Cash Management of Public Company-A Case Study of Hindalco Industries Ltd.

Cash Management refers to the management of cash and bank balances and also includes short term deposits. In other way it can be said that it has includes cash and near to cash assets. The purpose of cash management is use to maintained the short-term liquidity position of the business. If the company do not have a sufficient amount of cash than the liquidity of the company may be interrupted. In this research paper we will examine the firm's liquidity with focus on payment/pay-out routines, liquidity management, short-term financing and the connection between accounts receivable and payables. Thus cash management is concerned with management of cash inflow and cash outflow of the business concern, the management of cash is most important for the overall activities of a business concern to survive and for smooth running. During the study period it was found that there was high fluctuation in total cash payment and cash ratio. High cash turnover ratio indicates that company has better utilization of cash resources and better financial management of cash but this table indicates that only few years it has high ratio and most of the study period it has low ratio which is not worthwhile for the company. The average annual growth of the total cash payment was 22.46% while the average cash growth was 29.66% which indicates satisfactory position of growth rate of cash but the payment of cash is much higher than their cash balance. Thus, it is clear that the cash management position of HINDALCO INDUSTRIES Ltd. is not satisfactory.