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Financial Management Hinglish Notes

The document provides detailed notes on financial management, focusing on key areas such as working capital management, receivables management, cash management, and inventory management. It outlines definitions, objectives, types, and techniques for each area, emphasizing the importance of efficient management for liquidity and profitability. Additionally, it discusses costs associated with receivables and methods for maintaining optimal inventory levels.

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chhavi1214bms
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7 views4 pages

Financial Management Hinglish Notes

The document provides detailed notes on financial management, focusing on key areas such as working capital management, receivables management, cash management, and inventory management. It outlines definitions, objectives, types, and techniques for each area, emphasizing the importance of efficient management for liquidity and profitability. Additionally, it discusses costs associated with receivables and methods for maintaining optimal inventory levels.

Uploaded by

chhavi1214bms
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financial Management - Detailed Notes (Hinglish)

1) Working Capital Management

Working Capital Management ka matlab hota hai firm ke current assets aur current liabilities ka efficient

management. Ye ensure karta hai ki business ke daily operations smoothly chal sakein aur liquidity risk na

ho.

Meaning:

Working Capital = Current Assets - Current Liabilities

Current Assets: Cash, Inventory, Debtors, Bills receivable, etc.

Current Liabilities: Creditors, Bills payable, Short-term loans

Types:

- Gross Working Capital: Total current assets

- Net Working Capital: Current Assets - Current Liabilities

Objectives:

- Firm ki liquidity aur solvency ensure karna

- Operating efficiency badhana

- Risk aur return ke beech balance banana

- Business continuity ensure karna

Importance:

- Daily transactions jaise salary, rent, purchases ke liye cash hona chahiye

- Agar working capital zyada hai to liquidity toh acchi hai, lekin returns kam ho jaate hain

- Kam working capital se firm profitable ho sakti hai, lekin risk zyada hota hai

Approaches:

1. Conservative - Risk kam, cost zyada

2. Aggressive - Risk zyada, cost kam

3. Hedging - Asset ki maturity ke according financing


Financial Management - Detailed Notes (Hinglish)

2) Receivables Management

Receivables Management ka matlab hai customers se udhaar beche gaye maal ka paisa timely aur

effectively recover karna.

Objectives:

- Credit sales badhakar customer loyalty develop karna

- Time par payment lena

- Bad debts se bachna

Credit Policy:

- Kisko, kitne dino aur kitna credit dena hai

Cash Discount:

- Example: 2/10 net 30 - early payment par discount

Debtors Outstanding:

- Customers se kitna paisa lena hai

Ageing Analysis:

- Receivables ko unki age ke basis par classify kiya jaata hai

Effective receivables management liquidity aur profitability dono ke liye important hai.

3) Costs of Receivables

1. Collection Cost:

- Reminder letters, follow-up calls, admin staff cost

2. Default Cost:
Financial Management - Detailed Notes (Hinglish)

- Jab customer paisa hi nahi deta, bad debt loss

3. Delinquency Cost:

- Late payment se interest loss, cash flow problem

In costs ko control karna zaroori hai taaki receivables efficient banein.

4) Management of Cash

Cash management ka matlab hai ki firm ke paas operational needs ke liye hamesha sufficient cash ho.

Need for Cash:

- Daily expenses, emergencies, opportunities

Objectives:

- Shortage aur idle cash dono se bachna

Techniques:

1. Lock-Box System - Fast processing of customer payments

2. Concentration Banking - Multiple accounts se central account mein fund transfer

Cash flow forecasting, surplus investment bhi cash management ke important tools hain.

5) Inventory Management

Inventory management ka goal hota hai optimum inventory level maintain karna.

ABC Analysis:

- A: High value, tight control

- B: Medium control
Financial Management - Detailed Notes (Hinglish)

- C: Loose control

Inventory Levels:

- Minimum, Maximum, Reorder, Safety Stock

EOQ (Economic Order Quantity):

- Optimum order size jisse cost minimize ho

Formula:

EOQ = sqrt((2 * D * O) / H)

Effective inventory control production smooth rakhta hai aur cost reduce karta hai.

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