Adani Enterprises Ltd. Uses Any Specific Technique For Effectively Managing My Company Case Study
7.3 DISCUSSION HELD WITH ADANI’S MANAGEMENT
On the basis of the discussion held with the Company’s management, the following questions can be interpreted as:-
Q.1 Does Adani Enterprises Ltd. uses any specific technique for effectively managing its cash?
(a) Yes
(b) No
Answer: No, There is no specific technique used by the company to effectively managing its cash.
Q.2 How Important is Debtors Management to your Company?
(a) Very Important
(b) Important
(c) Not Very Important
Answer: The debtors management is very important to the company since the company works on a low margin and high volume strategy. The average margin on each transaction is nearly about 5% and if the company has debtors outstanding for a long period that means the opportunity …show more content…
(a) Stringent
(b) Liberal
(c) Mix of both
(d) Can’t say
Answer: The credit policy of the company is liberal because of the fact that the company has around 80% of the total debtors who are very old and are doing business with the company for quite a long period now.
Q.7 What motive drives Adani to hold cash?
(a) Transaction motive
(b) Transaction and precautionary motive
(c) Speculative motive
Answer: It is only the transaction and precautionary motive for which the holds cash.
Q.8 Which technique is adopted by Adani to monitor its trade receivables?
(a) Average collection period
(b) Aging Schedule
Answer: The Company normally uses the debtors aging schedule method to monitor its trade receivables. Q.9 In case of surplus cash, where does Adani invest its money?
(a) Treasury bills
(b) Commercial Papers
(c) Bank Deposits
(d) Inter- corporate deposits
Answer: In the case of surplus cash with the company, it keeps it in the form of bank deposits and also a part of it is used as advance to the subsidiary companies in the form of Inter – corporate deposits.
Q.10 Out of the following sources of finance, which is the prime source of funding the short term needs of the
On the basis of the discussion held with the Company’s management, the following questions can be interpreted as:-
Q.1 Does Adani Enterprises Ltd. uses any specific technique for effectively managing its cash?
(a) Yes
(b) No
Answer: No, There is no specific technique used by the company to effectively managing its cash.
Q.2 How Important is Debtors Management to your Company?
(a) Very Important
(b) Important
(c) Not Very Important
Answer: The debtors management is very important to the company since the company works on a low margin and high volume strategy. The average margin on each transaction is nearly about 5% and if the company has debtors outstanding for a long period that means the opportunity …show more content…
(a) Stringent
(b) Liberal
(c) Mix of both
(d) Can’t say
Answer: The credit policy of the company is liberal because of the fact that the company has around 80% of the total debtors who are very old and are doing business with the company for quite a long period now.
Q.7 What motive drives Adani to hold cash?
(a) Transaction motive
(b) Transaction and precautionary motive
(c) Speculative motive
Answer: It is only the transaction and precautionary motive for which the holds cash.
Q.8 Which technique is adopted by Adani to monitor its trade receivables?
(a) Average collection period
(b) Aging Schedule
Answer: The Company normally uses the debtors aging schedule method to monitor its trade receivables. Q.9 In case of surplus cash, where does Adani invest its money?
(a) Treasury bills
(b) Commercial Papers
(c) Bank Deposits
(d) Inter- corporate deposits
Answer: In the case of surplus cash with the company, it keeps it in the form of bank deposits and also a part of it is used as advance to the subsidiary companies in the form of Inter – corporate deposits.
Q.10 Out of the following sources of finance, which is the prime source of funding the short term needs of the