Nfl Cash Mgmt
REPORT
ON
‘CASH MANAGEMENT’
In
NATIONAL FERTILIZERS LIMITED
RESEARCH METHODOLOGY
The methodology used for carrying out this project is as follows:
➢ Studying the annual accounts of the company for obtaining related financial data. ➢ Studying the accounting records and arrangements with the consortium of banks, Commercial paper, working capital demand loan (WCDL), FDRs and short term loans. ➢ Analyzing the guidelines and norms laid down by the department of public enterprises(DPE) for the investment of funds by PSUs. ➢ Reviewing RBI bulletins and RBI policies and guidelines. ➢ Studying the cash flow statement. Cash budgets and cash reports. ➢ Analyzing the various ratios in order to find out the liquidity position of NFL.
Rationale of the study:
The rationale of this project is to understand the real life management practices going on in the firms and to link it with theoretical concepts. This project study is aimed to understand the intricacies involved in analyzing, granting and managing current assets. It’s a kind of industrial exposure that is being given to us through this project.
Scope of the study:
This project aims at studying and analyzing the management of working capital in National Fertilizers Limited. My study has focused more on the operating cycles of working capital components and comparing it with bank norms, a ratio analysis of NFL with other industry players and the sources of working capital financing.
FINDINGS
1. NFL requires no long term loan. All NFL bonds will be redeemed by 30th June`04. Since its interest cost is very high. They cab do without bonds since they have sufficient funds with the banks. It has repaid all its debts & has become a Zero-Debt Company. 2. At the time of receiving payments NFL is using drafts while at the
ON
‘CASH MANAGEMENT’
In
NATIONAL FERTILIZERS LIMITED
RESEARCH METHODOLOGY
The methodology used for carrying out this project is as follows:
➢ Studying the annual accounts of the company for obtaining related financial data. ➢ Studying the accounting records and arrangements with the consortium of banks, Commercial paper, working capital demand loan (WCDL), FDRs and short term loans. ➢ Analyzing the guidelines and norms laid down by the department of public enterprises(DPE) for the investment of funds by PSUs. ➢ Reviewing RBI bulletins and RBI policies and guidelines. ➢ Studying the cash flow statement. Cash budgets and cash reports. ➢ Analyzing the various ratios in order to find out the liquidity position of NFL.
Rationale of the study:
The rationale of this project is to understand the real life management practices going on in the firms and to link it with theoretical concepts. This project study is aimed to understand the intricacies involved in analyzing, granting and managing current assets. It’s a kind of industrial exposure that is being given to us through this project.
Scope of the study:
This project aims at studying and analyzing the management of working capital in National Fertilizers Limited. My study has focused more on the operating cycles of working capital components and comparing it with bank norms, a ratio analysis of NFL with other industry players and the sources of working capital financing.
FINDINGS
1. NFL requires no long term loan. All NFL bonds will be redeemed by 30th June`04. Since its interest cost is very high. They cab do without bonds since they have sufficient funds with the banks. It has repaid all its debts & has become a Zero-Debt Company. 2. At the time of receiving payments NFL is using drafts while at the