A Synopsis on “Study of a Cash Management

in a Supermarket Store with Respect of

Reliance Mart and D-Mart”

Submitted to
As partial fulfillment for the award of
B.com [Accounting & Finance]
BAF

By: CHETTY AJITKUMAR RAMPRASD

PRN: 2021016401094035

Under the Guidance of

MR. PANKAJ DANGE
M.COM, M.A. (B.ECO), MBA (HRM),
B.ED, CA (IPCC),
Department of B.Com
[Accounting and Finance]

The Rayat Shikskan Sanstha’s Karmaveer

Bhaurao Patil College, Vashi, Navi Mumbai
1. INTRODUCTION

The project was undertaken mainly to study the cash management of RELIANCE RETAIL Supermarket in
Navi Mumbai. There is a big opportunity to see if the company’s liquidity will be more efficient through
cash management. Cash management is one of the most important areas in the day-to-day management of
the firm deals with the management of working capital, which is defined as all the short-term assets used in
daily operations. This consists primarily of cash, marketable securities, accounts receivable and inventory.
The balances in these accounts can be highly volatile as they respond very quickly to changes in the firm ‘s
operating environment. Healthy circulation of cash in the entire business operation is the basis of business
solvency.
Every transaction in a business result either in an inflow or an outflow of cash. There should be sufficient
cash with a firm all the time to meet the needs of the business. A cash flow statement is a statement
depicting change in cash position from one period to another. A proper planning of the cash resource will
enable the management to have cash available whenever needed and put it to some profitable or productive
use in case there is surplus cash available. Cash management is one of the key areas of working capital
management. A part from the fact that it is the most liquid current assets, cash is the common denomination
to which all current assets can be reduced because the other major liquid assets that are receivables and
inventory get eventually converted into cash.

2. OBJECTIVE OF THE STUDY

Cash flow management is principally concerned like any other management process of planning and control.
Although cash is the most vulnerable assets to theft in a firm, it is a surprising that there is completed lack of
formalized cash management in many industries today, while some industries prepares cash budget at the
beginning of their financial year without any following control mechanism and more over actual
performance are not corresponding with the budget at the close of the period. Others rely on monthly bank
reconciliation statement, which are often prepared late for management and management hardly see the
weakness or breakdown in cash management system until cash problem arise.
i. To find out how short supply of cash is disrupted the normal flow of operation of the industry.
ii. To ascertain the extend to which cash manager find it very difficult in timing of receipts and payment.
iii. To find out whether if the idle cash not invested will have any effect in the industry.
iv. To determine how loss on the opportunity of earning interest and the risk of keeping the liquid assets
affect the effectiveness of the industry. Answer or suggest rise by the problem of the study.
v. To examine the existence of cash management system in a supermarket.
vi. To evaluate the impact of a good cash management system on the profitability of a supermarket. vii.
To determine the influence of cash management system on the growth of a supermarket.
3. SCOPE OF THE STUDY
The study covers or concentrate on the information concerning the movement of cash or cash flows in
Supermarket reference to RELIANCE RETAIL Supermarket in Navi Mumbai. The main focus of the study
is proper management of cash inflow and outflow over a particular period of time. The study can be
generalized to other related companies for investment in their cash flow management. The study is there
aimed at improving the efficiency and effectiveness of cash management strategies in Supermarkets with a
reference to RELIANCE RETAIL Supermarket as case study. Cash is the life hold of any business. Without
it, the firm dies as a result of this many businesses both small and large are not doing well. Therefore, it is
risks to be ignorant of the immense benefit of such a study if a firm must survive grows, and attain its
objects. Also, the need for adequate cash for the firm is to enable the firm to maintain credit rating, take
trade discount, and meet emergencies and take advantage of business opportunities.

4. RESEARCH METHODOLOGY

The research used in this project is Analytical in nature the procedure using, which researcher has to use
facts or information already available, and analyse these to make a critical evaluation of the performance.

Sources of Data
There are two ways to collect the data for the research i.e. Primary data & Secondary data. The study is
based on both primary data and secondary data collection. Which is discussed below:

a) Primary Data

Primary Data is information that has been collected directly from its original source. It is original and unique
to the research project or study being conducted, as opposed to secondary data which has already been
gathered and published by someone else. Primary data can be collected through a variety of methods such as
surveys, interviews, focus groups, observations, experiments, and more. Data are collected through
Questionnaire Method from the company itself.

b) Secondary Data

Secondary Data is similar to the questionnaire method with a slight difference. The enumerations are
specially appointed for the purpose of filing the schedules. It explains the aims and objects of the
investigation and may remove misunderstandings, if any have come up. Enumerators should be trained to
perform their job with hard work and patience

 From the annual reports maintained by the company.

 Data are collected from the company’s website.
 Books and journals pertaining to the topic.
Sampling and sample size.

The sample of 125 respondents from Navi Mumbai City of Thane District will be selected by the random
sampling method as representative units of the whole population.

5. LIMITATION OF THE STUDY

• The study is restricted only to RELIANCE RETAIL and D-MART. Being a project, the findings cannot
be generalized.
• Time is one of the factors of limitation.
• Analysis is restricted to 5 years.

6. EXPECTED CONTRIBUTION

This research work will cover the study of Cash Management in a Supermarket Store with respect of
Reliance Mart and D- Mart of the entire Navi Mumbai Mart. The study will put some light on the
consumers’ decision making process and the aspects they take into consideration while buying the company
product. It will also help to rank the consumers’ choice regarding store, their reputation, cost, service,
convenience, and design of the product etc. The study will put some light on how company product’s will in
nature and what product should attract the consumers and to penetrate to buy it.

7. CHAPTERISATION

CHAPTER CONTENTS
NO.
1. INTRODUCTION

2. LITERATURE REVIEW

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS, INTERPRETATION AND

PRESENTATION
5. FINDINGS, CONCLUSION AND
SUGGESTIONS
6. BIBILOGRAPHY

7. APPENDIX