Thesis Abstract

Abstract
Cash management is a critical aspect of financial management in manufacturing organizations as it directly impacts the liquidity and operational efficiency of the business. Effective cash management involves the monitoring, control, and optimization of cash flows within the organization to ensure that there is enough cash available to meet day-to-day operational requirements while maximizing returns on excess cash. This research project aims to explore the various cash management strategies and practices adopted by manufacturing organizations to enhance their financial stability and performance. The study will analyze the importance of cash management in improving working capital management, reducing financial risks, and optimizing cash utilization in manufacturing processes. The research will also investigate the role of technology in cash management, including the use of cash forecasting tools, electronic payment systems, and automated cash flow monitoring systems. By leveraging technology, manufacturing organizations can streamline their cash management processes, improve accuracy in cash forecasting, and enhance decision-making related to cash investments and disbursements. Furthermore, the study will examine the challenges and barriers faced by manufacturing organizations in implementing effective cash management practices. These challenges may include cash flow fluctuations, seasonality in demand, economic uncertainties, and regulatory compliance requirements. Understanding these challenges is essential for developing robust cash management strategies that can mitigate risks and ensure financial resilience in manufacturing organizations. The research will employ a mixed-methods approach, combining quantitative analysis of financial data with qualitative interviews with finance managers and industry experts. By gathering insights from both financial metrics and practitioner perspectives, the study aims to provide a comprehensive understanding of cash management practices in manufacturing organizations. The findings of this research project are expected to contribute to the existing body of knowledge on cash management in manufacturing organizations and provide practical recommendations for improving cash management processes. By enhancing cash management practices, manufacturing organizations can strengthen their financial health, improve operational efficiency, and sustain long-term growth in an increasingly competitive business environment.

Thesis Overview

INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Cash management is a means of protecting cash in organization cash is the most important current asset for operation of business. It is the basic input needed to keep the business running on a continuous deals. It is also the altimeter output expected to be realized by selling the service or product manufactured by the firm. The firm should keep sufficient cash neither more nor less shortage will disrupt the firms manufacturing operation. While excessive idle without contributing anything towards the firms profitability (Pandey I.M).

Cash management involves initially the provision of sufficient cash to meet the organizations obligations. When they full down and secondly the maintenance of a sufficient cash flow to enable the organization to take the advantage of the growth and investment opportunities by committee T. C. The aim of this project is to explain in simple and clear language what management must do to have effective control over its most liquidly and important asset cash. Thus a major assignment of the financial manager is to maintain a sound cash position.

Effective management and control of cash is very important to the firm because cash represent instantly available purchasing power and nearly every transaction ultimately involved the exchange of cash.

An integral part of cash administration is concerned with the effective utilization of corporate fund. The planning and control of this activities is made necessary by the fact that business is cyclical in nature and a considerable amount of time, during which raw material must be purchased and wages and