A STUDY ON CASH MANAGEMENT

OF WHEELS INDIA LIMITED, TVS

INDUSTRIES, PADI, CHENNAI.

Submitted by,
H.KIRTHIKA
(Reg. No- 950018631014)
 INTRODUCTION
CASH MANAGEMENT:

It refers to the Efficient management of cash in Wheels India

Limited Company.

 Also defined as the Ability of a company recognizing the

problems related with cash which may across in Future course
of Action, Finding Appropriate solution.
 INDUSTRY PROFILE
 WIL is a public limited company founded in 1962 promoted by the TVS Group,
India’s largest auto component manufacturers.

 Starting with a bus service in 1911, the TVS group to become one of India’s
largest business in two wheelers, vehicle dealerships & logistics and auto
components which had a turnover of over USB 7 billion.

 In Padi Chennai, WIL started production of wheels for commercial vehicles in

1962 and started the production of car and tractor wheels in Padi in 1965. WIL is a
steel wheel manufacturer and also engaged in the manufacture of road wheels,
parts and accessories used by construction and mining industries.

 Manufactures air suspension kits for Trucks and Buses, Wheels for Commercial
Vehicles, Passenger Cars, Utility Vehicles, Tractors, Earth Moving and
Construction Equipment.
OBJECTIVES
 To analyze Cash positions of the Wheels India Limited.

 To analyze the cash inflows and cash outflows of the cash management.

 To give suggestions based on the findings of the study.

 To calculate different ratio analysis and ascertain the financial position of

the company.

 To analyze the current asset and current liability and the inter relationship
that exist between them.
RESEARCH METHODOLOGY
 Research Methodology is a way to systematically solve the research
problem.

 Itis the arrangement of condition for the collection and analysis of data,
in manner that aims to combine relevance to repurpose with economy in
procedure.

SOURCES OF DATA:

 PRIMARY DATA

 SECONDARY DATA
 ANALYTICAL TOOLS FOR
STUDY
Ratio analysis
Cash Flow Statement.

 In Financing Accounting, Cash flow statement shows how

changes in balance sheet accounts and income affect cash and cash
equivalents and this provides aggregate data regarding all cash
inflows a company receives from its ongoing operations.

 It includes all Cash Outflows that pay for business activities and
investments during a given period.

Cash flow information is useful in assessing the ability of the

enterprises to generate cash and cash equivalents and compare the
present value of the future cash flows of different enterprises.
 RATIO ANALYSIS

 Liquid Ratio.
 Cash Turnover (CT) Ratio.
 Daily Cash Payment (DCP) Ratio.
 Basic Defensive Interval (BDI) Ratio.
 Cash Position (CP) Ratio.
 Absolute Liquid (AL) or Super Quick Ratio.
 Cash to Debt Service (CDS) Ratio.
 FINDINGS
 The Highest liquid ratio (2.80) was Shown in the year 2014-15 it implies that
a major portion of the firms current assets are tied up in inventories resulting
a low quick ratio of less than one.

 The Cash Turnover Ratio in the year 2014-2015 was 13.65 but gradually
decrease to 9.043 in 2015-2016 and in the year 2016 -2017 and 2017-2018
increased 9.82 and increase 14.32 but gradually decrease 6.83 in 2018-2019.

 Daily cash payment ratio in the year 2014-2015 was 26.74 but gradually
increase to 40.36 in 2015 -2016 and in the was 2016-2017 and 2017-2018
decreased 37.17 and 25.49 but gradually increase 53.44 in 2018-2019.

 Basic defensive interval ration the year 2014-2015 was 72.36 but gradually
decrease to 64.41 in 2015 -2016 and in the year 2016 -2017 and 2017-2018
decreased 33.77 and 11.70 and increase 63.71 in 2018-2019.
 FINDINGS
The cash position ratio was found that in the year 2014-2015 was 104.36 but
gradually decrease to 61.67 in 2015 -2016 and in the year 2016-2017 to 72.30
and 2017-2018 increased 115.80 and decrease 40.39 in 2018-2019.

Absolute liquid ratio that is Cash to current labiates is indicated in which it

has been seen that in the year 2014-2015 was 0.054 but gradually increase to
0.068 in 2015-2016 and in the year 2016- 2017 to 0.044 and 2017-2018
increased 0.091 but gradually decrease 0.002 in 2018- 2019.

In this study it has been seen that the cash to debt service ratio in the year
2014-2015 was 0.087 but gradually increase to 0.12 in 2015-2016 and in the
year 2016-2017 and 2017- 2018 increased 0.17 and 0.69 but gradually
decrease 0.15 in 2018-2019.

 RECOMMENDATIONS

The liquid ratio can be increased to its liquid position and can
maintain the required cash position of the concern.
 
The company may concentrate on forecasting the future and
some important factors which will affect the sales.
 
The payments of the firm is highly increasing from year by
year so the firm is may take necessary steps to control the
payments.
 CONCLUSION
◦ The primary Goal of the internship is to find out the various duties and
functions carried out in the finance department to get the exposure of an
organization.

◦ Report illustrates briefly, the history of TVS Group, about WHEELS

industry, the recent trends in wheels manufacturing company like WIL , the
background of TVS GROUP particularly WIL , their visions, the
opportunities in WIL , duties of each person in the accounts department and
their finance position, functions in the accounts department such as the
Payables, Receivables and Petty cash management.

◦ Thus by working in the company as the trainee, get the knowledge about the
company and get good exposure about the manufacturing company like
WIL.