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Cash management involves the efficient collection and disbursement of cash and any temporary investment of cash while it resides with the firm. Cash management includes management of marketable securities also, because in modern terminology money comprises marketable securities and actual cash in hand or in a bank. Thus cash management is concerned with the management of cash inflow and cash outflow of the business concern, cash flows within the business concern and cash balance held by the business concern at any point of time. Management of cash is of paramount importance for the overall activities of a business concern to survive and for smooth running.
During the study period it was found that there was  high volatility in total cash payment and  cash ratio. High cash turnover ratio indicates that board has better utilization of cash resources and better financial management of cash  but this  table indicates that  only  for few  years it had  high  ratio  and during most  of the study period it had low ratio  which is not worthwhile for the board. The average annual growth of the total cash payment was 79.55% while the average cash growth was (-) 17.22% which indicates dangerous cash management by the board. The cash management position of MPSEB is not satisfactory because it has not maintained adequate amount of cash in hand and cash at bank.

Keywords

Daily Cash Payments, Basic Defensive Internal, Super Quick, Debt Services.

1. Compendium of Power Statistics of MPSEB from 1995 - 1998 to 2004 - 05, M.P. Power Transmission Co. Ltd., Jabalpur, pp.68-73.
2. Lester, E. Heitger Serge Matulich (1976), Managerial Accounting, International Student Edition, p.574.
3. Singhvi, S., Surendra and Kacipisch, A. John (1970), “Cash Management in a Developing Economy”, Review of Manasgement, Economic and Political Weekly, Vol.35, (Aug.29), Bombay, p.95.
4.  Ibid.,p.85.
5. Srivastava, R.M. (1979), Financial Management, Principles and Problems, Meerut, Pragati Prakashan, p.477.
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