Current Asset Management
current-asset-management-2
Syllabus
Faculty: Dr.Susanta Kumar Mishra
• The students will be able to have a basic understanding regarding the sources of Current Assets.
• Understand how proper management of Current Assets can increase the profits of a Company.
• Have an understanding of the various Current Asset management policies
• Calculate the cash conversion cycle
• Establish knowledge of working capital in the budgeting process and credit policy
Module-I
Concept & Significance
Concept of Current Asset Management, Significance , Determinants of working capital, Operating cycle, Estimation of working capital, Risk-return trade-off of working capital, Working capital policies: Current asset policy and financing policy, Working capital financing,
Module -II
Inventory management:
meaning, Tools and technique of inventory management, EOQ, Various levels of inventory, inventory control (ABC and VED analysis);
Module- III
Cash Management
Cash management: Meaning, Objectives/Motives of holding cash, Determinants of cash needs and method for determining cash needs (Baumol Model and Miller-Orr Model).
Module-IV
Receivables management:
credit policy variables, evaluation of alternative receivable policy, collection policy, cost of receivables,
Suggested Books:
1. I M Pandey-Financial Management-Vikash
2. Prasanna Chandra- Financial Management-TMH
3. Khan and Jain-Financial Management-TMH
4. Sudhindra Bhatt- Financial Management-Excel
Introduction to Current Assets, Concept of Current Asset Management , Significance of Working Capital
Introduction and Concepts-converted
https://youtu.be/hV2f6Ujv9zY
Determinants of Working Capital,Significance of Working Capital
Determinants of Working Capital-converted
https://www.youtu.be/CuYN32IAWn0
Operating Cycle,Estimating working Capital Requirement through Operating Cycle
Computation of Working Capital-converted
https://youtu.be/o2mUyzHfA_Q
Various Policies of Working Capital,Aggressive Policy,Conservative Policy,Matching Policy
https://youtu.be/yj-XblabmFE
Working Capital Financing: Banking Norms for Working Capital Financing
https://youtu.be/v8mVEZwZvtU
Working Capital Finance-converted
Tandon Committee, Chore Committee and Dahejia Committee report on Working Capital Financing to Corporates in India
https://youtu.be/0cwhYK4NL.5w
Maximum permissible Bank Finance on financing working capital as per Tandon Committee
https://youtu.be/EMOz2THGRjk
Inventory Management:Meaning,Types of Inventory,Slow moving inventory and Obsolete items
Inventory Management-converted
https://www.youtu.be/2n9NLZTllz8
Techniques of Inventory Management:LIFO ,FIFO,HIFO Method
https://youtu.be/84NaR45MWe4
Economic Ordering Quantity,Ordering Level,Re-Order Level,Safety Stock
https://youtu.be/vMSARPybFxg
Inventory Control Techniques: ABC Analysis and VED Analysis
https://youtu.be/vMSARPybFxg
Cash Management:Meaning of Cash Management,Effective Cash Management
Management of Cash-converted
https://youtu.be/1SuHHul13nY
Objectives and Motives of Holding Cash
https://youtu.be/L6AnyogzlfM
Determinants of Cash Needs,Methods of Determining Cash Needs
https://youtu.be/L6AnyogzlfM
Importance of Cash Budget ,Preparation of Cash Budget
Cash Management (Cash Budget)-converted (1)
https://youtu.be/Wrrm0ewgbyu
Models of Cash Management
https://youtu.be/2A0UkOYPbRc
Receivables Management: Meaning and Methods
https://youtu.be/lQizMVZPGog
Credit Policy Variables
https://youtu.be/lQizMVZPGog
Evaluation of Alternative Receivables Policy
https://youtu.be/_TfNfX5Q3rE
Collection Policy and Cost of Receivables
https://youtu.be/_TfNfX5Q3rE
Students must look into the Annual Report of ITC attached herewith.
i.They have to look into the Current Assets and Current Liabilities position of the Company and find out the ratios relevant to Working Capital.
ii.They should go to the notes on accounts (which are numbers given against the items of assets and liabilities ) and verify these for last five years to find out the changes in them .
iii.They should analyze the Changes in working Capital on the Profitability of the Company.
iv.They should Compare these with that of any other Company of Similar nature.
vi.Students can log into the site http://www.annualreports.com/Company/bce-inc where they can find 72,000 annual reports of 5,800 Companies.
ITC-Report-and-Accounts-2019
http://www.annualreports.com/Company/bce-inc
Students must look into the Annual Report of Infosys attached herewith.
I.They have to look into the Current Assets and Current Liabilities position of the Company and find out the ratios relevant to Working Capital for last five years.
II.It is interesting to note that Infosys don’t have any long-term loans over last few years and they have very less short-term loans. Students should go to the notes on accounts (which are numbers given against the items of assets and liabilities ) and verify these for last five years to find out the changes in them .
III.Students should analyze the changes in working capital and should prepare a report how it affects their profitability and turnover.
IV.Students have to prepare a report on how the Current Assets and Liabilities position of an IT Company (which is a service provider company) is different from that of an FMCG Company.
V. They should Compare these with that of any other Company of Similar nature.
VI.Students can log into the site http://www.annualreports.com/Company/bce-inc where they can find 72,000 annual reports of 5,800 Companies.
infosys-ar-19
http://www.annualreports.com/Company/bce-inc
Studying the Inventory Management System of any Organisation(e.g.UMBC or GTET and suggesting changes required if any to improve profitability)
A Case Study on Inventory Management by using Economic Ordering Quantity Model of XYZ Ltd.
doc
Comparing Reports of Various Committees relating to Working Capital Finance(Tandon Committee, Chore Committee and Dahejia Committee ) and analysing these reports.
Assignment on finding the Maximum Permissible Bank Finance as per the Various Methods.
Assignment on LIFO,FIFO,HIFO and Weighted Average Method
Code(Credit) : CUFM-2355
(2-1-1)
Course Name : Current Asset Management
Course Objectives
- This course provides an understanding on how to manage Current Assets, working capital financing policies, increasing profits through working capital management and how to properly fund working capital
- The course also discusses the cash conversion cycle, Cash budgeting and credit policy and credit variables.
- Students are expected to be familiar with the Current Asset Management policy of any
Organization
. They are expected to get hands on experience on any
Organization
.
Learning Outcomes
• The students will be able to have a basic understanding regarding the sources of Current Assets.
• Understand how proper management of Current Assets can increase the profits of a Company.
• Have an understanding of the various Current Asset management policies
• Calculate the cash conversion cycle
• Establish knowledge of working capital in the budgeting process and credit policy
Course Syllabus
Module-I
Concept & Significance
Concept of Current Asset Management, Significance , Determinants of working capital, Operating cycle, Estimation of working capital, Risk-return trade-off of working capital, Working capital policies: Current asset policy and financing policy, Working capital financing,
Module -II
Inventory management:
meaning, Tools and technique of inventory management, EOQ, Various levels of inventory, inventory control (ABC and VED analysis);
Module- III
Cash Management
Cash management: Meaning, Objectives/Motives of holding cash, Determinants of cash needs and method for determining cash needs (Baumol Model and Miller-Orr Model).
Module-IV
Receivables management:
credit policy variables, evaluation of alternative receivable policy, collection policy, cost of receivables,
Suggested Books:
1. I M Pandey-Financial Management-Vikash
2. Prasanna Chandra- Financial Management-TMH
3. Khan and Jain-Financial Management-TMH
4. Sudhindra Bhatt- Financial Management-Excel
Session Plan
Session 1
Introduction to Current Assets, Concept of Current Asset Management , Significance of Working Capital
Introduction and Concepts-converted
https://youtu.be/hV2f6Ujv9zY
Session 2
Determinants of Working Capital,Significance of Working Capital
Determinants of Working Capital-converted
https://www.youtu.be/CuYN32IAWn0
Session 3
Operating Cycle,Estimating working Capital Requirement through Operating Cycle
Computation of Working Capital-converted
https://youtu.be/o2mUyzHfA_Q
Session 4
Various Policies of Working Capital,Aggressive Policy,Conservative Policy,Matching Policy
https://youtu.be/yj-XblabmFE
Session 5
Working Capital Financing: Banking Norms for Working Capital Financing
https://youtu.be/v8mVEZwZvtU
Working Capital Finance-converted
Session 6
Tandon Committee, Chore Committee and Dahejia Committee report on Working Capital Financing to Corporates in India
https://youtu.be/0cwhYK4NL.5w
Session 7
Maximum permissible Bank Finance on financing working capital as per Tandon Committee
https://youtu.be/EMOz2THGRjk
Session 8
Inventory Management:Meaning,Types of Inventory,Slow moving inventory and Obsolete items
Inventory Management-converted
https://www.youtu.be/2n9NLZTllz8
Session 9
Techniques of Inventory Management:LIFO ,FIFO,HIFO Method
https://youtu.be/84NaR45MWe4
Session 10
Economic Ordering Quantity,Ordering Level,Re-Order Level,Safety Stock
https://youtu.be/vMSARPybFxg
Session 11
Inventory Control Techniques: ABC Analysis and VED Analysis
https://youtu.be/vMSARPybFxg
Session 12
Cash Management:Meaning of Cash Management,Effective Cash Management
Management of Cash-converted
https://youtu.be/1SuHHul13nY
Session 13
Objectives and Motives of Holding Cash
https://youtu.be/L6AnyogzlfM
Session 14
Determinants of Cash Needs,Methods of Determining Cash Needs
https://youtu.be/L6AnyogzlfM
Session 15
Importance of Cash Budget ,Preparation of Cash Budget
Cash Management (Cash Budget)-converted (1)
https://youtu.be/Wrrm0ewgbyu
Session 16
Models of Cash Management
https://youtu.be/2A0UkOYPbRc
Session 17
Receivables Management: Meaning and Methods
https://youtu.be/lQizMVZPGog
Session 18
Credit Policy Variables
https://youtu.be/lQizMVZPGog
Session 19
Evaluation of Alternative Receivables Policy
https://youtu.be/_TfNfX5Q3rE
Session 20
Collection Policy and Cost of Receivables
https://youtu.be/_TfNfX5Q3rE
Case Study on ITC
Students must look into the Annual Report of ITC attached herewith.
i.They have to look into the Current Assets and Current Liabilities position of the Company and find out the ratios relevant to Working Capital.
ii.They should go to the notes on accounts (which are numbers given against the items of assets and liabilities ) and verify these for last five years to find out the changes in them .
iii.They should analyze the Changes in working Capital on the Profitability of the Company.
iv.They should Compare these with that of any other Company of Similar nature.
vi.Students can log into the site http://www.annualreports.com/Company/bce-inc where they can find 72,000 annual reports of 5,800 Companies.
ITC-Report-and-Accounts-2019
http://www.annualreports.com/Company/bce-inc
Case Study on Infosys
Students must look into the Annual Report of Infosys attached herewith.
I.They have to look into the Current Assets and Current Liabilities position of the Company and find out the ratios relevant to Working Capital for last five years.
II.It is interesting to note that Infosys don’t have any long-term loans over last few years and they have very less short-term loans. Students should go to the notes on accounts (which are numbers given against the items of assets and liabilities ) and verify these for last five years to find out the changes in them .
III.Students should analyze the changes in working capital and should prepare a report how it affects their profitability and turnover.
IV.Students have to prepare a report on how the Current Assets and Liabilities position of an IT Company (which is a service provider company) is different from that of an FMCG Company.
V. They should Compare these with that of any other Company of Similar nature.
VI.Students can log into the site http://www.annualreports.com/Company/bce-inc where they can find 72,000 annual reports of 5,800 Companies.
infosys-ar-19
http://www.annualreports.com/Company/bce-inc
Case Study
Studying the Inventory Management System of any Organisation(e.g.UMBC or GTET and suggesting changes required if any to improve profitability)
Case Study on Inventory Management
A Case Study on Inventory Management by using Economic Ordering Quantity Model of XYZ Ltd.
doc
Assignment
Comparing Reports of Various Committees relating to Working Capital Finance(Tandon Committee, Chore Committee and Dahejia Committee ) and analysing these reports.
Assignment
Assignment on finding the Maximum Permissible Bank Finance as per the Various Methods.
Assignment
Assignment on LIFO,FIFO,HIFO and Weighted Average Method
Course Materials
- Introduction and Concepts-converted
- Determinants of Working Capital
- Computation of Working Capital-converted
- Working Capital Finance-converted
- Inventory Management-converted
- Management of Cash-converted
- Cash Management (Cash Budget)-converted (1)
- doc
- ITC-Report-and-Accounts-2019
- infosys-ar-19
- Determinants of Working Capital-converted
Session plan & materials
No materials published yet.