of wc
40. Adequate wc make possible to receive
cash discount from the suppliers which
reduce the purchase price
It creates and maintains the goodwill of
the firm
It provides facilities to meet the crises
during the depression period
It enable the credit worthyness of the
business
41. • It ensures regular supply of raw material and
continueous production
• It increases the morale of employees and their
efficiency
• It can create favourable market condition by
purchasing material in bulk
• Materials in bulk when prizes are lower hold the
stock to realized better prize
• It generate high rate of return by using effictive
utilisation of fixed assests
• It enables the firms to pay regular dividend
42. Every bussiness firm should maintains an
adequate wc.it should be neither excess
nor inadequate however out of the 2
inadequate is more dangerous
43. It result in intruption of production which
leads to increase in cost and reduction in
profit
It leads to borrow loans at high rate of
interest
The firm cannot buy the raw materials in
bulk order and cannot take the advantages
of cash discount
It may failed to pay dividend because of
non-availability of funds
It leads to liquidation because of low
liquidity position
It leads to under utilisation of fixed assests
,thus the rate of return on investments falls
44. It results in idle funds which earns no
profit
It makes an imbalance between liquidity
and profitability
It leads to more production then the
demand
It indicates excessive debtors and
incidence of bad debts
It may tempt to over trade and lose hevily