...A PROJECT ON STUDY OF CASH MANAGEMENT AT STANDARD CHARTERED BANK SUBMITTED IN PARTIAL FULFILLMENT OF BACHELORS OF MANAGEMENT STUDIES L S RAHEJA COLLEGE OF ARTS AND COMMERCE UNIVERSITY OF MUMBAI ACADEMIC YEAR 2010-2011 SUBMITTED BY: BINAY ROY PROJECT GUIDE: PROF. NAVEEN ROHATGI DECLARATION This is to certify that the project report ‘Study of Cash management at Standard Chartered Bank’ is submitted by me in partial fulfillment of the requirement of Bachelors of Management Studies in the academic year 2010-2011. The information it comprises of is true and original as per my research and observation. ----------------------------- Signature of the Student (Name of the Student) CERTIFICATE This is to certify that Mr. Binay Roy has completed the project ‘Study of cash management at standered chartered bank’ under the guidance of Prof. Naveen Rohatgi in the academic year 2010-2011 and has submitted the same to the University of Mumbai in partial fulfillment of the requirement of the Bachelors of Management Studies courses. -------------------------------- ---------------------------------- Signature of the Principal Signature of the Project Guide (Dr. Ms. M.B.Madlani) (Prof. Naveen Rohatgi) ------------------------------------------ Signature of the External Examiner. ACKNOWLEDGEMENT I would...
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...University November 1986 Center for Research on Information Systems Information Systems Area Graduate School of Business Administration New York University Working Paper Series CRIS #I41 GBA #86-109 Center for Digital Economy Research Stem School of Business IVorking Paper IS-86-109 IMPLEMENTING STRATEGIC INFORMATION SYSTEMS ABSTRACT This paper presents a framework for the implementation of strategic information systems. The framework draws on past research on implementation and takes into account the unique circumstances of strategic applications. The framework is illustrated with a case study of a money-center bank's cash management system based on a microcomputer. microcomputer provides a powerful front end to the bank's traditional transactions processing system for a corporate treasurer who is a client of the bank. The impact of the The system appears to be positive and the framework offers one model for viewing the implementation of strategic systems. INTRODUCTION A 1982 paper proposed a classification of information systems into three different categories: those which support the business, applications which support strategic planning and s y s t e m s w h i c h a r e a p a r t of a f i r m ' s Turner, 1982). s t r a t e g y (Lucas and This third type of system has received a Books and great deal of attention in the past five years. papers by Wiseman (1985), Parsons (1983), Ives and Learmonth (1984), McFarlan (1984) and Krcmar (1986)...
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...QUESTION 1 ( MARKS ) Compensation balances are frequently a part of revolving lending arrangements with banks, yet they add to the cost of financing for the borrower. Why, then, borrowers agree to such terms? What other types of alternative financing are available? The borrowers agree to such terms because they use the compensating balance to pay for non credit bank sources such as cash management services must major firms have now negotiated for banks to use the corporations collected funds for compensation and use fees to cover any short fall. The other types of alternative financing that available is letters of credit that common arrangement in International Finance, account receivable financing, a secured short-term loan that involks either the assignment or the factoring of receivables. Inventory loan, a secured short-term loan to purchase inventory. QUESTION 2 (15 MARKS) KKRE Company is producing customized cardboard boxes in a variety of sizes for different customers. The company currently has a cash balance of RM 8,000 and it plans to purchase a new machinery in the next month (November) at a cost of RM 50,000. In order to take advantage of the discount offered, purchasing of the machinery will be made in cash. KKRE maintains a minimum cash balance of RM 6,000 for unforeseen contingencies. Following is the information regarding company’ projected sales. | |August |September |October |November ...
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...International Financial Management – 6E - 2011 Chapter 19 1. An effective cash management system should be based on a cash budget that projects expected cash inflows and outflows over some planning horizon. It provides for the orderly receipt and disbursement of cash. It also provides for funds organization, where cash shortages are covered by borrowing at the most promising rates and surplus funds are invested at the most beneficial rates. Within an MNC the complexity of the cash management process is compounded because the firm does business in a variety of currencies and the cost of foreign exchange transactions. is an additional measurement to be accomplished. 2. Under a centralized cash management system, the cash manager will have a global view of the cash necessities of the MNC. There will be less chance that funds will be misallocated, like, denominated in the wrong currency. Additionally, under a global view, transaction exposure for the MNC can be more professionally managed. A centralized system readily allows for investing excess cash at the most beneficial rates and borrowing to cover cash shortages at the most favorable rates. Under a decentralized system, the local cash manager is given more responsibility for managing the cash needs of the affiliate than under a centralized system. Consequently, the local cash management position serves as good training for higher level positions within the affiliate or MNC. Also, under a decentralized system, local bank relationships...
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...easy as one two three. An interested owner that deals with selling of pharmaceutical products need determination to operate business, the guts to get it going, the power to motivate his employees and the financial commitment to make it happen. You should also be competitive, a positive thinker and a goal minded person in order for you to make the business successful. One of the ways to be successful in business is to manage the cash properly and wisely. Cash management is a marketing term for certain services offered primarily to larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to businesses of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, andautomated clearing house facilities. Sometimes, private banking customers are given cash management services. Cash management is a broad area having to do with the collection, concentration, and disbursement of cash including measuring the level of liquidity, managing the cash balance, and short-term investments. If at...
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...engineering and high accuracy analysis. On the other hand, the Letsgo Travel Trailer Company is experiencing challenges with quality, cash flow and a performance review and reward system. This is happening due to lack of integrative planning across different functions. Each functional unit is trying to maximize their own performance, which in turn is hampering the overall performance. The current appraisal and reward system is increasing this isolated and non-cooperative working of the different functional units. ▪ The sales department to improve their sales want to have high finished goods inventory ▪ The production department wants to have high inventory of raw material to have uninterrupted production schedule. They are not interested in implementation of Just-in-time inventory methods to reduce the overall cost. ▪ The current control and reporting system does not provide enough good quality data to guide management decision process. For example, no record for work in process is kept in the company. ▪ The accounts department is making the budget without getting any information from functional units. This way the budgets are not realistic and reflect only an accounting necessity rather than a decision making and control tool. ▪ The cash management system of the company is not good and company is facing the cash management problems. Validity and Reasonableness of Letsgo’s Sales Projections: Table-1: Actual and Projected Sales Growth | ...
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...Financial Performance Management Discover how to invest in opportunities that allow you to control costs, determine the best strategy, and use real-time data to make immediate adjustments. o Make better financial decisions faster using real-time data o Cascade your strategy across all levels of the banking organization o Deliver accurate costing information to make more informed decisions Less • Risk and Compliance Management Proactively monitor risks and internal controls to align strategy and operations, improve predictability, and sustain profitable growth. o Access all data via other systems, resulting in fewer disparities and lower costs o Manage risk proactively across multiple business lines with on-time, compliant monitoring o Reduce costs and improve efficiency with simple, integrated reporting interfaces Less • Sustainability Set sustainability strategies and execute against your objectives of minimizing risk and improving opportunities. o Tap into data companywide with analytics, dashboard, and reporting - for easier compliance o Reduce energy consumption by consolidating IT assets o Minimize e-waste with sustainable sourcing, recycling, and contamination prevention Less • Customer Service Contact Center Effectively manage call center activities and connect with your entire banking organization. o Track customer requests through multiple channels, for more "one and done" tickets o Provide call agent scripting and knowledge management tools to up-sell...
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...primary focus for any business hoping to create sustainable growth. Lawrence Sports, a fictional company, is presently in need of capital management analysis and methodology overhaul. Included in this paper is a discussion of the issues, opportunities, values and solutions that the firm should be considering. The 9 step problem solution model is the format used to take the reader through critical identification, evaluation and implementation of elements that will transform a problem into new growth opportunity. Lawrence Sports is a $20 million dollar revenue company that assembles and distributes sporting goods. The focus of the scenario is to provide the opportunity for the student to develop solutions to trade off issues, thus establishing stability for the firm. Mayo, who is a retailer responsible for 95% of sales, is hindering Lawrence from paying raw materials suppliers. Unfortunately, this cash positioning problem is direct result of the Lawrence credit policy and the Mayo request to delay payment until the week of April 14-20. Borrowing money to deal with supplier payables is not an option, due to the $1.2 million dollar maximized bank limit. Therefore, this paper will strategize from the perspective of a financial manager who will turn a working capital problem into the chance to design a new credit policy, implement cash management models and introduce risk mitigation techniques. A credit policy that is too liberal will continue to cause damage to Lawrence Sports...
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...APPROACH ON CASH MANAGEMENT” SUBMITTED BY: Himanshu Chauhan REGD NO – 1321516 MBA – General Management A TIRED APPROACH TO CASH MANAGEMENT Title: A Tired Approach to Cash Management. Author: Oliver Denecker, Senior Knowledge Expert. Source: McKinsey on Payments. Date: June, 2010. Abstract: Article explains about the effective management of cash in business activities in this financial crisis. The various decisions to be considered by the biggest banks for better investing in cash management helps the banks to accelerate the revenues. The cluster effect strategic decisions are considered for established markets to offer a comprehensive range of basic cash management services to small and medium enterprises and mid – market and public – sector customers. A tired approach for cash management providers help the companies accelerate the collection of receivables and to control the payments to trade creditors and to efficiently manage cash services are briefly explained. Summary: Banks are setting ambitious targets for cash management growth by launching new cash management services in the markets. It requires well planned strategic thinking to know the market landscape. The strategies implemented by biggest banks are via mergers and acquisitions which helps the banks to widen the gaps between first and second – tier players. The competition in the market is much higher which lead to implement effective strategies over number of regional and domestic banks. Investing...
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...ON ‘Study of SBI FAST-Cash Management at State bank of India’ At [pic] By DINESH MEGHWANI (REG.NO.1120814) MBA - Finance, 2011-2013 Under the esteemed guidance of Under External guidance of Under Internal guidance of Mr. Rama Rao Duba Prof. Dr. Ramkesh Gupta Chief Manager Finance Department SBI-Nawapara Rajim Christ University, Bangalore [pic] CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE-56002 DECLARATION I, DINESH MEGHWANI, a student of PGDM with GERMAN MBA, at Christ University hereby declare that this Project Report under the title “A study on SBI-FAST Cash Management” is the record of my original work under the guidance of Mr. Rama Rao Duba. This report has never been submitted to anywhere else for award of any degree/diploma. Place: Nawapara Rajim DINESH MEGHWANI Date: MBA – 3rd trimester [pic] CERTIFICATE This is to certify that MR. DINESH MEGHWANI (1120814) is a bona fide student of Christ University Institute of Management (MBA batch 2011-13) and has successfully...
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...Cash Management Trends in India Niraj Vedwa President Head – Global Sales and Marketing Nucleus Software (Original article published in gtnews.com) This article examines the cash management and payments developments in India, in terms of bank offerings and new corporate best practice. Traditionally having a paper-based clearing system involving not only high processing cost but security risk, cash management in India has certainly undergone a paradigm change. From a product-centric approach, the focus for almost all banks today has shifted emphatically to the customer. And success is all about bringing the maximum possible delivery channels to the prospect's doorstep. In the rapidly transforming world of business, banking faces its biggest challenge yet - constant change. With every bank seeming to offer service possible, efficiency coupled with innovative value added solutions have emerged as the key business differentiators that affect a bank's bottom line. Confronted with shrinking deposits/margins, rising customer expectations and intensifying competition, banks must at all times strive to be a step ahead of industry standards. At the same time, they cannot lose sight of credit risk, a natural byproduct of the increasingly complex relationships in today's dynamic markets. For some time now, technology has been the key driving force behind every successful bank. In such an environment, the ability to recognise and capture market share depends entirely on the bank's...
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...Cash Management Services HCA/270 8/7/2011 Cash Management Services There are many different options available when choosing a bank that does offer cash management solutions to fit into one’s individual needs. The cash management tools that are offered by a number of different banks can be a beneficial aspect to any businesses or someone’s personal gain. In today’s report, I will be reviewing three banks and examine in accordance to the bank’s. The three banks that I have chosen to review would be US Bank, Home Federal, and Wells Fargo. These banks are going to be compared by identifying the disadvantages and the advantages that are associated with each of the banks, the cash management options available by each of the banks, and how the options can best reduce the opportunity costs for the healthcare organization. US Bank. When reviewing the websites offered for US Bank, I discovered that this bank offers a number of different services to help the people in need of cash management options. This banks website contains accessible material to help one do research and acquire rates that are pertaining to auto and home loans, CD’s, personal lines of credit, internet pay, online banking, retirement planning, and investing (U.S. Bancorp, 2011). The website that is available offered a number of different seeking to open a savings or checking account within this bank including discounts and rewards on certain checking account package and a percentage of the...
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...Cash Management Trends in India Niraj Vedwa President Head – Global Sales and Marketing Nucleus Software (Original article published in gtnews.com) This article examines the cash management and payments developments in India, in terms of bank offerings and new corporate best practice. Traditionally having a paper-based clearing system involving not only high processing cost but security risk, cash management in India has certainly undergone a paradigm change. From a product-centric approach, the focus for almost all banks today has shifted emphatically to the customer. And success is all about bringing the maximum possible delivery channels to the prospect's doorstep. In the rapidly transforming world of business, banking faces its biggest challenge yet - constant change. With every bank seeming to offer service possible, efficiency coupled with innovative value added solutions have emerged as the key business differentiators that affect a bank's bottom line. Confronted with shrinking deposits/margins, rising customer expectations and intensifying competition, banks must at all times strive to be a step ahead of industry standards. At the same time, they cannot lose sight of credit risk, a natural byproduct of the increasingly complex relationships in today's dynamic markets. For some time now, technology has been the key driving force behind every successful bank. In such an environment, the ability to recognise and capture market share depends entirely on the bank's...
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...Cash Management Services Cash management services are offered to businesses to assist them in handling their finances. The term cash management can be used to describe a wide range of services offered by banks from payroll to investments to a standard bank account. This paper will analyze the cash management services offered by Metro Bank, Susquehanna Bank, and PNC Bank. PNC Bank offers several international banking tools. These include international bank account numbers, also known as IBAN’s. This allows companies to transfer money internationally without hassle. They also offer something similar for Mexico alone, called Clave Bancaria Estandarizada, or CLABE and a service specifically for Canada called the Canada Express. Also included in international services are: Web-based foreign exchange, multi-currency accounts, cross-border electronic data interchange (EDI), international balance reporting, and SWIFT. PNC offers investment management, online banking, funds transfers, invoice automation, and special reports to name a few specifics. Generally, they offer payment and disbursement services, collection and deposit services, services regarding liquidity and investments, and information reporting. The most impressive feature of PNC Bank’s cash management services is the wide range of international services. Those were not noted in such a variety at any other bank (PNC, 2011). Susquehanna Bank offers collection services, concentration services, disbursement...
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...South America and Asia will have to choose services from three different banks to manage its working capital. The bank that will be chosen will be the best international bank to centralize cash management, provide bills to pay in local and other currencies, offer foreign exchange and present many agreements that may benefit the organization. Acme Company which is looking to have branches in South America and Asia will be choosing services from five different banks. Such services will help Acme manage its working capital. Bank of America, Citibank, HSBC, Barclays and CIBC bank are the selected banks. One of these international banks will be chosen to benefit ACME in all and provide services needed. Among all three, HSBC is the chosen bank to offer its services to Acme Company. Many reasons were found to support this decision. HSBC is headquartered in London, UK and as of 2011 it is known to be the second largest financial services in the world. When talking about its assets, It Is currently ranked as the fourth leading bank in the world that is worth $2,348.98 billion. Moreover, it is ranked the second largest in terms of sales which is approximated to be $146.50 billion. HSBC is considered the most profitable bank in the world making a net income of $19.13 billion as of the year of 2008. HSBC has global financial presence in especially in Asia and Latin America. http://finance.mapsofworld.com/banks/hsbc.html HSBC offer 24/7 control of clients’ finances allowing deposit...
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