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In the broader contour of corporate financial Management, short term decisions are significant for effective functioning of the organization. Operating and financing decisions, on day to day basis, help create shareholders wealth through quick and proper flow of short term resources for optimizing its use and value generation.

Objectives:

This course on Working capital Management aims

a) To equip with the tools and techniques for analyzing routine, repetitive and yet complex short term business environment.
b) To explain how each managerial decision in operation shapes the financial position, the cash flow, and consequently, the profitability of the firm.
c) To illustrate how a sound working capital management can explain the difference between a financially distressed and profitable firm.
The pedagogy consists of lecturers, discussions, cases, exercises.

Books Recommended:

1. Working Capital Management – Strategies and Technique By – H. Bhattacharya,PHI
2. Working Capital Management – B. K. Bhalla , Anmol
3. Readings on the Management of Working Capital- K V Smith (A) West Publishing Co.
4. Advances in Working capital management Y H Kim (Ed , Readings ) Addison – Wesley
5. Working capital management and control – S.B.MATHUR – NEW AGE

Tentative session Plan:

( for PGDM students the coverage will be in 20 sessions)

S.No.	COVERAGE	No. of Sessions
1	Introduction to Working Capital and essential understanding of working capital management	1
2	Working Capital Management and Share holders’ wealth maximization. Distinction between WC and financial need for operation(FNO)	1
3	Working Capital Estimation Various methods of lending	2
4	Cash Flow Planning and Cash models &Cash Flow Analysis	1
5	Trade Credits- Main implications of investing in client’s financing and the reasons why firm decide to provide such financing & Risk involved therein.	1
6	Receivables Management: Policies and Decisions	1
7	Exercises on Receivables Management	1
8	Case Studies	2
9	NPV Approach to Receivables Decision and Monitoring and Control of Receivables	1
10	Project appraisal & working Capital	2
11	Factoring of Receivables ,Cost – Benefit Analysis	1
12	Inventory Management	1
13	Financing of Current Assets and Management of Accounts Payable	1
14	Short term Debt in financing the operating investment and various sources of short term financial Debt.	1
15	Role of working capital as a strategic tool and how they can be used to help improve firms’ competitive advantage	1
16	Project Presentation	2

Scheme of Evaluation:
Quiz – 10 %
Mid Term – 20 %
Project Presentation – 20%
End Term – 40 %
Classparticipation-10%
Total- 100%
Academic Integrity

For individual quizzes/End term, it is unethical to seek any direct help from others, whether or not you finally make use of the help. Discussions among individuals either in class-room or in the examination hall are completely forbidden. Those who will be identified disturbing in the class will be asked to leave the class immediately. Any form of copying from one another or from any outside source is forbidden. Any unfair means while writing the term Paper will be easily identified, and the respective student will be penalized in terms of lower score. No one is allowed to come to the class after the scheduled start time.