A Study on Cash Management Practices of Select Cement Companies in India


  • Umadevi R, Amruth Prasad Reddy A


Cash management is one of the key functions of a financial manager in maintaining a trade-off between liquidity and profitability in the company. The objectives of the present study are to analyze the size of cash holdings in assets structure, cash ratio, cash adequacy to meet daily operating expenses, and employee cost of the select cement manufacturing companies during the study period. The universe for the study consists of 4 cement manufacturing companies listed on the Bombay Stock Exchange. The analytical research design was adopted for the present study. The present research is based on secondary data and covers for ten years i.e. from 2008-09 to 2017-18. Both statistical and financial tools were used in the analysis of data. The study concluded that all four selected cement companies kept cash reserves at lower levels in their total assets during the study period, particularly private sector cement companies where cash reserves are least. Available of cash to meet day to day expenses are insufficient in the sample units. Therefore, the study concluded that there are poor cash management practices in selected cement companies during the study period. Therefore, the study suggested that there is a need for the improvement of liquid reserves in the cement companies to face future unanticipated financial and payment problems in the future.