PROJECT REPORT

ON
ANALYSIS ON CASH MANAGEMENT
IN
ELECTRONIC INDUSTRY

Submitted to Maharshi Dayanand University, Rohtak in partial fulfillment of the

requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

(Session: 2023-2024)

SUBMITTED To: SUBMITTED BY:

THE CONTROLLER OF EXAMINATION GAURAV GAUR

M.D. UNIVERSITY, ROHTAK MBA (4th SEM)

ROLL NO-

REGISTRATION NO-1911340548

D.A.V. INSTITUTE OF MANAGEMENT

NH-3, N.I.T- FARIDABAD

1
 ACKNOWLEDGMENT

To begin with I would like to offer my sincere thanks from bottom of my heart, to all of the
People who supported me & help me. Due to them only, I got a very good opportunity to
express my Talent on this project

The Employees navigated me towards right path to achieve my Goal aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. I am sincerely
grateful to them for sharing their truthful and illuminating views on a number of issues related
to the project.

Also, I am thankful to my faculty guide Mrs. Bhawna Sharma of my Institute, for her valuable
guidance and continuous encouragement.

Signature

(Student)

2
 DECLARATION

I GAURAV GAUR student of MBA 4TH Semester of the D.A.V INSTITUTE OF

MANAGEMENT, Faridabad hereby declare that this project work done on
ANALYSIS ON CASH MANAGEMENT IN ELECTRONIC INDUSTRY.

My work carried out under the guidance of my faculty guide BHAWNA SHARMA
MAM. The results reported in this study are genuine, original and the script is written by
me.

CANDIDATE SIGNATURE: -

3
 INDEX

CHAPTER CONTEXT PAGE NO.

NAME

INTRODUCTION TO
1.
THE INDUSTRY

2. INTRODUCTION TO TOPIC

3. LITERATURE REVIEW

4. RESEARCH METHODOLOGY

5. DATA ANALYSIS

6. CONCLUSIONS

7. BIBLIOGRAPHY
 CHAPTER-1

INTRODUCTION TO THE
TOPIC
INTRODUCTION

Cash is most liquid current asset. All other current assets such as receivables and inventory
ultimately get converted into cash. Therefore, business should keep optimal cash balance at every
point of time. It should neither be excess nor short of its requirements.
The term management cash includes:
(a) Determination of optimum amount of cash required in the business.
(b) Keep the cash balance at optimum level and investment of surplus cash in profitable
manner.
(c) Prompt collection of cash from receivables (i.e., from debtors and bills receivables) and
efficient disbursement of cash.

MEANING OF CASH
For the purpose of cashmanagement, the term cash not only includes coins, currency, notes,
cheques, bank drafts, demand deposits, with banks also the `near-cash assets` like marketable
securities and time deposits with banks because they can be readily converted into cash. For the
purpose of cash management, near-cash assets are also included under cash because surplus cash is
required to be invested in near-cash assets for the time being.

MOTIVES OF HOLDING CASH

In every business assets are kept because they generate profit. But cash is an asset which does not
generate any profit itself, yet in every business sufficient cash balance maintained. There are four
primary motives or causes for maintaining cash balances:
(1) Transaction motive
(2) Precautionary motive
(3) Speculative motive; and
(4) Compensating motive
 1. TRANSACTION MOTIVE:-

The transactions motive requires a firm to hold cash to conduct its business in the ordinary
course. The firm needs cash primarily to make payments for purchases, wages and salaries,
other operating expenses, taxes, dividends etc. The need to hold cash would not arise if there
were perfect synchronization between cash receipts and cash payments, i.e., enough cash is
received when the payment has to be made.

But cash receipts and payments are not perfectly synchronized. For those periods, when cash
payments exceed cash receipts, the firm should maintain some cash balance to be able to
make required payments. For transactions purpose, a firm may invest its cash in marketable
securities. Usually, the firm will purchase securities whose maturity corresponds with some
anticipated payments, such as dividends or taxes in the future. Notice that the transactions
motive mainly refers to holding cash to meet anticipated payments whose timing is not
perfectly matched with cash receipts.
 2. PRECAUTIONARY MOTIVE:-
The precautionary motive is the need to hold cash to meet contingencies in the future. It
provides a cushion or buffer to withstand some unexpected emergency. The precautionary
amount of cash depends upon the predictability of cash flows. If cash flows can be predicted
with accuracy, less cash will be maintained for an emergency.

The amount of precautionary cash is also influenced by the firm’s ability to borrow at short
notice when the need arises.
Stronger the ability of the firm to borrow at short notice, less the need for precautionary
balance. The precautionary balance may be kept in cash and marketable securities.
Marketable securities play an important role here. The amount of cash set aside for
precautionary reasons is not expected to earn anything; the firm should attempt to earn some
profit on it. Such funds should be invested in high-liquid and low-risk marketable securities.
Precautionary balances should, thus, be held more in marketable securities and relatively less
in cash.

3. SPECULATIVE MOTIVE: -

The speculative motive relates to the holding of cash for investing in profit-making both for
to make profit may arise when the security prices change. The firm will hold cash, when it
is expected that interest rates will rise and security prices will fall. Securities can be

purchased when the interest rate is expected to fall; the firm will benefit by the subsequent
fall in interest rates and increase in security prices.

The firm may also speculate on materials prices. If it is expected that materials prices will
fall, the firm can postpone materials purchasing and make purchases in future when pric4e
actually falls. Some firms may hold cash

for speculative purposes. By and large, business firms do not engage in speculations. Thus,
the primary motives to hold cash and marketable securities are the transactions and the
precautionary motives.
 4. COMPENSATING MOTIVE:-

Commercial banks require that in every current account, there should always be a
minimum cash balance. This minimum cash balance is generally not allowed by the bank to
used for transaction purpose and therefore, it becomes a sort of investment by the firm in
the bank. In order to avail the convenience for holding a current account, the minimum
cash balance must be maintained by the firm and this provides the compensation motive for
holding cash.
Out of different motives, the transaction motive is the most obvious one and is found in
every firm. Even the precautionary motive is common & a firm maintains cash balance
both for the transactions motives & the precautionary motive. However, the speculative
motive is a subjective one may differ from one firm to another. Generally, the speculative
motive is the least important component for a firm’s preference for liquidity. The
transaction and precautionary motives account for most of the reasons why affirm holds
cash balance. The compensation motive may be a compulsion and the firm may not have
many options. The cash held for transaction motive is necessary, the cash held for
precautionary motive provides a margin of safety, but holding a cash does not generate any
explicit monetary return, rather it involves a cost. The main cost of holding cash is the loss
of interest which the firm could otherwise earn by investment of cash elsewhere.
FACTORS DETERMINING CASH NEEDS & LEVEL OF CASH
(1) Timing of cash flows:the need for maintaining cash balance arises because cash inflows
and cash outflows take place at different times. If cash inflows perfectly match cash
outflows, i.e., if they take place at same time, there would be no need for keeping cash
balance.
(2) Cash excess costs: if a firm cash balance in excess of its requirements, it will miss
opportunities to invest invest it elsewhere. As a result it will lose interest which it would
otherwise have earned by investing excess cash elsewhere.
(3) Cash management costs: cash management also involves some costs such as salary,
clerical expenses etc. of cash management staff. Cash need should be determined after
considering this factor also.
(4) Attitude of management:the attitude of management towards liquidity and profitability
affects the level of cash. If the management attaches more significance to liquidity than
profitability.
(5) Efficiency of management: if the management can accelerate the collection of cash from
customers and slow down the disbursement of cash, it can keep a low level of cash.

INTRODUCTION TO CASH MANAGEMENT

Cash is the important current asset for the operations of the business. Cash is the basic input needed
to keep the business running on a continuous basis; it is also the ultimate output expected to be
realized by selling the service or product manufactured by the firm.

The firm should keep sufficient cash, neither more nor less. Cash shortage will disrupt the firm’s
manufacturing operations while excessive cash will simply remain idle, without contributing
anything towards the firm’s profitability.

Thus, a major function of the financial manager is to maintain a sound cash position.
Cash is the money which a firm can disburse immediately without any restriction.
The term cash includes coins, currency and cheques held by the firm, and balances in its bank
accounts. Sometimes near-cash items, such as marketable securities or bank time’s deposits, are also
included in cash. The basic characteristic of near-cash assets is that they can readily be converted
into cash.

Generally, when a firm has excess cash, it invests it in marketable securities. This kind of investment
contributes some profit to the firm.Cash management refers to a broad area of finance involving the
collection, handling, and usage of cash. It involves assessing market liquidity, cash flow, and
investments.
In banking, cash management, or treasury management, is a marketing term for certain services
related to cash flow 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 banking customers are given cash management services.Financial instruments
involved in cash management include money market funds, treasury bills, and certificates of deposit.

Successful cash management involves not only avoiding insolvency (and therefore bankruptcy), but
also reducing days in account receivables (AR), increasing collection rates, selecting appropriate
short-term investment vehicles, and increasing days cash on hand all in order to improve a company's
overall financial profitability.

Successfully managing cash is an essential skill for small business developers because they typically
have less access to affordable credit and have a significant amount of upfront costs they need to
manage while waiting for receivables. Wisely managing cash enables a company to meet unexpected
expenses in addition to handling regularly-occurring events like payroll.

Cash management also includes management of cash as well as cash equitant i.e. Bank accounts etc.
Cash management is done because all the transactions in the business in done in cash, so there is
need for estimation of cash in future for smooth running of the business. So cash management is
very important for every organization.
Following are the importance of managing cash for the organization.

1) It helps in maintaining adequate cash balance.

2) It helps in identifying surplus cash & investing them in marketable securities.

3) It helps in identifying the points of shortfalls & to plan & arrange adequate cash.

4) It helps in improving the profitability of the firm.

5) It helps in keeping the bank overdraft limit under control.

FACTORS AFFECTING LEVEL OF CASH

Level of cash depends upon many factors. Fluctuation in cash is due to many factors which should be
forecasted before hand in order to have proper cash proper cash management.

✓ Matching of cash flows

✓ Non recurring expenses

✓ Cash short cost

✓ Cost of excessive cash balance

✓ Payment of loans

✓ Firms capacity to borrow in emergency

 CHAPTER - 2
REVIEW OF LITERATURE
MEANING OF CASH MANAGEMENT:

Cash is the money which a firm can disburse immediately without any restriction.

The term cash includes coins, currency and cheques held by the firm, and balances in its bank
accounts. Sometimes near-cash items, such as marketable securities or bank times deposits, are also
included in cash. The basic characteristic of near-cash assets is that they can readily be converted
into cash.

MEANING
A way that a company will manage all aspects of the financial end of the business, such as the
collection of revenue as well as the investing of the company`s cash and other assets. This helps
businesses to stay afloat financially.
Usage examples:
• You should be great at cash management so that you always are putting your money in the
best places for it.
• the monthly ledger and bank reconciliation for us.

NATURE OF CASH MANAGEMENT:

Cash management is concerned with the managing of:

(i) Cash flows into and out of the firm,

(ii) Cash flows within the firm, and
(iii) Cash balances held by the firm at a point of time by financing deficit or investing surplus
cash.

It can be represented by a cash management cycle. Sales generate cash which has to be disbursed
out. The surplus cash has to be invested while deficit this cycle at a minimum cost. At the same
time, it also seeks to achieve liquidity and control. Cash management assumes more importance
than other current assets because cash is the most significant and the least productive asset that a
firm’s holds. It is significant because it is used to pay the firm’s obligations.

However, cash is unproductive. Unlike fixed assets or inventories, it does not produce goods for
sale. Therefore, the aim of cash management is to maintain adequate control over cash position to
keep the firm sufficiently liquid and to use excess cash in some profitable way.

Cash management is also important because it is difficult to predict cash flows accurately,
particularly the inflows, and there is no prefect coincidence between the inflows and outflows of
cash. During some periods, cash outflows will exceed cash inflows, because payments for taxes,
dividends, or seasonal inventory buildup. At other times, cash inflow will be more than cash
payments because there may be large cash sales and debtors may be realized in large sums promptly.
Further, cash management is significant because cash constitutes the smallest portion of the total
current assets, yet management’s considerable time is devoted in managing it. In recent past, a
number of innovations have been done in cash management techniques. An obvious aim of the firm
these days is to manage its cash affairs in such a way as to keep cash balance at a minimum level
and to invest the surplus cash in profitable investment opportunities.

In order to resolve the uncertainty about cash flow prediction and lack of synchronization between
cash receipts and payments, the firm should develop appropriate strategies for cash management.
The firm should evolve strategies for cash management.

STRATEGIES

✓ CASHPLANNING:

Cash inflows and outflows should be planned to project cash surplus or deficit for each period
of the planning period. Cash budget should be prepared for this purpose.

✓ MANAGING THE CASH FLOWS:

The firm should decide about the properly managed. The cash inflows should be accelerated
while, as far as possible, the cash outflows should be decelerated.

✓ OPTIMUM CASH LEVEL:

The firm should decide about the appropriate level of cash balances. The cost of excess cash and
danger of cash deficiency should be matched to determine the optimum level of cash balances.

✓ INVESING SURPLUS CASH:

 The surplus cash balances should be properly invested to earn profits. The firms should decide
about the division of such cash balances between alternative short-term investment opportunities
such as bank deposits, marketable securities, or inter-corporate lending

METHODS OR DEVICES OF CASH MANAGEMENT

These are also known as techniques of cash management. The following are included in these:

(1) Cash budget

(2) Cash flow statement
(3) Cash flow ratios
(4) Cash management model or baumol model

(1) Cash budget:

A cash budget is an estimate of cash receipts and cash payments for a future period of
time. It is prepared to forecast the cash requirements for a given period and indicates
the surplus or shortage of cash during the budget period.
There are two parts of cash budget:
1. Cash receipts: cash is mainly paid for cash purchases, payment to creditors,
payment for expenses etc
2. Cash payments: cash is mainly paid for cash purchases, payment to creditors,
payment for expenses etc.

OBJECTS OR IMPORTANCE OR UTILITY OF CASH BUDGET

(1) Helpful in estimating the future cash requirement: a cash budget estimates the
excess or shortage of cash at the end of each month. As such, it enables the
management to make a suitable plan to arrange the cash at the required time.
 (2) Helpful in the selection of proper sources of finance: cash budge indicates
whether the shortage of cash is for short-term or for long-term. This information
helps in the selection of proper source of finance.
(3) Helpful in getting cash discount: it shows the availability of surplus cash at the
end of each month. Thus the management can plan to take advantage of cash
discounts by purchasing the goods for cash during periods when surplus cash is
available.
(4) Helpful in planning for purchase of assets: cash budget also enables the
management to ascertain whether sufficient cash will be available to provide for the
purchase of an asset internally.
(5) Restricts overspending: cash budget restricts the tendency of management to
overspend. Since the management knows the available cash resources well in
advance, expenditure can be controlled and payments can be adjusted to match the
resources.

METHODS OF PREPARING CASH BUDGET

1. Receipt and payment method:under this method all cash receipts and disbursements for
the enterprise for a budget period are estimated. Thereafter, all estimated cash receipts are
added to opening balance of cash and all estimated cash payments are deducted from this to
arrive the closing balance of cash.
2. Adjusted profit and loss method: in this method, the cash forecast is prepared by
adjusting the amount of profits shown by the forecasted profit and loss account. All non-
cash expenses shown in the forecasted profit and loss account (such as depreciation, written
off deferred revenue expenditure, written off intangible assets etc.), decrease in current
assets, increase in current liabilities, receipts from sale of fixed assets, issue of debentures
and shares, opening cash balance are added to the amount of profit shown by the forecasted
profit and loss account.
3. Balance sheet method: under this method, a budgeted or forecasted balance sheet at the
end of the next period is prepared taking into account the changes in the values of assetsand
liabilities (except cash and bank balances). The two sides of the budgeted balance sheets
are then balanced. If the amount of budgeted liabilities exceeds the budgeted assets, the
difference will be the estimated cash balance at the end of the budget period.

(2) CASH FLOW STATEMENT:

This is another method or device of cash management. A cash flow statement is a and
outflows (payments) of cash during a particular period. In other words, it is a summary
of sources and applications of cash during a particular span of time. It analyses the
reasons for changes in balance of cash between the two balance sheet dates.
Cash flow statement is prepared for at the end of the year while cash budget is prepared
at the commencement of the year on the basis of plans and projections of the
management for the year.

(3) CASH FLOW RATIOS:

Cash flow ratios are another device of cash management. Various cash flow ratios are
used for the purpose of cash planning and controlling. Some important cash flow ratios
are:
i. Cash turnover ratio
ii. Cash coverage ratio
iii. Cash to a average daily purchase ratio
iv. Days of cash available
v. Cash break-even point

(4) CASH MANAGEMENT MODEL OR BAUMOL MODEL:

Cash management model is another device of cash management which is used to
determine optimum cash balance. As mentioned earlier, optimum cash balance is
determined by establishing a balance between liquidity and profitability. Higher
liquidity or higher cash balance means excessive cash is kept in business which results
in loss of interest which can be earned by investing this excessive cash in marketable
securities.
Therefore two types of costs are involved in keeping cash balance in a business –
Opportunity cash and transaction cost. When cash balance increases, opportunity cost
increases but transaction cost decreases. On the other hand, when cash balance is less,
opportunity cost decreases but transaction cost increases. optimum cash balance is that
level of cash at which the opportunity cost and transaction cost become equal.
 TECHNIQUES OF CASH
MANAGEMENT

Collection
Management

Payment
Management

Cash
Flow
Statement

Cash
Estimation

Short term
investment
CASH PLANNING

Cash flows are inseparable parts of the business operations of firms. A firm needs cash to invest in
inventory, receivable and fixed assets and to make payment for operating expenses in order to
maintain growth in sales and earnings. It is possible that firm may be making adequate profits, but
may suffer from the shortage of cash as its growing needs may be consuming cash very fast.

The ‘poor cash’ position of the firm cash is corrected if its cash needs are planned in advance. At
times, a firm can have excess cash may remain idle. Again, such excess cash outflows. Such excess
cash flows can be anticipated and properly invested if cash planning is resorted to.

Cash planning is a technique to plan and control the use of cash. It helps to anticipate the future
cashflows and needs of the firm and reduces the possibility of idle cash balances ( which lowers
firm’s profitability ) and cash deficits (which can cause the firm’s failure).

Cash planning protects the financial condition of the firm by developing a projected cash statement
from a forecast of expected cash inflows and outflows for a given period. The forecasts may be based
on the present operations or the anticipated future operations. Cash plans are very crucial in
developing the overall operating plans of the firm.

Cash planning may be done on daily, weekly or monthly basis. The period and frequency of cash
planning generally depends upon the size of the firm and philosophy of management. Large firms
prepare daily and weekly forecasts. Medium-size firms usually prepare weekly and monthly
forecasts. Small firms may not prepare formal cash forecasts because of the non availability of
information and small-scale operations.

But, if the small firms prepare cash projections, it is done on monthly basis. As a firm grows and
business operations become complex, cash planning becomes inevitable for its continuing success.
 OTHER FACTORS THAT AFFECT THE SIZE OF CASH BALANCE

There are many factors that affect the size of the cash balance, and hence is discussed below in
detail:-

1. AVAILABILITYOFSHORT-TERM CREDIT-
To avoid holding unnecessary large balances of cash, most firms attempt to make arrangements at
borrow money is case of unexpected needs. With such an agreement, the firm normally pays interest
only during the period that the money is actually used.

2. MARKET RATES–
If money will bring a low return a firm may choose not to invest it. Since the loss or profit is small,
it may not be worth the trouble to make the loan. On the other hand, if interest rates are very high,
every extra rupee will be invested.

3. VARIATION IN CASH FLOWS–

Some firms experience wide fluctuation in cash flows as a routine matter. A firm with steady cash
flows can maintain a fairly uniform cash balance.

4. COMPENSATINGBALANCE–
If a firm has borrowed money from a bank, the loan agreement may require the firm to maintain a
minimum balance of cash in its accounts. This is called compensating balance. In effect this
requires the firm to use the services of bank a guaranteed deposit on which it pays no interest. The
interest free deposit is the bank’s compensation for its advice and assistance.
 CASH MANAGEMENT – BASIC STRATEGIES

The management should, after knowing the cash position by means of the cash budget, work out the
basic strategies to be employed to manage its cash.

Cash management is done because all the transactions in the business in done in cash, so there is
need for estimation of cash in future for smooth running of the business. So cash management is
very important for every organization.

Cash is the important current asset for the operations of the business. Cash is the basic input needed
to keep the business running on a continuous basis; it is also the ultimate output expected to be
realized by selling the service or product manufactured by the firm. The firm should keep sufficient
cash, neither more nor less. Cash shortage will disrupt the firm’s manufacturing operations while
excessive cash will simply remain idle, without contributing anything towards the firm’s
profitability. Thus, a major function of the financial manager is to maintain a sound cash position.

Cash is the money which a firm can disburse immediately without any restriction.
The term cash includes coins, currency and cheques held by the firm, and balances in its bank
accounts. Sometimes near-cash items, such as marketable securities or bank time’s deposits, are also
included in cash.

CASH CYCLE

The cash cycle refers to the process by which cash is used to purchase materials from
Which are produced goods, which are then sold to customers?

Cash cycle=Average age of firm’s inventory +Days to collect its accounts receivables -Days to pay
its accounts payable.

The cash turnover means the numbers of times firm’s cash is used during each year.

The higher the cash turnover, the less cash the firm requires. The firm should, therefore, try to
maximize the cash turn.

MANAGING COLLECTIONS:
The managing collections of the cash management have been discussed below:-

A) PROMPT BILLING:
By preparing and sending the bills promptly, without a time log between the dispatches of goods
and sending the bills, a firm can ensure earlier remittance.

B) EXPEDITIOUSCOLLECTION OF CHEQUES:
An important aspect of efficient cash management is to process the cheques receives very promptly.

C) CONCENTRATION BANKING:
Instead of a single collection center located at the company headquarters, multiple collection centers
are established. The purpose is to shorten the period between the time customers mail in their
payments and the time when the company has use of the funds are then to a concentration bank –
usually a disbursement account.

D) LOCK-BOX SYSTEM:
With concentration banking, a collection center receives remittances, processes them and deposits
them in a bank. The purpose is to lock-box system is to eliminate the time between the receipt of
remittances by the company and their deposit in the bank. The company rents a local post office box
and authorizes its bank in each of these cities to pick up remittances in the box. The bank picks up
the mail several times a day and deposits the cheque in the company’s accounts. The cheques are
recorded and cleared for collection. The company receives a deposits the cheque in the company’s
accounts. The cheques are recorded and cleared for collation. The company receives a deposit slip
and a lift of payments.

CONTROL OF DISBURSMENT
A) Stretching Accounts Payable:
A firm should pay its accounts payables as late as possible without damaging its credit standing. It
should, however, take advantages of the cash discount available on prompt payment.

B) Centralized Disbursement:
One procedure for rightly controlling disbursements is to centralize payables in to a single account,
presumably at the company’s headquarters. Such an arrangement would enable a firm to delay
payments and can serve cash for several reasons. Firstly, it increases transit time. Secondly, if a firm
has a centralized bank account, a relatively smaller total cash balances will be needed.

C) Bank Draft:
Unlike an ordinary cheque, the draft is not payable on demand. When it is presented to the issuer’s
bank for collection, the bank must present it to the issuer for acceptance. The funds then are deposited
by the issuing firm to cover payments of the draft. But suppliers prefer cheques. Also, bank imposes
a higher service charge to process them since they require special attention, usually manual.

D) PLAYING THE FLOAT:

The amount of cheques issued by the firm but not paid for by the bank is referred to as the “payment
float”. The differences between “payment float” and “collection float” are the net float. So, if a firm
enjoys a positive “net float”, it may issue cheques even if it means having an ever drown account in
its books. Such an action is referred to as “playing the float”, within limits a firm can play this game
reasonably safely. Thus management of cash becomes essential and it should be seen to, that neither
excessive nor inadequate cash balances are maintained.

CASH FLOW ANALYSIS

The cash flow analysis is done with the help of cash flow statement. A cash flow statement is a
statement depicting changes in cash position from one period to another. It is an important planning
tool.

Cash flow statement gives a clear picture of the source of cash, the uses of cash and the net changes
in cash. The primary purpose of cash flow statement is to show that as to where from the cash to be
acquired and where to use them.

UTILITY OF CASH FLOW ANALYSIS

A Cash flow analysis is an important financial tool for the management. Its chief advantages are as
follows.

1. HELPS IN EFFICIENT CASH MANAGEMENT–

Cash flow analysis helps in evaluating financial policies and cash position. Cash isthe basis for
all operation and hence a projected cash flow statement will enable themanagement to plan and
co-ordinate the financial operations
properly. The management canknow how much cash is needed from which source it will be
derived, how much can begenerated, how much can be utilized.

2. HELPS IN INTERNAL FINANCIAL MANAGEMENT–

Cash flow analysis information about funds, which will be available from operations.This will
helps the management in repayment of long-term debt, dividend policies etc.,

3. DISCLOSES THE MOVEMENT OF CASH–

 Cash flow statement discloses the complete picture of cash movement. The increasein and
decrease of cash and the reasons therefore can be known. It discloses the reasons forlow cash
balance in spite of heavy operation profits on for heavy cash balance in spite of lowprofits.

4. DISCLOSES SUCCESS OR FAILURE OF CASH PLANNING–

The extent of success or failure of cash planning is known by comparing the projectedcash flow
statement with the actual cash flow statement and necessary remedial measures canbe taken.

DETERMINING THE OPTIMUM CASH BALANCE

One of the primary responsibilities of the financial manager is to maintain a sound liquidity position
of the firm so that the dues are settled in time. The firm needs cash to purchase raw materials and
pay wages and other expenses as well as for paying dividend, interest and taxes.

The test of liquidity is the availability of cash to meet the firm’s obligations when they become due.
A firm maintains the operating cash balance for transaction purposes. It may also carry additional
cash as a buffer or safety stock.

The amount of cash balance will depend on the risk-return trade-off. If the firm maintains small cash
balance, its liquidity position weakens, but its profitability improves as the released funds can be
invested in profitable opportunities (marketable securities).
When the firm needs cash, it can sell its keeps high cash balance, it will have a strong liquidity
position but its profitability will be low. The potential profit foregone on holding large cash balance
is an opportunity cost to the firm. The firm should maintain optimum – just to enough, neither too
much nor too little – cash balance.
How to determine the optimum cash balance if cash flows are predictable and if they are not
predictable.

CASH MANAGEMENT
 Receivable Cash Flow Bank
Management Statement

1) Average 1) Reconciliation
collection 1) Cash flow from
Period, operating
2) Credit Policy, activities,
3) Factoring 2) Cash flow from
4) Cost of financing
collecting activities,
debt, 3) Cash flow from
5) Discounting investing
policy.

Payable
Management Cash
Forecasting

1) Credit policy of
suppliers 1) Cash
forecasting
OPTIMUM CASH BALANCE UNDER CERTAINIT Y technique
 1. “BAUMOL’S MODEL”

The Baumol model of cash management provides a formal approach for determining a firm’s
optimum cash balance under certainty. It considers cash management similar to an inventory
management problem. As such, the firm attempts to minimize the sum of the cost of holding cash
(inventory of cash) and the cost of converting marketable securities to cash. The baumol’s model
makes the following assumptions:

✓ The firm is able to forecast its cash needs with certainty.

✓ The firm’s cash payments occur uniformly over a period of time.

✓ The opportunity cost of holding cash is known and it does not change over time.

✓ The firm will incur the firm sells securities and starts with converts’ securities to cash.

2. “The MILER-ORR MODEL”

The limitation of the Baumol model is that it does not allow the cash flows to fluctuate. Firms in
practice do not use their cash balance uniformly nor are they able to predict do not use their cash
inflows and outflows. The Miller-Orr model overcomes this shortcoming and allows for daily cash
flow variation. It assumes that net cash flows are normally distributed with a zero value of mean and
a standard deviation.

The MO model provides for two control limits-the upper control limit and the lower control limit as
well as a return point. If the firm’s cash flows fluctuate randomly and hit the upper limit, then it buys
sufficient marketable securities to come back to a normal level of cash balance (the return point).
Similarly, when the firm’s cash flows wander and hit the lower limit, it sells sufficient marketable
securities to bring the cash balance back to the normal level (the return point)

THE DRIVETOWARDS EFFICIENCY, TRANSPARENCY,

STANDARDIZATIONAND INTEGRATION–
Fragmentation is a key driver of corporate inefficiency. This has long been the case in themovement
of paper checks and related remittance documents within the U.S. payments system, and theflow of
goods, trade-related documents and funds within the broader global supply chain.

As corporatetreasurers pursue end-to-end automation for treasury and supply-chain activities, they
understand thatto achieve straight-through processing — and the subsequent optimization of
working.

CAPITALGLOBALLY —

They must integrate the payment and information components of a transaction.Based on this drive
for efficiency, three interrelated trends are shaping North America’s cashmanagement landscape
today. First, corporate treasurers and their banks are driving the convergence towards electronic
payments to better integrate money and information flows. Second, there is a parallelconvergence
in international trade towards open account, electronic payment and the automation ofinformation
flows, as treasury pushes to integrate the physical and financial supply chains. On bothfronts,
solutions are emerging to digitize paper wherever it persists. Third, as companies continue toexpand
globally — and information and money flows follow — treasury is focused on
standardizingprocesses and strengthening internal controls. The Objective is to create transparency
across a range ofbusiness activities to manage risk and ensure financial reporting integrity in
compliance with Sarbanes-Oxley.

1. CASH MANAGEMENT AND CAPITAL BUDGETING PRACTICES–

Virginia department of transportation Richmond, Virginia.Our review has found that Transportation
has made significant progress or completedmost of the recommendations made in our 2002 special
report. Complete implementation ofthese changes will take at least four to five years.Over the last
two years, Transportation’s management has started not onlyimplementing recommendations, but
more importantly begun implementing a change in thecorporate and cultural structure of the
organization.

The success of change withTransportation will depend on whether a true structural change in
organization takes place.The measure of success will require a substantial long-term commitment
by management tonot only making the change, but to prevent backsliding into Transportation’s old
approaches.In some ways, the accomplishments to date are the easy part of change.

The harderpartlays ahead in funding and implementing new systems, continuing to make the changes
toget closer to capital budgeting process, and overcoming Transportation’s corporate andcultural
structure to improve project management. The success of this effort is highlydependent on
management guidance and direction, and current management has demonstratedtheir dedication
towards this effort. If any management change occurs, it is essential that theyhave the same
commitment; otherwise, progress may be negatively impacted.

Transportation is restoring fiscal accountability by implementing several budgetaryand financial

changes, including adopting a debt management policy and model. Additionally,they are
establishing a methodology to identify statewide transportation priorities anddeveloping project
management policies.Transportation has completed several budgetary and financial changes,
including attempts tomake the Six-Year Improvement Program a realistic management tool and
reduce the projectswith a deficit status.
However,to ensure accurate matching on cash inflows and outflows, Transportation mustbegin
estimating the cost of projects by fiscal year. Transportation does not currently havesufficient
controls and processes in place to manage the rate at which they spend funds.
For major projects, Transportation has begun assigning a project management team thatfollows a
project from its inception to its completion. However, it is still too early in theprocess to determine
if the policies put into place will provide Transportation with betterproject management.
However, the actions to date are those considered best practices in boththe private and public for
large organizations.

Maintenance is still an area of concern at Transportation. The growing maintenancerequirements

and the limited ability to budget on a needs-based approach increases the risk ofinappropriately
applied funding. Once the asset management system is fully implemented aneeds-based approach
will be possible and Transportation will be able identify and prioritizemaintenance projects.

2. Ms. Katherine M. Landmann Controller Washington University in St. Louis

Campus–

This final report presents the results of our audit of the cash management proceduresused by
Washington University in St. Louis (University) to control the funds paid by thePayment
Management System (PMS) during the three years ended June 30, 2000.We found that the
University did not have adequate policies and procedures in place tomonitor daily cash balances and
to precisely calculate interest earned on positive daily cashbalances.

In monitoring the daily cash balances, the University did not consider (1) outstanding checks and
(2) overhead costs as incurred. In addition, the University did not usethe appropriate interest rates
when calculating the interest remitted to the Federal government.

We determined that the amount of excess interest remitted by the University wascomparable to the
amount of interest that should have been remitted if appropriate procedureshad been used. We
believe that this occurrence was a coincidence due to offsetting factors inthe University’s calculation
of the amount to be remitted.
We are recommending that the University revise its written policies and procedures toeffectively
monitor the daily cash balance and to accurately compute the Federal remittance.
They made four specific recommendations for improving the University’s cash
managementprocedures. The University concurred with two and is still evaluating the third.
However, theydid not accept our fourth recommendation. The University’s response is included in
itsentirety as Appendix A.

3. Cash Management by Enid Beverly Jones–

It is a Financial Overview for School Administrators is a succinct overview of publicschool finance,

presenting concepts of importance to both site-based and central-officeleaders. A pragmatic blend
of theoretical concepts and factual information provides readerswith an excellent synopsis of public
school finance.

The economics and politics of education are discussed in the context of human capital and therole
of public education in the United States as an investment in human capital.

Author Enid Jones, whoisan associate professor of school finance at Fayetteville State University,
stresses the importance ofinvestment in human capital and its necessity for an educated, productive
workforce.The chapter on adequacy and equity provides an understanding of the two concepts
sofrequently debated in school finance. As more states struggle with funding issues, this subject
matter istimely and useful.

Cash Management seems intended for use nationwide with information on basic school business
procedures, including budgeting and financing of school facilities. The use of lay terminology and
relevant examples make the book valuable both in graduate school classes on educational leadership
and in the hands of practicing administrators.
 “CASH FLOW IS SERVED AS OXYGEN IN BUSINESS LIFE.”

“Cash flow is the oxygen that brings your business to life.

As surely as you cannot live without air, a business will grind to a halt if starved for cash.”

Cash Management is concerned with the management of collections and disbursement of cash,
determination of optimum level of cash and investment of surplus cash into securities. Cash
management includes management of cash inflow, cash outflow, estimation of cash requirement,
ascertaining cost of managing cash, techniques of managing cash.

Cash management also includes management of cash as well as cash equitant i.e. Bank accounts
etc. Cash management is done because all the transactions in the business in done in cash, so there
is need for estimation of cash in future for smooth running of the business.

So cash management is very important for every organization. If at any time, because of a lack of
cash, a corporation fails to pay an obligation when it is due, the corporation is insolvent.
Insolvency is the primary reason firms go bankrupt. Obviously, the prospect of such dire
consequence compels companies to manage their cash with care.

Moreover, efficient cash management means more than just preventing bankruptcy. It improves
the profitability and reduces the risk the firm is exposed to. A successful business rests on sound
recordkeeping practices and solid cash flow. Without good records it is impossible to determine
the financial condition or profitability of a business.

Similarly, in order to survive a small business must achieve a positive cash flow in the long term.
This Financial Guide provides the basic information the owner of a small business need to
establish good recordkeeping practices in your business and to minimize cash flow problems.
 CHAPTER –3

STUDY OF INDUSTRY
INTRODUCTION OF ELECTRONIC INDUSTRY:-
The electronics industry, especially meaning consumer electronics, emerged in the 20th century and
has now become a global industry worth billions of dollars. Contemporary society uses all manner
of electronic devices built in automated or semi-automated factories operated by the industry.
Products are assembled from integrated circuits, principally by photolithography of printed circuit
boards.

The size of the industry and the use of toxic materials, as well as the difficulty of recycling has led
to a series of problems with electronic waste. International regulation and environmental legislation
has been developed in an attempt to address the issues.

HISTORY OF ELECTRONIC INDUSTRY:-

The electric power industry began in the 19th century and this led to the development of all
manner of inventions. Gramaphones were an early invention and this was followed by radio
transmitters and receivers and televisions. The first digital computers were built in the 1940s with
a slow development in technology and total sales. In the 1990s the personal computer became
popular. A large part of the electronics industry is now involved with digital technology.
The industry now employs large numbers of electronics engineers and electronics technicians to
design, develop, test, manufacture, install, and repair electrical and electronic equipment such as
communication equipment, medical monitoring devices, navigational equipment, and computers.
Common parts manufactured are connectors, system components, cell systems, computer
accessories, and these are made of alloy steel, copper, brass, stainless steel, plastic, steel tubing and
other materials.

Consumer electronics
Consumer electronics are products intended for everyday use, most often in entertainment,
communications and office productivity. Radio broadcasting in the early 20th century brought the
first major consumer product, the broadcast receiver. Later products include personal computers,
telephones, MP3 players, audio equipment, televisions, calculators, GPSautomotive electronics,
digital cameras and players and recorders using video media such as DVDs, VCRs or camcorders.
Increasingly these products have become based on digital technologies, and have largely merged
with the computer industry in what is increasingly referred to as the consumerization of
information technology.
The CEA (Consumer Electronics Association) estimated the value of 2007 consumer electronics
sales at US$150 billion.

Effects on the environment

Electrical waste contains hazardous but also valuable and scarce materials and up to 60 elements
can be found in complex electronics.
The United States and China are the world leaders in producing electronic waste, each tossing
away about 3 million tons each year. China also remains a major e-waste dumping ground for
developed countries. The UNEP estimate that the amount of e-waste being produced - including
mobile phones and computers - could rise by as much as 500 percent over the next decade in some
developing countries, such as India.

ELECTRONICS:- Electronics is the science of controlling electrical energy electrically, in

which the electrons have a fundamental role. Electronics deals with electrical circuits that involve
active electrical components such as vacuum tubes, transistors, diodes, integrated circuits, associated
passive electrical components, and interconnection technologies. Commonly, electronic devices
contain circuitry consisting primarily or exclusively of active semiconductors supplemented with
passive elements; such a circuit is described as an electronic circuit.

The science of electronics is also considered to be a branch of physics and electrical engineering.

The nonlinearbehaviour of active components and their ability to control electron flows makes
amplification of weak signals possible, and electronics is widely used in information processing,
telecommunication, and signal processing. The ability of electronic devices to act as switches makes
digital information processing possible. Interconnection technologies such as circuit boards,
electronics packaging technology, and other varied forms of communication infrastructure complete
circuit functionality and transform the mixed components into a regular working system.

Electronics is distinct from electrical and electro-mechanical science and technology, which deal
with the generation, distribution, switching, storage, and conversion of electrical energy to and from
other energy forms using wires, motors, generators, batteries, switches, relays, transformers,
resistors, and other passive components. This distinction started around 1906 with the invention by
Lee De Forest of the triode, which made electrical amplification of weak radio signals and audio
signals possible with a non-mechanical device. Until 1950 this field was called "radio technology"
because its principal application was the design and theory of radio transmitters, receivers, and
vacuum tubes.

Today, most electronic devices use semiconductor components to perform electron control. The
study of semiconductor devices and related technology is considered a branch of solid-state physics,
whereas the design and construction of electronic circuits to solve practical problems come under
electronics engineering. This article focuses on engineering aspects of electronics.

HISTORY OF ELECTRONIC COMPONENTS

Vacuum tubes (Thermionic valves) were among the earliest electronic components. They were
almost solely responsible for the electronics revolution of the first half of the Twentieth Century.
They took electronics from parlor tricks and gave us radio, television, phonographs, radar, long
distance telephony and much more. They played a leading role in the field of microwave and high
power transmission as well as television receivers until the middle of the 1980s. Since that time,
solid state devices have all but completely taken over. Vacuum tubes are still used in some
specialist applications such as high power RF amplifiers, cathode ray tubes, specialist audio
equipment, guitar amplifiers and some microwave devices.

In April 1955 the IBM 608 was the first IBM product to use transistor circuits without any vacuum
tubes and is believed to be the world's first all-transistorized calculator to be manufactured for the
commercial market. The 608 contained more than 3,000 germaniumtransistors. Thomas J. Watson
Jr. ordered all future IBM products to use transistors in their design. From that time on transistors
were almost exclusively used for computer logic and peripherals.

TYPES OF CIRCUITS

Circuits and components can be divided into two groups: analog and digital. A particular device
may consist of circuitry that has one or the other or a mix of the two types.

Analog circuits

Hitachi J100 adjustable frequency drive chassis

Most analog electronic appliances, such as radio receivers, are constructed from combinations of a
few types of basic circuits. Analog circuits use a continuous range of voltage or current as opposed
to discrete levels as in digital circuits.

The number of different analog circuits so far devised is huge, especially because a 'circuit' can be
defined as anything from a single component, to systems containing thousands of components.

Analog circuits are sometimes called linear circuits although many non-linear effects are used in
analog circuits such as mixers, modulators, etc. Good examples of analog circuits include vacuum
tube and transistor amplifiers, operational amplifiers and oscillators.

One rarely finds modern circuits that are entirely analog. These days analog circuitry may use digital
or even microprocessor techniques to improve performance. This type of circuit is usually called
"mixed signal" rather than analog or digital.

Sometimes it may be difficult to differentiate between analog and digital circuits as they have
elements of both linear and non-linear operation. An example is the comparator which takes in a
continuous range of voltage but only outputs one of two levels as in a digital circuit. Similarly, an
overdriven transistor amplifier can take on the characteristics of a controlled switch having
essentially two levels of output. In fact, many digital circuits are actually implemented as variations
of analog circuits similar to this example—after all, all aspects of the real physical world are
essentially analog, so digital effects are only realized by constraining analog behavior.

Digital circuits:-

Digital circuits are electric circuits based on a number of discrete voltage levels. Digital circuits are
the most common physical representation of Boolean algebra, and are the basis of all digital
computers. To most engineers, the terms "digital circuit", "digital system" and "logic" are
interchangeable in the context of digital circuits. Most digital circuits use a binary system with two
voltage levels labeled "0" and "1". Often logic "0" will be a lower voltage and referred to as "Low"
while logic "1" is referred to as "High". However, some systems use the reverse definition ("0" is
"High") or are current based. Quite often the logic designer may reverse these definitions from one
circuit to the next as he sees fit to facilitate his design. The definition of the levels as "0" or "1" is
arbitrary.

Ternary (with three states) logic has been studied, and some prototype computers made.Computers,
electronic clocks, and programmable logic controllers (used to control industrial processes) are
constructed of digital circuits. Digital signal processors are another example.

Electronics theory

Mathematical methods are integral to the study of electronics. To become proficient in electronics it
is also necessary to become proficient in the mathematics of circuit analysis.

Circuit analysis is the study of methods of solving generally linear systems for unknown variables
such as the voltage at a certain node or the current through a certain branch of a network. A common
analytical tool for this is the SPICE circuit simulator.

Also important to electronics is the study and understanding of electromagnetic field theory.
Electronics lab

Due to the complex nature of electronics theory, laboratory experimentation is an important part of
the development of electronic devices. These experiments are used to test or verify the engineer’s
design and detect errors. Historically, electronics labs have consisted of electronics devices and
equipment located in a physical space, although in more recent years the trend has been towards
electronics lab simulation software, such as CircuitLogix, Multisim, and PSpice.

Computer aided design (CAD)

Today's electronics engineers have the ability to designcircuits using premanufactured building
blocks such as power supplies, semiconductors (i.e. semiconductor devices, such as transistors), and
integrated circuits. Electronic design automation software programs include schematic capture
programs and printed circuit board design programs. Popular names in the EDA software world are
NI Multisim, Cadence (ORCAD), EAGLE PCB and Schematic, Mentor (PADS PCB and LOGIC
Schematic), Altium (Protel), LabCentre Electronics (Proteus), gEDA, KiCad and many others.

Construction methods

Many different methods of connecting components have been used over the years. For instance,
early electronics often used point to point wiring with components attached to wooden breadboards
to construct circuits. Cordwood construction and wire wrap were other methods used. Most modern
day electronics now use printed circuit boards made of materials such as FR4, or the cheaper (and
less hard-wearing) Synthetic Resin Bonded Paper (SRBP, also known as Paxoline/Paxolin (trade
marks) and FR2) - characterised by its brown colour. Health and environmental concerns associated
with electronics assembly have gained increased attention in recent years, especially for products
destined to the European Union, with its Restriction of Hazardous Substances Directive (RoHS) and
Waste Electrical and Electronic Equipment Directive (WEEE), which went into force in July 2006.

There are many companies which are related to electronics industry. These are
the following:-
• SAMSUNG
• GODREJ
• VIDEOCON
 CHAPTER –4

STUDY OF COMPANIES
SAMSUNG:-

INTRODUCTION OF SAMSUNG:-

Samsung Group (Hangul: Hanja: Korean pronunciation: SAMSUNG is a South Korean

multinationalconglomerate headquartered in Samsung Town, Seoul. It comprises numerous
affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean
chaebol (business conglomerate).

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three
decades, the group diversified into areas including food processing, textiles, insurance, securities
and retail. Samsung entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following
Lee's death in 1987, Samsung was separated into four business groups – Samsung Group, Shinsegae
Group, CJ Group and Hansol Group. Since 1990, Samsung has increasingly globalized its activities
and electronics; in particular, its mobile phones and semiconductors have become its most important
source of income.

Samsung has a powerful influence on South Korea's economic development, politics, media and
culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate
companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to
17% of South Korea's $1,082 billion GDP.
On 17 February 2017, Samsung Group chief Lee Jae-yong was arrested for bribery, embezzlement,
hiding assets overseas and perjury.

HISTORY OF SAMSUNG:-
1938 to 19

The headquarters of Sanghoes in Daegu in the late 1930s

In 1938, Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county moved
to nearby Daegu city and founded Samsung Sanghoe. Samsung started out as a small trading
company with forty employees located in Su-dong (now Ingyo-dong). It dealt in dried-fish, locally-
grown groceries and made noodles. The company prospered and Lee moved its head office to Seoul
in 1947. When the Korean War broke out, he was forced to leave Seoul. He started a sugar refinery
in Busan named CheilJedang. In 1954, Lee founded CheilMojik and built the plant in Chimsan-
dong, Daegu. It was the largest woollen mill ever in the country.

1970 to 1990

The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only)
and used an audio cassette tape to load and save data – the floppy drive was optional.

In 1980, Samsung acquired the Gumi-based HangukJeonjaTongsin and entered telecommunications

hardware. Its early products were switchboards. The facility was developed into the telephone and
fax manufacturing systems and became the center of Samsung's mobile phone manufacturing. They
have produced over 800 million mobile phones to date. The company grouped them together under
Samsung Electronics in the 1980s.
1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch
was awarded contracts to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan
and the BurjKhalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's
subsidiaries, downsized the company, and merged other operations to concentrate on three
industries: electronics, engineering and chemicals. In 1996, the Samsung Group reacquired the
Sungkyunkwan University foundation.

Samsung became the world's largest producer of memory chips in 1992 and is the world's second-
largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by
Year). In 1995, it created its first liquid-crystal display screen. Ten years later, Samsung grew to be
the world's largest manufacturer of liquid-crystal display panels. Sony, which had not invested in
large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was established as a
joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both
manufacturers. S-LCD was owned by Samsung (50% plus one share) and Sony (50% minus one
share) and operates its factories and facilities in Tangjung, South Korea. As of 26 December 2011,
it was announced that Samsung had acquired the stake of Sony in this joint venture.

Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis
relatively unharmed. However, Samsung Motor was sold to Renault at a significant loss. As of 2010,
Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung.
Additionally, Samsung manufactured a range of aircraft from the 1980s to 1990s. The company was
founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then three
domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai
Space and Aircraft Company. However, Samsung still manufactures aircraft engines and gas
turbines.

2000 to 2015

In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work began
with set-top-box technology before moving into digital TV and smartphones. As of 2011, the
Warsaw base is Samsung's most important R&D center in Europe, forecast to be recruiting 400 new-
hires per year by the end of 2013.
The prominent Samsung sign in Times Square, New York City

In 2015, Samsung has been granted more U.S. patents than any other company - including IBM,
Google, Sony, Microsoft and Apple.

2016

In January 2016, Samsung announced it will be working with Microsoft to develop IoT devices
based on Windows 10, where the companies will work together to develop products that will run on
the platform, as well as integrate with other companies developing hardware and services on
Microsoft's OS.

SAMSUNG PRODUCTS:-

• Television:-QLED TVs, SUHD TVs, UHD TVs, FULLHD TVs.

• Washing machine:-FlexWashTMWASHER, ADDWASHTM FRONT LOAD WASHER.
• Refrigerator:-4-Door Flex TM, 4-DOOR FRENCH DOOR REFIGERATOR.
• Mobile phones:-GALAXY 5, GALAXY NOTE, GALAXY J5.
• Vacuums:-ROBOT VACUUMS, STICK VACUUMS.

1. GODREJ:-

INTRODUCTION OF GODREJ:-
The Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra,
India, managed and largely owned by the Godrej family. It was founded by Ardeshir Godrej
and PirojshaBurjorji Godrej in 1897, and operates in sectors as diverse as real
estate, consumer products, industrial engineering, appliances, furniture, security and
agricultural products.[3] Subsidiaries and affiliated companies include Godrej Industries and
its subsidiaries Godrej Consumer Products, Godrej Agrovet, and Godrej Properties, as well
as the private holding company Godrej & Boyce.

HISTORY OF GODREJ:-

In 1897 a young man named Ardeshir Godrej gave up law and turned to lock-making. Ardeshir went
on to make safes and security equipment of the highest order, and then stunned the world by creating
toilet soap from vegetable oil. His brother Pirojsha Godrej carried Ardeshir's dream forward, leading
Godrej towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the
sprawling industrial garden township now called Pirojshanagar in the suburbs of Mumbai, where the
Godrej Group has its headquarters.

TIMELINE

• 1897- Godrej is established in 1897

• 1902 - Godrej makes its first Indian Safe
• 1918 - Godrej Soaps Limited incorporated
• 1961- Godrej Started Manufacturing Forklift Trucks in India
• 1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps
• 1974 - Veg oils division in Wadala, Mumbai acquired
• 1990 - Godrej Properties Limited, another subsidiary, established
• 1991 - Foods business started
• 1994 - Transelektra Domestic Products acquired
• 1995 - Transelektra forged a strategic alliance with Sara Lee USA
• 1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej Infotech Ltd.
• 2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps
Limited. Godrej Soaps renamed Godrej Industries Limited
• 2002 - Godrej Tea Limited set up
• 2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited
• 2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers
by providing professional pest management services
 • 2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej
Beverages & Foods Limited
• 2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North
America and the company was renamed Godrej Hershey Foods & Beverages Limited
• 2008 - Godrej relaunched itself with new colourful logo and a fresh identity music
• 2010 - Godrej launched GoJiyo a free, browser based 3D virtual world.
• 2011 - Godrej & Boyce shuts down its typewriter manufacturing plant, the last in the world.
• 2014 - Godrej kick-starts Masterbrand 2.0 – bigger & brighter; Launches FreeG; India’s first
non-web based mobile browsing experience, 18 November 2014.
• 2015 - Godrej launched its food blog, VikhroliCucina.

Social responsibility

Godrej has a philanthropic arm that has built schools, dispensaries and a residential complex for
their employees. Trusts established by Godrej continue to invest in education, healthcare and
upliftment of the underprivileged. Godrej is a supporter of the World Wildlife Fund in India, it has
developed a green business campus in the Vikhroli township of Mumbai, which includes 200 acr
mangrove forest and a school for the children of company employees.

Twenty-five percent of the shares of the Godrej holding company are held in trusts that include the
Pirojsha Godrej Foundation, the SoonabaiPirojsha Godrej Foundation and the Godrej Memorial
Trust. Through these trusts the Group supports healthcare, education and environmental
sustainability initiatives such as The Mangroves, Teach for India, WWF, Smile Train and the Godrej
Memorial Hospital among others.

The major companies, subsidiaries and affiliates are

Chemical & commodities

o Godrej Industries
▪ Chemicals
▪ Veg Oils

• Consumer Goods
 o Godrej Consumer Products
▪ Keyline Brands UK
▪ Rapidol South Africa
▪ Godrej Global Mideast FZE
▪ Godrej Indonesia - HIT, STELLA, MITU, Household
▪ Godrej SCA Hygiene Limited

o Godrej Hershey Foods & Beverages Limited

▪ Nutrine
o Godrej Sara Lee

• AGRI
o Godrej Agrovet
▪ Animal Feeds
▪ Goldmohur Foods and Feeds
▪ Golden Feed Products
▪ Higashimaru Feed Products
▪ Oil Palm
▪ Agri Inputs
▪ Godrej Aadhaar
▪ Nature's Basket
▪ Integrated Poultry Business
▪ Plant Biotech

• Services
o Godrej HiCare (Pest Management Services)
o Godrej Global Solutions (ITES)
o Godrej Properties
o Godrej Infotech

GODREJ CORPORATION PRODUCTS:-

• Washing-Fully Automatic, Semi Automatic.
 • Redrigerator- 185 L, Rd Edge 185 Chtm Berry.
• Ovens-20L Convection, 20L Solo.

3. IDEOCON:-

INTRODUCTION OF VIDEOCON:-
Videocon Industries Limited is a large diversified Indian company headquartered in Mumbai. The
group has 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico.
It is the third largest picture tube manufacturer in the world. The group is a US$5 billion global
conglomerate.

HISTORY OF VIDEOCON PRODUCTS:-

Mobile phones
In November 2009, Videocon launched its new line of mobile phones. Videocon has, since launched
a number of handsets ranging from basic colour FM phones to high-end Android devices. In
February 2011, Videocon Mobile Phones launched the hitherto unknown concept of 'Zero' paise (1
paise is the 100th unit of 1INR) per second with bundled SIM cards of Videocon mobile services for
7 of its handset models.
In July 2015, Videocon Mobiles launched its own flagship smartphone Videocon Infinium Z51+ in
India.

On 7 June 2016, Videocon Mobile launched its new smartphone 'Videocon Krypton3 V50JG' in
India. It includes features like 12.7 cm (5 inches) screen with 5 Multi-Touch Point, Dragontrail X
2.5D Curved Glass, Quad Core 64-bit Processor, Smart Gesture Support, 3000mAh battery, Android
6.0 Marshmallow OS, 4G with VoLTE, 13MP Rear + 5MP Front Camera with LED Flash. test
DTH
In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in the Indian DTH
market and introduced first radio frequancy remote in India, Videocon offered LCD& TVs with
built-in DTH satellite receiver with sizes 19" to 42". This technology is known as DDB. It provides
service with lesser transmission losses resulting in richer picture and sound quality. It also eliminates
the need of separate set-top-box and it's remote. Videocon is the first brand to introduce DDB
technology in India.

Telecommunication
Videocon Telecommunications Limited has a licence for mobile service operations across India. It
launched its services on 7 April 2010 in Mumbai.

Retail
Videocon owns three retail brands :Planet M, DigiWorld and Next.

Petroleum
Videocon Petroleum has 25% stake in Ravva oil field which is operated by Cairn India in Andhra
Pradesh.

ACQUISITION OF CPT ARM OF THOMSON SA

Videocon acquired the colour picture tube (CPT) businesses from Thomson S.A. of France having
manufacturing facilities in Poland, Italy, Mexico and China along with support research and
development facilities in the fiscal year 2005. The acquisition catapulted Videocon into the No. 3
slot in the global pecking order for CPTs.

In 2005, Videocon Group took over Philips color TV plant and took over three plants of Electrolux
India. Today, it has evolved into a conglomerate with annual revenues of over US$4.8 billion.

AWARDS AND RECOGNITION

• According to the Brand Trust Report 2012 published by Trust Research Advisory, a brand
analytics company, Videocon's was positioned 51st among India's most trusted brands.
Subsequently, in Brand Trust Report 2013, Videocon was ranked 25th among the most
 trusted brands in India while according to the Brand Trust Report 2014, L&T was elevated
to the 17th position among India's most trusted brands.

• Videocon Industries Limited has been awarded the National Energy Conservation Award for
2013 in appreciation of its continuous efforts in R&D and product up-gradation by implying
new and innovative energy saving practices resulting to achievement in Energy Conservation
in the category of BEE Star Labelled Appliances (Refrigerator) for strict adherence to the
BEE standards set up by the Bureau of Energy Efficiency.

• Videocon won the 1st prize for best Manufacturers of BEE Star Labeled Appliances, in the
refrigerator category, at the National Energy Conservation Award – 2015. Organized by the
Bureau of Energy Efficiency, the award aims at giving national recognition to companies
who have made significant contributions in creating awareness towards and production of
energy efficient appliances.

VIDEOCON PRODUCTS:-
• Televisions:-CURVE TV, DDB LED TV, WINDOW POWERED TV.
• Refrigerators:-TITTANIUM FROAST FREE, FROAST FREE.
• Air conditioners:-Hybrid solar AC, Aryabot AC.
• Washing:-Semi Automatic, Fully Automatic Top Loading.
 CHAPTER –5

RESEARCH
METHODOLOGY
 MEANING OF RESEARCH

Research is a process in which the researchers wish to find out the end result for a given problem
and thus the solution helps in future course of action. The research has been defined as “A careful
investigation or enquiry especially through search for new facts in branch of knowledge.”

Knowledge of research not only helps one to look at the available information, but this knowledge
also helps in other ways.

Research comprises defining and redefining problems, formulating hypothesis or suggested

solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions.
Research compromises “creative work undertaken on a systematic basis in order to increase the stock
of knowledge, including knowledge of man, culture and society, and the use of this stock of
knowledge to devise new applications.

MEANING OF RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. The research
methodology included various methods and techniques for conducting a research.

Sciences define research as “ the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of
theory or in practice of an art.”Research is thus, an original contribution to the existing stock of
knowledge marketing for its advancement, the purpose of research is to discover answers to the
questions through the application of scientific procedure.

My research project has a specified framework for collecting the data in an effective manner. Such
framework is called “Research Design”.

OBJECTIVES OF THE STUDY:

Research is an organized enquiry carried out to provide information for solving problems. The
present study is being contemplated with the following specific objectives:

1) To make the difference between the Non-Current Liabilities of the two continuous
financial years of the HONDA Ltd
 2) To calculate the difference among Current Liabilities of the two continuous financial
years of the HONDA Ltd.

3) To differentiate between the Non-Current Assets of the two continuous financial

years of the HONDA Ltd.

4) To calculate the Authorized capital of HONDA Ltd. of last 5 year.

5) To have the information about total Expenditure of the HONDA Ltd.

SCOPE OF THE STUDY:

The research in the field of Finance of any organization comes under the scope of business research.
The scope of this study is being discussed below:-

✓ It helps to take short term financial decision.

✓ It indicates the cash requirement needed for plant or equipment expansion programs.

✓ To find strategies for efficient management of cash.

✓ It helps to arrange needed funds on the most favorable terms.

✓ It reveals the liquidity position of the firm by highlighting the various sources of cash and its
uses
 RESEARCH DESIGN

A research design is a framework or blueprint for conducting the research project. It gives details of
the procedures necessary for obtaining the information neededto structure or solve research problem.
Mainly there are three types of research design discussed below:-

1) EXPLORATORY STUDY–

An exploratory study is undertaken when no information is available on how similar problems

or research issues have been solved in the past. In such cases, extensive interviews have to be
undertaken with many people to understand and handle the problem.

2) DESCRIPTIVE STUDY –

A descriptive study is undertaken in order to ascertain and be able to describe the characteristics
of the variable of interest in a situation. Descriptive study are also undertaken to understand the
characteristics of organizations that follow certain common practices.

3) HYPOTHESIS TESTING –

Studies that involve in hypothesis testing usually explain that the difference among groups or the
independence of two or more factors (variables) in a situation.

The research design used in this project is Descriptiveinnature. The procedure used in this
research use facts or information already available, and analyze these to make a critical evaluation
of the performance.

.
 (a) METHODS OF DATA COLLECTION

Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypothesis,
and evaluate outcomes.

The data collection component of research is common to all fields ofstudy including physical and
social sciences, humanities, business etc. While methods vary by discipline, the emphasis on
ensuring accurate and honest collection remains the same.

The goal for all data collection is to capture quality evidence that then translates to rich data analysis
and allow the building of a convincing and credible answer to questions that have been posed.

There are two types of data collection methods:

1. Secondary data
2. Primary data

SECONDARY DATA:-

Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own.

In addition, analysts of social and economic change consider secondary data essential, since it
is impossible to conduct a new survey that can adequately capture past change and/or
developments.

The secondary data means data that are already available in various reports, diaries, letters,
books, periodicals etc.

The secondary data are those, which have been used previously for any research and now used
for second time.

I USED SECONDARY DATA IN THIS STUDY.

\
LIMITATIONS OF THE STUDY:

✓ The study is restricted only to HONDA Ltd. Being a casestudy, the findings cannot be
generalized,

✓ The study takes into account only the quantitative data and the qualitativeaspects were not
taken into account,

✓ Quicken software is no longer enough for business to keep track of financial results,

✓ Most of the time my guide and supervisors were not on their seats, this create a lot of
problems for me to finding the correct interpretation as they were busy in their day to day
activities and not able to talk and discuss the matter with me.

✓ I am just student of BBA still there is a lot to be learning of skill to handle the firm efficiently.
 CHAPTER-6
DATA ANALYSIS &
INTERPRETATION
1. The Profit after tax of the HONDA Ltd from last 5 years:

COMPANY Profit after Tax

SAMSUNG 17,000
GODREJ 20,463

(Rs in Lakhs)

profit after tax

SAMSUNG GODREJ

45%

55%

INTERPRETATION:

This graph show that profit after tax is continuously increasing but in 2015-16 it start decreasing.
.
2. Total Expenditure of the HONDA Ltd. :

Table:
(Rsin Lakhs)
COMAPNY Total Expenditure
SAMSUNG 302,005
GODREJ 323,145

(Rs in Lakhs)

Total Expenditure
SAMSUNG GODREJ

48%
52%

INTERPRETATION:

The total expenditure of the company is sometimes increasing & sometimes decreasing.3.
 3.The income tax of the HONDA Ltd from last 5 years:

Table:
(Rs in Lakhs)
COMPANY Income Tax
SAMSUNG 5,344
GODREJ 6,415

(Rs in Lakhs)

Income Tax
SAMSUNG GODREJ

45%

55%

INTERPRETATION:

The Income Tax had been simultaneously increasing as well as decreasing.

 CONCLUSIONS

The Cash Management Analysis done on the financial position of the company has provided a clear
view on the activities of the company. The use of the accounting and financial management helped
in this study to find out the financial soundness of the company.

• The amount of reserves & surplus had been increasing from last year.

• The long term liabilities of the company are decreasing from previous year.

• Long term provisions of the company also decreasing from previous year.

• Current liabilities of the company are increasing.

• Fix assets of the company are decreasing from previous year.

• Long term loans & advances are decreasing.

• Inventories of the company are increasing from previous year.

• Cash & bank position of company is not good.

• Other current assets of company are also increasing from previous year.

• Income of company is decreasing.

• Total expenditure of the company is flexible.

• Profit after tax of the company aredecreasing from previous year.

 BIBLIOGRAPHY:-

BOOKS:

➢ S.N. Maheshwari, Financial management, Eleventh Edition 2006,

➢ Sultan Chand & Sons, Educational Publishers. New Delhi.

➢ I.M Pandey, Financial management, Ninth Edition,

Vikaspublishinghousepvt Ltd.

➢ M.Y Khan- P.K Jain, Management Accounting, Third edition, Tata

McGraw-Hill Publishing co. Ltd

➢ B.L. Gupta, Management of Liquidity and Profitability, Arihant Publishing

House, Jaipur.

➢ Business Research Methods, IV-semester, BBA, Dr. F.C. Sharma.

WEBSITE:

➢ www.financeindia.org
➢ www.google.com
➢ www.Hondaindia.com
➢ www.wikipedia.co.in
➢ www.yahoo.co.in
➢ www.financialmanagement.com