CHAPTER I

INTRODUCTION

1
Meaning

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.

FACETS OF CASH MANAGEMENT

Cash management is concerned with the managing of: (i) Cash flows into and out of the

firm, (ii) Cash flows within the firm, and (iii) Cash balances held by the firm at a point of time

by financing deficit or investing surplus cash. It can be represented by a cash management cycle.

Sales generate cash which has to be disbursed out. The surplus cash has to be invested while

deficit this cycle at a minimum cost. At the same time, it also seeks to achieve liquidity and

control. Cash management assumes more importance than other current assets because cash is

the most significant and the least productive asset that a firm’s holds. It is significant because it

is used to pay the firm’s obligations. However, cash is unproductive. Unlike fixed assets or

inventories, it does not produce goods for sale. Therefore, the aim of cash management is to

maintain adequate control over cash position to keep the firm sufficiently liquid and to use

excess cash in some profitable way.

Cash management is also important because it is difficult to predict cash flows

accurately, particularly the inflows, and there is no prefect coincidence between the inflows and

outflows of cash. During some periods, cash outflows will exceed cash inflows, because

payments for taxes, dividends, or seasonal inventory build up. At other times, cash inflow will

2
be more than cash payments because there may be large cash sales and debtors may be realized

in large sums promptly. Further, cash management is significant because cash constitutes the

smallest portion of the total current assets, yet management’s considerable time is devoted in

managing it. In recent past, a number of innovations have been done in cash management

techniques. An obvious aim of the firm these days is to manage its cash affairs in such a way as

to keep cash balance at a minimum level and to invest the surplus cash in profitable investment

opportunities.

REVIEW OF LITERATURE:

 Existing Studies: Summarize prior research on cash management within the healthcare

sector, focusing on similarities and differences with HLL Lifecare's context. Evaluate

methodologies, key findings, and implications for cash management practices.

 Industry Perspectives: Explore industry-specific insights and best practices in cash

management, drawing parallels with HLL Lifecare's operations. Assess how other

healthcare organizations manage cash flow challenges and opportunities.

 Technological Innovations: Investigate the role of technology in modern cash

management practices, including electronic payment systems, treasury management

software, and automation tools. Analyze how HLL Lifecare leverages technology to

enhance cash flow efficiency.

 Regulatory Landscape: Examine regulatory frameworks governing cash management in

the healthcare sector, such as compliance requirements, tax regulations, and banking

policies. Discuss how HLL Lifecare navigates regulatory challenges to optimize cash

utilization.

3
RESEARCH GAP AND QUESTIONS:

Research Gap: Despite existing literature on cash management practices in the healthcare

sector, there's a dearth of studies specifically addressing cash management at HLL Lifecare.

Existing research often focuses on larger healthcare organizations or general industry trends,

neglecting the unique challenges and strategies employed by HLL Lifecare.

Research Questions:

1. What are the key determinants influencing cash management practices at HLL Lifecare,

considering its specialized role in providing healthcare products and services?

2. How does HLL Lifecare leverage technology and innovation to optimize cash flow

efficiency and liquidity management?

3. What are the implications of regulatory requirements and industry-specific factors on

cash management strategies at HLL Lifecare?

4. How do HLL Lifecare's cash management practices compare with industry benchmarks

and best practices, and what areas require improvement or further exploration?

5. How can HLL Lifecare enhance its cash management framework to address emerging

challenges and opportunities in the evolving healthcare landscape?

NEED AND IMPORTANCE OF THE STUDY:

The study on cash management at HLL Lifecare is crucial for several reasons:

4
1. Operational Efficiency: Effective cash management ensures smooth day-to-day

operations by providing sufficient liquidity to meet short-term obligations, such as

payroll, supplier payments, and operating expenses.

2. Financial Stability: Proper cash management helps maintain financial stability by

minimizing the risk of cash shortages or liquidity crises, ensuring the organization can

withstand unexpected expenses or revenue fluctuations.

3. Investment Opportunities: Optimizing cash flow allows HLL Lifecare to identify

opportunities for strategic investments, such as expansion projects, research and

development initiatives, or acquisitions, which can drive long-term growth and

competitiveness.

4. Cost Reduction: Efficient cash management practices help minimize financing costs

associated with borrowing or maintaining excess cash reserves, leading to improved

profitability and financial performance.

5. Risk Management: By understanding and mitigating cash flow risks, such as currency

fluctuations, regulatory changes, or market volatility, HLL Lifecare can safeguard its

financial health and resilience against external uncertainties.

6. Stakeholder Confidence: Sound cash management practices enhance stakeholder

confidence, including investors, creditors, suppliers, and customers, by demonstrating the

organization's ability to manage its finances responsibly and sustainably.

7. Strategic Decision-Making: Insights gained from the study can inform strategic

decision-making processes, guiding resource allocation, investment priorities, and

financial planning initiatives to align with organizational objectives and maximize value

creation.

5
In summary, the study on cash management at HLL Lifecare is essential for ensuring operational

efficiency, financial stability, risk mitigation, and strategic decision-making, ultimately

contributing to the organization's long-term success and sustainability in the healthcare industry.

Objective of the study

General objective

 To evaluate the efficiency of the cash management of HLL.

Specific objective

 To identify the cash efficiency on the basis of available data.

 To analyze liquidity position of the firm.

 To evaluate cash flow position of the firm.

 To study on cash management techniques of the firm.

SCOPE OF THE STUDY:

Certainly! Here's a concise scope of the study on cash management at HLL Lifecare:

1. Current Practices Examination: The study will delve into HLL Lifecare's existing cash

management practices, analyzing processes such as cash flow forecasting, working

capital management, and liquidity optimization.

2. Technology Integration Assessment: It will assess the integration of technology in cash

management operations at HLL Lifecare, focusing on the utilization of electronic

payment systems, treasury management software, and automation tools.

6
 3. Regulatory Compliance Analysis: The study will examine HLL Lifecare's adherence to

regulatory requirements and industry standards governing cash management, ensuring

compliance with legal frameworks and financial regulations.

4. Recommendation Formulation: Based on the analysis, the study will formulate

actionable recommendations to enhance HLL Lifecare's cash management efficiency,

mitigate risks, and optimize cash flow strategies for sustained financial health and

operational effectiveness.

Methodology of the study

The study involves use of secondary data; the balance sheet and cash flow statement are the data

for the study. The study is analytical nature study.

Reference period

This study was conducted during 15 days commerce from November 25 to December 10 of 2023

Access to Confidential Information:

 Detailed cash management practices often involve sensitive financial data. Companies

like HLL Lifecare may restrict access to such information to protect competitive

advantages and comply with privacy regulations.

Data Accuracy and Completeness:

 The accuracy and completeness of the data available for study can be a significant

limitation. Publicly available financial reports might not provide granular details on cash

management strategies and daily cash flows.

7
Chapter Layout:

Chapter – I

Introduction

Chapter – II

Company Profile

Chapter – III

Theoretical Framework

Chapter – IV

Data Analysis and Interpretation

Chapter – V

Conclusions and Suggestions

Bibliography

8
 CHAPTER II

COMPANY PROFILE

9
 HLL is a Mini Ratna and upgrade as a scheduled B Central Public Sector Enterprise.

HLL Life Care Limited is the only company in the world manufacturing and marketing the

widest range of contraceptives. It is unique providing a range condoms steroidal, and Tubal

Rings etc. HLL produces today 1.316 billion condoms annually marketing it one of the world’s

leading manufacturer of condoms accounting for nearly 10 percentage of the global production

capacity.

HLL’ s Health Care product include: Blood collection bags, Surgical structure, Auto

Disable Syringes, Vaccines, In-Vitro Diagnostic Test Kits, Pharmacy products for women,

Natural products, Hydrocephalus shunt, Tissue expanders, Surgical and Examination Gloves,

Blood banking equipment, Neonatal equipment, Blood Transfusion and intravenous sets,

Vending machines, iron and Folic Acid Tablets, Sanitary Napkins oral rehydration Sults and

Medical plants.

Over the years each of the initiatives taken up by HLL are targeted at reaching quality

health care at the courtship of every family Associate Institute of HLL namely HLFPPT and Life

Spring Hospitals have nursed this to nation’s under served and vulnerable populace, at an

affordable cast. With vast array of innovative for Healthy Generation.

Over the past sixteen years, HLL has steadily setup a strong and sound infrastructure for

marketing. HLL has put in place a vast distribution network covering. It is the leading marketing

organization in the country in the area of contraceptives-with a market share of over 65% in the

rural and semi urban markets including the highly polluted states of UP, Madya pradesh Bihar

etc.

10
 HLL has today, five stages of art manufacturing facilities – two at Thiruvananthapuram

one at Kanangala near Belguam another at Kochi and the fifth one at Manerar in Haryana.

In HLL Life Care there have a strong governing body;

Organizational policies

 Provide product and services, conforming to international standards in the health

care area to the complete satisfaction of all the customers and to building healthy

generations.

 Achieve a high standard of personal, corporate and business excellence through

continual improvement, human resources development and team work.

 Market the product and services of the company globally on the strength of

innovation quality, cost and development.

 Melt all statutory and regulatory requirements and be an organization with good

corporate Governance and social responsibility.

 HLL committed to quality by mandating that all manufacturing facilities are

certified to a quality system standard.

Corporate Social Responsibility

Hindustan Latex setup Hindustan Latex Family Planning Promotion Trust (HLFPPT) an

organizational mainly for reaching health care and contraceptive aids to the poor and

marginalized in the country. The trust has been undertaking well co-ordinates efforts in

population stabilization and HIV AIDS control.

11
 The company renovated and provided an attractive landscaping at the Kowdiar Park

located near the heart of Thiruvananthapuram city. The company also added recreational

facilities.

Finance Department

In HLL an intelligent system of accounting is followed. The finance department is meant

for the effective utilization of funds. The account has the financial statement are prepared with

precision accuracy well on time usually, transaction are recorded on the occur book keeping in

recording business transaction in a systematic way.

The finance department at HLL is divided into five section, they are

1. Ledger

2. Party Bills

3. Payroll, Cash and Computer

4. Costing

5. Finalization of accounts

1. Ledger section

The ledger section has to perform the function of passing and setting of all fright

advantages in HLL of bill related to electricity, water charges etc.

2. Party Bill Section

The party bill section deals with the service bill for rendering services such as

phone, typewriter etc. It certifies the bill and prepare for cash or cheque payment

accordingly.

3. Payroll, Cash and Computer Section

12
 In patrol selection, the salary computation is done. The cash section deals with the

payment of salaries of employees. HLL has got a well – integrated M/s. All departments

are computerized.

4. Costing Section

The costing section deals with preparation of quarterly financial reports,

preparation of monthly profitability statement, budget preparation etc.

5. Finalization of Account Section

This section has perform the function of assisting the statutory of government

auditor in connection with audit and accounts of HLL and the preparation, assisting the

coordination of all works with the finalization of accounts of HLL.

The main functions of HLL Hyderabad finance department.

i. The facilitate all finance aspects of the unit activities.

ii. To record and report on all financial aspects on the unit activities.

iii. To capture and record the cost of production of various products of the unit.

iv. To analyze and report on various expenditure of the unit a view to control the same.

v. The report on revenue and capital expenditure viz Budget.

vi. To control and manage all personnel related activities.

vii. To ensure statutory complaints of the financial related activities.

viii. To manage the working capital requirement with in the funds provided by the head

office.

13
 CHAPTER III

THEORETICAL FRAMEWORK

14
 Finance is the study of how investors allocate their assets over time under conditions of

certainty and uncertainty. A key point of finance, which affects decision, is the time value of

money, which states that a unit of currency today, is worth more than the same unit of currency

tomorrow. Finance aims to price the assets based on this risk level, and expected rate of return.

Finance can be broken into three different sub categories;

1. Public Finance

2. Corporate finance and

3. Personal Finance

In a business organization finance department is deals with financial activities

Financial management consist Planning, Organizing, Directing, and Controlling of

financial activities such as procurement and utilization of funds of enterprise. It means applying

general management principle of financial resources of the enterprise financial decision include

dividend decision, investment decision and retained earnings etc. the financial management is

generally concerned with procurement, allocation and control of financial resources of a concern.

It ensures regular and adequate supply of fund of the concern. It ensures optimum utilization of

funds. They should utilize maximum possible way at least cost.

Finance management has to make estimation with regards to capital requirement of the

company. This will depend up on expected cost and profit and future programmers and policies

of a concern it can made in an adequate manner which increases earning of enterprise.

Finance is the life blood of every business concern. It is an important function of any

business, as finance is required to meet the various activities of it. Cash is the important current

asset for the operations of the business. It is the basic input needed to kept the business running

15
on a continuous basis. It is also the ultimate output expected to be realized by selling the services

or product manufactured by the firm. The firm should kept sufficient cash, neither more nor less

cash shortage will disrupt firm’s manufacturing operations while exertive 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.

Financial management occupies a significant place because it has an impact on all

activities of the firm. Its primary responsibility is to discharge the finance function successfully.

Thus financial management is an appendage of the finance function. No one can think of any

business activity in isolation from its financial implications. The management may accept or

reject a business proposition on the basis of its financial viabilities. In other words, the live

executives who are directly involved in a decision making process should give supreme

impotence for financial consideration.

The finance function centers round the management of funds raising and using them

effectively. But the dimensions of financial management are much border than more

procurement of funds. Planning is one of the primary activities of the financial managers. It helps

him to obtain funds under the best consideration. However, financial management should not be

taken to be a profit extracting device. It implies a more comprehensive concept than the simple

objective of profit making. It broader mission should be to protect the interest of the different

sections of the community through maximizing the value of the firm.

The concept of financial management is applicable to an organization irrespective of its

size, nature of ownership and control. They can be applied to any activity or an organization,

which has financial implication. in the words of Raymond Chambers; “ the term financial

16
management may be applied tom any kind of undertaking or organization regardless of its aims

or constitution.

The term corporate financial management of companies or corporations consists of the

decision relating to

(a) investment-concerned with capital budgeting and current asset management

(b) financial-concerned with determining the best financing mix

(c) dividend-concerned with the solution to the decision of dividend policy.

Cash management is the management of the cash balance of a concern is such a manner

as to maximize the availability of cash not invested in fixed assets or inventories and to avoid the

risk of insolvency. According to Kayner these are three motives for holding cash: the

transactions motives, the precautionary motive, and the speculative motive. The most useful

technique of cash management is the cash budget.

In simple terms, cash management may be defined as management tool to ensure that

sufficient cash is available to meet current and future liabilities, with any surplus being safety

invested to generate the maximum income.

In a business, anything done financially affect cash eventually. Cash is to a business is

what blood is to a living body. A business can’t operate without its lifeblood cash, and without

cash management, these may carmine no cash to operate. Cash movement in a business is two

way traffic, inflow and outflow. Important aspect which is unique to cash management is time

dimension associated with the movement of cash due to non-synchronicity of cash inflow and

outflow, the inflow may be more than the outflow or the outflow may be more than the inflow at

17
a particular point of time. This needs regulations left to itself cash flow is apt to follow

monsoonal pattern and shows of cash may be heavy, scanty or just normal, hence there is a dire

need to control its movement through skillful cash management. The primary aim of cash

management is to ensure that there should be enough cash availability when the needs arise not

too much but never too little.

Cash management is the management of the cash balances of a concern in such a

manager. On to minimize the availability of cash not invested in fixed assets or inventories and

to avoid the risk of insolvency. According to Keygen these are three motives of bolding cash.

The transaction motive, the precautionary motive, and the speculative motive are the most useful

technique of cash management.

Population explosion is the most important cause to from life care companies in India,

which means population explosion is “a pyramiding of number of a biological population”. As

the number of people in a pyramid increases, so do the problems related to the increased

population that will cause the population changes are the birth rate, death rate and migration.

Population explosion has many reasons like birth rate, poverty, regions etc. These reasons Are

bill fledged in India So a big chance to born a life care organization in India which is also

covered the unemployment in India.

18
 CHAPTER- IV

DATA ANALYSIS AND INTERPRETATION

19
 CURRENT RATIO

Current ratio is the most common ratio for measuring liquidity. It represents the “ratio of

current assets to current liabilities”. It is also called working capital ratio. It is calculating by

dividing current assets by current liabilities

Current asset
Current liabilities
Current ratio =

Current assets are those, the amount of which can be realized with in a period of one

year in includes cash in hand, cash at hand etc.

Current liabilities are those amounts which are payable with in a period of one year-

current liabilities are creditors, bills payable etc.

The current ratio of the firm measures its short term solvency, ie, its ability to meet

short term obligations. In a sound business a current ratio of 2:1 is considered an idle one. It

provides a margin of safety to the creditors

20
 Table 1

ear Current Assets Current Liability Ratio

2019 21850.11 12550.12 1.74

2020 24244.91 12011.38 2.01
2021 28303.9 17225.8 1.64
2022 25968.68 16109.8 1.61
2023 39406.45 21440.46 1.83

Current Assets Current Liabiality

39406,45

28303,9
21850,11 24244,91 25968,68
12550,12 17225,8 21440,46
12011,38 16109,8

2007
2008
2009
2010
2011

21
The following chart shows the ratios of the past five years

Chart 1.2

Ratio

2,01
1,74
1,64 1,83
1,61

2007
2008
2009
2010
2011

INTERPRETATION

From the above table and form the above chart 1.2. it can be seen that the current

ratio during the year 2019 was 1.74 and in 2020 it was an increased to 2.01 while during the year

2021 their was a decreases in to 1.64 during the year 2022the current ratio was decreased to 1.61

but in the case of 2023 the final year it was a slight increase to 1.83 i.e. current assets double the

current liability 9is considered to be satisfactory. But it can be analyzed from the above that

except for the year 2020 the organization did not attained a satisfactory.

22
ABSOLUTE LIQUID RATIO

The ratio is obtained by dividing cash (of course cash in hand and cash at bank) and

marketable securities by current liabilities. It is also known as cash position ratio.

Cash + marketable securities

Absolute liquid ratio =
Current liabilities

Table 2

YEAR CURRENT ABSOLUTE Ratio

LIABILITIES LIQUID RATIO

2019 12550.12 3246.12 0.258

2020 12011.38 1644.8 0.136

2021 17225.8 5504.47 0.319

2022 16109.8 3981.92 0.247

2023 21440.46 5092.95 0.237

The Current liabilities and Absolute Liquid Ratio can be expressed in this chart

Chart 2.1

CURRENT LIABILITIES ABSOLUTE LIQUID RATIO

21440,46

17225,8
16109,8
12550,12 12011,38

5504,47 5092,95
3246,12 3981,92
1644,8

2007 2008 2009 2010 2011

2019 2020 2021 2022 2023

23
 The following chart shows the ratio of the past five years

Chart 2.2

RATIO

0,319

0,258 0,247 0,237

0,136

2019
2007 2020
2008 2021
2009 2022
2010 2023
2011

INTERPRETATION

We have to seen from the above table and from the above chart that the absolute liquid

ratio during the year 2019 was 0.258 and the subsequent year 2020 the ratio has a slight decrease

to 0.136. While during the year 2021 the ratio has its maximum in last five years to 0.319 but in

2012 it has decreases to 0.247 in 2023 also it have a slight decreases to .237

24
 CASH TO WORKING CAPITAL

The cash to working capital ratio measures how well a company can meet its short term

liabilities using its liquid assets such as cash and cash equivalents and marketable securities. This

ratio will also help un cover situation where the company may be too heavily spending its cash

on inventory that is not being turned into sales as rapidly as it should be.

Decreasing cash to working capital ratio can indicate the company may be suffering

from low cash reserves, and may not be able to meet its financial obligations. A decreasing ratio

may also mean it has acquired more assets. With more assets, one would hope that it could be

using these additional assets to generate even more cash.

Cash and Cash Equivalents + Marketable Securities

Total Current Assets – Total Current Liabilities

Table 3

YEAR CASH WORKING CAPITAL RATIO

2019 3246.12 9299.99 0.349

2020 1644.5 12233.53 0.134

2021 5504.47 11078.1 0.496

2022 3891.92 9859.08 0.403

2023 5092.95 17965.99 0.283

25
The cash and working capital relation can be expressed in this chart

Chart 3.1

CASH WORKING CAPITAL

17965,99

12233,53 11078,1
9299,99 9859,08
5504,47 5092,95
3246,12 3891,92
1644,5

2007 2008 2009 2010 2011

2019 2020 2021 2022 2023

The following chart shows the ratio of cash and working capital

Chart 3.2

RATIO

0,496
0,349 0,403
0,283
0,134

1 2 3 4 5

INTERPRETATION

It can be seen from the above table and from the above chart that the cash to working

capital ratio during the year 2019 was 0.349 in 2020. It was decreases to .0134 in 2021 it have

increases to 0.496 it is the biggest value in past five years in 2022 it have a decreases to 0.403

also 2023 it have a decreases to 0.283. A higher the ratio indicates the efficient utilization of

work.

26
 GROSS PROFIT RATIO

The gross profit ratio plays an important role in two management areas of financial

management, the ratio serves as a valuable indicator of the firms ability to utilize effectively out

side sources of funds.

Gross Profit X 100

Gross Profit Ratio =
Net sales

This ratio help to ascertaining whether the average percentage of mark up on the goods

is maintained or not It also indicate the degree to which selling price per unit may decline with

out resulting in losses from operations to the firm.

Table 4

YEAR GROSS PROFIT SALES RATIO

2019 20353.62 24348.17 83.59

2020 23816.11 31556 75.47

2021 23959.35 36641.2 65.39

2022 32704.97 44006.29 74.32

2023 43276.38 51564.33 83.97

27
 The gross profit and sales relation can be expressed in the chart

Chart 4.1

GROSS PROFIT SALES

51564,33
44006,29 43276,38
36641,2 32704,97
31556
24348,17
20353,62 23816,11 23959,35

2019
2007 2020
2008 2021
2009 2022
2010 2023
2011

The following chart shows the ratio of sales and gross profit ratio

Chart 4.2

RATIO

83,59 83,97
75,47 74,32
65,39

2007
2019 2008
2020 2009
2021 2010
2022 2011
2023

INTERPRETATION

As from the above table it can be seen that the gross profit ratio in 2019 it was 83.59

then it was a decreasing tendency from 2019 to 2022. In 2020 it was decreased to 75.47 also

2021 and 2022 it was 65.39 and 74.32 but in 2023 it was an increase to 83.97.how ever the gross

profit should be adequate to cover operating expenses and to provide for fixed charges divineds

and building up to reserve.

28
 NET PROFIT RATIO

This ratio is also called as the net profit to sale or net profit margin ratio. It is determined

by dividing the net income after tax to the net sales for the period and measures the profit per

rupee of sale Net Profit X 100

Sales

In this context, the term net profit “net profit after interest and tax but before dividend”

The ratio is used to measure the overage profitability and hence it is very useful to profitability

of the business. Higher the ratio better is the operational efficiency of the concern

Table 5

YEAR NET PROFIT SALES RATIO

2019 2724.03 24348.17 11.18

2020 2189.11 31556 6.93

2021 1689.32 36641.2 4.61

2022 2230.31 44006.29 5

2023 2726.81 51564.33 5.2

29
The net profit and sales can be expressed in the chart

Chart 5.1

NET PROFIT SALES

51564,33
44006,29
36641,2
31556
24348,17

2724,03 2189,11 1689,32 2230,31 2726,81

20072019 2008
2020 2009
2021 20222010 2023 2011

The following chart shows the ratio of net profit and sales in chart 5.2

Chart 5.2

RATIO

11,18

6,93
5 5,2
4,61

20072019 2020
2008 2021
2009 20222010 2023 2011

INTERPRETATION

From the above table, it can be seen the highest value in the past five years 11.18. It have

a decreasing tendency to 6.93 in 2021 it was decreased to 4.61 in 2022 it was a slight increase to

5.00 in 2023. It was also an increase to 5.2

30
 CASH TO OTHER INCOME

Table 6

YEAR CASH OTHER INCOME RATIO

2019 3246.12 3207.13 1.012

2020 1644.8 3448.89 0.476

2021 5504.47 1879.47 2.928

2022 3891.92 2041.89 1.95

2023 5092.95 2555.52 1.99

The cash and other income can be expressed in the chart 6.1

Chart 6.1

CASH OTHER INCOME

5504,47
5092,95

3891,92
3448,89
3246,12
3207,13
2555,52
1879,47 2041,89
1644,8

2019
2007 2020
2008 2021
2009 20222010 20232011

31
The ratio of cash and other income can be expressed in the chart 6.2

Chart 6.2

RATIO

2,928

1,95 1,99

1,012

0,476

2019
2007 2020
2008 2021
2009 2022
2010 2023
2011

INTERPRETATION

As from the above table and from the above it can be seen the ratio of cash to other

income during the year 2019 was 0.012 and for the year 2020 the same was 0.476. it can be

further analyzed that during the year 2021 the ratio had been increased to 2.928 and during this

year the ratio is at its maximum while for the year 2023 the value of the ratio was 1.99 the ration

shows that while the amount in the other income increases the cash position of the organization

also increases and vice versa

32
 CASH TO SALES

Table 7

YEAR CASH SALES RATIO

2019 3246.12 24348.17 1.33

2020 1644.8 31556 0.052

2021 5504.47 36641.86 0.15

2022 3891.92 44006.29 0.09

2023 5092.95 51564.33 0.098

The cash and sales can be expressed in the chart 7.1

Chart 7.1

CASH SALES

51564,33
44006,29
31556 36641,86
24348,17

3246,12
1644,8 5504,47
3891,92
5092,95
2007
2008
2009
2010
2011

33
The ratio of cash and sales can be expressed in the chart 7.1

Chart 7.2

RATIO

1,33

0,15
0,052 0,09 0,098

1 2 3 4 5

INTERPRETATION

Having regarded the ratio of cash to sale it can be seen from the above that during the year 2019

the ratio of cash to sales was 1.33 and for the year 2020 the same was 0.052. While during the

year 2021 the ratio of cash of sales was 0.150 for the year 2012 the same 0.190. It can be also

analyzed that during the year 2023 the ratio of cash and sales was 0.098 the above ratio indicates

that indicates that when the sales increases that cash position also increases and thus the

organization can achieve the better liquidity position

34
 CASH IN HAND
Table 8

YEAR CASH IN HAND TREND RATIO

2019 3246.12 100

2020 1644.8 50.669

2021 5504.47 169.57

2022 3981.92 122.66

2023 5092.95
165.89

Chart 8

180
169,57 165,89
160
140
120 122,66
100 100
80 TREND RATIO
60
50,669
40
20
0
2007 2008 2009 2010 2011
2019 2020 2021 2022 2023

INTERPRETATION

As from the above table and from the above chart it can be seen that trend in cash in hand shows

an increasing trend in expect for the year 2020 companied to the base year 2019. During the year

2020 the trend ratio had been decreased by 49.331.it can be also analyzed that during the year

2021 the trend ratio had been increased by 69.57. While for the year 2022 the trend had been

increased by 22.66 it can be also analyzed that for the last year 56.89. It can be also analyzed that

for the last year 56.89. It can be also analyzed that the increase in trend in cash is a favorable

situation and vice versa.

35
 TREND ON OTHER INCOME
TABLE 9

YEAR OTHER INCOME TREND RATIO

2019 3207.13 100
2020 3448.89 107.538
2021 1879.47 58.6
2022 2041.89 63.667
2023 255.52 79.68

CHART 9

TREND RATIO

107,538
100
79,68
58,6 63,667

20072019 2008
2020 2009
2021 2010
2022 2011
2023

INTERPRETATION

As from the above table and from the above chart it can be seen that the trend on

other income shows a decreasing trend expect for the year 2020.it can be also analyzed that

during the year 2020 the trend had been increased by 7.538 while for the year 2021 the trend had

been decreased by 41.4, during the year 2022 the decreases was 36.333 during the last year 2023

the trend had been 20.32 the decrees in other income is not a favorable situation to the business

as it renders a liquidity position

36
 TREND ON WORKING CAPITAL
TABLE 10

YEAR WORKING CAPITAL TREND RATIO

2019 9299.99 100

2020 12233.53 131.54

2021 11078.08 119.11

2022 9859.08 106.01

2023 17965.99 193.18

Chart 10

TREND RATIO

193,18

131,54 119,11
100 106,01

2007
2019 2008
2020 2009
2021 2022 2010 2023 2011

INTERPRETATION

It can be seen from above table and from the above chart that the trend on working

capital shows an increasing trend when compared to the base year 2019. During the year 2020

the trend had been increased by 31.54 and for the year 2021 the increase was 19.11 while for the

year 2022 the increase was 6.01 during the last year 2023 the increase was 93.18.

37
 TREND ON SALES
Table 11

YEAR SALES TREND RATIO

2019 24348.17 100
2020 31556 129.6032
2021 36641.86 150.491
2022 44006.29 180.7376
2023 51564.33 211.779

Chart 11

TREND RATIO

211,779
180,7376
150,491
129,6032
100

2007
2018 2008
2019 2009
2020 20212010 2022 2011

INTERPRETATION

It can be seen from the above table and from the above chart that the trend on sales shows

increasing trends when compared to the base year 2019. During the year 2020 the trend had been

increased by 29.60 and for the year 2021 the increase was 50.49 while for the year 2022 the

increase was 80.73 during the last year 2023 the increase was 111.77

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 TREND ON TOTAL INCOME
Table 12
YEAR TOTAL INCOME TREND RATIO
2019 28906.99 100
2020 33968.22 117.5087
2021 98188.29 132.1
2022 46548.03 161.02
2023 54119.85 187.22

CHART 12

TERND RATIO

187,22

161,02

132,1
117,5087
100

2019 2020 2021 2022 2023

2007 2008 2009 2010 2011

INTERPRETATION

It can be seen from the above table and from the above chart that the trend on total

income always shows an increasing trend. During the year 2020 the trend had been increased by

17.5087and for the year 2021 the same had been increased by 32.10 while during the year 2022.

The same had been increased by 61.02 and for the year 2023 the same had been increased by

87.22

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 TREND ON VARIABLE COST
Table 13
YEAR VARIABLE COST TREND RATIO
2019 20417.71 100

2020 24284.87 118.94

2021 26957.16 132.02

2022 33117.83 162.201

2023 39488.15 193.4

Chart 13

TREND RATIO

193,4
162,201
132,02
118,94
100

2019 2020 2021 2022 2023

2007 2008 2009 2010 2011

INTERPRETATION

It can be seen from the above table and from the above chart that the trend on variable

cost always shows an increasing trend. During the year 2020 the trend had been increased by

18.94 and for the year 2021 the same had been increased by 32.03. while during the year 2022

the same had been increased by 62.201 and for the year 2023 the same had been increased by

93.40

40
 CHAPTER V

FINDINGS, CONCLUSIONS

AND SUGGESTIONS

41
FINDINGS

The major findings of the study are the following.

By studying Ratio analysis it has been found the current ratio of the firm is not attain a

satisfactory expected level expect for one year of the study period. The Absolute Liquid Ratio,

cash to other income and cash to working capital shows a satisfactory level in the year 2021

which means at this year company have shown a good solvency position.

It has found from the ratio analysis of gross profit and net profit the company has shown

a good increasing rate of profit for the last consecutive years.

From trend analysis it has been found that trend on working capital, sales, total income

and variable cost shown an increasing trend throughout the analysis period were as trend on cash

in hand and other income shown a fluctuating trend throughout the study period.

By seeing the co-efficient correlation it has been found that the relation between cash

position and net profit shows a negative correlation were as cash and sales, cash and total

income, cash and total expenses shows a positive correlation. For positive correlation there will

be positive relationship for both the variables and vice versa.

From least square method it has been found that there an increasing trend on current asset

as well as decreasing trend on profit for coming 5 years.

42
CONCLUSION

In this study, an analysis on Efficiency of Cash Management of HLL was done. The

Efficiency of the firm during last five years is taken up for study. The Efficiency of fund has

been analyzed on the basis of the data collected from the Annual report of HLL. The Efficiency

of Cash Management in HLL was analyzed with the help of Ratio Analysis and Correlation Co-

efficient.

The study conducted in HLL was successful. The study also guides to get knowledge

regarding actual functioning of the Firm. Cash Flow Statement of the firm reveals that overall

performance of cash management of the firm is above average level. So cash managers give

more importance to utilization of cash through using profitable pattern.

43
 SUGGESTIONS

1. HLL must maintain apt liquidity position. This indicates that the HLL needs to

improve its short-term financial position.

2. Block funds used properly and profitability.

3. Firm should maintain optimum cash balance throughout the year.

4. Solvency position is to be studied and steps to be taken for improving it.

5. Debt Equity Mix should be maintained optimum level.

6. Fund managers give more importance to utilization of fund.

7. Step to be taken to increase the working capital of the firm to meet short term

obligation.

8. Excess funds invested to diversified projects.

9. Even through the firm is doing well but the bad debts are also increasing so the

management needs to take necessary steps for reducing bad debts.

10. The firm can adopt modern method of cash management.

11. The firm should fix proper working capital and inventory level.

44
BIBLIOGRAPHY

 Adesh Sharma, “Investment and Financing in Pesticides Industry in India,” Indian

Journal of Finance and Research, Vol.V. No.2 July 1999,p.67-83

 Agrawal N.K.: Analysis of Financial Management, New Delhi, National Publiting House,

2001.

 Vijaykumar and A. Venkathachalam, “Working capital and Profitability- An Empirical

Analysis, “The Management Accountant, October 1995 p. 748-750

 Bari R.R.( Ed.): Selected Reading in Cash Management, Delhi Triveni Publication 200.

Reports and Journals

 Annual report of HLL Life Care

 Accounting review

 Project Report of SENTHIL.E

Websites

1. www.accounting4management.com

2. www.wikipedia.org

3. www.lifecarehll.com

4. www.ec-finance.com

5. www.seribid.com

6. www.businessknowhow.com

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