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…show more content… • Increase in Long term loans and advances is mainly due increase in the security deposits, MAT Credit entitlements and VAT/Sales tax receivables.
• Increase in short term loans and advances is mainly due to VAT realignments in coal companies , higher inter- corporate deposits with HDFC Ltd and higher advances to vendors in SED division of Tata Power.
• Decrease in Current Investments is mainly on account of sale of investment in mutual funds to meet the short term fund requirements.
How both companies arranged funds
Heads NTPC in Cr TATA POWER in Cr
Bonds / Debentures 9704 4063
Foreign Currency Note 7138
Term Loan 36210 2814
Others 200 1576
Total Long term borrowing 53454 8453
Shareholder Equity 80387 11041
NTPC: Share capital 8245464400 @ 10 Rs. face value, total Equity Share Capital 8245 Cr. Reserve and surplus are 72142 Cr, so total shareholder capital is 80387 Cr. Long term borrowings are 53454 Cr.
TATA POWER: Company has issued perpetual debentures amounting to Rs. 1,500 crore in June, 2012. Company has availed Rs. 378 crore at an average cost of 11.20% p.a. in FY13 from Infrastructure Development Finance Company Limited (IDFC).
Short Term Investment Comparison:
Company 2012 2013
NTPC 1622 Cr 1622 Cr
TATA POWER 584 Cr 259 Cr
NTPC short term investment - Current maturities of long term investments Bonds (fully-paid up) Unquoted 8.50 % tax-Free State