Working Capital Style

WORKING CAPITAL STYLE IN INDIA CONSERVATIVE form _or_ system of government AND bellicose POLICY The working capital management style adopted in India is both conservative and aggressive. In most of the manufacture they nonplus a few(prenominal)er amounts of on-line(prenominal) assets and more amount of fixed assets. This ensures advantageousness but at the same time when the current assets be less current liabilities may not be met with this. untold(prenominal) style is followed in industry like automobile industry. Whereas in the case of industry like some sensitive industry conservative form _or_ system of government is adopted which is opposite of aggressive policy. optimum INVENTORY: Every firm likes to keep inventory in stores for the least possible days. In India such policy is achieved by the use of inventory management technique like ripe In Time, Supply Chain Mnangement etc. In India much stress is given to convert the inventory in the production. egotism COLLECTION POLICY/AGENCY OR DEALERSHIP governing body: In India the policies followed for debtors are generally the self collection policy where the company itself collects the amount from its debtors. The other forms to manage debtors is also the discounting of such debtors through bills receivable. In various companies the system followed is Agency, Franchise or the Dealership system.

In this system the boldness transfers its equitables to debtors and receive flying salary and the dealer later on sells the goods and collect payment from customer. DISTRIBUTED CASH MANAGEMENT SYSTEM: For managing cash most of the organization in India follows distributed cash management system where every showtime has its own cash accounts and they manage these cash accounts. In India the centralized cash management system is followed in very few organization because of inadequate resources like in terms of good information and customer system. USE OF CREDIT DEFERRAL POLICY AS FINANCING ALTERNATIVE: In India for financing its current asset is done by various techniques like discounting of bills... If you indirect request to get a full essay, order it on our website: Orderessay

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