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PROJECT

The document analyzes cash management practices at TVS Sundram Fasteners Limited over three years from 2017-2018 to 2019-2020. It discusses the company profile, products, cash management objectives and methodology. The study finds the company maintained good liquidity and cash balance. It suggests focusing on receivables and supplier payments. The conclusion is that the company generally practices effective cash management.

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Sathish Vijay
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61 views13 pages

PROJECT

The document analyzes cash management practices at TVS Sundram Fasteners Limited over three years from 2017-2018 to 2019-2020. It discusses the company profile, products, cash management objectives and methodology. The study finds the company maintained good liquidity and cash balance. It suggests focusing on receivables and supplier payments. The conclusion is that the company generally practices effective cash management.

Uploaded by

Sathish Vijay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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A STUDY ON

CASH MANAGEMENT AT
TVS SUNDRAM FASTENERS LIMITED

PRESENTED BY
PRIYANGA I
COMPANY PROFILE :

 TVS group was found in the year 1911 by T.V Sundaram Iyengar . Now they
are 40+ branches all over the world.
 It is the largest automotive manufacturing company and Sundram Fasteners
Limited was registered in 2009 in puducherry.
 Business Type : Export/Manufacturer and Supplier
 Products Manufacturer : Automobile Nut & Bolt
 Products Supplies : Motorcycle spare part, motorcycle piston rings, Bearings
 Product Exports : Industrial fasteners, cold extruded parts, hot forged parts.
 In SFL, employees are both permanent and contact workers
 permanent employees -225
 Contract employees – 600
PRODUCTS OF TVS SUNDRAM FASTENERS LTD :

High Tensile
Fasteners
Cold Extrusion Hot Forged

Power train Pumps And


Components Assemblies

Powder
Radiator Caps Metallurgy
REVIEW OF LITERATURE


Cash management: Cash management is the process that involves collecting and
managing cash flows from the operating, investing, and financing activities of a
company. In business, it is a key aspect of an organization’s financial stability. It
suggests the optimum utilisation of cash to ensure minimum liquidity and
maximum profitability.


Practicing good cash flow management: 1.knowing when where and how
your cash need wills occur. 2.Knowing the best source for meeting
additional cash needs. 3. Being prepared to meet their needs when they
occur by keeping good relationship with bankers and other creditors
ARTICLES RELATED TO CASH MANAGEMENT:


Kusnadi Y., & Wei, K. J. examines the determinants of corporate cash
management policies across a broad sample of international firms.
Effective cash management is more than just preventing bankruptcy.
It improves the profitability and reduces the risk to which the firm is
exposed.


Edupristine, examines ‘ratio analysis’ refers to the analysis of the
financial statements in conjunction with the interpretations of
financial results of a particular period of operations derived with the
help of ratio.
OBJECTIVES OF STUDY:
Primary objective:
 To study about the cash management at TVS Sundram Fasteners Limited,
Pondicherry.
Secondary objective:
 To identify the performance of cash and its management with the help of
cash budget.
 To analyze the firm’s optimum cash balance with the help of cash
management models.
 To determine firm’s cash operating cycle with the help of total inventories.
 To apply various cash related ratio to determine the efficiency of cash
management.
 To provide valuable suggestions and recommendations for effective cash
management at TVS Sundram Fasteners limited, Pondicherry.
RESEARCH METHODOLOGY:

Research Data
Meaning: Type: collection :
•Research is an art of •Date is collected from
scientific investigation.
The advanced learner’s
dictionaries of current
•Descripti the balance sheet of the
company and through
websites
English lay down the
meaning of research as, “a
careful investigation (or)
ve •The study includes 3
years (2017-18, 2018-
inquiry especially through
search for new facts in any
branch of knowledge”.
research 19, 2019-20.) and the
duration of study is for
1 month period.

Analytical tools for the study:


Cash Budget
Cash Cycle
Ratio Analyses
Cash budget: Cash cycle materials. Ratio analysis: Ratio
refers to the length of time Cash Cycle: cash cycle is analysis involves the process
between the payment for used to analyze the time of computing determining
purchase raw materials and taken for purchase raw and resenting the
the receipts of sales revenue. material and the Of sales relationship of items or
So, the cash cycle indicates revenue. It Also includes the group of items of financial
the time that elapse from the time taken for the firm make statements. Ratio analysis is
point when the firm makes outlay to purchase raw a widely – used tool of
on outlay to purchase raw material and also cash financial analysis . It can be
materials to the point when collected from the sales of used to compare the risk and
cash is collected from the finished goods return relationship of firm of
sale of finished goods different sizes.
produced using that raw
MAJOR FINDINGS OF THE STUDY:
 Current ratio has been increasing constantly and also cash balance has been
maintained for the past three years.
 Inventory turnover ratio is found to be satisfactory as it is maintaining
balanced inventory turnover. Compared to 2019 cost of goods sold is high
in 2018.
 Creditor turnover ratio has been reduced in 2019 (3.78) compared to the
past year 2018(4.76) due to this pandemic there were no proper production
in the company. The manufacturing of product was good in the year 2018
and turnover ratio also good.
 Company received their receivable within 55 days and cash payables had
paid within 80 days.
 TVS Sundarm fasteners took more time to pay their suppliers compared to
past two years. In 2017, the firm has taken (85 days) time to pay its
suppliers. In 2019, the firm has taken (117 days) time to pay its suppliers.
 Company has maintained good cash position. Cash inflow has been
maintained and it has been high in 2018 due to pandemic it has been
dwindle in the year 2019 .
SUGGESTIONS :

 The cash and bank balance indicate high liquidity position of a company,
The TVS SUNDRAM FASTENERS LTD maintain cash , including bank
balance in an optimum level and it is enough to meet day to day
requirement.
 Creditor turnover ratio is in stable start but it has been slightly diminished
in the year 2019 due to the economic crises and it’s advisable to the
company to concentrate in the current year production to increase the
creditor ratio
 Cash balance and current ratio is in stable position, the company has been
maintaining the cash in proper way .It’s advisable for the company to
maintain the receivables for the good cash position.
 Keeping 2018 as a base the company can proceed feather. In 2018 company
has performed well and has good cash inflow ( has more proceeds and more
receivables).
 TVS SUNDRAM FASTENERS should concentrate on the payment ,for
their Suppliers within a short period in the upcoming years.
CONCLUSION:
 This project is made in TVS SUNDRAM FASTENERS LTD, which is
situated at Korkadu in Pondicherry under the title cash management which
takes place in every business. Efficient cash management is very essential
for achieving the result or target.

 Analysis and Interpretation of the financial data of TVS SUNDRAM


FASTENERS LTD, ascertain the cash position of the firm. The outcome of
the study found that the company is maintaining a sufficient cash balance
every year. There is a slight down fall in the current year due to pandemic
situation but that can be eradicated once the situation is normalized. The
previous financial year 2018-19 can be set as a base for a healthy cash
balance where income showed higher than other years. The firm can
concentrate on the payment for its suppliers without delay.
BIBLIOGRAPHY:
Reference books:
 MANAGEMENT ACCOUNTING– M.A. Sahafpublished Byvikaspublications
 MANAGEMENT ACCOUNTING– R.S.N. PILLAI&Bagavathipublishedbys. CHAND
 FINANCIAL AND MANAGEMENT ACCOUNTING - PAULINEWEETMAN Published
Bypearson
Article:
 Luo, M. (2011). A bright side of financial constraints in cash management. Journal of Corporate
Finance, 17(5), 1430-1444.
 Lienert, I. (2009). Modernizing Cash Management (No. 2009/003). International Monetary Fund.
 Kusnadi, Y., & Wei, K. J. (2011). The determinants of corporate cash management policies: Evidence from
around the world. Journal of Corporate Finance, 17(3), 725-740.
 Da Costa Moraes, M. B., & Nagano, M. S. (2014). Evolutionary models in cash management policies with
multiple assets. Economic Modelling, 39, 1-7.
 Seifert, B., & Gonenc, H. (2018). The effects of country and firm-level governance on cash
management. Journal of International Financial Markets, Institutions and Money, 52, 1-16.Ameer, R.
(2010). The role of institutional investors in the inventory and cash management practices of firms in
 Asia. Journal of Multinational Financial Management, 20(2-3), 126-143.
Websites:
 www.sundram.com
 www.screener.in
 in.finance.yahoo.com
THANK YOU

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