Research Project

Interim Report

Name NIDHI KUMARI

USN 221VMBR05481
Elective FINANCE
Date of Submission 20-APRIL-2024

A Study on Cash Management at NTPC

Cash management has changed significantly over the past 2 decades for two reasons. First, from
the early 1970s to the late 1980s, there was an upward trend in interest rate that increased the
opportunity cost of holding cash. This encouraged financial manager to search for more efficient
ways of managing cash. Second, technological developments, particularly computerized
electronic funds transfer mechanism changed the way cash is managed. Most cash management
activities are performed jointly by the firm and its banks. Effective cash management
encompasses proper management of cash inflow, and outflows, which entails (1) improving
forecasts of cash flows, (2) synchronizing cash inflows and outflows, (3) using floats, (4)
accelerating collections, (5) getting available funds to where they are needed, and (6) controlling
disbursement. Most businesses are conducted by large firms, many sources and make payments
from a number of different cities or even countries. For example, companies such as IBM,
General Motors, and Hewlett-Packard have manufacturing plants all around the world, even
more sales offices, but most of the payments are made from the cities where manufacturing
occurs, or else from the head office. Thus a major corporation might have hundreds of bank
accounts, and since there is no reason to think that inflows and outflows will balance in each
account, a system must be in place to transfer funds from where they come into where they are
needed, to arrange loans to cover net corporate shortfalls, and to invest net corporate surpluses
without delay.

The efficiency of the firm's cash management programme can be enhanced by the
knowledge and use of various procedures aimed at

• Accelerating cash inflows

• Controlling cash outflows

• Objectives

• To understand the flow of cash in NTPC.

• To understand how cash is managed.
• To assess the liquidity of the firm.
• To know firms operating efficiency.

• Scope of the Study

Study will help to understand the movement of inventories and to know about the process
ofhandling the inventories. It will indicate the drawbacks and measures to overcome these,which
will ultimately enhance the productivity and influence the profitability of NTPC.

• Methodology

The specification of methods and procedures for obtaining the information needed

to structure and solve the problem is known as a research design. It is the project's
 general operational pattern or structure that determines what information should be

collected from which sources and how. The entire study is conducted using a

descriptive research design.

• Research Design

Descriptive type of Research Design has been used under the study. Under the studyfacts or

information already available have been used and analyses have been done tomake critical

evaluation of the Inventory Management process

• Data Analysis
• The Data Analysis tools help us to analysis the performance of an organization in acertain
area.
The Data Analysis tools used under this study are:
1. Ratio and Trend Analysis: Ratio and trend analysis was used on the secondary data. It
was used to analyze the movement of inventories in the organization and thereby
forecasting the trend of the ratios for the upcoming financial years.
2. Percentages: Percentages were used on the primary data collected via questionnaires.
Percentages helped to analyze the responses of the employees in relation to the inventory
management of the organization.

• Tools for Data Collection

The Primary Data for research has been collected using the survey technique.
The Secondary Data for the study has been collected from the various sources such as:
• Annual Reports of NTPC
• Company‟s Website- www.ntpc.co.in

• Limitation
 • The main shortcoming was data collection.
• The preparation and interpretation of data may not be 100% free from errors
and may be affected by the Respondents baised mindset to some extent.
• The study will be based on the balance sheet of the company and depends
directly on balance sheet and annual reports of the company.

• Work Plan

Week No. Activities Completed

Finding project topic , Introduction

Week 1 and Background

Worked on interim report

Week 2

Week 3

Week 4

Week 5

Week 6