Professional Documents
Culture Documents
On
“A STUDY ON CASH MANAGEMENT AT RELIANCE PLUS YAOUNDE,
CAMEROON”
SUBMITTED BY –
HARSHIKA DASWANI
STUDENT ID:-16BCMN007
“RELIANCE PLUS”
Student’s Undertaking
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I am undertaking that this project report is a result of me original work and
has never been submitted elsewhere for any degree or diploma.
HARSHIKA DASWANI
Acknowledgements
Before we get into thick of things, I would like to add a few words of
appreciation for the people who have supported and guided me right from
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the inception of this project and without whom this task would not have been
completed. It is to them I owe my deepest gratitude.
The internship opportunity I had with Reliance plus was a great
chance for learning and professional development. I am using this
opportunity to express my deepest gratitude and special thanks to Mr
Ramesh Kumar Vaswani who provided me with the opportunity to carry out
my project at their esteemed organization.
It gives me immense pleasure in presenting this project report on “To
Study about cash management”. The success of this project is a result of
sheer hard work, and determination put in by me with the help of my project
guide. I hereby take this opportunity to add a special note of thanks for Mr
Amit Kumar Vaswani who undertook to act as my mentor and supervisor on
this project. His wisdom, knowledge and commitment to the highest
standards inspired and motivated me.
I would also like to thank my Faculty Internship Guide, DR Jyoti jain
ma’am, Assistant Professor at JECRC University, Jaipur for her constant
encouragement and support.
I perceive this opportunity as a big milestone in my career
development. I will strive to use gained skills and knowledge in the best
possible way, and I will continue to work on their improvement, in order to
attain desired career objectives. Hope to continue cooperation with all of you
in the future.
Sincerely,
HARSHIKA DASWANI
Place: Jaipur
EXECUTIVE SUMMARY
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This internship report stresses on the work experience I have gathered as an
Intern in Reliance plus Yaounde. In this report, I mainly have incorporated
my experience at Reliance Plus especially campaign management, research
and development works etc. where I had to work with different international
companies and local companies and an analysis on the roles of cash
management , supervision over conventional marketing which is also a blend
of my Reliance Plus experience and research data. Since its inception in 2004
in Yaoundé, Reliance plus has always been conserving quality service and
now it is one of the renowned and biggest advertising agencies in the country
within a very short time. In this report, I have included a list of their clients
and brands they are managing. Later, I discussed about campaigns that I
had to manage where some creative done by Reliance plus’s Creative
department under my department’s supervision where I followed-up are also
provided. Then, I discussed about the project on the marketing of the textile
items where different new findings came out. The project’s objective is to
understand the marketing schemes of textile manufacturing companies. This
report will serve good information for the marketers. Reliance plus has a
good internship program. Agency people have to work much for uplifting a
brand. There is an agency client gap in yaounde, if it can be reduced, it may
make the works for both the parties very easily. Again, agencies and
corporates are not taking digital marketing seriously till now. More
investments in digital media is needed which may give a better visibility of
the brands and make the advertising and marketing atmosphere more
delightful which may amaze people with its’ beauty.
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Table of Content
Conclusion 27
Appendices 28
CHAPTER 1
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INTRODUCTION
"Cash, like the blood stream in the human body, gives vitality gnd strength
to a business enterprise." Though cash hold the smallest portion of total
current assets. However, "Cash is both the beginning and end of working
capital cycle - cash, inventories, receivables and cash." It is the cash, which
keeps the business going. Hence, every enterprise has to hold necessary cash
for its existence. Moreover, "Steady and healthy circulation of cash
throughout the entire business operations is the basis of business solvency."
Now-a-days non-availability and high cost of money have created a serious
problem for industry. Nevertheless, cash like any other asset of a company is
treated as a tool of profit." Further, "today the emphasis is on the right
amount of cash, at the right time, at the right place and at the right cost.” In
the words of R.R. Bari, "Maintenance of surplus cash by a company unless
there are special reasons for doing so, is regarded as a bad sigh of cash
management." As, "holding of cash balance has an implicit cost in the form
of its opportunity cost." Cash may be interpreted under two concepts. In
narrow sense, "Cash is very important business asset, but although coin and
paper currency can be inspected and handled, the major part of the cash of
most enterprises is in the form of bank checking accounts, which represent
claims to money rather than tangible property." While in broader sense,
"Cash consists of legal tender, cheques, bank drafts, money orders and
demand deposits in banks. In general, nothing should be considered
unrestricted cash unless it is available to the management for disbursement
of any nature." Thus, from the above quotations we may conclude that in
narrow sense cash means cash in hand and at bank but in wider sense, it is
the deposit in banks, currency, cheques, bank draft etc. in addition to cash in
hand and at bank. "Cash management includes management of marketable
securities also, because in modern terminology money comprises marketable
securities and actual cash in hand or in bank." "The concept of cash
management is not new and it has acquired a greater significance in the
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modern world of business due to change that took place in the conduct of
business and ever-increasing difficulties and the cost of borrowing." Apart
from the fact that it is the most liquid current assets, cash is the common
denominator to which all current assets can be reduced because the other
current assets i.e. receivables and inventory get eventually converted into
cash. This underlines the significance of cash management.
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towards providing a protective shield to the business obligations. "Cash
management is concern MEANING AND DEFINITION: The term cash
=management refers to the management of cash resource in such a way that
generally accepted business objectives could be achieved. In this context, the
objectives of a firm can be unified as bringing about consistency between
maximum possible profitability and liquidity of a firm. Cash management
may be defined as the ability of a management in recognizing the problems
related with cash which may come across in future course of action, finding
appropriate solution to curb such problems if they arise, and finally
delegating these solutions to the competent authority for carrying them out
the choice between liquidity and in profitability creates a state of confusion.
It is cash management that can provide solution to this dilemma. Cash
management may be regarded as an art that assists in establishing
equilibrium between liquidity and profitability to ensure undisturbed
functioning of a firm towards attaining its li business objectives. Cash itself is
not capable of generating any sort of income on its own. It rather is the prime
requirement of income generating sources and functions. Thus, a firm should
go for minimum possible balance of cash, yet maintaining its adequacy for
the obvious reason of firm's solvency. Cash management deals with
maintaining sufficient quantity of cash in such a way that the quantity
denotes the lowest adequate cash figure to meet business obligations. Cash
management involves managing cash flows (into and out of the firm), within
the firm and the cash balances held by a concern at a point of time. The
words, 'managing cash and the cash balances' as specified above does not
mean optimization of cash and near cash items but also point towards
providing a protective shield to the business obligations. "Cash management
is concerned with minimizing unproductive cash balances, investing
temporarily excess cash advantageously and to make the best possible
arrangement for meeting planned and unexpected demands on the firms'
cash with minimizing unproductive cash balances, investing temporarily
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excess cash advantageously and to make the best possible arrangement for
meeting planned and unexpected demands on the firms' cash."
CHAPTER 2
Company Profile
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2.1 ROLES AND RESPONSIBLITY IN ORGANIZATION
• Cash Management
• Ticketing
• Billing
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CHAPTER 3
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contingencies. Only a prior experience and investigation of other similar
companies prove helpful as a customary practice. A practical procedure is to
protect the business from such calamities like bad-debt losses, fire etc. by
way of insurance coverage.
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(B)Local Box System: Under this system, a company rents out the local post
offices boxes of different cities and the customers are asked to \ forward their
remittances to it. These remittances are picked by the authorized lock bank
from these boxes to be transferred to the company's central bank operated
by the head office.
(C)Reviewing Credit Procedures: It aids in determining the impact of slow
payers and bad debtors on cash. The accounts of slow paying customers
should be reviewed to determine the volume of cash tied up. Besides this,
evaluation of credit policy must also be conducted for introducing essential
amendments. As a matter of fact, too strict a credit policy involves rejections
of sales. Thus, curtailing the cash inflow. On the other hand, too lenient, a
credit policy would increase the number of slow payments and bad debts
again decreasing the cash inflows.
(D)Minimizing Credit Period: Shortening the terms allowed to the customers
would definitely accelerate the cash inflow side-by-side revising the discount
ofered would prevent the customers from using the credit for financing their
own operations profitably.
(E)Others: Introducing various procedures for special handling of large to
very large remittances or foreign remittances such as, persona! pick up of
large sum of cash using airmail, special delivery and similar techniques to
accelerate such collections.
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motive of maximizing cash receipts and minimizing cash payments. At times,
a concern finds itself with funds in excess of its requirement, which lay idle
without bringing any return to it. At the same time, the concern finds it
unwise to dispose it, as the concern shall soon need it. In such conditions,
efforts should be made in investing these funds in some interest-bearing
securities. There are certain basic strategies suggested by Gitman, which
prove evidently helpful in managing cash if employed by the cash
management. They are: “Pay accounts payables as late as possible without
damaging the firm's credit rating, but take advantage of the favorable cash
discount, if any.
Turnover, the inventories as quickly as possible, avoiding stock outs that
might result in shutting down the productions line or loss of sales. Collect
accounts receivables as early as possible without losing future loss sales
because of high-pressure collections techniques. Cash discounts, if they are
economically
justifiable, may be used to accomplish this objective."
If cash flows were accurately predicted, the firm would not have to give
much attention on management of cash. Cash outflows to some extent are
certain but cash inflows cannot be predicted accurately. There is no perfect
synchronization between cash inflows
and cashoutflows.Sometimes, cash outflows exceeds cash inflows due to
unusual payment of obligation and non-seasonal build up in inventories and
receivables. And sometimes cash inflows will be more due to excessive sales
than expectation and rapid conversion of receivables into cash.
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coincidence in cash inflow and outflow, the firm's cash management function
should consist of following strategies:
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TECHNIQUES OF CASH MANGEMENT
The term cash management refers to the collection, concentration, and
disbursement of cash. In many ways, managing cash flow is the most
important job for business managers. If a company happens to miss paying
an obligation due to lack of cash, the company becomes insolvent, which is
the primary cause of bankruptcy. Not only this, but having a poorly
managed cash flow leads to having no margin of safety in case of
unanticipated expenses, trouble finding funds for expansion, or difficulties in
hiring and retaining employees.
Typically, cash flow problems are the leading cause of business failures — so
it is important to make sure you understand every technique available to
keep your business afloat. To have a successful business, you need to be able
to manage your cash flow well. Here are some useful cash management
techniques to help you as you grow your business.
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the loss, though. Too much of a discount could only be more of a financial
burden.
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These are just a handful of the many different cash management techniques
available. Remember, cash management is one of the most important aspects
for businesses to keep themselves successful and running smoothly.
Recognizing your cash flow and understanding where there is room for
improvement is crucial for all businesses, and these cash management
techniques are the first steps to helping you become more fiscally responsible.
Internal Controls
One of the most important goals of any cash management system is to help
the business stay legal. While maintaining adequate levels of cash on hand is
important to keep costs low and inventory levels steady, the legal
implications of an error in financial accounts are serious. As such, much time
is spent on developing robust financial controls which audit and prevent
errors in cash receipts, disbursements and paying taxes.
Clear Financial Communication
Cash management is usually a joint effort between the Treasurer and the
banker. Cash management products are constantly evolving. It is the goal of
the Treasurer to stay abreast of the latest products, which helps to establish a
professional financial relationship with representatives from the banking
community. A good record for cash management can lead to better funding
opportunities in the future.
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Develop External Financial Relationships
Cash management is usually a joint effort between the Treasurer and the
banker. Cash management products are constantly evolving. It is the goal of
the Treasurer to stay abreast of the latest products, which helps to establish a
professional financial relationship with representatives from the banking
community. A good record for cash management can lead to better funding
opportunities in the future.
Accounting Ratio
What is an Accounting Ratio
Accounting ratios, also known as financial ratios, are used to measure the
efficiency and profitability of a company based on its financial reports. They
provide a way of expressing the relationship between one accounting data
point to another, and are the basis of ratio analysis.
Debt-to-Equity Ratio
The balance sheet provides accountants with a snapshot of a
company’s capital structure, one of the most important measures of which is
the debt-to-equity ratio. It is calculated by dividing debt by equity. For
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example, if a company has debt equal to $100,000 and equity equal to
$50,000, the debt-to-equity ratio is 2 to 1.
Payout Ratio
The cash flow statement provides data for ratios dealing with cash. For
example, the payout ratio is the percentage of net income paid out to
investors. Both dividends and share repurchases are considered outlays of
cash and can be found on the cash flow statement. For example, if dividends
are $100,000, share repurchases are $100,000, and income is $400,000, the
payout ratio is calculated by dividing $200,000 by $400,000, which is 50%.
Related Terms
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained in a
company’s financial statements
Liquidity Ratios
Liquidity ratios are a class of financial metrics used to determine a debtor's
ability to pay off current debt obligations without raising external capital.
Quick Ratio
The quick ratio measures a company’s ability to meet its short-term
obligations with its most liquid assets.
Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay
short-term and long-term obligations.
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Research Methodology
Objective of the report
The Primary objective of this report is to understand the roles of digital
marketing communications over the conventional marketing from the
customer point of view to find out how digital marketing communication
is helping conventional marketing process.
Scope
The report’s scopes are followed below-
Information for the analysis was collected from the internal websites,
database, research papers, study materials, Internal Crowdbase
network- Social network and knowledge sharing platform of Reliance
plus
Geographic scope of the report is limited within cameroonian market.
Methodology
Methodology refers to the comprehensive actions of research in my
internship report. To achieve the required results to establish the
objective, some methods are used. This section will clarify the methods I
used to do this project.
Methods
To achieve the required results to establish the objective two basic
methods were used:-
1.Qualitative Analysis: Though a less number of unstructured interviews
were taken, in-depth interview of some of the employee of mahima
groups, Client end managers were conducted to get proper insight on the
roles of digital marketing communication.
2.Online Survey Questionnaire: To know the customer insights on the
roles of digital marketing communications in their life, an online survey
questionnaire was designed.
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Primary Data: The survey instrument or the survey questionnaire
contained a total of 17 questions that encompassed the objective of
the research. Different social media users along with the generic
people are the population of the study. The survey has been done on
151 people consist of different social media users and online users.
With the help of social media, email and my personal network it was
easy for me to collect the survey responses within few days which
was only possible because of the online questionnaire form.
Responses from 151 samples were collected through the survey.
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CONCLUSION
Working in reliance plus was one of my dreams when I was an
under-graduate level student. I am so happy that, I could complete
the last phase of my undergraduate life working in such an
manufacturing unit. For a young blood like me working with the
creative minds and professionals definitely was a great experience
for me. The office and people there were great like home. We used
to have fun, work lately with high encouragement because we felt
like, we are working not only for the client but also for the nation
and its people. Every communication counts. 360 degree
communication is done by Reliance plus, though it is not enough for
a person to learn all those, but the relationships made there are a
lifetime asset who are still with me helping learn so many things. It
was a great journey working with so many local and international
brands which concludes that, it has been a great learning
opportunity for me. This has been a great learning experience for
my career. The project in this report is done based on the various
marketing schemes in Reliance plus. Both the conventional and
digital marketing communication is highly important to uplift
brand awareness and brand performance. Digital marketing
communication is essential to make today’s brands successful and
reach not only locally but also internationally. Again, this report is
done with a lot of limitations and obstacles. Thanks to so many
people who helped me doing this report.
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Appendices
Biblography
www.wikipedia.com
www.google.com
www.relianceplus.cm
www.investopidia.com
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