Cash Management

A STUDY ON CASH MANAGEMENT ON THE FLAVORS INDIA (P) LTD,PUDUCHERRY

SUMMER PROJECT REPORT

Submitted by

J.SAKTHIPRIYAREGISTER NO: 27348335

Under the Guidance of

MRS.R.HEMALATHA M.B.A.Faculty, Department Of Management Studies

In partial fulfilment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITY

PUDUCHERRY, INDIA

SEPTEMBER – 2007

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitle “A STUDY ON CASH

MANAGEMENT ON THE FLAVORS INDIA (P) LTD” is a bonafide work

done by J.SAKTHIPRIYA [REGISTER NO: 27348335] in partial fulfilment

of the requirement for the award of Master Of Business Administration by Pondicherry

University during the academic year 2007-2008.

GUIDE HEAD OF THE DEPARTMENT

Submitted for the viva – voice Examination held on

EXTERNAL EXAMINER12

TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

ACKNOWLEDGEMENT

ABSTRACT

LIST OF TABLE

LIST OF CHART

I

INTRODUCTION1.1 Introduction of the Study1.2 Profile of the Company 1

II REVIEW OF LITERATURE 8

III OBJECTIVE OF THE STUDY 29

IV RESEARCH METHODOLOGY 30

V DATA ANALYSIS AND INTERPRETATION 31

VIFINDINGS OF THE STUDYSUGGESTION & RECOMMENDATION 54

VII CONCLUSION 56

VIII LIMITATION & SCOPE OF THE STUDY 57

ANNEXUREBIBLOGRAPHIC

ACKNOWLEDGEMENT

I whole heatedly thank my respected chairman Mr. N. KESAVAN, vice

chairman Mr. SUGUMARAN, and beloved M.D Mr. DHANASEKARAN

who helped us in all our endeavors and for his blessings on us to make this project a

successful one.

I would like to express my profound gratitude to all those who have been

instrumental on the preparation of the project report I wish to place on deep sense of

gratitude to our principal Mr. V.S.K. VENKATACHALAPATHY the keen

interest and affection towards as through out the course.

I convey my sincere thanks to prof. Mr. S. JAYAKUMAR HOD,

Department Of Management Studies for his interest towards us throughout the course.

I am sincere thanks to my internal guide MRS. R. HEMALATHA M.B.A.

Department Of Management Studies for her valuable guidance and inspiration extended

all along the project.

I am grateful to my company guide Mr. MURUGAVEL, Accounting

Incharge for his valuable guidance and inspiration extended all along the project.

I also wish my sincere thank to all the teacher and non-teaching staff of

department of MBA, Sri Manakula Vinayagar Engineering College, without whose

cooperation this project would not be a success.

Lastly, I wish to thank my parents and friends who supported and helped me in

completion of this project.

ABSTRACT

The project is titled as “A STUDY ON CASH MANAGEMENT ON THE

FLAVORS INDIA (P) LTD”, the aim is to analyses cash position of the company by

using the financial tool and techniques.

These project is mainly concentrated on cash management is an important factor

and it is one of the component of working capital cash can be regarded as a life blood of

corporate. Cash either a hand or at bank is the most liquidity of all current assets. The

cash and bank balance indicates high liquidity position of a company.

LIST OF TABLE

TABLE NO LIST OF TABLE PAGE NO

2.1 CASH FLOW STATEMENT 16

5.1 CASH FLOW STATEMENT(2001-02) 32

5.2 CASH FLOW STATEMENT(2002-03) 33

5.3 CASH FLOW STATEMENT (2003-04) 34



5.6 CASH FLOW STATEMENT 37

5.7 CASH BUDGET 39

5.8 NET WORKING RATIO 42

5.9 CURRENT RATIO 44

5.1 QUICK TEST RATIO 46

5.11 INVENTORY TURNOVER RATIO 48

5.12 DEBTORS TURNOVER RATIO 50

5.13 CREDITORS TURNOVER RATIO 52

LIST OF CHART

BIBLIOGRAPHY

Khan M.Y and P.K. Jani

Financial Management, New Delhi, Tata Mc Graw Hill, 1992.

TABLE NO LIST OF TABLE PAGE NO

5.1 CASH BUDGET 40

5.2 NET WORKING RATIO 43

5.3 CURRENT RATIO 45

5.4 QUICK TEST RATIO 47

5.5 INVENTORY TURNOVER RATIO 49

5.7 DEBTORS TURNOVER RATIO 51

5.8 CREDITORS TURNOVER RATIO 53

Dr.S.N. Maheshwari, Principles of Management Accounting.

Prasanna Chandra, Financial Management Theory and Practice

Websites:

www.flavorindia.com.

CHAPTER - I

INTRODUCTION

1.1 INTRODUCTION FOR THE STUDY:

This study aims in knowing the functions of the financial department of The Flavors India (p) ltd.

To know about the general functioning of the company.

To study the practical work and collect information from the concern.

To compare the theoretical knowledge gained with practice in real life commercial situation.

To analysis the balance sheet and profit & loss account of the year.

To know the financial position of the company.

1.2 PROFILE OF THE COMPANY

The Flavors India (p) Ltd is a well established and systematically

organized company engaged in the manufacture of food flavours, food colours

and caramel. The genesis of flavors India dates back to 1975 after an in-depth and

intensive market survey to cater to the needs of high demand areas

The promoter late shri R.Bramanandam and his team had the business

acumen, professional background obtained after serving a long stint in flavors

industry, sound business ethics, skills and had brought this to bear in the

discipline and systems required to maintain and sustain quality in such a mass

production.

The Flavors India (p) Ltd operates from puducherry (India) previously a

French colony and now the union territory capital, about 120kms from Chennai

airport, south India. Garnering and utilizing the skilled low-cost manpower

strength that puducherry offer, flavors India has staff strength of 100 personnel

headed by the board of directors, who control the different divisions of the

organization.

1.2.1Quality:

For the Flavors India with 30 years of standing, quality is the day to

success. Our plant has fully equipped quality control laboratories where the raw

materials, in process and finished products are rigorously tested for their quality

standards.

Our qualified manufacturing and technical personnel deal with material

handling, shop floor and production activities. We maintain stringent quality

control measure and hygienic condition as per the specification of Bureau of India

Standards. The research and development wing devotes its fulltime towards better

product development, cost .effective methods and new products.

The Flavors India (p) Ltd is an ISO 9001_2000 certified company

ensuring the quality systems practiced .with a commitment towards safe

environment we have development an efficient Effluent Treatment Plant fulfilling

the pollution control Board needs.

1.2.2 CUSTOMER BASE:

Our motto being “customer is our Boss” a good amount of time and skill is

put in and translated into action by formulating new products as demands by the

customers.

Our products command its reputation in the market for the past 3decades

and more in leading food processing companies throughout the country and

overseas.

Our customer service is always prompt and sure as the” sun –rises and sun set”

1.2.3 AWARDS:

The Flavors India (p) Ltd believes in the concepts of “the company as a

family “and “working together towards the future” with various welfare

programmes for the employees.

It was a moment of pride when government of puducherry bestowed on us

thrice the Good Industries Relations Award for the consecutive years 2001,

2002and 2003.

We promise to march towards the future with the same zeal and motive.

1.2.4 OUR PRODUCTS

TOP SOFT DRINK CONCENTRATES,

TOP MIST,

TOP LIQUID PRESERVATIVE,

TOP CONCENTRATED OILS,

TOP FOOD COLOURS WITH ISI MARK,

TOP FLAVORS,

TOP DRY MIX POWDER FLAVORS,

TOP LIQUOR FLAVORS,

TOP CARAMEL WITH ISI MARK,

TOP CULINARY FLAVORS,

TOP FLAVORS,

TOP DRY MIX POWDER FLAVORS,

TOP ENCAPSULATED FLAVORS,

TOP FLAVORS,

TOP DUST-ON POWDER FLAVORS,

TOP FLAVORS.

1.2.5 ORGANISATIONAL CHART

MANAGING DIRECTOR

FACTORY INCHARGE

INCOME TAX

ACCOUNTS

SENIORASSISTANT

JUNIORASSISTANT

1.2.6 FINANCE DEPARTMENT:

The accounts department of The Flavors India (p) ltd functions so as to keep as a

system record of the daily events of the business. It maintain records of all financial

transaction to find out the profit and loss according during the year and to financial status

of the company, which helps them to take quick and correct policy decision.

1.2.7 OBJECTIVE OF FINANCE DEPARTMENT:

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

QUALITYCONTROL

To determine the financial status of the company balance sheet, profit and loss

accounts.

To help the management to analyses the financial standard of the company so

that they can take quick correct decision.

To provide useful information to management.

Analysis the cash flow of the company it will useful for new ventures.

1.2.8 SYSTEM OF ACCOUNTING:

All the transaction in the company is enter into to the system. There is more

lapse of time in the company to do the other work. The daily transaction of the company

is registered under the computer. The invoice, Quotation etc are sending through the

system.

1.2.9 FUNCTING FINANCE DEPARTMENT OF THE FIRM

The work performed by the account department has follows.

1. Preparation of cash and bank vouchers ( both debtors and creditors)

2. Maintaining cash and bank book.

3. Bank reconciliation statement.

4. Preparing purchasing journal, salaries, wages etc.

5. Preparing debtors and creditors notes.

6. Posting journal to journal books.

7. Maintaining general ledger accounts.

8. Maintaining subsidiary books.

9. Preparing trial balance, profit and loss account and balance sheet.

10. Filling of return of income tax both company and employers to income tax

departments

.

CHAPTER-II

REVIEW OF LITERATURE

2.1 CASH MANAGEMENT:

Cash management is one of the key areas of working capital management. A part from

the fact that it is the most liquid current assets, cash is the common denomination to which all

current assets can be reduced because the other major liquid assets that are receivables and

inventory get eventually converted into cash.

2.2 MOTICES FOR HOLDING CASH:

The term cash with reference to cash management is used in the two senses.

2.2.1 NARROW SENSES:

To cover currency and generally accepted equivalents of cash, such as cheque, drafts and

demand deposits in bank.

2.2.2 BROAD SENSES:

It includes near –cash, assets such as marketable securities and time deposits in bank.

There are four primary motives for maintaining cash balances.

Transaction motives.

Precautionary motives.

Speculative motives.

Compensating motives.

A, TRANSACTION MOTIVES:

An important reason for maintain cash balance is the transaction motive. This refers to

the holding of cash to meet routine cash requirements to finance the transactions which a firm

carries on the ordinary course of business.

B, PRECAUTIONARY MOTIVES:

It will clearly determine the cash inflows and outflows in the ordinary course of business,

a firm may have to pay cash for purposes which cannot be predicted or anticipated.

C, SEPCULATIVE MOTIVE:

It refers to the desire of a firm to take advantage of opportunities which present

themselves at unexpected moments and which are typically outside the normal course of

business.

D, COMPENSATIVE MOTIVE:

Bank provides a variety of service of business firms, such as clearance of cheque, of

credit information, transfer of funds.

2.3 OBJECTIVE OF CASH MANAGEMENT:

The basic objective of cash management is two-fold.

To meet the cash disbursement needs (payment schedule) and.

To minimize funds committed to cash balance.

Meet payments schedule:

Firms have to make payments of cash on a continuous and regular basis to suppliers of

goods, employees. At the same time, there is a constant inflow of cash through collections from

debtors.

Minimizing funds committed to cash balance:

In minimizing the cash balance

2.4 FACTORS DETERMING CASH MEEDS:

The factors that determine the required cash balance are.

A SYNCHRONIZATION OF CASH FLOWS.

The need for maintaining cash balance arises from the non- synchronization of the

inflows and outflows of cash. If the receipts and payments pf cash perfectly coincide or balance

each other, there would be no need for cash balances. The first consideration in determining the

cash need is, therefore, the extent of non – synchronization of cash receipts and disbursements.

For the purpose, the inflows and outflows have to be forecast over a period of time, depending

upon the planning horizon which is typically a one-year period with each of the 12months

B, SHORT COST.

Another general factor to be considered in determining cash needs is the cost associated

with a shortfall in the cash needs. The cash forecast presented in the cash budget would reveal

periods of cash shortages. In addition, there, may be some unexpected shortfall. Every shortage

of cash whether expected or unexpected- involves a cast depending upon the severity, duration

and frequency of the shortfall and how the shortage is covered.

TRANSACTION COSTS:

Transaction costs are associated with raising cash to tide over the shortage. This is

usually the brokerage incurred in relation to the sale of some short-tern near-cash assets such as

marketable securities.

BORROWING COSTS:

Borrowing costs associated with borrowing to cover the shortage. These include items

such as interest on loan, commitment charge and other expense relating to the loan.

C LOST OF CASH –DISCOUNT:

Lost of cash-discount a substantial loss because of a temporary shortage of cash.

D, COST ASSOCIATED WITH DETERIORATION OF THE CREDIT RATING:

Cost associated with deterioration of the credit rating which is reflected in shortage of

cash charges on loans, stoppage of supplies, demands for cash payment, refusal to sell, loss of

image and the attendant decline in sales and profits.

E, PENALTY RATES:

Penalty rates by banks to meet a shortfall in compensating balances.

F, EXCESS CASH BALANCE COSTS:

The cost of having excessively large cash balances is known as the excess cash balances

cost. If large funds are idle, the implication is that the firm has missed opportunities to invest

those funds and has thereby lost interest which it would otherwise have earned. This loss of

interest is primarily the excess cost.

G, PROCUREMENT AND MANAGEMENT:

These are the costs associated with establishing and operating cash management staff and

activities. They are generally fixed and are mainly accounted for but salary, shortage, handling of

securities and so on.

H, UNCERTAINTY AND CASH MANAGEMENT:

Finally, the impact of uncertainty on cash management strategy us also relevant as cash flows

cannot be predicted with complete accuracy. The first requirement is a precautionary cushion to

cope with irregularities in cash flows, unexpected delays in collections and disbursements,

defaults and unexpected cash needs.

The impact of uncertainty on cash management can, however, is mitigated through.

Improved forecasting of tax payments, capital expenditure, dividends and so on.

Increased ability to borrow through overdraft facility.

2.5 DETERMINE CASH NEED:

There are two approaches to derive on optimal cash balances, namely

Minimizing cost cash model,

Cash budget.

2.5.1 CASH MANAGEMENT:

The following are the analytical model for cash management

Baumol model

Miller-orr model

Orgler’s model.

A, BAUMOL MODEL:

The purpose of this model is to determine the minimizing cost amount of cash that a

financial manager can obtain by converting securities to cash.

They are two elements

Conversion cost

Opportunity cost

CONVERSION COST:

Conversion costs are incurred each time marketable securities are converted into cash.

Total conversion cost per period = Tb\c

Where,

b = cost per conversion.

T = total transaction cash need for the period.

C = value of marketable security sold to each conversion.

OPPORTUNITY COST:

Opportunity cost is derived from the cost\forfeited interest rate (i) that could have been

earned on the investment of cash balance.

I (c\2)

Where,

c\2= the average cash balance

(i)=interest rate that could have been earned.

i(c\2)+(Tb\c)

B, MILLER- ORR MODEL:

To determine the optimum cash balance level which minimizes the cost of cash

management.

C=bE (n)\t+iE (M)

Where,

b = the fixed cost per conversion.

E (M) = the expected average daily cash balance.

E (N) = the expected number of conversion.

t = the number of days in the period.

(i) = the lost opportunity cost.

C = total cash management costs

C, ORGLER’S MODEL:

According this model, an optimal cash management strategy can be determined through

the use of a multiple linear programme model. The construction of the model comprises three

sections

Selection of the appropriate planning horizon.

Selection of the appropriate decision variables and

Formulation of the cash management strategy itself.

The advantage of linear programming model is that it enables coordinates of the optimal

cash management strategy with the other operations of the firm such as production and with less

restriction on working capital balances.

The model basically uses one year planning horizon with twelve monthly periods because

of its simplicity. It has four basic sets of decisions variables which influence cash management of

a firm and which must be incorporated into the linear programming model of the firm. These are

Payment schedules.

Short-term financing.

Purchase and sale of marketable securities and

Cash balance.

The formulation of the model requires the financial managers first specify an objective

function and then specify a set of constraints.

Orgler’s objectives function is to minimize the horizon value to the net revenues from the

cash budget over the entire planning period; using the assumption that all revenues generated are

immediately re-invested and that any cost is immediately financed, the objective function

represented the value of the net income from the cash budget at the horizon by adding the net

returns over the planning period. Thus, the objective function recognizes each operation of the

firm that generated cash inflow or cash outflows as adding pr subtracting profit opportunities for

the firm from its cash management operations. In the objective function, decision variables

which cause inflows, such as payments on receivables, have positive coefficient.

2.6 TECHNIQUES OR TOOLS OF CASH MANAGEMENT ANALYSIS:

The most important techniques of analysis and interpretation of cash management are us follows.

CASH FLOW STATEMENT.

CASH BUDGETING

RATIO ANALYSIS.

1 CASH FLOW STATEMENT:

A cash flow statement is used in conjunction with the other financial statements, provides

information that enables users to evaluate the change in net assets of an enterprise, its financial

structure (including its liquidity and solvency), and its ability to affect the amounts and timing

of cash flow in order to adapt to changing circumstance and opportunities. Cash flow

information is useful in assessing the ability of the enterprises to generate cash and cash-

equivalents and enables users to develop models to assess and compare the present value of the

future cash flows of different enterprises. It also enhances the comparability of the reporting of

operating performance by different because it eliminates the effects of using different accounting

treatments for the same transactions and events

1.1 MEANING OF CASH STATEMENT:

A cash flow statement is a statement depicting change in cash position from one period to

another. A proper planning of the cash resource will enables the management to have cash

available whenever needed and put it to some profitable or productive use in case there is surplus

cash available.

1.2 UTILITY OF CASH FLOW ANALYSIS:

A cash flow statement is useful for short-term planning. A business enterprise needs

sufficient cash to meet its various obligations in the near future such as payment for purchase of

fixed assets, payment of debts maturing in the near future, expenses of the business etc. a cash

flow analysis is an important financial tool for the management. Its chief advantage is as follows.

Helps in efficient cash management.

Helps in internal financial management.

Discloses the movement of cash.

Discloses success or failure of cash.

1.3 LIMITATION OF CASH FLOW STATEMENT:

Cash flow analysis is a useful tool of financial analysis. However, it has its own

limitation.

Cash flow statement cannot be equated with the income statement.

The cash balance as disclosed by the cash flow statement may not represent the real

liquid position of the business.

Cash flow statement cannot replace the income statement or the fund flow statement.

CASH FLOW STATEMENT

TABLE NO 2.1

PARTICULARS

OPENING BALANCES

Cash in Hand xxxxxx

SOURCE OF CASH

Income Tax Xxxxx

Sale of Fixed Assets xxxx

CASH FROM OPERATION

Net Profit Xxxx

ADD Increase in Other Liabilities Xxxx

Decrease in Inventories Xxxxx

LESS Decrease in Sundry Creditors Xxxx

Increase in Sundry Debtors Xxxx Xxxxx

TOTAL CASH AVAILABLE Xxxxx

APPLICATION OF CASH

Loans & Advance Xxxxx

Secured Loan Xxxxx

Unsecured Loan Xxxxx

Central Excise Xxxxx

CLOSING BALANCE

Cash in Hand Xxxxx

TOTAL APPLICATION

AVAILABLE Xxxx

2 RATIO ANALYSES:

An analysis of financial statements based on ratios is known as ratio analysis. Ratio

analysis involves the process of computing determining and resenting the relationship of items or

group of items of financial statements. Ratio analysis is a widely – used tool of financial

analysis. It can be used to compare the risk and return relationship of firms of different sizes. It is

defined as the systematic use of ratio to interpret the financial statements so that the strengths

and weaknesses of a firm as well as its historical performance and current financial condition can

be determined. The term ratio refers to the numerical or quantitative relationship between two

items.

2.1 ADVANTAGE OF RATIO ANALYSIS:

The advantages of ratio analysis are as follows.

1. Forecasting.

2. Managerial control.

3. Facilitates communications.

4. Measuring efficiency.

5. Facilitating investment decisions

6. Useful in measuring financial solvency.

7. Inter firm comparisons

2.2 STEPS IN RATIO ANALYSIS:

Selection of relevant information.

Comparison of calculated ratios.

Interpretation and reporting.

2.3 LIMITATION OF RATIO ANALYSIS:

The analyst should have a through knowledge and experience about the firm and

industry.

Ratios are not an end in themselves but they are means to achieve a particular purpose or

end.

Ratios are interred- related and therefore a single ratio cannot convey meaning. It has to

be interpreted with reference to other related to draw meaningful conclusions.

Ratio will be meaningful if they can be compared with standards or norms.

Ratio analysis will be fruitful only if the conclusions are conveyed quickly to the

management.

Ratio analysis becomes redundant during periods of heavy price

Fluctuations.

2.4 NET WORKING CAPITAL:

MEANING: This ratio establishes the relationship between cost of sales and working capital.

SIGNIFICANCE:

Working capital measures the effective utilization of working capital. It also

measures the smooth running of business. Net working capital represents the excess of

current assets over current liabilities. The term current assets refers to assets which in the

normal course of business get converted into cash without dimunition in value over a

short period ,usually not exceeding one year or length of operation cycle whichever is

more. The greater is the amount of net working capital, the greater is the liquidity of the

firm, accordingly net working capital is a measure of liquidity, and inadequate working

capital is the first sign of financial problem for a firm.

COMPONENTS:

The components of working capital ratio are current assets and current liabilities.

FORMULA:

This ratio is calculated with the help of the following formula.

Net Work capital = current assets - Current liabilities

2.5 CURRENT RATIO:

MEANINGS:

This ratio expresses the relationship between current assets and current liabilities.

SIGNIFICANCE:

The liquidity position of any company is easily measured with the help of current ratio.

The current ratio is the ratio of total current assets to total current liabilities. It’s

calculated by divided current assets by current liabilities.

The current assets of a firm, as already stated, represent that asset which can be, in

the ordinary course of business, converted into cash within a short period of time

normally not exceeding one year.

COMPONENTS:

The components of currents assets of the firm are cash at bank, deposits, sundry debtors

and closing stock. The components of current liabilities are sundry creditors and provision for

Income Tax.

FORMULA:

Current ratio = Current assets

Current Liabilities

2.6 DEBTORS’ TURNOVER RATIO:

MEANINGS:

This ratio determines the debtors constitute of current assets and therefore the quality of

debtors to great extent determines a firm’s liquidity.

SIGNIFICANCE:

This ratio helps in cash budgeting since the flow of cash from customers can be worked

out on the basis of sales. It is determine by dividing the net credit sales by average debtors

outstanding during the year. Thus, net credit sales consist of gross credit sales minus returns, if

any, from customer’s average debtors is the simple average of debtors (including bills

receivables) at the beginning and at the end of the year

COMPONENTS:

The components of Debtors Turnover Ratio are the Credit Sales and the Average Accounts

Receivable.

FORMULA:

Debtors’ turnover ratio = Credit sales

Average Accounts Receivables

2.7 STOCK TURNOVER RATIO:

MEANINGS:

This ratio indicates whether investment in inventory is efficiently used or not. It therefore,

explains whether investments in inventories is within proper limits

B SIGNIFICANCE:

The ratio is measure to discover the possible trouble in the form of overstocking

or overvaluation. The stock position is known as the graveyard of the balance sheet It is

computed by divided the cost of good sold by the average inventory thus, the cost of

good sold means sales minus gross profit. The average inventory refers to the simple

average of the opening and closing inventory. The ratio indicated how fast inventory is

sold.

COMPONENTS:

The component of Stock Turnover Ratio is determined by the Cost of Goods Sold during the

Year and the Average Inventory.

FORMULA:

Stock Turnover Ratio = Cost of Goods Sold During the Year

Average Inventory

2.8 LIQUID RATIO:

MEANING:

The ratio expresses the relationship between liquid assets and current liabilities of the

firm. It is otherwise known as absolute liquid ratio or quick ratio.

SIGNIFICANCE:

It is a measure of judging the immediate ability of the firm to pay – off its current

obligations. The quick test ratio is the ratio between quick current ratio and current

liabilities and is calculated by dividing the quick assets by the current liabilities.

The term quick assets refers to current assets which can be converted into cash

immediately or at a short notice without diminution of value

COMPONENTS:

All the components of current assets are included except stock and prepaid expenses and

the various components of currents liabilities are same as the items included in current ratio.

FORMULA:

Liquid ratio can be calculated as follows.

Liquid Ratio = Liquid assets

Current Liabilities

Liquid assets - (Stock + Prepaid Expenses)

2.9 CREDITOR’S TURNOVER RATIO:

It indicates the speed with which the payment for credit purchase are made to the

creditors

A low turnover ratio reflects liberal credit terms granted by suppliers, while a high ratio

shows that accounts are to be settled rapidly. The creditor’s turnover ratio is an important tool of

analysis as a firm can reduce its requirement of current assets by relying on supplier’s credit. The

extent to which trade creditors are willing to wait for payment can be approximated by the

creditor’s turnover ratio.

It is a ratio between net credit purchase and the average amount of creditors

outstanding during the year. A low turnover ratio reflects liberal credit terms granted by

suppliers, while a high ratio shows that account are to be settled rapidly. The creditor’s

turnover ratio is an important tool of analysis as a firm can reduce its requirement of

current assets by relying on supplier’s credit.

Creditors turnover ratio = credit purchase

Average account payable.

3 CASH BUDGETING:

A firm is well advised to hold adequate cash balance but should avoid excessive

balances. The firm has, therefore, to assess its need for cash properly. The cash budget is

probably the most important tool in cash management. It is device to help a firm to plan and

control the use of cash. It is a statement showing the estimated cash inflows and cash outflows

over the planning horizon. In the other words, the net cash position of a firm as it moves from

one budgeting sub period to another is highlighted by the cash budget.

The various purposes of cash budgets are

To coordinates the timings of cash needs. It identifies the periods when there might either

be as shortage of cash or an abnormally large cash requirement.

It pinpoints the periods when there is likely to be excess cash.

It enables a firm which has sufficient cash to take advantage of cash discounts on its

accounts payable, to pay help obligation when due, to formulate dividend policy, to plan

financing of capital expansion and to help unify the production schedule during the year

so that the firm can smooth out costly seasonal fluctuations.

It helps to arrange needs funds on the most favorable terms and percents the

accumulation for excess funds. With adequate time to study his needs, the finance

manage can select the best alternative avenues of financing, the management would be

forced to accept the best terms offered in a difficult situation. These terms will not be as

favorable, since the lack of planning indicates to the lender, that there is an organizational

deficiency. The firm, therefore, represents a high risk.

Cash budgeting or short-term cash forecasting is the principal tool of cash management.

Estimating cash requirement

Planning short-term financing

Scheduling payments in connection with capital expenditure projects

Planning purchase of materials

Developing credit policies and

Checking the accuracy of long term forecasting

Firms use multiple short-term forecasts of varying length and detail, suited to meet different

needs. The commonly used design for short –term cash forecasts are

One year divided into quarters or monthly.

One quarter divided into months and

One month divided into weeks.

3. A RECEIPTS AND PAYMENTS METHODS:

The cash budget prepared under this method shows the timing and magnitude of expected

cash receipts and payments over the forecast period. It includes all expected receipts and

payments irrespective of how they are classified in accounting.

3. B LONG –TERM CASH FORECASTING:

Long-term cash forecasting are generally prepared for a period ranging from two to five

years and serve to provide a broad brush picture of a firm’s financing needs and availability of

invertible surplus in future. Such forecasts are helpful in planning capital investment methods

outlays and long-term financing

3. C REPORTS FOR CONTROL:

Cash reports, providing a comparison of actual developments with forecast figures, are

helpful in controlling and revising cash forecasts on a continual basis. Several types of cash

reports may be prepared the important ones are.

DAILY CASH REPORT:

The daily cash report shows the opening balance, receipts, payments and the closing

balance on a daily basis.

DAILY TREASURY REPORT:

An amplification of the daily cash report, the daily treasury report provides a

comprehensive picture of changes in cash, marketable securities, debtors and creditors.

MONTHLY CASH REPORT:

This report shows the actual cash receipts and payments on a monthly basis. The actual

are compared with the budgeted figures and variances calculated.

3. D CASH COLLECTION AND DISBURSEMENT:

The cash balance shown by a firm on its books is called the book, or ledger, balance

whereas the balance shown in its bank account is called the available, or collected, balance. The

difference between the available balance and the ledger balance is referred to as the float.

There are two kinds of float disbursement float and collection float, cheque issued by a firm

create disbursement float.

The net float is the sum of disbursement float and collection float. It is simply the difference

between the firm’s available balance and its book balance. If the net float is positive (negative) it

means that the available balance is greater (lesser) than the book balance.

2.7 BANK ORGANISATION

Prior to the project, the billing process was distributed across different product processors

like (those handling cross border transfer, non resident yen related, mass payments, through post

office etc). Wipro’s solution aims to implement a centralized billing system that maximizes

automation.

The transaction details would be pushed from the product processors to the billing system

as an end of day offline process, which will then calculate the charges based on the transaction

type and generate accounting entries. At the end of the billing cycle, customer invoices would be

generated by the system and the customer account debits will take place in the bank host.

Customer information and charge information (fixed, transaction and event based) are

maintained in the billing system. For transactions that require immediate charge calculation, the

billing system's pricing engine would provide the charges in real time.

2.8 CASH MANAGEMENT SYSTEM FOR A NATIONALIZED BANK

MC De COM proposed a solution to facilitate information flow between various entities

of the Cash Management system. This system enabled a complete Electronic Messaging Solution

for their Branch Offices across the country. This project facilitated the Bank to exchange

information between its CCC (Cheque Collection Centre), FCC (Fund Collection Centre) and

FMC (Fund Management Centre) seamlessly without any delay.

The Bank has its Corporate Office in Bangalore and International transaction center at

Mumbai. The realization of cheque or any cash transactions required a couple of days. This delay

leads to a situation where the Bank was not in a position to get at its head office the transaction

happened at each of its branches or extension counters at.

The head office and the International transaction office faced numerous problems in

terms of managing the cash at various locations. The customers also could not really track the

transaction especially if they are more than one transaction at different places. The Bank thought

of an ambitious program of offering Cash Management Services to its customers across the

country The Customer deposit their cheque at various Cheque Collection Center’s (CCC) across

the country and this information is processed and consolidated at the Fund Management Centre

(FMC) located at Mumbai. The FMC will further communicate the processed information to

various Fund Collection Centre (FCC). The Customers can contact directly the Fund Collection

Centre (FCC) to obtain updated information about their funds position as required

CHAPTER-III

OBJECTIVE OF THE STUDY

To determine the overall performance of cash in the concern.

To know the credit worthiness of the concern.

To assess the liquidity and short term solvency position of the firm.

To understand the relationship maintained with the trade creditors and the debtors of the firm.

To identify the basic forces influencing the cash management of the firm.

CHAPTER-IV

RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN:

The research approach used for the study is descriptive. The form of the study is on the

financial statement analysis in general and specific to the cash position.

4.2 DATA COLLECTION

PRIMARY DATA:

The primary data is collected from the personnel interview.

SECONDARY DATA:

The study has been made using secondary data, which are obtained from annual reports

and statements of accounts. The study is period for the annual reports and statements of accounts

extended form the year 2001-02 to 2005-06.

4.3 ANALYTICAL TOOLS FOR THE STUDY:

The researcher for the purpose of analysis and interpretation of the following tools have been

need

CASH FLOW STATEMENT

RATIO ANALYSIS

CASH BUDGETING

4.4 PERIOD OF STUDY:

The study includes 5 years (2001-02 to 2005-06) financial rates of the firms. The study was

conducted for 1 month’s period.

CHAPTER-V

DATA ANALYSIS &INTERPRETATION

5.1 CASH FLOW STATEMENT:

A cash flow statement is used in conjunction with the other financial statements,

provides information that enables users to evaluate the change in net assets of an

enterprise, its financial structure (including its liquidity and solvency), and its ability to

affect the amounts and timing of cash flow in order to adapt to changing circumstance

and opportunities. Cash flow information is useful in assessing the ability of the

enterprises to generate cash and cash-equivalents and enables users to develop models to

assess and compare the present value of the future cash flows of different enterprises. It

also enhances the comparability of the reporting of operating performance by different

because it eliminates the effects of using different accounting treatments for the same

transactions and events.

CASH FLOW STATEMENT (2001-02)

TABLE NO: 5.1

PARTICULARS 31-03-2001 31-03-2002

OPENING BALANCES

Cash in Hand 61738

SOURCE OF CASH

Central Excise 2151 779 1372

Secured Loan 3363880 3406134 42254

CASHFROMOPERATION

Net Profit 247341 206964 40377ADD: Increase in Sundry Creditors 3363458 3747384 383926

Increase in Other Liabilities 300217 300466 249

Less Increase in Inventories 7310787 7466168 155381

Increase in Sundry Debtors 2154425 2473039 318614 -49443

TOTALCASHAVAILABLE 16742259 17600934 55921

APPLICATION OF CASH

Purchases of Fixed Assets 744630 749327 4697

Loans & Advance 162581 194320 31739

Income Tax 77494 84556 7062

CLOSING BALANCE

Cash in Hand 12423TOTALAPPLICATION

AVAILABLE 984705 1028203 55921


TABLE NO-5.2

PARTICULARS 31-03-2002 31-03-2003

OPENING BALANCES

Cash in Hand 12423

SOURCE OF CASH

Income Tax 194320 206000 2650

Sale of Fixed Assets 726292 749327 23035

CASH FROM OPERATION

Net Profit 247341 261547 14206 ADD Increase in Other Liabilities 300466 379275 78809

Decrease in Inventories 7466168 5698609 1767559 LESS Decrease in Sundry Creditors 3747384 2470569 1276815

Increase in Sundry Debtors 2473039 2651776 178737 405022

TOTAL CASH AVAILABLE 15155010 12417103 443130

APPLICATION OF CASH

Loans & Advance 194320 206000 11680

Secured Loan 3406134 3135484 270650

Unsecured Loan 1255000 1105000 150000


CLOSING BALANCE

Cash in Hand 6266TOTAL APPLICATION AVAILABLE 4856233 4451797 443130


TABLE NO: 5.3

PARTICULARS 31-03-2003 31-03-2004

OPENING BALANCES

Cash in Hand 6266

SOURCE OF CASH


CASH FROM OPERATION

Net Profit 261547 267548 5999 ADD Increase in Sundry Creditors 2470569 3553092 1082523

Increase in Other Liabilities 379275 530420 151145

Decrease in Inventories 5698609 4378883 1319726 LESS Increase in Sundry Debtors 2651776 4542399 1890623 668770


APPLICATION OF CASH


Loans & Advance 206000 332424 126424

Secured Loan 3135484 3088824 46660

Unsecured Loan 1105000 900000 205000

Income Tax 81906 107401 25495

CLOSING BALANCE



TABLE NO-5.4

PARTICULARS 31-03-2004 31-03-2005

OPENING BALANCES

Cash in Hand 9291

SOURCE OF CASH

Sale of Fixed Assets 991175 792972 198203

Unsecured Loan 900000 1200000 300000

CASH FROM OPERATION

Net Profit 267546 309347 41801ADD Increase in Other

Liabilities 530420 531981 1561

Decrease in Sundry Debtors 4542399 3652395 890004

Decrease in Inventories 4378883 3950640 428243LESS Decrease in Sundry

Creditors 3553092 3258702 294390 1067219


APPLICATION OF CASH

Loan & Advance 332424 377608 45184

Unsecured Loan 3088824 15892601 1499564


Income Tax 107401 108612 1211

CLOSING BALANCE



TABLE NO-5.5

PARTICULARS 31-03-2005 31-03-2006

OPENING BALANCES

Cash in Hand 6655

SOURCE OF CASH


Secured Loan 1589260 1163089 350000

CASH FROM OPERATION

Net Profit 309347 413155 103808ADD Increase in Other

Liabilities 531981 735107 203126

Decrease in Sundry Debtors 3652395 3596559 55836LESS Decrease in Sundry

Creditors 3258702 3250590 8112

Increase in Inventories 3950640 4018625 67985 286673


APPLICATION OF CASH


Loans & Advance 377608 432320 54712

Secured Loan 1163089 1589260 426171

Income Tax 108612 114142 5530

CLOSING BALANCE

Cash in Hand 20437TOTAL APPLICATION

AVAILABLE 2442281 3080000 658156

CASH FLOW STATEMENT

TABLE NO-5.6

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

OPENING BALANCES

Cash in Hand 0.61 0.124 0.06 0.09 0.06

SOURCE OF CASH

Central Excise 0.013 0.02 0.14

Secured Loan 0.422

Income Tax 0.02

Sale of Fixed Assets 0.23 1.98

Unsecured Loan 3 3.5CASH FROM OPERATION

NET PROFIT 0.4 0.14 0.05 0.42 1.04ADD Increase in Sundry

Creditors 3.84 - 10.82

Increase in Other Liabilities 0.002 0.78 1.51 0.015 2.03

Decrease in Inventories 17.67 14 4.28

Decrease in Sundry Debtors 3.18 8.9 0.56

LESS Increase in Inventories 0.68

Increase in Sundry Debtors 1.78 18.9

Decrease in Sundry Creditors 12.76 2.94 0.08TOTAL CASH AVAILABLE 0.55 4.42 6.76 15.7 6.57

APPLICATION OF CASH

Purchases of Fixed Assets 0.046 2.65 1.51

Loans & Advance 0.31 0.11 1.26 0.45 0.54

Secured Loan 2.7 0.46 4.26

Unsecured Loan 1.5 2.05 15

Central Excise 0.04 0.22

Income Tax 0.07 0.25 0.012 0.055

CLOSING BALANCE

Cash in Hand 0.12 0.06 0.09 0.22 0.2TOTAL APPLICATION

AVAILABLE 0.55 4.42 6.76 15.7 6.57

INTERPRETATION:

The above table explains that the beginning of the (2001-02) opening balance is

in0.61 but in the other year it reduced gradually. So the concern should take

necessary step to overcome the default.

The concern is purchase the fixed assets in the year 2001-02,2003-04,2005-06 at

0.046,2.65 and 1.51. The concern purchase high asset in the year 2003-04 at 2.65

it clearly determine the outflow of cash in the concern.

The borrowing of concerns high in the year 2003-04 at 1.26 it indicates that the

concern uses more loan. The concern should reduce to borrow the money from the

various resources. It leads to take more advantage to the borrowers.

The closing balance is not high than the opening balance .it indicates that the cash

is not properly managed in the concern.

5.2 CASH BUDGETING:

A firm is well advised to hold adequate cash balance but should avoid excessive

balances. The firm has, therefore, to assess its need for cash properly. The cash budget is

probably the most important tool in cash management. It is device to help a firm to plan

and control the use of cash. It is a statement showing the estimated cash inflows and cash

outflows over the planning horizon. In the other words, the net cash position of a firm as

it moves from one budgeting sub period to another is highlighted by the cash budget

CASH BUDGET

TABLE NO – 5.7

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06a OPENING CASH BALANCE 61738 12423 6266 9291 6655

b Receipts 16315437 18064710 19929244 20520232 23938082

c Payments 16093407 17892478 19664631 20253149 23608102

d NET CASH FLOW (b-c) 222030 172232 264613 267083 329980

e Cumulative Net Cash Flow 222030 394262 658875 925958 1255938

f (a+e) 283768 406685 665141 935249 1262593g Minimum Cash Balance Requirement 100000 100000 100000 100000 100000SURPLUS RELATION TO THE MINIMUM CASHBALANCE REQUIREMENT(F-G) 183768 306685 565141 835249 1162593

CHART NO –5.1

INTERPRETATION:

In the above table it clearly determines the availability of the cash balance in the

subsequent year. It will clearly determine the minimum cash balance requirement of the

concern. In the 2005-06 leads to higher need of cash balance 11.62 lakhs. The cash

balance is highly required for the day- to day transaction.

5.3 RATIO ANALYSIS:

An analysis of financial statements based on ratios is known as ratio analysis. Ratio

analysis involves the process of computing determining and resenting the relationship of items or

group of items of financial statements. Ratio analysis is a widely – used tool of financial

analysis. It can be used to compare the risk and return relationship of firms of different sizes. It is

defined as the systematic use of ratio to interpret the financial statements so that the strengths

and weaknesses of a firm as well as its historical performance and current financial condition can

be determined. The term ratio refers to the numerical or quantitative relationship between two

items.

5.3.1 NET WORKING CAPITAL:

Net working capital represents the excess of current assets over current liabilities.

The term current assets refers to assets which in the normal course of business get

converted into cash without dimunition in value over a short period ,usually not

exceeding one year or length of operation cycle whichever is more. The greater is the

amount of net working capital, the greater is the liquidity of the firm, accordingly net

working capital is a measure of liquidity, and inadequate working capital is the first sign

of financial problem for a firm.

FORMULA:

NET WORKING CAPITAL = CURRENT ASSETS-CURRENT LIABILITIES.

NET WORKING CAPITAL

TABLE NO-5.8

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

CURENT ASSETS 99.51 83.56 89.30 76.09 76.35

CURRENT LIABILITIES 40.47 28.49 40.83 37.90 39.85

NET WORKING CAPITAL 59.03 55.06 48.47 38.19 36.49

Chart no.5.2

Interpretation:

This ratio indicates there is lower amount required in the working capital. The

higher amount is in the year 2001-02 at 59.03. It will clearly determine the firm is in

liquidly position but this is reducing gradually. The financial manager should

concentrated more on the working capital as it is not satisfactory.

5.3.2 CURRENT RATIO:

The current ratio is the ratio of total current assets to total current liabilities. It’s

calculated by divided current assets by current liabilities.

The current assets of a firm, as already stated, represent that asset which can be, in the

ordinary course of business, converted into cash within a short period of time normally

not exceeding one year.

FORMULA:

CURRENT RATIO = CURRENT ASSETS CURRENT LIABILITIES

CURRENT RATIO

TABLE NO-5.9

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

CURRENT ASSETS 99.51 83.56 89.30 76.09 76.35

CURRENT LIABILITIES 40.47 28.49 40.83 37.90 39.85

CURRENT RATIO 2.45 2.93 2.18 2.00 1.9

Chart no.5.3

Interpretation:

The company is highly efficient is short – term solvency position. The company

should maintain this current ratio. The concern should concentrate on 2005-06 year

current ratio position.

5.3.3 QUICK TEST RATIO:

The quick test ratio is the ratio between quick current ratio and current liabilities

and is calculated by dividing the quick assets by the current liabilities.

The term quick assets refers to current assets which can be converted into cash

immediately or at a short notice without diminution of value.

FORMULA:

QUICK TEST RATIO = QUICK ASSETS QUICK LIABILITIES

QUICK TEST RATIO

TABLE NO-5.10

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

QUICK ASSETS 24.85 26.58 45.51 36.59 36.16

QUICK LIABILTIES 40.47 29.00 40.83 37.90 39.85

ACID TEST RATIO 0.61 0.93 1.11 0.960.90

Chart no.5.4

Interpretation:The liquidity position is not near to the standard ratio. The concern should clearly

determine the various liquidity position of the concern.

5.3.4 INVENTORY TURNOVER RATIO:

It is computed by divided the cost of good sold by the average inventory thus, the

cost of good sold means sales minus gross profit. The average inventory refers to the

simple average of the opening and closing inventory. The ratio indicated how fast

inventory is sold.

FORMULA:

INVENTORY TURNOVER RATIO= COST OF GOOD SOLD AVERAGE INVENTORY

INVENTORY TURNOVER RATIOTABLE NO-5.11

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06INVENTORY TURNOVER

RATIO 1.16 1.59 2.36 2.81 3.37

COST OF GOOD SOLD 86.04 105.07 118.9 117.05 134.1

AVERAGE INVENTORY 74.00 65.82 50.38 41.65 39.84

Chart no.5.5

Interpretation:

The inventory turnover is increasing gradually to the period of the year. It will

clearly determine the capacity of the concern

5.3.5 DEBTOR’S TURNOVER RATIO:

It is determine by dividing the net credit sales by average debtors outstanding

during the year. Thus, net credit sales consist of gross credit sales minus returns, if any,

from customer’s average debtors is the simple average of debtors (including bills

receivables) at the beginning and at the end of the year.

FORMULA:

DEBTOR’S TURNOVER RATIO= NET CREDIT SALES AVERAGE DEBTORS

DEBTOR’S TURNOVER RATION:TABLE NO-5.12

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

CREDIT SALES 159.8 157.8 155.8 172.62 206.45

AVERAGE DEBTORS 23.13 25.62 35.97 40.97 36.24DEBTORS TURNOVER RATIO 6.90 6.16 4.33 4.21 5.69

Chart no.5.6

Interpretation:The debtor’s turnover ratio is not in the concert way in the concern. The higher

ratio is in the year 2001-02 is 6.90. The past performance is clearly determining the

various formation of the concern.

5.3.6 CREDITOR’S TURNOVER RATIO:

It is a ratio between net credit purchase and the average amount of creditors

outstanding during the year. A low turnover ratio reflects liberal credit terms granted by

suppliers, while a high ratio shows that account are to be settled rapidly. The creditor’s

turnover ratio is an important tool of analysis as a firm can reduce its requirement of

current assets by relying on supplier’s credit.

FORMULA:

CREDITOR’S TURNOVER RATIO= NET CREDIT PURCHASES AVERAGE CREDITOR’S

CREDITOR’S TURNOVER RATIO

TABLE NO-5.13

PARTICULARS 2001-02 2002-03 2003-04 2004-05 2005-06

CREDIT PURCHASE 86.0 105.07 118.91 117.05 134.16

AVERAGES CREDITORS 35.55 31.08 30.11 34.05 32.54 CREDITORS TURNOVER RATIO 2.42 3.38 3.94 3.43 4.12

Chart no.5.7

Interpretation:

The creditor’s availability of the concern keeps on decrease in the year. It will

clearly determine in the year 2001-02 2.42.

CHAPTER-VI

FINDINGS AND SUGGESTION OF THE STUDY

6.1 FINDINGS OF THE STUDY

1. The net working capital of the organization is not satisfactory.

2. The current ratio for the four year it is as per the standard norms (2:1) concept for

the year 2005-06 which is 1.9:1. On an average current ratio is formed to be

satisfactory.

3. Quick ratio of the company is not satisfactory as it is not up to the standard norms

(1:1).

4. Inventory turnover ratio is found to be not satisfactory as it is maintain low

inventory.

5. Debtor turnover ratio is decline indicates it is not satisfactory.

6. Creditor’s turnover ratio showing increasing ratio indicates that the company is

enjoying. Its credit facilities to the possible amount.

7. In the year 2005-06 is leads to higher requirement of cash balance 11.62 lakhs.

8. Cash reflects the liquidity position of the concern is reduced in the year 2005-06

0.06 lakhs decreasing cash position indicated that the company is not managing

its cash position satisfactorily.

6.2 SUGGESTION & RECOMMENDATION:

The various suggestions are followed after analyzing the main finding of this study.

The cash management of the company is failed to strengthen the cash position so

the company so required to table steps to improve the cash position by

concentrating on receivables, inventories avoiding to much on borrowings.

The company failed to manage the receivable in the normal level because of poor

performance of the collection procedure and inefficient performance related with

managing the receivables.

The inventories play a major role in production. So, the concern should take

measure to maintain the inventories that are required to in order reduce the e cost,

and keep the production flow continuously.

In 2005-06 the net profit is increased compare to the other four year. So the

concern should maintain the same position to improve the net profit.

The cash and bank balance indicate high liquidity position of a company, The

Flavors India (p) Ltd maintain cash including bank balance is at a optimum level

and it is enough to meet day to day requirement.

CHAPTER-VII

CONCLUSION

Analysis and Interpretation of the financial data of The Flavors India (p) ltd,

ascertain the cash position of the firm. The results explores that the firm is unable toe

meet its short term obligations.

The concern should reduced the long term loan and obtain the profit.

The concern should take various measures to increase the net profit.

CHAPTER-VIII

LIMITATION & SCOPE OF THE STUDY

LIMITATION OF THE STUDY:

These studies only concentrated the quantitative method.

The study is restricted only to The Flavors India (P) Ltd. being a case study the

findings cannot be generalized.

SCOPE OF THE FURTHER STUDY:

It helps to take short term financial decision.

It indicates the cash requirement needed for plant and equipment expansion

programme.

It reveals the liquidity position of the firm by highlighting the various sources of

cash and its uses.

To find strategies for efficient management of cash.

Documents

Cash Management