PRESENTATIONON

CASH MANAGEMENTOF

ANS STEEL TUBES LTD.(JBM GROUP)

SUBMITTED BY:-

KAJAL (14)

Company Profile

Establishment Year August 2007

Firm Type Public .Ltd.

Nature of business Manufacturer , Export /Import

Level of Expand International

ANS Steel Tubes Ltd

MAJOR PRODUCTS

• Coated & Stainless steel tubes

• Hot & cold rolled tubes(ERW)

• Cold drawn tubes • Processed products like

flooring & siding

GROUP COMPANIES• JBM Industries • Neel Metal Products Ltd.• JBM Auto Ltd.• Jay Bharat Maruti Ltd.• ANS STEEL Tubes Ltd.• Jaico Steel Fasteners• Jay Bharat Exhaust Systems• JBM Auto Systems Ltd.• JBM Cadmium Pvt. Ltd.• Neel Industies Pvt. Ltd.• Thai Summit Neel Auto Pvt. Ltd.

END USER CUSTOMERS

• Maruti Suzuki• Yamaha• Bajaj• TVS• Hero Honda• Hindustan Motors• JCB India Limited

CASH…??

CASH…..???

Cash Management• Cash management concern

with managing of :-

1. cash inflow and outflow.2. Cash flows within the firm.3. Cash balances held by the firm at a point of time by financing deficit or investing surplus cash.

• Cash planning

• Managing the cash flow

• Optimum cash level

• Investing surplus cash

ELEMENTS OF CASH MANAGEMENT

Motives for Holding CashTransaction

Motive

Precautionary motive

Speculative motive

Compensating Motive

Objectives of the study..

Primary Objective:To analyze the cash management of ANS Steel Tube

Ltd..

Secondary Objective:To find out the liquidity position of the concern through ratio

analysis.To make suggestion and recommendation to improve the

cash position of ANS Steel Tubes

Training Methodology

DATA COLLECTION

Secondary Sources• From the annual reports maintained by the

company.• Data are collected from the company’s

website.• Books and journals pertaining to the topic.

TOOLS USED IN ANALYSIS

RATIOANALYIS

COMMONSIZE

BALANCE SHEET

Ratio analysis

• Ratio analysis is a tool brought into play by individuals to carry out an evaluative analysis of information in the financial statements of a company. These ratios are calculated from current year figures and then compared to past years, other companies, the industry, and also the company to assess the performance of the company.

S.No. Particulars formula 2009 2010 2014 2015

1. Current Ratio Current asset/current liability

0.72% 0.87% 1.69% 1.63%

2. Debt Equity ratio Debt /equity 1.45% 1.55% 1.73% 18.11%

3. Liquid Ratio Liquid asset/Current liability

0.60% 0.64% 0.90% 1.03%

4. Gross profit Ratio

Gross profit/Sales*100

-0.9% -1.05% 6.6% 8.4%

RATIO ANALYSIS

5. Working Capital Ratio

Current asset/ Current liability

0.72% 0.87% 1.7% 1.63%

6. Pretax Margin Ratio

Net profit before tax/sales

-0.14% -0.04% 0.072% 0.092%

7. Proprietary Ratio

Equity/total asset

0.71% 0.73% 0.42% 0.57%

Particulars 2014 2015

Equity And Liabilities

1.Shareholders’ Funds a. share capital b.reserves and surplus

41.7% 49.6% 7.90%

57.2% 50.50% 6.61%

2.Non- current liabilities a. long term borrowings b. deferred tax liability c. other long term liabilities d. long term provisions

24.1%

23.5% -

0.13%

0.41%

31.5% 0.22% 2.2% 0.17% 0.56%

3.Current Liabilities a.short term borrowings b. trade payables c. short term provisions

34.2% 17.05% 8.07% 1.64%

39.7% 28.42% 1.06% 8.4%

Total 100% 100%

Common size Balance Sheet

Assets 2014 2015

1. Non-Current Assetsa. fixed assetsb. Long term loans

42%

38.59%2.35%

35.4%

33.33%1.89%

2.Current Assetsa. Inventoriesb. Trade receivablesc. Cash and cash equivalentsd. Short term loans

58%27.15%28.03%0.26%

2.49%

64.6%23.9%39.10%0.21%

1.42%

Total 100% 100%

ANALYSIS• Company is having a growth trend and is moving towards a

profitable company.• The cash management of ANS Steel Tubes Ltd has been

working well in the organisation.• The Funds from operations of a company has been increased

from year by year.• Current ratio shows that the company has sufficient funds to

meet its short term obligations.• The company’s Liquidity Ratio shows a satisfactory trend.• Equity and assets has been increased from year by year.

RECOMMENDATION• ANS Steel Tubes Ltd. should try to match their Cash with the

sales. In case of surplus Cash, it should be invested either in securities or should be used to repay borrowings.

• The company should determine the optimum cash balance to be kept.

• The current Ratio of 2:1 is considered normally satisfactory. ANS Steel Tubes Ltd. should try to improve the current ratio. So it should invest large amount in current ratio, in order to maintain liquidity and solvency position of the concern.

• The company should try to follow a matching policy for financing current Assets using both long term and short-term sources of finances.

BIBLIOGRAPHY• ANS Steel Tubes Ltd Balance Sheet.• Profit And Loss statements of the firm.• www.jbm group.com.• www.nisshin-steel.com.• https://en.wikipedia.org/wiki/Cash_managem

ent.

• http://www.managementparadise.com.