AN ANALYSIS ON CASH MANAGEMENT AT STANDARD POLYMERS

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 times 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.

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A standard polymer is its original form and structure was founded and started in the year 1990 by its founder Mr Francis, father of the present inactive partner Mr Marie susai raj.  The company was then manufacturing only mono-layer films and printed pouches for ordinary hand-packing of day-to-day selling commodities.

The company faced problems in the initial two years in achieving its turnover targets.  It then gradually picked up when bulk orders from Tamilnadu dairy sectors could be established.  The company possessed a mono-layer extrusion plant and a flexographic printer.  Slitting and pouching were done by manual processes.

Source: mba.final-year-projects

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