Sunday, 7 September 2014

Dishonesty is the best policy ....???

Those who accept dishonesty as dignified, and adopt it as their idea, fail to analyze the situation in a thorough enough manner. The truth is that money simply cannot be earned by dishonest means. Even when we do acquire some wealth temporarily, it cannot stay and really be ours. Ennobling livelihood can only be earned through courage, wisdom, discipline, dexterity, and skillfulness. Earning through dishonest  /  devious means leads to results that are not only unstable but are also demeaning and dishonesty invariably leads to public anger, outrage, hate , isolation, and sadness. In practice, deceit and corruption are sugar coated with a fake layer of honesty for it to work. Conning does require establishing trust and confidence. If any suspicion arises, the person being conned is likely to jump out of the trap. Once proven guilty, the conman loses credibility forever and ends up bearing more eventual losses than profits. There could be scores of everyday examples where people who are caught bribing, cheating , evading taxes, doing black marketing, and illegally hoarding not only get severely punished by the law but they also lose their social status and prestige. Once their deeds become public, everyone starts hating them. 

Wednesday, 3 September 2014

Importance of working capital management


It is a significant fact of financial management. Its important stems in two reasons;
- Investment in current assets represents a substantial portion of total investment
- Investment in current assets and the level of current liabilities have to be geared quickly to change in sales.

The importance of the working capital management is also reflected from the activities of financial managers who spend a great deal of time in managing current assets and current liabilities. Arranging short term financing, negotiating favorable credit terms, controlling the movement of cash, administering account receivable, and investing short term surplus funds consumes a great deal of time of financial manager. A business enterprise with ample working capital is always in a position to avail advantages of any favorable opportunity either to buy raw materials or to implement a special order or to wait for enhanced market status. No business can run effectively without a sufficient quantity of working capital. It is crucial to retain right level of working capital. Finance manager is required to decide the amount of accurate working capital. The overall success of the company depends upon its working capital position. So, it should be handled properly because it shows the efficiency and financial strength of company.
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