SUMMER TRAINING REPORT ON CASH MANAGEMENT IN SUBMITTED TO SUBMITTED BY DEPT. OF BUSINESS SHALU VERMA ADMINISTRATION M.B.A 3 RD Sem.

ROLL NO. 46 CH.DEVILALUNIVERSITY,SIRSA

SUMMER TRAINING REPORT ON CASH MANAGEMENT IN SUBMITTED TO SUBMITTED BY DEPT. OF BUSINESS SHALU VERMA ADMINISTRATION M.B.A 3 RD Sem.

ROLL NO. 46 CH.DEVILALUNIVERSITY,SIRSA

ACKNOWLEDGEMENT At the outset I would like to thank the Management of ESCORTSAGRI MACHINERY GROUP for the wholehearted co-operation andguidance extended by them, which made my summer training project possible.I would like to thank Mr. Bharat Madan (Chief Financial Officer), Mr. S.K Aggarwal ( Head Employees Relations ), and Mrs. KiranChopra ( Chief Secretary & System Manager) for providing me thisopportunity to carry out the project. I am very grateful to my project guide Mr . pulak sinha (financeManager; Finance Department) Escorts Limited (AMG PLANT-1) for hissupport and suggestions, which led to the completion of this project.I would also like to thank Mr. B.B khanna , Mr. M.M. Halder , Mr. Nitin Aggarwal , Mr. Vijay Nehra , Mr. Rajeev Khandelwal , Mr. SunilBhatia, Mr. R.N katyal, Mr.Ajay Wadhawan , Mrs Saroj and Mr. R.K.Kukreja and other staff members for their support and cooperation

STUDENTDECLARATION I, student of Masters in Business Administration CH. DEVI LALUNIVERSITY , SIRSA

hereby declare that the dissertation/thesis entitleStudy of Cash Management of the Escort Agri Machinery Group(AMG) submitted in fulfillment of the training; is my original work andis not submitted for the award for any other degree, fellowship or similar title or prize

EXECUTIVE SUMMARY If the development capital is what establishes a business, cash flow iswhat keeps it going. One of the most common downfalls of business isunexpectedly high running cost. What is important is not just the size of operating costs, but the cash flow-that is when money has to be paid outin relation to the stream of income arriving in. Thus cash flowmanagement is of prime importance.Escorts Ltd. is the holding company of the Escorts Group. Postrestructuring, agri - machinery or tractors have become the focus area of operations. Other business i.e. two- wheelers, IT, Telecom, constructionequipment, are controlled through subsidiaries and joint venture. Posthive off of its pistons business to a joint venture with a foreigncollaborator, Escorts is focusing on its core competence of tractors.Escorts have strong hands in house engineering skills, a widedistribution/service network and brand franchise.The project is small attempt to study the cash management inEscorts Agri - Machinery group. Added to this fact that mechanizationlevel in India is currently very low as compared to the world standards.To analyze the performance, published balance sheets of EscortsLimited, CASH FLOW STATEMENTS are been used. This projectreport is based on financial data up to 2007-08 only. The financial year for escorts is from 01/10/20XX to 31/09/20XX. Escorts is maintainingthe following records which is indicative of its professional approach:

Maintaining proper set of accounting records. Maintaining an accurate cash book with bank statement Daily cash inflow & cash outflow. Marking regular forecast of cash requirement based upon planedsales volume. Ageing of debts/credits with comparisons to previous month

TABLE OF CONTENTS OBJECTIVE OF THE TRAINING ABOUT TRACTOR INDUSTRY INTRODUCTION FUTURE OF TRACTOR INDUSTRY MARKET SHARE OF THE TRACTOR INDUSTRY TRACTOR INDUSTRY PERFORMANCE COMPANYS PROFILE

ESCORTS SYMBOL MISSION QUALITY POLICY BACKGROUND OF THE BUSINESS BOARD OF DIRECTORS OUTLINE OF ESCORTS SUBSIDERIES BANKERS AGRI MACHINERY GROUP INTRODUCTION AGRI MACHINERY GROUP CONTRIBUTION MODERNIZATION OF AGRI- MACHINERY GROUP PRODUCTS COMPANYS FUTURE CASH MANAGEMENT INTRODUCTION CASH FLOW MANAGEMENT CASH MANAGEMENT SYSTEM IMPORTANCE OF CASH MANAGEMENT CASH MANAGEMENT STRATEGIES CASH OUTFLOW CASH INFLOW CASH FLOW STATEMENT IMPORTANCE DAILY CASH FLOW REPORT

CASH BUDGET BANK RECONCILIATION CASH RATIOS RECEIVABLES MANAGEMENT PAYABLEMANAGEMENT RECOMMENDATIONS LIMITATIONS

BIBLIOGRAPHY ANNEXURES OBJECTIVES OF THE TRAINING It is well known fact that we remember 20% of what we hear, weremember 40% of what we see but we remember 75% of what we do.Undergoing M.B.A is the first step to prepare myself as a manager andvisualize the ever-dynamic business world and my main objective whiletaking up the training was to familiarize myself with the working of thefinance department of Escort Agri Machinery Group (AMG)To present study in Escort Agri machinery group mainly focus on thefollowing : Resources of cash inflow of the company. Cash flow factors which have effect of cash inflow. Cash flow statement in the company. Cash flow management in the company ABOUTTHETRACTOR INDUSTRY INTRODUCTION Indias long-term economic prospects, even today, depend to a largeextend on the agricultural sector, which contributes a quarter to the grossdomestic project and provides livelihood to 2/3 of the population. Agradual and perceptible shift from subsistence farming to enterprisefarming is harbinger of modernization of the agriculture economy andthis will increase the contribution of the sector to the overall GDP in thetime to come. The central government as well as several stategovernments is giving due priority to agriculture and rural developments.A tractor is a product, which has maximum utility in the agriculturalsector. The tractor industry is segmented on the basis of the power of thetractor engine measured in terms of horsepower (HP). The maximumconsumption is for 30-40 HP tractors. With the increase in the availabilityof low cost finance for longer tenures, the sale of the tractors is expectedto go up. The new trend observed in this sector is the shift inconsumption from majority in the northern states to other parts of thecountry, too. The soil in the northern states is alluvial in nature and thus INTRODUCTION Indias long-term economic prospects, even today, depend to a largeextend on the agricultural sector, which contributes a quarter to the grossdomestic project and provides livelihood to 2/3 of

the population. Agradual and perceptible shift from subsistence farming to enterprisefarming is harbinger of modernization of the agriculture economy andthis will increase the contribution of the sector to the overall GDP in thetime to come. The central government as well as several stategovernments is giving due priority to agriculture and rural developments.A tractor is a product, which has maximum utility in the agriculturalsector. The tractor industry is segmented on the basis of the power of thetractor engine measured in terms of horsepower (HP). The maximumconsumption is for 30-40 HP tractors. With the increase in the availabilityof low cost finance for longer tenures, the sale of the tractors is expectedto go up. The new trend observed in this sector is the shift inconsumption from majority in the northern states to other parts of thecountry, too. The soil in the northern states is alluvial in nature and thus