Cash budget investment; IFFCO

Abstract

This project has been taken with an aim to prepare a three-month cash budget for IFFCO for period April 98 to July 93 and to suggest the limits up to which surplus can be invested in different instruments open to IFFCO the following suggestions are made based on the project 1. The cash budget on which the entire exercise of investment decision heavily hinges should be prepared in a more scientific manner and should be based on both past trends and future expectations. 2. The credit policy of IFFCO should be strictly followed This will greatly reduce the uncertainties in the prediction of the sales that can be collected in a particular month. 3. The effort should be made to smoothen the cash flows in either direction to avoid a sudden increase in cash outflows or a sudden decrease in cash inflows. This will help in making a sound investment decision. It is hoped that this report and the software prepare will be helpful to IFFCO in future.