PRESENTATION

ON
CASH MANAGEMENT
OF
ANS STEEL TUBES
(JBM
LTD.
GROUP) KAJAL

SUBMITTED
BY:-

Company Profile

NS Steel Tubes Ltd

Establishment Year
August 2007
Firm Type
Public .Ltd.
Nature of business
Manufacturer , Export /Import
Level of Expand
International

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.

ELEMENTS OF CASH
MANAGEMENT

Cash planning
Managing the cash flow
Optimum cash level
Investing surplus cash

Motives for Holding Cash

Transaction
Motive
Precaution
ary motive

Speculativ
e motive
Compensati
ng 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 companys
website.
Books and journals pertaining to the
topic.

TOOLS USED IN ANALYSIS

RATIO
ANALYIS

COMMON
SIZE
BALANCE
SHEET

Ratio analysis
Ratio analysisis 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.

RATIO ANALYSIS
S.N Particulars
o.

formula

2009

2010

2014

2015

1.

Current Ratio Current

0.72
asset/current %
liability

0.87
%

1.69% 1.63%

2.

Debt Equity
ratio

Debt /equity

1.45
%

1.55
%

1.73% 18.11
%

3.

Liquid Ratio

Liquid
0.60
asset/Current %
liability

0.64
%

0.90% 1.03%

4.

Gross profit
Ratio

Gross
-0.9% profit/Sales*1
1.05
00
%

6.6%

8.4%

5.

Working
Current
Capital Ratio 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%

Common size Balance Sheet

Assets

2014

2015

1. Non-Current
Assets

42%

35.4%

38.59%
2.35%

33.33%
1.89%

2.Current Assets

58%

64.6%

a. Inventories
b. Trade receivables
c. Cash and cash
equivalents
d. Short term loans

27.15%
28.03%
0.26%

23.9%
39.10%
0.21%

a. fixed assets
b. Long term loans

Total

2.49%

1.42%

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 companys 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

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_
management
.
http://www.managementparadise.co
m.