THE STUDY ON FINANCIAL PURPOSES OF

ZULAIKHA MOTORS

G. MANIKANDAN
REG:NO – RA1752001010178
INTRODUCTION

• Cash is the important current asset for the operations of the business. basis; it is
also the ultimate output expected to be realized by selling the service or product
manufactures by the firm.

• The firm should keep sufficient cash, neither more nor less. Cash shortage will
disrupt the firm’s manufacturing operations while excessive cash will simply
remain idle, without contributing anything towards the firm’s profitability
COMPANY PROFILE

• Zulaikha Motors are one of the leading authorised dealerships for Mahindra &
Mahindra personal and commercial range of vehicles in Chennai.

• Zulaikha Motors dealership belongs to The Buhari Group , which has a robust
presence in automobile industry.

• Also owns dealerships for Mercedez Benze and volkswagen in Chennai.

OBJECTIVES

• To study about all the inflows and outflows of cash.

• To make an estimation of the cash needs for a period of 5 years.

• To study the liquidity position of the company

• To know about the short-term investments in the company.

EXECUTION
STATISTICAL TOOLS

1. Ratio Analysis
2. Cash flow statement
3. Funds flow statement
4. Cash Budget
 APPROACH

• The managers increased need for more and better information.

• The availability of improved techniques and tools meet this need.

• The resulting information overloaded if discipliners not employed in

the process
 FINDINGS AND OUTCOMES
• The absolute liquid ratio is highest in the year ended 2016 (1.01) and
lowest in the financial year 2014 (0.90).

• The current asset to fixed asset ratio is highest in the year 2016 (3.85) and
very low among other years on the year ending 2015 (2.87). Hence the
current asset increases rapidly.

• The cash from operation for the year ended 2016 and 2015 are
Rs.46939.19 (in lakhs) and Rs.58849.89 (in lakhs) respectively.
SUGGESTIONS
• The management can take necessary steps to increase sales level with various
suitable sales promotional activities in order to gain more profit.

• The company may go for cost reduction strategies to reduce the future expenses,
which would in turn project higher profitability

• Maintain a better liquidity position through better cash management

• The company has to improve the cash position to meet the daily requirements

• The working capital in the organization is very low particularly in the year ended
2016-16.
RESEARCH
Purpose clearly outlined.

Analysis method elaborates.

Analysis style through.

High moral standards applied.

Limitations honestly discovered.

Adequate analysis for call manufacturers would like

Findings given unambiguously

CONCLUSION
• The study on the effectiveness of “CASH MANAGEMENT” at
“Zulaikha Motors” has provided a clear view on the activities of the
company.

• This analysis had been concluded that the Cash Management at

“Zulaikha Motors” is not effective in some of the aspects. The use of
the ratio analysis, fund flow, cash flow statement and other
accounting and financial management helped in this study to find out
the financial soundness of the company.
THANK YOU