Cash Management:
Cash management is a set of strategies or techniques a company uses to collect, track and invest money. Cash management is a broad term that covers a number of functions that help individuals and businesses process receipts and payments in an organized and efficient manner.
It is process of collecting, managing and (short-term) investing cash. A key component of ensuring a company's financial stability and solvency
Comparison of cash flows NTPC Tata Power
PBT 16,579 1,703 Net Cash Flow from Ops 15,495 432 Cash Flow from Investing -14,017 -1,494 Cash Flow from Financing -752 803 Net Increase / Decrease in cash or cash equivalent 726 -259 Opening Cash Balance 16,142 661
Closing Cash Balance 16,868 402

NTPC:
• NTPC has a huge cash pile of Rs 17,000 crore and a debt to equity ratio of 0.9 only. The cash in the company represents cash on hand, a remittance in transit, deposits and current accounts with scheduled banks.
• NTPC has a good liquidity position and cash position is sufficient to meet all short term liabilities. The company has a good internal cash management system.
• Cash flow from operating activities has increased in the 2013 [From 10K Cr to 15K Cr.], apart from PBT, deferred currency fluctuation is the main reason for that.
• There is a drastic change in trade receivables from last year, which infers that cash is collected faster than the services are being rendered.
• Investing activity has gone up sharply. Purchase of the fixed asset is the main reason of cash outflow. Company invested around 16K Cr. In the purchase of fixed asset.
• Financial activities have improved because of cash in flow from long term borrowing.
TATA POWER:
• Companies cash and cash equivalent has decreased mainly because of investing activities has gone up.
• Increase in Long term loans and advances is