A Comparative study on cash management (National Trading Limited and Salt Trading Corporation Limited)

Bc. B.Sc. Sushma Maharjan

Master's thesis

Abstract:

Nepal is one of the least developed country, where more than 70% of the economically active people are depending on agriculture for livelihood. For bright economic development of Nepal, traditional agricultural can be transformed through the process of industrialization. With this vision government introduced NTL as a trading organization, with main function of trading activities including quota goods to be imported from India for the purpose of establishing domestic prices, regulating the supply of basic construction materials, machinery goods and consumer goods. After a year STCL was introduced under NTL and government policy. Its main moto is to provide quality goods in reasonable price for general people with even lower level income. For easily available to general people, STCL has established its 6000 dealer all over Nepal. Cash management is all about management of liquidity in order to effective and efficient survival of a firm, keeping record of day to day activities are essentials for every organization. Cash management is not only managing cash as an asset, its about how liquidity assets can be used to earn extra money by using smart payment cycle. This research is about how some companies are not being able to succeed on their day to day business due to inappropriate use of liquid. To understand the financial situation of these two company Ratio analysis, Statistical analysis and Trend analysis tools are used to identify financial situation and to overcome with actual problem. NTL is government owned organization which is established for the public well-fare with non-profit motive. Whereas, STCL is formed to provide quality products on reasonable price to make profit. Due to which STCL financial position is better than NTL.

Keywords

Nepal, NTL, STCL, financial position, cash management, ratio analysis, trend analysis, statistical analysis

Language used: English

Date on which the thesis was submitted / produced: 6. 4. 2020

Thesis defence

• Supervisor: Ing. Zdeněk Toušek, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics Policy and Administration / Business Administration