1. PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA
COURSE BREAK UP
Name of Instructor: Ms. Sheenu Gupta Subject Name: Banking and Working Capital
Ms. Shilpa Jain Subject Code: BB-605
COURSE 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
business
LEARNING 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 shortfall
COURSE TOPICS
• Working Capital Management
• Cash Management System
• Credit Management
• Inventory Management
TEXTBOOKS
• Towards Better Working Capital Management Gopala Krishna Murthy
• Working Capital Management N.p. Agarwal; B.k. Mishra
• Working Capital Management: Strategies And Techniques Bhattacharya Hrishikes
BREAK UP OF INTERNAL ASSESSMENT
BREAK UP WEIGHTAGE
MSE’s 15
Presentation 5
Assignments (2) 10 ( 5 each)
Tests (2) 10 (5 each)
TOTAL 40
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2. ASSIGNMENT
ASSIGNMENTS
A1 Select any company (Local, National or International)
and draw the Working capital cycle of the company
A2 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.
TESTS
TESTS
T1 First 25% of the total course
T2 First 50% of the total course
SOME 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 class
ACTIVITY
• 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. 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 Economy
LECTURE BREAK UP
LECTURE TOPICS TEST
WORKING CAPITAL MANAGEMENT
1. • Meaning
• Concept
• Kinds of working capital
2. • Importance of Working Capital Announcement of
• Factors determining the A-1
working capital requirement
3

4. 3. • Management of working
capital
• Forecast/estimate of working
capital requirements.
• Percentage of sales method
4. • Regression analysis method
5 • Cash Forecasting method
6 • Operating cycle method
7 • Projected Balance sheet
method
8 Case Study-1 Case Study-1 Case Study-1
9 • Approaches to estimation of
working capital, total and cash
cost approach
10 • Financing of working capital
11 • Determining the working
capital financing mix
12 • Zero working capital approach Collection of A-1
• New trends in financing
working capital by banks
13 Test-1
CASH MANAGEMENT SYSTEM
14 • Nature of cash
• Motives of cash
15 • Cash Management
16 • Determining optimum Cash
Balance
17 • Practical Problems
18 • Practical Problems
19 • Practical Problems
20 • Cash Management Models
• William J. Baumol’s Model
21 • Miller and Orr Model
22 • Investments of Surplus Funds
23 Case Study-2 Case Study-2 Case Study-2
CREDIT MANAGEMENT
24 • Meaning of receivable Announcement of
• Costs of maintaining the A-2
receivables
25 • Factors influencing the size of
receivables
26 • Forecasting the receivables
27 • Meaning and objectives of
Receivable Management
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5. 28 • Dimensions of receivable
management
29 • Factoring and Receivables
Management
30 • Practical Problems
31 • Practical Problems Collection of A-2
32 Case Study -3 Case-Study-3 Case Study-3
INVENTORY MANAGEMENT
33 • 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 levels
36 • Determination of Stock levels
(Contd)
37 • EOQ
38 • VED analysis
• Inventory Turnover Ratios
• Aging Schedule
39 • Classification and codification
of inventories
• Inventory Reports
• Lead time
40 • Perpetual Inventory system
41 • JIT
42 • FIFO
43 • LIFO
44 • Average Cost
45 • Base Stock price
• Standard Price stock
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