Management of cash in enginering goods industry in Tamil Nadu: A case study

Cash Management has assumed importance because it is the most significant as well as most unproductive of all the assets. The adequate and timely flow of cash determines the success of an industry. The study investigates cash management of engineering goods industry in Tamilnadu using the panel data set for the period 2006–2011. Present study also finds positive association of sales with cash. In the study, an attempt has been made to present an in-depth analysis of cash management in engineering goods industry to find out the practice and performance in maintaining cash balances. A majority of the units borrow at a higher rate of interest at the time of shortage of cash. Auto parts, electrical goods, machine tools, screw valves units have value over and above the average. There is a significant effect of sales on the cash at a 99% level of significance, as 56 percent dependency of cash on the sale has been found.