MANAGEMENT OF WORKING CAPITAL 1. Meaning and Types of Finance: Finance - Finance is the Art & Science of Managing Money - Finance is the Art of passing currency from hand to hand until it finally disappears Types & Sources of Finance ____________________________________________________________ ________ Long Term Sources of Finance - Finance required to meet Capital Expenditure - Also, known as Fixed Capital Finance Short Term Sources of Finance - Finance required to meet day-to-day
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proposed expansion program. Although management has outlined the available financing sources such as cash flows from operations, available cash on hand, and availability of credit facilities, these sources of financing, primarily the cash flows from operations, might be needed to pay the short term liabilities as they come due. Based on the company’s liquidity ratios, current assets are not sufficient in order to pay off current liabilities. Therefore, management needs to explore the additional financing
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proposed expansion program. Although management has outlined the available financing sources such as cash flows from operations, available cash on hand, and availability of credit facilities, these sources of financing, primarily the cash flows from operations, might be needed to pay the short term liabilities as they come due. Based on the company’s liquidity ratios, current assets are not sufficient in order to pay off current liabilities. Therefore, management needs to explore the additional financing
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Project Report - Working Capital Management WORKING CAPITAL - Meaning of Working Capital [pic][pic][pic][pic][pic]Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building
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CHAPTER – 1 INTRODUCTION 1. INDUSTRY PROFILE Technology generation in the Indian tyre industry has witnessed a fair amount of expertise and versatility to absorb, adapt and modify international technology to suit Indian conditions. This is reflected in the swift technology progression from cotton (reinforcement) carcass to high-performance radial tyres in a span of four decades. Globalization has led to the linking of the economies of all the nations and therefore major Indian players in the
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division is responsible for delivering industrial utilities to the various petrochemical plants which are operative in Kertih, Terengganu and Gebeng, Pahang. Lastly, the fourth division provides expert technical services in engineering and project management for PGB and other bodies operated within the Petronas group of companies. In 2012, Liquefied Natural Gas (LNG) Regasification Division was formed which plays the role of supervising and operation of engineering, construction and commissioning
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Current assets and current liabilities include three accounts which are of special importance. These accounts represent the areas of the business where managers have the most direct impact: accounts receivable (current asset) inventory (current assets), and accounts payable (current liability) The current portion of debt (payable within 12 months) is critical, because it represents a short-term claim to current assets and is often secured by long term assets. Common types of short-term
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infrastructure projects c. Making loans; arranging payments d. Collecting deposits;; arranging payments 3. What is money creation? a. The process by which a bank transforms the assets of depositors into a new asset with very different characteristics b. The process by which additional assets are created through effectively loaning a deposit multiple times through fractional reserve banking. c. The process by which a bank lends to Central Bank. d. The process by which
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Financial Institutions Center Derivatives and Corporate Risk Management: Participation and Volume Decisions in the Insurance Industry by J. David Cummins Richard D. Phillips Stephen D. Smith 98-19 THE WHARTON FINANCIAL INSTITUTIONS CENTER The Wharton Financial Institutions Center provides a multi-disciplinary research approach to the problems and opportunities facing the financial services industry in its search for competitive excellence. The Center's research focuses on the issues related
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aspects such as financial health, profitability and operational efficiency of the undertaking. Ratio points out the operating efficiency of the firm i.e. whether the management has utilized the firm’s assets correctly, to increase the investor’s wealth. It ensures a fair return to its owners and secures optimum utilization of firms assets • It helps in inter-firm comparison: Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position
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