Advisory Service
Inventory & Working Capital Management
Unlock trapped capital, optimise stock levels, and strengthen liquidity — without disrupting your operations.
Working capital is the lifeblood of every operating business. Yet in many manufacturing organisations, crores of rupees remain locked in excess inventory, overdue receivables, and inefficient procurement cycles — silently eroding profitability and straining cash flow. The cost of this trapped capital is rarely visible in financial statements, but it directly impacts your ability to grow, invest, and compete.
Malay Biswas & Co. provides specialised inventory and working capital advisory services grounded in real industrial experience. Having managed inventory controlling and working capital optimisation at companies like Kesoram Industries, Emami Group, and Phoenix Conveyor Belt, our principal brings a practitioner's understanding of what drives working capital efficiency in manufacturing environments.
Our approach is systematic: we analyse your entire working capital cycle — from raw material procurement to finished goods dispatch, from customer invoicing to cash realisation — and identify specific, actionable levers to release trapped capital. Whether it's rationalising safety stock levels, improving receivables collection, or restructuring supplier payment terms, every recommendation is backed by data and calibrated to your operational constraints.
Key Highlights
- End-to-end working capital cycle analysis
- Inventory valuation & stock optimisation
- Receivables ageing & collection improvement
- GR/IR balance reconciliation & clearing
- Stock audit & physical verification support
- Working capital financing & bank reporting
What We Deliver
Service Deliverables
Working Capital Cycle Analysis
A complete mapping of your cash conversion cycle — inventory holding days, receivables collection period, and payables deferral period — with benchmarking against industry norms and identification of improvement levers.
Inventory Optimisation Report
Detailed analysis of raw material, WIP, and finished goods inventory including ABC classification, slow-moving and non-moving stock identification, reorder point calculation, and safety stock rationalisation recommendations.
Stock Audit & Reconciliation
Physical verification of inventory against book records, identification of discrepancies, obsolete stock provisioning recommendations, and process improvements to prevent future mismatches.
Receivables Management Report
Ageing analysis of trade receivables with customer-wise collection performance, overdue categorisation, provision adequacy assessment, and recommendations for credit policy improvements.
GR/IR & Vendor Reconciliation
Reconciliation of Goods Received/Invoice Received balances, identification of unmatched entries, clearing recommendations, and process controls to prevent GR/IR accumulation.
Working Capital Dashboard
A management-ready dashboard tracking inventory turnover, DSO (Days Sales Outstanding), DPO (Days Payable Outstanding), cash conversion cycle, and working capital-to-revenue ratios — updated monthly for leadership review.
Is This Relevant For You?
Who Needs This Service
Common Questions
Frequently Asked Questions
The cash conversion cycle (CCC) measures the time (in days) it takes for your business to convert inventory purchases into cash received from customers. It is calculated as: Inventory Days + Receivable Days − Payable Days. A shorter CCC means your capital is cycling faster, reducing borrowing needs and improving liquidity. We help identify specific levers to shorten each component of the cycle.
We follow Cost Accounting Standards (CAS) and the specific inventory valuation method most appropriate for your industry — whether FIFO, weighted average, or standard costing. The valuation covers raw materials, work-in-progress (at appropriate stage of completion), and finished goods (at full cost of production). We ensure consistency between cost records and financial statements.
Yes, that is precisely the goal. We use ABC analysis, consumption pattern analysis, and reorder point calculations to identify where stock can be reduced safely. We also review your procurement lead times, supplier reliability, and demand variability to set optimal safety stock levels — ensuring service levels are maintained while releasing excess capital.
GR/IR (Goods Received / Invoice Received) is an interim account in ERP systems that tracks the gap between receiving goods and receiving the corresponding invoice. It accumulates when goods receipts and invoices are not matched and cleared promptly — due to pricing differences, quantity discrepancies, or process delays. We identify and clear these balances and establish controls to prevent future accumulation.
Banks assess working capital loan limits based on your inventory and receivables levels, typically using the Tandon Committee norms or turnover method. Better working capital management — lower inventory days, faster receivables collection, cleaner stock records — directly improves your eligible drawing power and strengthens your credit profile with lenders.
Yes, we provide stock audit services including planning of physical verification, count supervision, reconciliation with book records, identification of discrepancies, and recommendations for process improvements. We can support both annual stock audits and periodic cycle counts.
Ready to Get Started?
Schedule a confidential consultation with our CMA practitioner. We'll review your requirements and provide a clear roadmap.