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INTRODUCTION

Cash management
is a marketing term for certain services offered primarily to

larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to businesses of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, and automated clearing house facilities. Sometimes, private bank customers are given cash management services.

Cash Management Services Generally offered


The following is a list of services generally offered by larger businesses and corporations:

Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay.

Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to consumers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site.

Armored Car Services: Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its employees to deposit the cash.

Automated Clearing House: services are usually offered by the cash management division of a bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees (this is how direct deposit works). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups, because under this system banks assume that the company initiating the debit is correct until proven otherwise.

Balance Reporting Services: Corporate clients who actively manage their cash balances usually subscribe to secure web-based reporting of their account and transaction information at their lead bank. These sophisticated compilations of banking activity may include balances in foreign currencies, as well as those at other banks. They include information on cash positions as well as 'float' (e.g., checks in the process of collection). Finally, they offer transaction-specific details on all forms of payment activity, including deposits, checks, wire transfers in and out, ACH (automated clearinghouse debits and credits), investments, etc.

Cash Concentration Services: Large or national chain retailers often are in areas where their primary bank does not have branches. Therefore, they open bank accounts at various local banks in the area. To prevent funds in these accounts from being idle and not earning sufficient interest, many of these companies have an agreement set with their primary bank, whereby their primary bank uses the Automated Clearing House to electronically "pull" the money from these banks into a single interest-bearing bank account.

Lockbox services: Often companies (such as utilities) which receive a large number of payments via checks in the mail have the bank set up a post office box for them, open their mail, and deposit any checks found. This is referred to as a "lockbox" service.

Positive Pay: Positive pay is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay checks listed in that register, with exactly the same specifications as listed in the register (amount, payee, serial number, etc.). This system dramatically reduces check fraud.

Sweep Accounts: are typically offered by the cash management division of a bank. Under this system, excess funds from a company's bank accounts are automatically moved into a money market mutual fund overnight, and then moved back the next morning. This allows them to earn interest overnight. This is the primary use of money market mutual funds.

Zero Balance Accounting: can be thought of as somewhat of a hack. Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. Traditionally, it would be impossible to know which deposits were from which stores without seeking to view images of those deposits. To help correct this problem, banks developed a system where each store is given their own bank account, but all the money deposited into the individual store accounts are automatically moved or swept into the company's main bank account. This allows the company to look at individual statements for each store. U.S. banks are almost all converting their systems so that companies can tell which store made a particular deposit, even if these deposits are all deposited into a single account. Therefore, zero balance accounting is being used less frequently.

Wire Transfer: A wire transfer is an electronic transfer of funds. Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash

office. Bank wire transfers are often the most expedient method for transferring funds between bank accounts. A bank wire transfer is a message to the receiving bank requesting them to effect payment in accordance with the instructions given. The message also includes settlement instructions. The actual wire transfer itself is virtually instantaneous, requiring no longer for transmission than a telephone call.

Controlled Disbursement: This is another product offered by banks under Cash Management Services. The bank provides a daily report, typically early in the day, that provides the amount of disbursements that will be charged to the customer's account. This early knowledge of daily funds requirement allows the customer to invest any surplus in intraday investment opportunities, typically money market investments. This is different from delayed disbursements, where payments are issued through a remote branch of a bank and customer is able to delay the payment due to increased float time.

In the past, other services have been offered the usefulness of which has diminished with the rise of the Internet. For example, companies could have daily faxes of their most recent transactions or be sent CD-ROMs of images of their cashed checks. Cash management aims at evolving strategies for dealing with various facets of cash management. These facets includes the following:

Optimum Utilisation of Operating Cash


Implementation of a sound cash management programme is based on rapid generation, efficient utilisation and effective conversation of its cash resources. Cash flow is a circle. The quantum and speed of the flow can be regulated through prudent financial planning facilitating the running of business with the minimum cash balance. This can be achieved by making a proper analysis of operative cash flow cycle alongwith efficient management of working capital.

Cash Forecasting

Cash forecasting is backbone of cash planning. It forewarns a business regarding expected cash problems, which it may encounter, thus assisting it to regulate further cash flow movements. Lack of cash planning results in spasmodic cash flows.

Cash Management Techniques:


Every business is interested in accelerating its cash collections and decelerating cash payments so as to exploit its scarce cash resources to the maximum. There are techniques in the cash management which a business to achieve this objective.

Liquidity Analysis:
The importance of liquidity in a business cannot be over emphasized. If one does the autopsies of the businesses that failed, he would find that the major reason for the failure was their unability to remain liquid. Liquidity has an intimate relationship with efficient utilisation of cash. It helps in the attainment of optimum level of liquidity.

Profitable Deployment of Surplus Funds


Due to non-synchronization of ash inflows and cash outflows the surplus cash may arise at certain points of time. If this cash surplus is deployed judiciously cash management will itself become a profit centre. However, much depends on the quantum of cash surplus and acceptability of market for its short-term investments.

Economical Borrowings
Another product of non-synchronisation of cash inflows and cash outflows is emergence of deficits at various points of time. A business has to raise funds to the extent and for the period of deficits. Raising of funds at minimum cost is one of the important facets of cash management.

Purpose of Cash Management Cash management is the stewardship or proper use of an entitys cash resources. It serves as the means to keep an organization functioning by making the best use of cash or liquid resources of the organization. The function of cash management at the U.S. Treasury is threefold: 1. To eliminate idle cash balances. Every dollar held as cash rather than used to augment revenues or decrease expenditures represents a lost opportunity. Funds that are not needed to cover expected transactions can be used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest payments) or can be invested to generate a flow of funds into the Treasurys account. Minimizing idle cash balances requires accurate information about expected receipts and likely disbursements. 2. To deposit collections timely. Having funds in-hand is better than having accounts receivable. The cash is easier to convert immediately into value or goods. A receivable, an item to be converted in the future, often is subject to a transaction delay or a depreciation of value. Once funds are due to the Government, they should be converted to cash-in-hand immediately and deposited in the Treasury's account as soon as possible. 3. To properly time disbursements. Some payments must be made on a specified or legal date, such as Social Security payments. For such payments, there is no cash management decision. For other payments, such as vendor payments, discretion in timing is possible. Government vendors face the same cash management needs as the Government. They want to accelerate collections. One way vendors can do this is to offer discount terms for timely payment for goods sold.

CASH MANAGEMENT
Cash Management As part of Kirloskar Electric Company Ltd Corporates and Institutions, we provide Cash Management, Securities Services and Trade Services through our strong market networks in Asia, Africa, the Middle East and Latin America. We also provide a bridge to these markets for clients from the U.S and Europe. We are committed to providing you with Integrated, superior cross-border and local services Efficient transaction processing Reliable financial information Innovative products World-class clearing services Thus ensuring a full suite of transactional products for your needs.

For Corporates Kirloskar Electric Company Ltdis highly recognized as a leading cash management supplier across the emerging markets. Our Cash Management Services cover local and

cross border Payments, Collections, Information Management, Account Services and Liquidity Management for both corporate and institutional customers. With Kirloskar Electric Company LtdCash Management services, you'll always know your exact financial position. You have the flexibility to manage your company's complete financial position directly from your computer workstation. You will also be able to take advantage of our outstanding range of Payments, Collections, Liquidity and Investment Services and receive comprehensive reports detailing your transactions. With Kirloskar, you have everything it takes to manage your cash flow more accurately. Payments Services Collection Services Liquidity Management

For Financial Institutions Kirloskar Electric Company Ltdis highly recognized as a leading cash management supplier across the emerging markets. Our Cash Management Services cover local and cross border Payments, Collections, Information Management, Account Services and Liquidity Management for both corporate and institutional customers. If you are looking for a correspondent banking partner you can trust, Kirloskar Electric Company Ltdcan help you. We have more than 500 offices located in 50 countries throughout the world and, with 150 years of on-the-ground experience, we can help our bank clients with all their cash management needs. Clearing Services Asian Gateway

Payment Services Global payments solution for efficient transaction processing Looking to outsource your payments to enable: Efficient processing of all your payables in the most cost effective way Straight through processing both at your end as well as your bank's back-end

Efficient payables reconciliation with minimal effort and delay Quick approval of payments from any location Minimum hindrance to automation due to local language difficulties Centralized management of payables across departments, subsidiaries and countries Our Solution Kirloskar Electric Company LtdStraight Through Services (STS) Payments Solution can be tailored to the different payment needs of companies, whatever industry, size or country you may be in. With a comprehensive End-to-end Payment Processing Cycle, STS allows companies to process a variety of payment types, whether they be domestic or international, local or central in different countries, all in a single system file. To realise the benefits of STS, please contact your local Relationship Manager or Cash Management representative. Our Coverage We are the foreign bank having the largest geographical representation in the country. We are present in 31 locations which enables you to print Payable At Par at 31 locations with the highest number of print sites. i.e. we can print cheque, drafts for you at 31 locations and thus bring down your cost. We can also provide 700+ locations online for draft required. We are the only bank which provides draft status to you on the website.

Collection Services
Comprehensive receivables management solution. Kirloskar Electric Company

Ltdunderstands that operating and sustaining a profitable business these days is extremely tough. In an environment of constant changes and uncertainties, most businesses face challenges of costs and efficiency. Key concerns include: Receivables Management - ensuring receivables are collected in an efficient and timely manner to optimise utilisation of funds. Risk Management - ensuring effective management of debtors to eliminate risk of returns and losses caused by defaulters and delayed payments Inventory Management - ensuring efficient and quick turnaround of inventory to maximise returns.

Cost Management - reducing interest costs through optimal utilisation of funds. Our Solution The Kirloskar Electric Company LtdCollections Solution leverages the Bank's extensive regional knowledge and widespread branch network across our key markets to specially tailor solutions for your regional and local collection needs. In India we have around 270 local locations and we are the only foreign bank which is present in 31 locations. We have the widest network among foreign banks in the country. This Collections Solution, delivered through a standardised international platform, has the flexibility to cater to your local needs, thus enabling you to meet your objectives of reducing costs and increasing efficiency and profitability through better receivables and risk management. The key components of our solution include the following: Extensive Clearing Network Guaranteed Credit Comprehensive MIS System Integration Outsourcing of Collection

Liquidity Management
Solutions for efficient management of your funds A corporate treasurer's main

challenge often revolves around ensuring that the company's cash resources are utilised to their maximum advantage. You need a partner bank that can help you: Maximise interest income on surplus balances; minimise interest expense on deficit balances for domestic, regional and global accounts Minimise FX conversion for cross-currency cash concentration Customise liquidity management solutions for different entities in different Centralise information management of consolidated account balances Our countries Solution With our global experience and on-the-ground market knowledge, Kirloskar Electric Company Ltdwill help you define an overall cash management strategy which

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incorporates a liquidity management solution that best meets your needs. Click here for an illustration of our propositions.

Key Features Based on your needs and the regulatory environment that you are in, you can choose any of the following features: Physical Sweeping Notional Pooling

OBJECTIVES

Objectives of a project tell us why project has been taken under study. It helps us to know more about the topic that is being undertaken and helps us to explore future prospects of that organisation. Basically it tells what all have been studied while making the project.

To learn about various aspects of Kirloskar Electric Company Ltdcash management. To analyze the history of Kirloskar Electric Company Ltd. To gain insights about functioning of Kirloskar Electric Company Ltdcash management. To explore the future prospects of management. Kirloskar Electric Company Ltdcash

Research is a process through which we attempt to achieve systematically and with the support of data the answer to a question, the resolution of a problem, or a greater

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understanding of a phenomenon. This process, which is frequently called research methodology, has eight distinct characteristics: 1. Research originates with a question or problem. 2. Research requires a clear articulation of a goal. 3. Research follows a specific plan of procedure. 4. Research usually divides the principal problem into more manageable subproblems. 5. Research is guided by the specific research problem, question, or hypothesis. 6. Research accepts certain critical assumptions. 7. Research requires the collection and interpretation of data in attempting to resolve the problem that initiated the research. 8. Research is, by its nature, cyclical; or more exactly, helical. Descriptive research is used in this project report in order to know about cash management services to clients and determining their level of satisfaction. This is the most popular type of research technique, generally used in survey research design and most useful in describing the characteristics of consumer behavior. The method used were following:

Questionnaire method Direct Interaction with the clients.

MODE OF DATA COLLECTION

Primary Data: - The sources of Primary data were questionnaires and personal interviews.

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Secondary data: - the sources of secondary data were internet, books and newspaper articles. Sample size: 8

COMPANY PROFILE
Overview
Kirloskar Electric Company Ltd. (KEC) is one of Indias leading manufacturers of electrical and power equipment. Established in 1946 by Mr.Ravi.L.Kirloskar, Kirloskar Electric Manufactures Alternating Current (AC) Motors, AC Generators, Direct Current (DC) Machines, Traction Equipment, Switch Gear, Transformers and undertakes turnkey electrical projects. In 64 years, the company has built on its core capabilities of prime technological and engineering skills complemented by world class manufacturing facilities. Kirloskar Electric products have made more than a significant contribution of Indias rapidly growing economy. Today, Kirloskar Electric is capable of delivering a wide range of custom engineered products that meet and exceed global standards at every competitive price.

History
Visionary founder Laxman Rao Kirloskar created the first Iron plough for the Indian farmer. His involvement with agriculture led him to make the first pump then the prime movers for the pumps. Since then KEC corporate goal has been to look into the future and engineer products that time would eventually demand. Ravi L Kirloskar, second generation entrepreneur, son of the visionary, built a bank of prime technological skills and capabilities. And a state of art

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facility that has since then continuously reinvented itself to meet the changing demands of a changing market just that one step ahead of time. With long years of innovative application behind it, Kirloskar Electric finds itself completely capable of delivering a range of custom engineered products that meet and exceed global standards at very competitive prices. Moving smoothly from agricultural sector to industry, to transport, to defence, to power generation, Kirloskar Electric products have had more than a significant contribution to make to Indias rapidly evolving economy. Promoted by Kirloskar Brothers Ltd, Pune, the company was incorporated in Bangalore on 26th July, 1946 under the Mysore Companies Act XVIII of 1938, with technical and financial participation of well known British Company i.e., Brush Electrical Engineering Company Ltd., Loughborough, England, which is now a member of Hawker Siddeley Group. Kirloskar Brothers Ltd is a public Limited Company, incorporated under the Indian Companies Act, VII of 1913, on 15th January, 1920. This company is engaged in the manufacture and sale of power driven pumps, metal cutting, including grinding machines, valves, hermetic sealed compressor units, hydraulic and pneumatic equipment etc. Kirloskar Electric Company Ltd. is a well established and professionally managed company of 45 years of standing of the Kirloskar Group. It has an unbroken dividend record of 37 years, six Bonus Issues and for Right issues. The main business activity of company is the manufacture and sale of a diverse range of electrical and electronic equipments such as AC Induction Motors, Transformers, AC generators, DC machines, Control Equipment and Systems, Power Electronic Products, Instrumentations, Automation and Systems Division of the Company have specialized in executing systems packages for large industries like steel, fertilizers, cement, sugar and other core sectors.

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The company has four manufacturing plants the first unit at Bangalore produces higher range AC machines, Transformers, and Control Equipments, the second unit at Hubli turns out small and medium range AC machines, the third unit at Peenya, Bangalore, produces DC machines and the fourth unit at Mysore specializes in Electrical products. 1888- Engineering Brother Enterprise was established by Mr Lakshman Rao & Mr Kashinath Kirloskar. 1901- Indias first Mechanical Fodder Cutter Machine made. 1904- First Iron ploughs was Invented 1924- Export of Ploughs to Britain begins. 1940- Indias First Vertical Diesel Engine Manufactured. 1942- First AC Induction Motor made in India. 1946- Kirloskar Electric & Kirloskar Oil Engines established. 1949- Indias First 5HP AV1 Engine Manufactured. 1953- Indias First Transformers Manufactured. 1958- First Alternator in India was invented, Kirloskar Pneumatic Company Established. 1964- First Electronic DC Motor Made in India. 1970- Mr. Ravi Kirloskar Appointed as Managing Director. 1973- First Overseas Established In Malaysia. 1984- JV Established for Specialization in Pumps. 1988- Completed 100 years, a Centenary Year. 1991- Established in Singapore. 1992- Kirloskar Ferrous Established. 1993- ISO 9001 Certification. 1994- Mr. Vijay Kirloskar was appointed as Chairman. 2008- Kirloskar acquires LDW & established in Holland. (Lloyd Dynamo Werke, Bremen, Germany.)

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Vision, Mission and Quality Policy Vision


Vision defines the desired or intended future state of a specific organization or enterprise in terms of its fundamental objective or strategic function. A vision statement outlines, What the organization wants to be? What it concentrates in future? What is its source of inspiration? Clear decision making criteria.

Vision statement of Kirloskar Electric Ltd The power of now is the energy of opportunities that come to us disguised as challenges. The power of now at Kirloskar Electric is the dynamics of making opportunities work as by meeting clients tough specifications of cost and quality. At Kirloskar Electric, we bank on the power of now.

Mission
Mission defines the fundamental purpose of an organization or an enterprise, basically describing why it exists. A Mission statement outlines The fundamental purpose of the organization. Concentrates on the present. Defines the customer and the critical processes. Informs the desired level of performance. Kirloskar Electrics motto is to deliver machines to their customers that meet the customers requirements as well as ensure trouble free service for a long life. Right from the manufacturing stage every care is taken to ensure that machines are delivered defect free to the customer. The company also offers the 16

customer an option of witnessing the testing process. However, many customers have requested the company to provide more information regarding proper storage, installation, pre commissioning checks and planned maintenance for rotating machines. Kirloskar Electrics Mission statement aims: To provide products and services of high quality. To assume leadership in business through proactive customer services. To perform beyond customer expectation. To create long term relationship with customers. To achieve excellence in business through continual improvement.

Quality Policy
Quality system is designed to the requirements of ISO 9001, 1994. The quality policy of KEC, Unit V (Mysore Unit) has been to design manufacture, market and service at competitive prices, product of such quality as results in customer satisfaction, quality reputation and market leadership. Quality objective of the management of the company are: 1) To design, implement and maintain a quality system conforming to ISO 9001:2008. 2) To provide products and services in a manner which conforms to contractual requirement using appropriately qualified trained and experienced personnel. 3) To employ the principles of continuous improvement with the involvement of all people and concepts of next process as customer.

Aim of Kirloskar Electric Company:


Manufacturing the quality and leading electrical products with the help of latest international technology. The brand name of the quality for electrical product across the globe.

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Kirloskar values are established in gaining excellence in engineering and marketing its mission successfully. Ensuring customer satisfaction. Manufacturing products of highest quality using state of the art technology.

Objectives of Kirloskar Electric Company:


To provide products of highest quality and value. To achieve cost effectiveness in machine shops and production process etc. To invest in the technology to achieve technological excellence and competitive edge. To develop employees mutual trust, respect and training. To reduce wastage throughout supply chain. Human resource development. Quality objective

Business Ethics and Values


Business ethics is a specialized study of moral right and wrong that concentrates on moral standards as they apply to business organization and its behavior. Values represent the basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Kirloskar Electrics Business Ethics and Values are Customer value enhancement. Fairness in business dealings. Quality-life time commitment. Business leverage through technological leadership. Fair return for our growth and wealth. Maximization of stakeholder value. Human resources our valuable assets.

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Kirloskar Group of Companies:


It is made up of 8 major group companies, who are players in major sectors like manufacturing, oil and gas, power, construction and mining, agriculture, industry and transport each led by the best engineering and managerial talent in India. In addition to engineering, Kirloskar group also has interests in civic utility systems and in Information Technology and Communication. These 8 companies form the core of Kirloskar group. Each company is a renowned name in its own area of operation and is respected world-wide for its services and products. For us manufacturing is just not limited to our factory premises and our products. It is also about world class service.

Kirloskar Brothers Limited. (KBL) Kirloskar Ferrous Industries Limited. (KFIL) Kirloskar Middle East FZE. (KMEF) Kirloskar Oil Engines Limited. (KOEL) Kirloskar Industries Limited. (KIL) Kirloskar Pneumatic Company Limited. (KPCL) Kirloskar Proprietary Limited. (KPL) Kirloskar Ebara Pumps Limited. (KEPL) Kirloskar group is also a proud partner in joint ventures with companies

like Ebara Corporation, Toyota Motor Corporation, the renowned auto manufacturer. It is headed by Mr. Sanjay Kirloskar. The Kirloskar group of companies was one of the earliest industrial groups which made a mark in the engineering industry in India. The group produces pumps, engines, compressors, lathes and electrical equipments like motors, transformers and generators. Kirloskar Groups Strengths: Multi-product group offers synergistic solution. Leadership in all major core sectors in India like power, agriculture, steel coal, chemical process, petrochemical, sugar, mining, transport, oil and gas, water supply and sewage, defense. 19

Excellent manufacturing technology and infrastructure. In-house R&D facility. Wide dealer and sales network in India and overseas. More than 100 regional area offices and 5 overseas offices.

Location of Manufacturing Plants:


Bangalore(Govenhalli), Hubli, Tumkur, Mysore, Pune. The company has established 5 offices as global centre, which are situated at Singapore, Malaysia, Michigan, Germany, Sharjah. Sales Office: Ahmedabad, Bangalore, Bhuvaneshwar, Chennai, Cochin, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Lucknow, Madurai, Mumbai etc.

Kirloskar Electrics Products


KEC manufactures following standard and customized range of products for various applications: AC Motors Alternators/AC Generators DC Machines Electronics Switchgears Traction Transformers DG Sets KEC has developed special motors like Canned Pump, Roller Table, Mud Gun and Bell Annealing Furnace motors. Indias premier aircraft manufacturing facility in Bangalore has one of the worlds few high power and outdoor duty vertical DC motor for helicopter blade testing made by KEC. The prestigious CERN Super Particle Accelerator project tin Geneva uses KECs super conducting DC Corrector Magnets in large numbers.

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The first indigenously designed stealth ships at Mumbai have 4 KECs 1000kw AC generators. KEC set a record as a company to indigenously design, manufacture and supply AC generator of 400Hz for defence applications. KEC played a key role in building the entire power supply unit for the first ever indigenously built missile. KEC has developed special motors for steel industry and nuclear power plants. KEC was the first choice for design and manufacture of a 3800 kW Twin Armature drop DC motor. With the association of Indian Railways and ABB, KEC has successfully developed and supplied 850kW AC mainline. Projects The countrys first cogeneration plant at TISCO has a complete electrical system from KEC. Installation of the innovative farm project in Tamilnadu and Karnataka is the KECs unique contribution to green power.

Milestones
India's first satellite tracked Proud scientists celebrated the successful tracking of Indias first satellite. The meticulously planned event was held in Hassan, Karnataka. The team had finalized the specifications for AC generators with Kirloskar Electric Co., taking care of intricate details like transient loading and transient voltage regulation performance. Missile test fired The first ever indigenously built missile was test fired in early 90's, year before; premiere defense organizations perfected the intricate performance requirement of the power supply unit. KEC played a key role in building the

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entire power supply unit. The AC Generators of KEC were customized for arduous duty. India explores Antarctica India was the first developing country to join the Antarctica explorations. The task team behind this feat had done the homework right. They carried with them specially designed AC Generators, developed by KEC that worked perfectly in sub zero temperatures. Rajdhani flagged off The research wing of India Railways worked with specialists from KEC to design highly reliable AC Generators that would take that heat, dust, smoke and the acceleration of the bogie and continue to function giving passengers of the Rajdhani greater speed, greater comfort and increased safety. Spotting the enemy on radar The system and network to spot enemy air-craft on the radar is complex and requires a variety of power sources. Sensitive and classified projects involve supply of entire power pack and AC Generators in line with the stringent specifications. KEC has successfully implemented these projects and KEC's AC Generators are working for over 25 years in critical Defense applications. Boom of guns The anti aircraft guns require reliable power supply as they work under extreme climates round the year. KEC has supplied these special purpose army generators and AC motors to keep these special purpose army generators and AC motors to keep the guns booming without fail.

International Standards Certificatio


About ISO ISO is the International organization for Standardization. It is located in Switzerland and was established in 1947 to develop common international standards in many areas. Its members come from150 national standards bodies. About ISO 9000 The term ISO 9000 unfortunately has two different meanings: 22

It refers to a single standard (ISO 9000) and it refers to a set of three standards (ISO 9000, ISO 9001, and ISO 9004). management standards. ISO 9000 discusses definitions and terminology and is used to clarify the concepts used by the ISO 9001 and ISO 9004 standards. ISO 9001 contains requirements and is often used for certifications purposes while ISO 9004 presents a set of guidelines and is used to develop quality management systems that go beyond ISO 9001. The ISO 9000 standards apply to all kinds of organizations in all kinds of areas. Some of these areas include manufacturing, processing, servicing, printing, forestry, electronics, steel, computing, legal services, financial services, accountings, trucking, banking, retailing, drilling, recycling, aerospace, construction, exploration, textiles, pharmaceuticals, oil and gas, pulp and paper, petrochemicals, publishing, shipping, energy, telecommunications, plastics, metals, research, health care, hospitality, utilities, pest control, aviation, machine tools, food processing, agriculture, government, education, recreation, fabrication, sanitation, transportation, software development, consumer products, product design, instrumentation, tourism, communications, biotechnology, chemicals, engineering, farming, entertainment, consulting, insurance and so on.
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All three referred to as quality

Certifications of the industry: KEC was the first Electrical Engineering Company to get ISO 9001 certification in India. KEC is also the first electrical equipment manufacturing company in India to be awarded with certificate of providing CE Mark. Kirloskar Electric is a pioneer in export of Electrical and Electronic goods for the last four decades. KEC is a status holder recognized by Ministry of Commerce and Industry, Government of India, as an Export House. Bureau Veritas Quality International (BVQI) has certified the Quality Management System of KEC. We are also first in electrical industry to obtain ISO 9001-2000 certification by BVQI.

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The ISO 9001-2000 certificates awarded to: KEC - Bangalore, Hubli, Mysore, Tumkur.

KEMA registered quality B.V.Netherlands, notified authority have tested our products with respect to low voltage directive, EMC (Electromagnetic) directive and MD (Machinery) directive.

CE stands for CONFIRMATIVE EUROPEENNE and conformity to European standards meeting basic requirements of Safety, Health and Environment & Protection (SHEC). KEC is entitled to provide CE Marking for AC motors, AC generators and DC machines. CE marking allows the product un-registered legal access to the European market.

We are proud of having established an independent laboratory duly certified by NVLAP-NIST, USA for testing of energy efficient 3 phase Induction motors up to 50HP. Kirloskar Electric Test Laboratory (KETL) is first in India and among few in Asia to get NVLAP Accreditation.

Awards/Accolades
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Best innovative product for Digital drive by IEEMA at the Elecrama exhibition. National award for R&D from the Department of Scientific and Industrial Research, Ministry of Science & Technology, India DOE Award for excellence in electronics, 1995 FIE foundation award at IMTEX, AC servo drives and motors.

International Technical Collaboration


AC Induction motors AEC Germany AC Generators AEC Germany Cast resin transformers Ocrev, Italy Inverters Fuji electric, Japan Vector control inverters University of Wuppertal, Germany UPS Toshiba Corporation, Japan CNC Controls Adolph Nemerical Controls Ltd., U.K Transformers Peebles Electric Ltd, U.K Wind Turbine Generators Wind Energy Group, U.K.

Bankers
Bank of Baroda Bank of India State Bank of Mysore State Bank of Travancore The Hong Kong and Shanghai Bank Ltd. Bank of Commerce, Kuala Lumpur (Malaysia)

Production Turnover During the year 2009-10, Company has achieved a turnover (Gross) of Rs.8.24billion. (Previous year Rs.8.41 billion).

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The operations have resulted in a net profit of Rs.21.1 million (previous year Rs.375.9 million). Production Turnover (in million Rs.) Gross Turnover Net Profit 2009-10 2256.0 375.9 2010-11 1907.8 21.1

Equipment and Machinery


Kirloskar Electrical Ltd has dedicated equipments. Mysore houses state-of-art manufacturing and testing facilities. The manufacturing facilities include: Sufficient number of heavy duty winding machines Jerk free core assembly jigs Hydraulic press for coil pressing operation Air drying Heating oven Vacuum drying oven Paint booth It also has complete testing facilities for carrying out all routine and tests upto 50 MVA, 132 kV class. Kirloskar electric has a highly skilled and motivated workforce. The operators at different levels undergo regular training in various skills, so that we keep abreast of latest practices in manufacturing process. At KEC there is an array of sophisticated facilities like Grill winding machines, hydraulic heating and EOT cranes etc. which are procured for various sophisticated specialized operations as a part of manufacture. KEC Unit V at

Major Customers

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Some of the reputed customers of transformers include Siemens, Reliance Energy, Enercon, Vestas etc. There are other customers from the field of Sugar Industry, cement industry, steel industry, defense, railways, computer firms and airports.

Competitors
The main competitors of KEC are: 1) ABB: is a leader in power and automation technologies. The ABB Group of companies operates in around 100 countries and employs around 115,000 people. 2) Crompton Greaves: CGL has grown from a single unit making AC industrial motors and ceiling fans to a multi-dimensional corporation with business interests in many product areas including transformers, motors, electronic equipments and services. With its 28 manufacturing plants and countrywide marketing and support network, CGL effectively provides value to its customers. 3) BHEL: is the largest engineering enterprise of India with an excellent track record of performance. The company now has 14 manufacturing divisions, 8 service centers and 4 power sector regional centers.

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LITERATURE REVIEW

Web-based Cash Management


Finacle web-based cash management solution enables banks to offer comprehensive cash management services to businesses, ranging from small enterprises to large corporate houses. Built on new-generation industry standard technologies J2EE and .NET, the modular solution provides corporate customers anytime, anywhere access to real-time consolidated information. It manages cash positions and electronically sends and receives funds in a secure manner, within and across borders. The solution is multi-currency enabled and offers multilingual support. It is also designed to support multiple channels including the Internet and mobile, and can be interfaced with disparate host systems and third-party applications.

Key Offerings

Balances and Transaction Information Electronic Invoice Presentment and Payment Payables Management Receivables Management Liquidity Management and Reconciliation Reporting

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Trade Finance

Additional Features

Alerts Infrastructure Security

Corporate Cash Management to benefit from Electronic Payments


The new electronic payment products and services offer the corporate clients an improved bottom line by helping manage cash requirements. It helps corporate to make the best use of their funds and provides an effective means of managing their financial requirements. Several of the trends in cash flow forecasting favor the use of electronic payment products like RTGS, Electronic Funds Transfer (EFT) and card payments. Improved technology and systems integration makes it more attractive to use electronic payment products because these methods of payment can be incorporated into firmwide computing systems.

The new forecasting techniques also suggest use of electronic payments, because they offer disaggregated revenue and spending data that can easily be categorized and studied.

Electronic payments and cards provide control over incoming funds, and allow companies to limit access to these funds to authorized parties. In addition, limiting corporate purchases to electronic payments makes it easier for firms to monitor cash outflows and prevent unauthorized expenditures, because these payments are easier to document and provide an audit trail.

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From the perspective of a Corporate, the electronic payment systems ensure speed and security of the transaction processing chain, from verification and authorisation to clearing and settlement. Also it gives a great deal of freedom from more costly labor, materials, and accounting services that are required in paper-based processing, better management of cash flow, inventory, and financial planning due to swift bank payments. Banknet Fourth Annual Conference on Payment Systems in Mumbai, India on 16 January 2008will discuss on topics like: How innovations in the payments world could shape cash management, How can banks and corporate facilitate one another's business, Linking of electronic payment systems like RTGS, EFT, NEFT, SWIFT etc in cash management etc. Banknet will also release results of Bank Customer Survey on Payment Systems at the conference Business Benefits Generation of Fee-based Income Finacles features such as wire initiations, liquidity management, alerts, cross border payments and positive pay offer a consistent stream of fee-based revenues. The customer relationship management capabilities embedded within these systems also enable targeted marketing, leading to greater opportunities for cross-selling and a higher fee income.

Business Agility
Built on industry standard platforms J2EE and .NET, the solution provides banks with tremendous flexibility to extend their product portfolio and customize the solution according to requirements. The architecture of the solution enables the bank to write business rules once and deploy anywhere, add new rules, modify existing ones or integrate with other applications seamlessly. The solution also provides an additional layer that can be extended to interface with multiple back office systems. All this

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enhances agility of operations, helping the bank identify new opportunities and roll out new products.

Cost Savings
Thin-client architecture over the Internet reduces the cost of maintenance associated with frequent upgrades and support. The deployment of Finacle enables a cost-effective channel through which to serve customers. As the number of transactions completed online increases, the number of more expensive branch transactions decreases. This is especially true of small business customers who tend to use the branch as their primary channel. Greater automation and productivity, as well as reduced human error, further lead to increased cost savings.

Increased Customer Satisfaction


The self-service capabilities empower corporate customers to manage the solution in terms of defining user-permissions, based on hierarchy and roles. This leads to greater convenience and offer better monitoring of banking transactions in real time. A more empowering corporate client would be a more satisfied and profitable customer.

Cash Management Basics


Cash is your business's lifeblood. Managed well, your company remains healthy and strong. Managed poorly, your company goes into cardiac arrest. If you haven't considered cash management an important issue, then you're probably undermining your business's short-term stability and its long-term survival. But how can you manage business cash better? Start with understanding how good cash-management practices can influence your company's growth and survival by reading "The Art of Cash Management," Inc Finance Editor Jill Andresky Fraser's classic article on the topic. Then dive into forecasting your business-cash needs and learning how to handle a cash crisis. Assembled here are 31

practical pieces of advice, tips and tricks from CEOs, and tools that you can use to get a handle on business cash.

Handling and Avoiding Crises


How Do You Define Cash Flow? If your definition of cash flow is flawed, and you're not tracking the right numbers, you may grow your company right into a cash crisis. The 10 Absolutely Must Follow Cash Flow Rules Everyone wants cash on hand at all times. Here are 10 rules to help you get there. The Magic Number Every business has a magic number. By employing his, our columnist didn't overstaff this year. Riding the Economic Roller Coaster Tighten your seatbelt. Surviving the ups and downs of the world economy means keeping an eye on business finances. When a Cash Crisis Strikes Credibility with vendors, bankers, and other creditors is built slowly, but can be destroyed quickly if your company falls behind on payments. Know how to break the bad news to preserve your business's relationships.

Hot Tip: Prepare for a Cash Crisis


How do you prep for a cash crisis? Wayne Karpoff, president of Myrias Software Corp., knew cash would be a problem late last year. His 15-employee, $1.5-million company dropped selling its products and became a full-time service business. So he built a contingency fund into his annual budget -- an amount equal to three months' worth of payroll. He got the idea when his bank suggested he set up a contingency fund to safeguard his mortgage payments in the event he found himself out of work. He dipped into the fund three times last year to float the company during project and payment delays. 32

Source: Ilan Mochari, Inc magazine, March 2000

Forecasting, Projections and Budgets


The Secrets to Formatting Cash Flow Projections Here are the keys to creating a powerful tool to take control of your cash flow. Cash Flow Projections Made Easy Here is a 4-step process you can use to create cash flow projections you can trust. Breaking Free from Budgets Exasperated by budgets that hamstring creativity, a growing number of companies are tossing off financial constraints--and still holding the line on spending. Budgeting for Blunders Lisa Hickey created a fund to support creative risks her Boston-based ad agency, Velocity Inc., takes when trying innovative ideas that might not pan out. A Passion for Forecasting Don't put together an annual sales forecast using only gut instinct and wishful thinking! Here are some rules you can follow to create a forecast that you and your employees can count on. Action Plan: Forecasting and Cash-Flow Budgeting Developing a budget is simple, and when created with solid sales and expense forecasts in mind, you can ensure that your budget will stand up to the daily demands of your business. Here are some steps you can take to create a cash flow budget you can rely on.

Tools
Defining Key Financial Ratios Tracking these key financial ratios will highlight financial trends in your business. Financial Ratio Worksheets Use these financial-ratio worksheets to determine 10 key ratios and track financial trends in your business. 33

A Simple Formula Determine your breakeven point with this online calculator. The Employee-Run-Budget Worksheet Help employees get in on the budgeting act with this worksheet. Profit-and-Loss Projection Use this profit-and-loss projection as a guide to projecting your company's profitability.

How to Improve Cash Management Practice in India?


There are, of course, many ways to improve and re-engineer the processes. However, depending on budgets and also to minimise disturbances to the business, the following are the suggested simple and initial steps. Note that the larger the corporation, the more involved the process will be.

(1) Commit to change: Recognize the need for improvement and commit to change (this commitment must come from top management and cannot be just lip service). (2) Establish a credible project team: The project team must have a credible and strong project leader and be sponsored by the decision maker(s).

(3) Study the existing internal financial transaction processes: This is straightforward and a simple overview. Ask questions such as: Is electronic banking used? To what degree? How are revenues collected and how are payments made? How many staff are dedicated to these functions? What is the decisionmaking and authorisation chain? What information is available from internal management information systems?

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(4) Review services available in the marketplace: Review existing service providers and other service providers, making initial presentations and discussions with banks and providers. Quickly shortlist potential providers for further in-depth discussions and presentations. Develop a good idea of what solutions, services and products are on offer. (5) Establish high-level, practical goals and objectives: There must be a true desire and commitment to improve and make changes for the better; however, the process should be evolutionary and practical. Take care to ensure goals are not artificially set for easy attainment nor established for ideal perfection so to be unreachable or unrealistic. The goals should be at a higher level than where the company is now and the initial level of improvement. For example, a goal may be to achieve costs savings and efficiency gains on the process of collecting revenues and reconciling with the accounts receivable system. (6) Establish and commit to specific initiatives, sequence and timeframe: Action points, initiatives and a realistic time frame must be decided for achieving each initiative. Communicate these to the providers. For example, an initiative may include automating and outsourcing vendor payments. (7) Obtain simple written proposals from the shortlisted potential providers: Have providers present proposals and be prepared to ask questions and probe exactly what is being offered and whether the proposed solution, services and products meet your objectives. Look for comprehensive, well thought-out and realistic solutions. (8) Decide on the solution and decide on a provider(s): It is not necessary to have only one provider of services. For example, there could be a domestic collection bank and a regional account management bank. Document all goals and services as well as pricing and the period the pricing covers, such as one-year or two-year, and the start dates.

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(9) Review the internal project team and add actual users to help implement the proposed changes: This process is to help obtain commitment from the bottom up and to gain the buy in of internal users. The bank provider(s) should also have a parallel team to work with your implementation or project team. Also, a mutually designed and agreed schedule and action plan should be established. (10) Review, establish and commit to a process for ongoing improvement: Services should be reviewed once implemented to ensure that the high-level goals and objectives are obtained. There should also be an ongoing emphasis on improvement, and a culture for empowering staff to recommend and look for ways and means to improve cash management services and processes. This needs to be encouraged, especially with the new developments in technology afforded by the Internet. Management and users must commit to the discipline of cash management.

Protecting Yourself from Fraud


Safeguarding your personal and financial information has become increasingly challenging, as the threat of fraud has never been greater. Personal computers, the Internet and e-mail can become dangerous weapons in the hands of someone looking to deceive you. You can help prevent many types of fraud if you know what to look for. Below are some of the most common online threats. What types of scams should I be aware of? Among ways that scam artists obtain access to personal and/or financial information are: Phishing: These authentic-looking e-mail messages instruct the recipient to provide sensitive personal, financial or password information. The e-mail appears to

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have been sent by a reputable company from a legitimate e-mail address and includes logos and links to reputable businesses and government agencies. Social engineering (a term used in the information security industry): Criminals pretend to be, for example, from the security and fraud department of a major credit card company. They ask questions to verify personal information such as your home address, as well as the numbers on the back of your credit card, to verify you have the card. Bank scams: Perpetrators attempt to get you to log on to a fake Web site to capture your personal financial information. They send an e-mail to bank customers asking them to click on a fake bank Web site and supply their account name and password. These e-mails may contain logos and graphics that appear to be legitimate, but they often contain typos, e-mail addresses or URLs that have nothing to do with the company. An example of this is the 419, or advance-fee scam, run by Nigerian gangs who set up fake bank Web sites.

How can I protect myself from these scams? Use extreme caution in providing personal information on Web sites or on unsolicited phone calls. Be cautious of unexpected e-mails linking to online forms that ask you to submit sensitive personal information. Legitimate Web sites hardly ever ask for this kind of information to confirm account renewal or other information. Scam artists take many precautions to make consumers believe their site is secure and legitimate. If you receive an e-mail that warns you, with little or no notice, that an account of yours will be shut down unless you confirm your billing information, do not reply or click on the link in the e-mail. Instead, contact the company cited in the e-mail by a telephone number or Web site address you know to be genuine. (Note: Merrill Lynch will not ask a client to send sensitive personal information via non-secure e-mail.)

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If someone calls about a potential attempt at credit card theft, hang up and call back, using the phone number on the back of your credit card. Do not share any personal information over the phone with an unsolicited caller.

Why Invest Your Working Capital?


Keeping your operating funds working for your company is crucial to maintaining healthy cash flow and maximizing your financial return. Investing idle funds wisely may help you to generate income from your working capital, increasing your yields while maintaining liquidity. There are a wide variety of investment instruments available to companies seeking a return on excess cash. How do you know which investments to choose? Many businesses emphasize only convenience and accept whatever return is offered. However, there are ways you may be able to improve yields on your idle working capital. Concentrate on maximizing after-tax returns If your company is in a lower tax bracket, focus on higher yields rather than tax advantages; however, if your federal tax bracket is high, you may be able to obtain a better after-tax return by investing in federally tax-exempt securities. It's important to compare the yields on tax-free obligations to their fully taxed equivalents to find those that provide a higher after-tax return. The tax benefits of some investments may depend on your business structure.1 Extend the maturities of investments when practical

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Investing funds for longer terms typically means higher yields. If your business keeps its cash highly liquid, perhaps in a money market fund, when only a portion is needed for daily operating expenses, you may well be sacrificing some yield. Determine how much you can commit for a longer period. By investing that amount for as little as 90 days, you may be able to earn extra return. Also consider intermediateterm investments with maturities from one to three years. If your business is building cash reserves for an expansion, an acquisition or new machinery, you may be able to invest those funds for a year or two. Diversify credit quality to help increase yield potential The potential for additional yield might warrant assuming some moderate investment risk. Newly issued obligations guaranteed by the U.S. government (such as Treasury bills) yield less than securities lacking that guarantee. You may be able to obtain a higher yield with high-quality investment-grade corporate obligations. A number of rating services, such as Fitch Investors Service, Moody's Investors Service and Standard & Poor's Corporation (S&P), provide comparative analyses of the risk levels of various instruments. If you choose bonds with short maturities, you may want to consider an A-rated bond by S&P. This type of bond is likely to yield a higher return than an AAA-rated bond (S&Ps highest investment rating) of equal maturity. You should, however, be comfortable with the incremental risk associated with lesser quality credits. Choose investments based on the amount of cash available to you Many working capital investment vehicles must be purchased in minimum amounts and in multiples of the same or smaller amounts. Treasury bills, for example, can be bought in multiples of $1,000, with a minimum investment of $10,000.

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As a business grows and builds a stronger cash flow, the variety of investment opportunities increases. If you have a large amount of investable assets (perhaps $100,000 or more), this gives you an advantage in finding higher rates. Many institutional investment vehicles require high minimum investments but, in return, offer higher yields

Four Steps to a Healthy Cash Flow


Healthy cash flow is essential to the success of a small business. You may have the best service or product around, your employees and customers may love you, your office may be well organized, but if you dont have the money to buy inventory or pay bills, you cant keep your business running. Many business owners make the mistake of believing cash flow is largely out of their control. On the contrary, the following steps can really help. 1. Analyze your financial condition Financial analysts, credit providers and knowledgeable investors rely heavily on financial ratios to judge the health of a company. You should use these tools as well. Commonly used ratios can help you analyze your pricing strategy, level of overhead, liquidity, the health of your cash flow, your average collection period, the appropriateness of your collection terms and your inventory turnover rate. 2. Improve your cash management When it comes to the cash flowing through your financial accounts, your goals should be to ensure that incoming funds spend as much time as possible earning interest or dividends for your benefit and that outgoing funds are available when needed. With a

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traditional business checking account, meeting these seemingly simple goals can be a complex task. You will have to move funds manually into a separate money market account in order to earn interest or dividend income and back into your checking account to cover disbursements when due. An alternative is a central asset account, which combines traditional checking features, investment and borrowing into a single account. A central asset account saves you time and effort by automatically putting your cash where it needs to be, when it needs to be there. And by keeping your cash in interest-bearing accounts right up until the moment disbursements clear your account, a central asset account can also help increase your return and your bottom line.1

3. Even out temporary fluctuations No matter how efficiently you manage your cash flow, there may be times when your business needs more money than it has on hand. This is why adequate credit resources are essential. A business line of credit is useful and convenient because it can be used as needed, paid down and reused without reapplying. When a line of credit is integrated with a central asset account, credit is automatically accessed when needed. And incoming funds automatically go to pay down your loan balance, reducing borrowing time and interest expense. 4. Invest surplus cash Although part of your business capital needs to be liquid, most businesses have some capital that can be invested in short- and intermediate-term securities for potentially higher yields. A broad array of investments can be purchased within a central asset account. And you can sell securities in your account at any time, or, if appropriate, borrow against their value2, to meet working capital needs. Be sure to discuss the risks of borrowing against your securities with your Business Financial Advisor.

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Todays business environment changes rapidly, and as a business owner, you need to regularly review your cash flow and cash management policies to ensure that they are helping to keep your business competitive.

CASH Cash in the business may be compared to the back bone of the human body, back bone gives the strength to the human body and cash gives profit and solvency to the business. In a business ultimately a transaction results either in flow or out flow of cash. The term cash is used in two senses. In narrow sense it is used for cash, cheques, drafts and demand deposits in bank. In broad sense it also includes near cash assets likemarketable securities and fixed deposits in bank. Cash in hand, as an asset it has no any earning power in itself. But a minimum cash balance is essential to meet the requirements of the business. The question arise that what is the proper level of cash or how much cash be kept by a business. There is no any formula to determine the proper level of cash, which should be kept by a business. The proper level of cash depends on various factors like- nature of business, period of credit sale and the position of receivables and inventory. Now the question arise that what is the aim ti keeping cash. According to Keynes there are three motives for keeping cash: 1) 2) 3) Transaction motive Precautionary motive and Speculative motive

In general we can say that a business keeps cash to take day to day obligations, to take benefit from favourable market conditions and to allow for contingencies. CASH MANAGEMENT

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Cash is the medium of exchange on the common purchasing power and which is the most significant components of working capital. Cash is the basis input required to keep the organization running on a continuous basis. At the same time it is the ultimate output which is expected to be realized by selling goods and services. An organization should hold sufficient cash, neither more, nor less. Since excessive cash remain idle which in turn increases the cost without contributing anything towards the profitability of the organization and in the opposite case, trading and / or manufacturing operation will be disrupted. In other words, it can be stated that the higher the level of unused cash, the greater is the cost of holding it in the form of loss of interest which could have been earned either by investing it in securities or by reducing the burdun of interest charges by paying off the loans taken previously. If the level of cash balance is more than the desired level it shows mismanagement of funds. Therefore, for smooth functioning and hjgher profitability, proper and effective cash management is of paramount importance. Cash is the most liquid asset that a firm owns. It includes money and instruments like cheque, money orders or bank drafts which banks normally accepts for deposit and immediately credit to the depositers account. Sometimes near- cash items, such as marketable securities or bank time deposits are also included cash. The basis characteristic of near- cash assets is that they can easily be converted into cash. Concept included:Cash management can be seen from two different perspectives depending on how many responsibilities it includes: treasury management (basic cash management) and advanced cash management. Basic cash management: Treasury management or basic cash management propitiates the development of administrative

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techniques conducive to optimizing the level of disposable assets to be maintained by a company. To prevent breaks in the trading cycle due to lack of cash, administrators must calculate the cash amount to their level of activity, plan the timing of the relevant payments and collections and draw up a policy of investment in assets with high liquidity that can be converted to cash at a low transactional cost. It is essential to establish the right level of disposable assets to short-term financial investments at companies. Holding wrong amount in cash or cash equivalent may interrupt the normal flow of business activities. also the wrong safety margin may result in financial difficulties, with firms unable to meet needs that may arise at any given time or unable take advantage of unexpected investment opportunities. Maintaining a cash surplus thus has a number of advantages. it enables companies to carry on the normal transactions that arise in the course of their activities and avoid any treasury gaps. On the other hand it helps them cover any unexpected needs for cash by acting as a preventive balance. However, there are also disadvantages in being too conservative, as reflected in the opportunity costs entailed by assets with little or no profitability . Having liquid assets available constitutes an opportunity cost for a company, as the return on those assets is lower then the return on productive investments, but there may still be transaction costs arising from the sale or purchase of financial assets, and disadvantages in terms of taxation. This overall analysis should strive to shorten collection periods, lengthen payment periods and avoid idle resources that do not generate returns . advanced cash management:treasury management as a set of techniques that act on the short-term liquidity of a company, and at the same time affect those factors and processes that translate immediately into cash, with the ultimate aim of increasing the profitability of the company and improving working capital management . cash management as an overall, integrated service of which the customer takes that part that best suits him. The management of interest-exchange rate risk and the management of contractual

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relationships with financial institutions are other functions that have been added to cash management, with the purpose of increasing profitability with the minimum risk and in the best conditions . it is based on payment and collection management, liquidity management and banking management which has taken on a broader perspective includes the planning of disposable treasury assets and their subsequent monitoring, a strategy for investing surpluses to obtain maximum profitability and finance deficits with minimum costs, management of interest-rate and exchange-rate risks and, finally, banking management . Cash management brings together actions concerned with liquidity management, payment and collection management, treasury forecasts, banking management, investment of treasury surpluses and deficit and financing management functions and financial risk management. advanced cash management, not only involves financial tools and techniques for managing liquidity but entails an entire corporate culture. Corporate culture means the set of beliefs, expectations and basic principles shared by the members of an organization .

MOTIVES FOR HOLDING CASH The term cash with reference to cash management is used in two senses. In a narrow sense, it is used broadly to cover currency and generally accepted equivalents of cash, such as cheques, drafts and demand deposits in banks. The broad view of cash also includes near cash assets, such as marketable securities and time deposits in banks. The main characteristics of these is that they can be readily sold and converted into cash. They serve as a reserve pool of liquidity that provides cash quickly when needed. There are four primary motives for maintaining cash balances : (i) Transaction motive; (ii) Precautionary motive; (iii) Speculative motive ; and (iv) Compensating motive. TRANSACTION MOTIVE

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An important reason for maintaining cash balances is the transaction motive. This refers to the holding of cash to meet routine cash requirements to finance the transaction which a firm carries on in the ordinary course of business. A firm enters into a variety of transactions to accomplish its objectives which have to be paid for in the form of cash. Business concerns that have highly predictable inflows and outflows of funds can hold relatively less cash then firms that have irregular cash flows.

PRECAUTIONERY MOTIVE It is also related to the nature and level of business activity. Precautionary balances are those which are set aside because cash inflows and outflows are not synchronized. For example, precautionary balance may be used to meet an unanticipated expenses as the result of an unanticipated decline in sales revenues. SPECULATIVE 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. The speculative balances are sensitive to interest rate changes and are usually hold in the form of interest hearing securities. COMPENSATING BALANCE A compensating balance is the fourth motive for holding cash. This motive is with commercial banks that require borrowers to leave a portion of their borrowed funds in deposit at the bank. Banks may require, that 10% of a loan be left in deposit. There are two reasons for requiring a compensating balance; it raise the effective interest rate for banks and it provides banks with funds to make additional loans.

OBJECTIVE OF CASH MANAGEMENT

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The basic objectives of cash management are two fold : (a) to meet the cash disbursement needs (payment schedule); and (b) to minimize funds committed to cash balances. These are conflicting and mutually contradictory and the task of cash management is to reconcile them. MEETING PAYMENTS SCHEDULE The important of sufficient cash to meet the payment schedule can hardly be overemphasized. The advantages of adequate cash are: (i) it prevents insolvency or bankruptc arising out of the inability of a firm to meets its obligations; (ii) the relationship with the bank is not strained; (iii) it helps in fostering good relations with trade creditors and suppliers of raw materials, as prompt payment may help their own cash management; (iv) a cash discount can be availed of if payment is made within the due date; (v) it leads to a strong credit rating which enables the firm to purchase goods on favourable terms and to maintain its line of credit with banks and other sources of credit; (vi) to take advantages of favourable business opportunities that may be available periodically; and finally, (vii) the firm can meet unanticipated cash expenditure with a minimum of strain during emergencies, such as strikes, fires or a new marketing campaign by competitors. MINIMISING FUNDS COMMITTED TO CASH BALANCES The second objective of cash management is to minimize cash balances. In minimizing the cash balances, two conflicting aspects have to be reconciled. A high level of cash balance will, as shown above, ensure prompt payment together with all the advantages. But it also implies that large funds will remain idle, as cash is a non-earning assets and the firm will have to forego profits. CONTROL OVER CASH FLOWS Drawing of cash plan is not enough, a strict compliance of plan is required through proper control of cash collections and payments. On the other hand inflow is to be

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accelerated, so as to cope with the growing requirements whereas outflow must be checked. There must also be a proper channedl of arrangement of investment of surplus cash. For this cash periodical reports are very much helpful.

ALLOCATION OF CASH INFLOWCash can be conserved through maximized inflow and lesser permanent investment. Collection can be accelerated by reducing the time gap caused by waiting time, To speed up collections the followings techniques may prove useful: LOCK BOX SYSTEM -

In this system, a firm establishes the collection centers in accordance with the concentration of customers hires a post office box and instruct its customer to remit the bills of cheques directly to this box. The firms authorized bank picks up the remittance collects for the gain and supply the detail of cheques collected. Although it is a costlier system but the cheques are collected immediately. PROMPT PAYMENT BY CUSTOMERS

Prompt billing with the notification what the custmer has to pay, the period of payment is the way to ensure prompt payment from customers. Use of modern devices for billing and enclosure of a sell addressed return envelope will speed up collection from customers. Another technique which is commonly used is trade discount. PROMPT CONVERSION OF PAYMENTS INTO CASH

There is a time lag between the cheque is prepared and mailed by the customer and the time the funds are converted into cash by the bank. The early conversion of payments

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into cash, as a technique to speed up collections, is done to reduce the time lag between posting the cheque by customer and the realization of cheque from bank. DECENTRALISED COLLECTIONS

When a number of collection centers are operating instead of single collection centers at the head office, the time lag between mailing can be reduced. This is called decentralized system of collection of bill at multiply centers. This is useful technique to speed up the collection of accounts receivable. Besides, collection of payments personally is one of the important means to accelerate the inflow of funds. SLOW DISBURSEMTNS A firm should make its payments using the credit terms to their fullest extent. There is no advantage in paying the amount sonner than expected or agreed to as this source is free from interest. But a firm must not make undue delays which may endanger its credit standing. In disbursement the centralized system for payment is also very much helpful in conversation of funds. Payment flot is also one of the resources of funds. Once a cheque is issued, it takes a particular time in transit and on the basis flow can be calculated. Finance Manager of a firm can take advantage of flot in disbursement but he must be careful, as it may prove riskly. Advantages of sample cash funds: a) A shield for technical inefficiency. b) Maintenance of goodwill. c) Availing of cash discount. d) Good bank-relations. e) Exploitation of business opportunities. f) Encouragement to new investment. g) Increase in efficiency. h) Over coming abnormal financial situations. Effective cash management requires:

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Systematically anticipating the future. Good liaison and sharing data/information across organization boundaries. Clear understanding of responsibilities and accountabilities. Sound accounting systems and controls. Systematic, timely and effective monitoring, analysis and reporting (and decision making). Budget disciplne including the effective application of sanctions where necessary. Benefits: Reduced amounts kept in our bank accounts without incurring overdraft charges, hence kept more funds invested Better estimate of amounts available for investing (budgets and forecast) Assisted in decisions on internal lending and external borrowing Size of minimum cash flow depends upon: Reduced amounts kept in our bank accounts without incurring overdraft charges, hence kept more funds invested Better estimate of amounts available for investing (budgets and forecast) Assisted in decisions on internal lending and external borrowing

Max. cash bal. depends upon: Available (short-term) investment opportunities e.g. money market funds, CDs, commercial paper Expected return on investment opportunities. o e.g. If expected returns are high, organizations should be quick to invest excess cash Transaction cost of withdrawing cash and making an investment Demand for Cash for daily transactions (Cash Budget helpful)

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Instrument of excess fund:Treasury bills investment Commercial maturity on demand maturity negotiatable negotiatable but normally 30, 60, 90 days Nonbank financial institutional Certificates of deposit maturity upto 1 year safest and most liquid short term

representative a term bank deposit and more liquid becoz they can be sold any time Need of cash Transaction need:- cash facilitates the meeting of the day to day expenses and other debt payment normally inflow of cash operation should be sufficient for this purpose but in many cases it is only the reserve cash bal. that can enable the firm to make payment in time. Speculative needs:- cash may be held in order to take advantages of profitable opportunities that may present themselves and which may be lost for want of ready cash. Precautionary motive:- sometimes cash act for providing safety against unexpected events Different models of cash management William j. baumols eoq model :- in this model optimum cash level is that level where the carrying cost and transaction cost are minimum (carrying cost = holding cost) transaction cost refers to cost involved in getting the marketable securities converted into cash . this happen when the firm found falls short of cash and has to sell the securities resulting in clerical brokerage registration cost. The formula to determine the cost

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MILLER-ORR CASH MANAGEMENT MODEL:By through this model the net cash flow is completely stochastic.when changes in cash bal. occur randomly the application of control theory serve a useful purpose. It is a control limit model this model is determined the time and size of transfer b/w an inverstment account and cash account . in this the control limits are set for cash bal.

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Research Methodology
RESEARCH
Research refers to search for knowledge. We can also define research as Scientific & Systematic search for pertinent information on a specific topic. Research is careful investigation or enquiries for new facts in any branch of knowledge. Researches are basically systematic enquiry with customers, critical examination with objectives to search new facts or interpret known facts in new light. Research methodology is a way to systematically solve the research problem.. It is a systematic investigation to find solutions to a problem. The investigation is guided by previously collected information. Mans knowledge grows by studying what is already known and revising past knowledge in the light of new findings. METHOD OF RESEARCH Historical method- In which information is collected about the past from written records of all types, reports, documents, newspapers, diaries, travelers accounts, etc. Experimental method- In which variables being studied is control by the investigator. In other words, the effect of one variable is observed while other relevant variables are held constant.

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Survey method- In which a systematic study of a particular community or a group or an institution is made for analyzing the problem/issue/event.

Statistical method- In which data is collected quantitatively or by statistics. A statistics may be a measure of central tendency of dispersion of correlation of a difference between two samples. TYPES OF DATA Research requires systematic collection of data. For example, to determine the potential market for a new product, the researcher might stud 500 consumers in a certain geographical area. It must be ascertained that the group contains people representing variables such as income level, education, living style etc. The quality of data will greatly effect the conclusion. Hence, the data should be taken ensure accuracy. It depends upon the source utilized. Data should be classified in to two categories Primary data- Primary data is one, which is collected by the investigator himself for the purpose of specific inquiry or study & I have complete my research through observation, discussion & interview. Secondary data- Secondary data is one, which has already been collected by others. For examplejournals, reports, government publications, publication of professional, research organizations etc & in this I use company Manvel, company reports, company magazine, company website etc. Research Objectives The primary objective is to determine how an organization can achieve excellence in managing cash in an organization .

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To tell the organization that how much cash the organization save when the company keep the cash at a certain limit. To suggest how a HZL can effectively utilize the additional (excess) fund in the different activities or valuable projects or effectively utilize the additional fund where it needed. To know what the cost occur if the company keep additional fund in the organization.

CASH MANAGEMENT Monthly Date 01.4.08 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08 31.12.08 31.1.09 28.2.09 30.3.09 490,026.00 537,990.00 567,093.00 521,060.00 727,883.00 2,976,421.00 8,408,550.00 1,868,998.00 358,784.00 525,467.00 413,707.00 481,843.00 435,980.00 427,408.00 313,720.00 861,499.00 719,329.00 3,021,765.00 8,455,967.00 1,767,072.00 265,946.00 648,453.00 246,724.00 661,878.00 Inflow Outflow Balance 161,279.00 215,325.00 325,907.00 579,280.00 238,841.00 247,395.00 202,051.00 154,634.00 256,560.00 349,398.00 226,412.00 393,395.00 213,360.00 Difference 161,279.00 54046 110582 253373 -340439 8554 -45344 -47417 101926 92838 -122986 166983 -180035 215,325.00 325,907.00 579,280.00 238,841.00 247,395.00 202,051.00 154,634.00 256,560.00 349,398.00 226,412.00 393,395.00 213,360.00 Cumulative

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Findings:The graph and the table shows that the company never goes out of cash . on the monthly basis company always have sufficient cash to meet its day to day expenses . The minimum balance that the company have in the whole year on the monthly basis is 154634 at the end of the month of oct. 2008. The maximum balance that the company have in the whole year at the end of June. As the graph shows firstly the company monthly balance growing to the end of the month of june after that the company given the bank clearance and the balance goes down to 238841 from the balance of 579280. Then the balance is around of that after that come at the lowest level of the year then grow at the end of Dec. in two months and by the slowing recovery of the money the balance goes down and then grow because the company recovery is good after that at the end of financial year the balance is decrease as comparison to previous year.

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Graph on the basis of daily cash balance of the company

The company have the highest balance in the year on the date of 08.09.2008 and 14.10.2008 and 22.10.2008. the balance amounts are 2486434 and 2768175 and 1947297 respectivel

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ANALYSIS OF THE CASH DATA:weekly average of the idle fund on the basis of the limit of 50,000:Date 08.04.2008 15.04.2008 24.04.2008 01.05.2008 09.05.2008 20.05.2008 31.05.2008 10.06.2008 18.06.2008 27.06.2008 05.07.2008 15.07.2008 24.07.2008 02.08.2008 11.08.2008 20.08.2008 28.08.2008 06.09.2008 16.09.2008 24.09.2008 04.10.2008 14.10.2008 22.10.2008 01.11.2008 10.11.2008 19.11.2008 27.11.2008 06.12.2008 15.12.2008 23.12.2008 01.01.2009 09.01.2009 17.01.2009 27.01.2009 04.02.2009 12.02.2009 23.02.2009 03.03.2009 12.03.2009 weekly average 101,144 135,720 198,424 159,824 124,823 235,401 289,773 310,533 444,830 481,707 435,555 225,572 358,470 276,182 188,292 340,229 107,001 191,173 543,688 567,128 205,497 589,013 607,241 65,905 105,876 149,464 194,381 198,034 294,256 311,086 310,154 347,190 288,807 172,241 170,753 229,307 295,881 321,946 361,507

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20.03.2009 28.03.2009 31.03.2009

222,527 158,947 157,368

The above shows amount is the idle cash average if the company keep the cash balance 50,000 . The date and the amount which shows on the above table are taking the weekly average of the idle fund on the basis of the cash limit of 50,000. The company can invest this much amount of the on the monthly basis and get the profit. The company can invest the money (shows above) in the other investment project. The total average amount which company can invest is 11472851.07 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 25,372.65 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 26476 Rs. If the company keep it in bank then the company gain 7723 Rs.

At the limit of 75,000: The company can invest total10422851.07 amount of money on the weekly basis if the company keep the minimum amount of balance 75000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 23,050.54 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 24053 Rs. If the company keep it in bank then the company gain 9020 Rs. At the limit of 100000: The company can invest total 9372851 amount of money on the weekly basis if the company keep the minimum amount of balance 100000 Rs.

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If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 20728 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 21629 Rs. If the company keep it in bank then the company gain 8111 Rs.

At the limit of 125000: The company can invest total 8322852 amount of money on the weekly basis if the company keep the minimum amount of balance 125000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 18406 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 19207 Rs. If the company keep it in bank then the company gain 7203 Rs. At the limit of 150000: The company can invest total 7272852 amount of money on the weekly basis if the company keep the minimum amount of balance 150000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 16085 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 16783 Rs. If the company keep it in bank then the company gain 6294 Rs. At the limit of 175000: The company can invest total 6222851 amount of money on the weekly basis if the company keep the minimum amount of balance 175000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 13762 Rs.

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If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 14360 Rs. If the company keep it in bank then the company gain 5385 Rs. At the limit of 200000: The company can invest total 5172852 amount of money on the weekly basis if the company keep the minimum amount of balance 200000 Rs. If the company invest the money on the weekly basis into the commercial papers at the rate of interest of 11.50% the company can gain total 11440 Rs. If the company give the money on the loan to the some other person on the weekly basis then the company can gain the total interest of 11938 Rs. If the company keep it in bank then the company gain 4477 Rs.

On the monthly basis at the limit of 50000

Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08

monthly average 148,910 212,239 421,065 319,379 209,434 412,404 399,980 151,670

int@11.50% 1,427 2,034 4,035 3,061 2,007 3,952 3,833 1,454

int @12 % 1,489 2,122 4,211 3,194 2,094 4,124 4,000 1,517

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31.12.08 31.1.09 28.2.09 30.3.09

283,625 254,754 265,168 245,845

2,718 2,441 2,541 2,356

2,836 2,548 2,652 2,458

If the company can invest total average on the monthly basis Rs.3324472 Rs then the company gain 31860 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 33245 Rs.

On the monthly basis at the limit of 75,000:

Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08

monthly average 123,910.2 179,518.8 377,250.0 309,234.4 189,044.2 371,159.8 345,135.0 122,198.5

int@11.50% 1,187 1,720 3,615 2,963 1,812 3,557 3,308 1,171

int @12 % 1,239 1,795 3,773 3,092 1,890 3,712 3,451 1,222

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31.12.08 31.1.09 28.2.09 30.3.09

255,660.7 229,753.7 224,795.9 224,596.9

2,450 2,202 2,154 2,152

2,557 2,298 2,248 2,246

If the company can invest total average on the monthly basis Rs.2952258 Rs then the company gain 28292 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 29523 Rs.

On the basis of month at the limit of 100000 Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08 31.12.08 monthly average 98910.2 154518.8 352250.0 284234.4 164044.2 346159.8 320135.0 97198.5 230660.7 int@11.50% 948 1,481 3,376 2,724 1,572 3,317 3,068 931 2,210 int @12 % 989 1,545 3,523 2,842 1,640 3,462 3,201 972 2,307

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31.1.09 28.2.09 30.3.09

204753.7 199795.9 199596.9

1,962 1,915 1,913

2,048 1,998 1,996

If the company can invest total average on the monthly basis Rs.2652258 Rs then the company gain 25417 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 26523 Rs.

On the basis of month at the limit of 125000 Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08 31.12.08 monthly average 73910.2 129518.8 327250.0 259234.4 139044.2 321159.8 295135.0 72198.5 205660.7 int@11.50% 708 1,241 3,136 2,484 1,333 3,078 2,828 692 1,971 int @12 % 739 1,295 3,273 2,592 1,390 3,212 2,951 722 2,057

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31.1.09 28.2.09 30.3.09

179753.7 174795.9 174596.9

1,723 1,675 1,673

1,798 1,748 1,746

If the company can invest total average on the monthly basis Rs.2352258 Rs then the company gain 22542 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 23523 Rs.

On the basis of month at the limit of 150000 Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08 31.12.08 monthly average 48910.2 104518.8 302250.0 234234.4 114044.2 296159.8 270135.0 47198.5 180660.7 int@11.50% 469 1,002 2,897 2,245 1,093 2,838 2,589 452 1,731 int @12 % 489 1,045 3,023 2,342 1,140 2,962 2,701 472 1,807

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31.1.09 28.2.09 30.3.09

154753.7 149795.9 149596.9

1,483 1,436 1,434

1,548 1,498 1,496

If the company can invest total average on the monthly basis Rs.2052258 Rs then the company gain 19667 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 20523 Rs.

On the basis of month at the limit of 175000 Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08 31.12.08 monthly average 23910.2 79518.8 277250.0 209234.4 89044.2 271159.8 245135.0 22198.5 155660.7 int@11.50% 229 762 2,657 2,005 853 2,599 2,349 213 1,492 int @12 % 239 795 2,773 2,092 890 2,712 2,451 222 1,557

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31.1.09 28.2.09 30.3.09

129753.7 124795.9 124596.9

1,243 1,196 1,194

1,298 1,248 1,246

If the company can invest total average on the monthly basis Rs.1752258 Rs then the company gain 16793 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 17522 Rs.

On the basis of month at the limit of 200000

Date 30.4.08 31.5.08 30.6.08 31.7.08 29.8.08 29.9.08 31.10.08 29.11.08

monthly average -1090 54519 252250 184234 64044 246160 220135 -2802

int@11.50% -10 522 2,417 1,766 614 2,359 2,110 -27

int @12 % -11 545 2,523 1,842 640 2,462 2,201 -28

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31.12.08 31.1.09 28.2.09 30.3.09

130661 104754 99796 99597

1,252 1,004 956 954

1,307 1,048 998 996

If the company can invest total average on the monthly basis Rs.1452258Rs then the company gain 13917 Rs. at the interest rate of 11.50% and if the company invest it at the rate of 12% then the company gain 14522 Rs.

Conclusion:
In the limit of 50000 cash company go out of cash in 5 times from 22 to 27.08.2008 and the company needed to take the cash from bank for the payment of day to day expenses. The company have 8 times abnormal cash balance these cash balances are for the specified purpose. The company never go out of cash in the financial year 2008-09 At the cash limit of 75000 company 4 times go out of cash and needed cash from the bank in the financial year of 2008-09 At the cash limit of 100000 company never go out of cash .

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At the limit of 125000 company will not go out of cash but have little excess fund with him. Now the company keep average of 2,00,000 Rs on the daily basis . As far as the advances concerns of the company then the company needed to control on to the company given advances the company advances credit more the debit Rs. 11761218. The difference comes in the expenses because of the company take cash advance from the contractor for the purpose of general insurance . and for other purpose so the company directly deposit the cash into the insurance company. The company have some excess fund in his books . so the company can invest those excess fund into some other project. The company recovery is good in the initial months then the recovery position is not so much good so the company need to improve the recovery policies. When the company cash goes more then 5,00,000 at that times the company give the bank clearance The Hindustan zinc limited needed to give the advance to many company for the purchases of raw material like IOC and other. If the company keep the cash at the limit of 50,000 then the company gain the profit to invest the excess fund of11472851 at the rate of 12% by given loan to somebody and gain the interest of 26475 Rs.

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Kothari C. R. (2005) RESEARCH METHODOLOGY New age international Ltd, fifth edition pp.1-2, 31, and 95.

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Book Company, Third edition 6. Khan , Jain (2004) MANAGEMENT ACCOUNTING Tata

McGrow-Hill Publishing Company Limited, Third edition. Pandey, Financial Management, Vikas Publishing House Ltd. Eighth Edition.
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