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Service 04 · Working Capital Advisory

Sales are growing. Cash is always tight. The two should not coexist.

And when they do, the gap has a specific location.

It is not a funding problem. It is a speed problem. Cash is moving too slowly through one or more of three stages — inventory, receivables, or payables.

The Cash Conversion Cycle measures exactly where, by how many days, and what releasing each day of delay is worth in rupees.

A Speed Problem, Not A Funding Problem

The next bank limit is rarely the answer.

Growing businesses reach for additional working capital limits when cash tightens — and they typically get them, because the numbers on paper support it. But the additional limit is servicing a cycle, not fixing it.

When the underlying cash conversion cycle is measured, the gap has a specific location, a specific number of days, and a specific rupee value. That value can be released from within the business — without adding a single rupee of bank borrowing.

The Concept

Three numbers that explain your entire cash position.

DSO. DIO. DPO. Every rupee of your working capital pressure sits in one of these three. Each is measurable from your data. Each has a rupee value attached to every day of movement.

DSO

Debtor Days.

How many days on average does it take for export proceeds to reach your account after shipment? Every day above your target DSO is cash sitting with your buyer instead of in your working capital cycle.

For a ₹100 crore exporter, reducing DSO by 10 days frees ₹2.7 crore of working capital — without a single additional rupee of bank limit.
DIO

Inventory Days.

How many days does raw material, work-in-progress, and finished goods sit before it moves? Slow inventory is silent interest cost — funded by packing credit at 7 to 8% per annum, sitting in a warehouse.

Every day of inventory reduction is a day of interest saved and a day of limit freed for the next order.
DPO

Payable Days.

How many days of credit are you receiving from suppliers — and are you using it fully without damaging the relationship? Structured payable terms, not delayed payments, extend DPO cleanly.

The difference between managed DPO and unmanaged payables is supply reliability on one side and working capital pressure on the other.
The Working Capital Formula

One formula. Every rupee accounted for.

Working Capital Need = DSO + DIO DPO

Reduce DSO by 5 days. Reduce DIO by 5 days. Extend DPO by 5 days. That is 15 days of cycle improvement.

On a ₹100 crore business, that is ₹4.1 crore of working capital released — permanently, from operations — not from an additional bank limit.

−5 Days
DSO Reduction
−5 Days
DIO Reduction
+5 Days
DPO Extension
₹4.1 Cr
Released
The Approach

A sequenced process. Not a disruption.

CCC optimisation carries a reputation for being a long, complex, disruptive exercise. In practice it is neither. It is a sequenced, data-driven process with measurable outcomes at every stage.

1 STEP ONE — MAP

The current cycle, calculated from your actual data.

We start by mapping the current cycle — DSO, DIO, and DPO calculated from your actual data, not assumptions.

That mapping identifies where the largest days are sitting and what the rupee value of improvement is. No restructuring. No disruption. Just clarity on where the opportunity is.

2 STEP TWO — MOVE

One lever at a time. Monitored at every step.

Changes are introduced gradually — one lever at a time, with monitoring at every step to track the impact on liquidity and operations before the next change is made.

The objective is not a one-time improvement. It is a consistently improving cycle, measured and reported monthly.

Working Capital Dashboard — Sample
Live cycle, one view.
DSO
62 days
Target: 55  ·  ▼ 4 vs. last month
DIO
48 days
Target: 40  ·  ▼ 3 vs. last month
DPO
32 days
Target: 38  ·  ▲ 2 vs. last month
Cash Released YTD
₹1.8 Cr
From cycle improvement
The Data Layer

Power BI dashboards. No Excel preparation.

Every CCC engagement is supported by Power BI dashboards that track DSO, DIO, and DPO movement over time — alongside working capital gap, bank limit utilisation, and interest cost trend.

The board or finance head sees the improvement as it happens, in one view, without Excel preparation.

This is the difference between advisory that produces a report and advisory that produces a measurable, visible result — month by month.

Where We Start

A single mapping session. Nothing changes until the opportunity is agreed.

Your last 12 months of data, your current DSO, DIO, and DPO calculated precisely, and the rupee value of a realistic improvement in each. That is the output of the first engagement.

No commitment to change anything until the map is clear and the opportunity is agreed.

Working capital released from within the business is permanent. It carries no interest cost. It requires no bank sanction. It is the cleanest form of capital there is.

Book a 30-minute diagnostic call. See your ten-day number.

We calculate your current CCC from your data and show you what a 10-day improvement is worth in your specific case — no pitch, no package, no commitment.