Description
"The 'Working Capital - Practical Aspects' course covers the procedural aspects and documents in working capital management, the interfaces with banks and the financial institutions and the decision points in the process. This course carries ahead the knowledge provided in the course on Theoretical aspects and identifies the guidelines and possible pitfalls in implementing the next stage in Working Capital credit monitoring.
After studying this module, the subscriber will be able to -
1. Demonstrate a command on the practical aspects of working capital management across the two stages of prior to and post disbursement.
2. Demonstrate competency in the use of language and terminology appropriate to Working Capital."
Ideally Meant For
This course is essential for any professional wishing to work in the banking and finance domain - be it someone currently working in the domain or someone wishing to be employed in the industry.
Why take this course
With the growing concern for NPA in banks, it is important to not only understand the concepts of working capital but also to the process through which companies avail of formal finance funding. This will be useful for the person working or seeking to work in a credit department of the financial institute.
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Course Objective
On completing this course, you will be able to,
- Demonstrate a command on the practical aspects of
working capital management across the two stages of
prior to and post disbursement.
- Demonstrate competency in the use of language and
terminology appropriate to Working Capital, and
- Explain your role in the management of accounts with
Working Capital in a more informed manner
1 The Sanction Process
On completing this chapter, you will be able to:
- Pre-sanction Documentation & Client assessment
- Documents to be obtained for credit assessment
- Check of limits /conduct of account with other lenders
- Functions / role of various documents at this stage
- Sanctioning authorities and delegation of powers of
sanction for approval of various limits and types of
facilities
2 Documentation
On completing this chapter, you will be able to:
- List & Samples of documents to be signed and executed
post sanction & pre-disbursement
- Role/Importance of each document
- Points to be noted while executing documentation,
stamping, corrections etc
3 Creation of Charge
On completing this chapter, you will be able to:
- Types of charge
- Charges requiring registration
- Title Search at ROC for details of prior charge
- Creation of charge, forms required, time stipulation,
ensuring proper priority
- Modification/ satisfaction of charge
- Ceding of charge
4 The Disbursement Process
On completing this chapter, you will be able to:
- Process flow for limit set up & disbursement
- Role of various officials & delegation of authority
- Safeguards & waivers / exceptions
5 Monitoring
On completing this chapter, you will be able to:
- CMA data
- Drawing power vs Limits sanctioned
- List of documents to be inspected
- Quarterly Information to be received, role of lead bank
and member banks etc
- Analysis of stock statements
- Analysis of Monthly SOD, Financial Follow up Reports.
What should these contain and how these are to be
cross verified
- Monitoring of quarterly results, monthly operational
data, filings with SEBI, stock exchanges, ROC, rating
agencies and suits filed by or against the company /
promoters
- Periodic plant visits for physical verification
- Monitoring Industry and competitor performance,
external factors such as taxes, duties and competition
from imports
- Interacting with other lenders to assess the performance
- Interacting with Investors, NBFC’s who have lent to the
company
- Stock Audit (added)
- End use monitoring (added)
6 Reporting
On completing this chapter, you will be able to:
- Lead bank role
- Sharing of information with other banks
- Reporting within the bank
- Reporting to RBI
7 Renewal/Enhancement of Facilties
On completing this chapter, you will be able to:
- Periodic renewal – format, documents needed, review
and sanction process
- Adhoc facilities- need, sanction process and
regularisation
- Overdrawings, reasons thereof and regularization of the
same
8 Irregularities
On completing this chapter, you will be able to:
- Facility wise Irregularities description & discussion
- Early warning signs and remedial action
- Reporting to RBI & other banks
- Overdrawings, reasons thereof and regularization of the
same
9 Suggested Reading
On completing this chapter, you will be able to:
- RBI Circulars
- List of RBI master circulars and links
- RBI benchmark rates, CRR, SLR and impact thereof on
pricing
- Non Performing Assets
- Prudential norms definition & discussion of NPA’s,
classification, income recognition, provisioning and
reporting
- Moving to Basel II and impact thereof
- Legal framework for recoveries and procedures
- Options available to address NPA’s
Assessment
