Free Essay


In: Business and Management

Submitted By silvester1
Words 3111
Pages 13
This is to investigate or examine by arguments. Examining the key points and possible interpretations, sift and debate, giving reasons for and against and then draw conclusion.(The Learning Centre 2012).
This is an institution, an association consisting of a group of people having common aim and objective, working in a common platform.

Profit making organization:
The organizations which are working for their benefit as well as for the benefit of the common people are called as the Profit Making Organization, for example cooperatives.
A profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing.
Non profit making organisation:
A non profit organization exists to provide a particular service to the community. The word "non profit" refers to a type of business one which is organized under rules that forbid the distribution of profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. The main aim of these organisations is helping the community and is concerned with money only as much as necessary to keep the organisation operating.
Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include trading in bonds, currencies, financial derivatives and the management. (Polak and Klusacek 2010). Emer (2001) also define it as the process of administering to the assets and holdings of a business. The goal of most treasury management departments is to optimize their company's liquidity, make sound financial investment for the future with any excess cash, and reduce or enter into hedges against its financial risks. INTRODUCTION
Treasury management was once viewed as a peripheral activity conducted by bank office boffins. Nowadays because of increasing scope of business operations in organisations, treasury management now plays a vital role in the management of profit making organisations. Most large organisations that have poor treasury management in the past have experienced problems, for example Queens Moat Houses. The decisions that are made by business have implications on the cash flow and risk, of which both are of direct relevance to treasury management. The treasury function in many organisations like Willovale Mazda Motor Company is very important in making sure that the business has sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks effectively. However the treasury function may be rendered less important in small organisations were the businesses operations are less complex. However Cheol (2007) argues that having a separate treasury department in small business is a waste of organisational resources especially where all the treasury duties can be carried out by someone else like the company secretary or accountant.
Deutscher (2009) claims that treasury management means financial management that is related to a future financial balance and cash flows of any corporation. Treasury and its responsibilities fall under the scope of the Chief Financial Officer,(C.F.O). In many organisations, the treasurer will be responsible for treasury function and also holds the position of Chief Financial Officer. (Polak and Klusacek 2010), they go on to say; high‐level treasury responsibilities will normally include capital management, risk management and relationship management. Treasury is a staff service function that supports many different areas of the organization. As an internal consultant to the teams in the different functional areas, treasury provides advice in the areas of cost of capital, risk analysis and mitigation, and the effects of the teams' actions on vendors, customers or investors.
Treasury function in any corporate has always been important in making sure that the business has sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks effectively.
Polak and Klusacek (2010), believes that the specific tasks of a typical treasury function include cash management, financial risk management, and assets and liabilities management. The following figure adapted from his writing shows the main three main functions of treasury management and their subsidiaries.

Figure1. Treasury management and its main responsibilities.

Source: Adapted from Petr Polak and Ivan Klusacek 2010; Centralisation of Treasury, Business Perspectives, Dzerzhynsky lan 10, Summy 40022 Ukraine; First Ed, p :14
Looking into each of the treasury management functions shown in the above chart we can now clearly come out with the importances of the treasury management function in a profit making organisation like Willovale Mazda Motor Company.
Cash management is defined as the management of bank accounts balances, either positive or negative, and cash flows of an organisation. By undertaking this duty the treasury management keeps the costs of cash flow as low as possible whilst minimising interest expenditure and maximizing interest income. (Ronald 2003)
The management of cash in an organisation by the treasury department allows the organisation to control spending, implementing efficient budgets, minimising the cost of borrowing while maximising the opportunity cost of the resources. (David 1999).
In his writing, David (1999) indicated that, the management of cash allows the implementation of an efficient budget which ensure that claims will be paid according to the contract terms and revenues being collected on time, this will enables an organisation to minimise its transaction costs while making additional cash by investing in revenue yielding papers bills and bonds, all this is facilitated by the treasury management function of an organisation.
Cash flow management
Gounopoulos (2008) argues that the treasury management function also includes the management of cash flows. Cash flow management is a process of monitoring, reviewing and regulating a company’s cash flows. Brigham and Gapenski (1997) argue that effective cash management encompasses efficient processing of both inflows and outflows which entails synchronising cash flows, using float, accelerating collections and getting funds where they are needed and controlling disbursements. He indicated that cash flow is basically the business’ oxygen and the main indicator of a company’s financial health; therefore there is need for good management of it. The management of cash flow helps a business to survive and prosper. Cash flow management helps to avoid shortages of cash and idle balances on the corporation’s accounts and it also helps strengthen the business through the timely estimation of overall cash inflows and outflows that is aided by the treasury. This idea is supported by Polak and Klusacek (2010) who claims that the treasury management is of much more importance to profit making organisation if it is to know its financial health.
Business analysts reported that poor management of cash flow is probably the most stumbling block for organisations. Having a treasury management team is the biggest solution for a profit making organisation. Deutscher (2009) argues that a business can be profitable in terms of the money it is expected to make but in real business the company’s profit can be of less importance if it is not accompanied by a positive net cash flow, as he argues that a business cannot spend profit but it can spend cash, which is ready money in the bank or in the business.
Liquidity management
Peter (2007) argues that treasury management is a vital function in an organisation on the grounds that it takes care of liquidity management, which is aimed at achieving the highest possible return on invested liquidity. Both long and short term liquidity are well planned for and this enables an organisation to operate efficiently.
In addition Polak and Klusacek (2010) highlighted the importance of this function on its management of an organisation’s working capital. Good working capital management ensures an organisation sufficient cash flow in order to meet short term obligations and operating expenses.
As shown by the above chart, the treasury management function is of importance to facilitate other functions like banking relationship, cash pooling, cash concentration and many others.
However other authors on the contrary argue that it is not the treasury management function which is important on the above matters but it is an integration of different organisational functions. This is to say all organisational functions are very important in the management of cash.
RISK MANAGEMENT. Risk is broadly defined as the probability of an unforeseen incident and its resulting penalty. Risk management is the identification, assessment and economic control of those risks that can endanger the assets and earning capacity of a business. (Olsson 2002) In identifying the risks for a specific business, it’s critical to encompass every facet of the business, from the most obvious risks common to many enterprises to any unique risks a particular business might have. Risk management is important in an organisation because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit home.
Financial risk management
An organisation can be exposed to a number of risks like financial risk which are market risks (e.g. interest risk, currency risk, commodity risk and equity risk) or credit risk, physical risk, intellectual property risk, legal risk and also operational risk. (Polak and Klusacek 2010). Risk management can help an organisation seize opportunity not just avoid danger (Dan Borge cited by Olsson 2002). Olsson (2002) believes that, in order to survive companies take risks, but these risks have to be managed and well monitored this is to say by managing risks the treasury management function is very important to profit making organisation.
The treasury management team is more concerned about financial risk management, this includes customer credit management, contractor/vendor financial analysis, liability claims management, business recovery, and employee benefits program risk (Polak and Klusack 2010). Vendor/ contractor risk analysis involves advising the purchasing management for viability and risks associated with different vendor and contracts to the business.
Aengus (2000) argues that without the treasury management function, a profit making organisation may incur losses as a result of several aspects like, the adverse movement of money and capital markets price or rates (foreign exchange rate, interest rate and securities prices), adverse change in financial markets. The treasury management function helps an organisation to foresee all these adverse changes that might affect the organisation’s profit level. For example without treasury management team, an organisation like Willovale Mazda Motor Company which import some of the parts used in the manufacturing of vehicles might experience the blow of exchange rate and interest rate risks if their fluctuation is not well monitored.
Ronald (2003) indicates that the best effective way of preventing business from foreign exchange risk is by having the treasury management team that have good knowledge about forward markets and the relevant skills to choose the most appropriate method of hedging and foreign exchange cover in the organisation .The treasury management helps an organisation to assess the various methods that can be used against risks, for example the use derivatives. By speculating and forecasting the company’s exposure to risk in the future, the treasury management helps on the decision of whether hedging or not hedging.
It is also very important for an organisation to have financial risk management because according to the Capital Asset Pricing Model (CAPM), shareholders require compensation for assuming risks. An investment or security’s risk is measured by the volatility of its returns to the investor over and above the vitality of the return from the overall market. Volatility is affected by three major factors of which financial risk is one of them. (Cheol 2007). So it is worthwhile to manage financial risk in order to reduce the volatility of returns of investment or security, so as to increase the overall return to existing shareholders.
Michele (2008) argues that by managing financial risk, the treasury team helps to avoid financial distress that is usually reflected in the inability of an organisation to raise finance for new projects, or refinancing the existing financial activities. It also help to prevent any adverse impact on the company’s chosen strategy.
The Turn ball Report recognises the importance of risk management (ICAEW 1999). The report suggests that the maintenance of an effective system of financial controls, including the maintenance of proper accounting records helps to ensure that the organisation is not unnecessarily exposed to avoidable financial risk and helps in safeguarding of assets and prevention and detection of fraud. To support, Hogan (1997) in his study find that the collapse of Barings Group in 1995 was greatly as a result of failure to manage, monitor and analyse their trading activities and the risks associated with them.
However the treasury management function is mainly important in the management of financial risks yet there are some risks which must be taken care of which are of importance to an organisation. Physical risks like fire, explosions and floods have to be managed too. Also intellectual property risk and legal risks management are among the most important activities in an organisation. This is to say that the treasury management function is not sorely important in the management of organisational risks.
As a function the treasury management is very essential in managing the assets and liabilities of an organisation. The firm’s balance sheet can be optimized through this function. (Polak and Klusacek 2010). The assets of an organisation must be well managed in order to avoid insolvency.
All business requires money or funding. The funds can be obtained from different sources either internal or external, however for business to enjoy good funding which does not have adverse effects on its operation it needs the help of the treasury management with the necessary knowledge of the sources that are available, the cost of the different sources. Without this knowledge the business can be funded in an unhealthy manner for instance too much external source (debt) or too much internal (equity) this might cause problems of high gearing and low shareholders’ wealthy respectively. (David 1999).
Again the close monitoring of funds (cash) and other current assets will provide sufficient liquid funds to support current and potential needs. Treasury management function also helps an organisation to choose on the best type of loan.
Although the aim of non profit organisations is to maximise their social impact and benefits that they provide to the community as opposed to profit maximisation by for profit organisation, both organisations still have expenses (Harvard Business School 1999).
Many non profit making organisations like football clubs and Non Governmental Organisation have staff of paid full time employees, managers and directors. So it is these reasons that there is also need for these organisations to continuously stay financially solvent, as running out of cash will sooner or later result in financial difficulties. Liner and Linzer (2006) argue that, the treasury management function is important for non profit organisations for the management of their cash flows. Unlike profit organisation, non profit organisations usually do not have a regular inflow of money. Cash flow typically fluctuate in the organisations and in most cases it is in form of grants, donations and fundraising that occur in discrete during the year. It is due to this nature of cash receipt and uncertainty of their cash flow, proper cash flow forecast and management by the treasury team is very relevant for all non profit organisations.
Zietlow (1997) argues that, the treasury management functions very important for the liquidity of management in a non profit organisation. He goes on to say these organisations have to have cash at their disposal so as to pay for bills ad liabilities.
In addition Zietlow and Seidner (2007) argue that it is important for a non profit making organisation to have the treasury management function.
With the diversity of responsibilities of treasury management discussed above it has come clear that the treasury management function is of great importance to both profit making and non profit making organisations. According to many authors it has also been noted that the survival and prosperity of organisations depends good management of financial resources by the treasury management function. However there are some certain areas where the importance of treasury management alone is not significant. The complimentary element between the treasurer and controller shows that the treasury management function alone cannot be enough for the organisation. This is to say treasury management function is very fundamental to organisations even though other functions are also essential.

REFERENCES 1) Allman Ward, Michele (2008). The Treasurer’s Guid to International Cash Management, First Ed, London WWCP. 2) Blair, David (1999) Corporate Treasury in Singapore; The Treasurer May p:15-17 3) Chang Ronald W. (2003) The UPS Model for Shared Service Centre. Treasury Management International-A Treasurer’s Guide to Treasury Locations. October p: 31-34 4) Carl Olsson (2002) Risk Management in Emerging Markets: How to survive and prosper, Pearson Education Limited. 5) Dorsman, Andre and Dimitrios Gounopoulos (2008) Controlling Working Capital in Multinational Enterprise. Journal of Corporate Treasury Management, Volume 2, No 2 p: 152-159. 6) Eugene F. Brigham and Louis C. Gapenski (1997), Financial Management, Theory and Practice. The Dryclen Press Harcourt Brace College Publisher. Eighth Ed. 7) Eun,Cheol S and Bruce G. Resnick (2007), International Financial Management, New York, McGraw, Hill/Irwin, Fourth Ed. 8) Hogan, W.P (1997), Corporate Governance: lessons from Barings, Abacus Volume33, No1 p: 1-23. 9) Harvard Business School (1999), Harvard Business Review on Non Profits, Harvard Business School Press. 10) ICAEW (1999) ,Internal Control Working Party, Internal Control: Guidance for Directors on the Combined Code, Institute of Chartered Accountants in England and Wales, London. 11) John Zietlow (1998);Financial Management forNon Profit Organisation, Wiley Non profit law, Finance and Management Series, John Wiley and Sons, Volume 109. 12) John Zietlow and Alan Seidner (2007); Cash and Investment Management for Non Profit Organisation, John Wiley and Sons, Inc, Hoboken, New York. 13) Murphy Aengus (2000); Solving the problems of globalisation, Treasury Management International, May p: 49-54. 14) Petr Polak and Ivan Klusacek (2010); Centralisation of Treasury, Business Perspectives, Dzerzhynsky lan 10, Summy 40022 Ukraine, First Ed. 15) Richard Liner an Anna Linzer (2006); The Cash flow Solution: The Non profit Board Member’s Guide to Financial Success, John Wiley and Sons.…...

Similar Documents

Free Essay


...__________________________ (Name of the Institution) __________________________ (Address) TO WHOM IT MAY CONCERN : We, the senior students of Finance & Treasury Management (FTM) under the College of Management and Entrepreneurship of Pamantasan Ng Lungsod Ng Maynila hereby respectfully request for the conduct of research / study about the following topics that concern your prestigious company, to wit: 1. Vision, Mission, Objectives, and Philosophy 2. Nature of Business 3. Corporate size 4. Rank in the industry as to profitability, liquidity, and solvency 5. Finance organizational structure and composition 6. Treasury department’s role, function, and delimitation of authority 7. Set qualification standards in the appointment or designation of a treasury manager 8. Treasury manager’s duties and responsibilities 9. Usual management practices that a corporate treasurer undertakes to ensure the company’s profitability 10. How does the treasury manager contribute towards the company’s growth 11. What are the common problems that the treasury manager encounters and how he resolves them? As such, the data and information that you may possibly disclose to us will be utilized in compliance with the terminal requirement of our currently being undertaken subject entitled TREASURY MANAGEMENT. Rest assured that all of your response to the aforesaid queries and other concerns will be used for academic purposes only, and......

Words: 265 - Pages: 2

Premium Essay

Us Treasury Yield Curve 9/30

...U.S. Treasury Yield Curve Analysis Understanding the US Treasury yield curve serves many important functions. It is utilized as a benchmark for pricing of assets, provides clues to an uncertain future, and helps in predicting where the US economy is headed. The above chart discloses the U.S. Treasury Yield Curve on October 1, 2012 (i.e., “as of 9/30”). It plots the relationship between interest rates shown on the vertical axis and bonds maturity dates on the horizontal axis or in other words the cost of borrowing in relation to the time of borrowing. On October 1. 2012 the US treasury yield curve has a typical upward slope from left to right and is otherwise known as the positive yield curve. An upward slope means that the bonds yield usually rises as the time to maturity lengthens. An upward slope is considered to be a “normal” since the greater risk should be compensated with higher rewards since longer maturities are exposed to more risks such as high inflation and the investor is unable to invest the money in other places for a longer period. An upward slope indicates that the financial markets are expecting the interest rates to rise in the future. It also reflects that the economy to grow in the future. A major factor that affects the shape of the US treasury yield curve is the Federal Reserve interest rate policy. It directly influences the short end of yield curve by buying and selling short term treasures in order to enact changes in the monetary policy and......

Words: 508 - Pages: 3

Premium Essay

Treasury Stock

...Treasury stock is an outstanding share which was repurchased by the corporation. Treasury stock can be reported using the cost or par value method. The mostly commonly used method between the two is the cost method. The cost method only requires firms to record The par value method requires a company to record the cost of repurchased stock at the value that they assure to shareholders is backed. The cost method requires companies to record treasury stock at price it was purchased at. Recording the transaction of acquiring treasury stock below par value under the cost method would require a journal entry consisting of a debit to Treasury Stock and a Credit to cash, which ignores the loss or gain contributed. Using the par value method for the same situation requires a debit to Treasury Stock and Additional Paid in Capital –Treasury Stock and a credit to cash. The Additional Paid in capital account is used to account for the difference in the par values. If the stock is repurchased at price above par value the entry under cost method would remain the same. While the entry under the par value method would be a debit to treasury stock and a credit to Additional paid in capital-Treasury Stock and cash. Whether the stock was purchased under or above par value affects the recording of the resale of the treasury stock. If the stock is sold at a price below the purchase price but above par value it would be recorded as a credit to treasury stock for the purchase price and......

Words: 286 - Pages: 2

Free Essay


...Why is a share of Microsoft common stock an asset for the owner and a liability for Microsoft ? The capital of the company include a single share who buy the share and investing in the share capital of the company and give the money to running the company. That will be called the shareholder and shares will be the assets of the shareholder. Because the company needs capital to run the company. Also, they have liability need to pay back the money to shareholder. They have the agreement to protect the share issue. Total assets – Total liabilities = shareholders equity. We need to understand this relationship, it show the demand on the company assets. 2. Discuss some of the manifestations of the globalization of world capital markets The Globalization can make a visualize firm who has raw materials from one domestic company and financial capital from the other someone. Make the goods and sell the product in other national markets. The economic and political events will affected the stock market goes up and down. The good news will make the stock market goes up. The market is more diversifies, the prediction and future planning will be more difficult. It will affected the trading currency, too. For example, you want to use US dollar to buy Chinese Yuan. The global operations affected the international banking and foreign exchange risk. 3. Why was the Federal Reserve System set up with 12 regional Federal Reserve Banks rather than one central bank as in other......

Words: 307 - Pages: 2

Premium Essay

Treasury Analyst

...without physical substance, including patents, trademarks, franchise rights, goodwill and other costs the company incurred that provide future benefits. 3. Equity – represents capital that has been invested by the shareholders, either directly via the purchase of stock, or indirectly in the form of retained earnings that reflect earnings that are reinvested in the business and not paid out as dividends. “Residual Interest” c. Contributed Capital ix. Common Stock – par value received from the original sales of common stock to investors x. Preferred Stock – value received from the original sale of preferred stock to investors; preferred stock has fewer ownership rights compared to common stock xi. Treasury Stock – Amount the company paid to reacquire its common stock from shareholders xii. Additional paid-in capital – amounts received from the original sale of stock to investors in excess of the par value of common stock d. Earned Capital xiii. Retained Earnings – accumulated net income (profit) that has not been distributed to stockholders as dividends xiv. Accumulate other comprehensive income or loss – accumulated changes in equity that are not reported in the income statement Contributed Capital – the net funding that a company received from issuing and reacquiring its equity shares; that is the funds received from issuing shares less any funds paid to repurchase such shares Earned Capital......

Words: 2224 - Pages: 9

Free Essay


...A Treasurer's Guide to Money Market Funds 2012 The World Behind Fitch’s MMF Ratings by Charlotte Quiniou, CFA, Director in Fitch Ratings Fund and Asset Manager Rating Group Fitch money market fund (MMF) rating is far more than just a stamp on a fund. Its value for investors comes from the depth and breadth of the underpinning rating analysis and process. A key component of a Fitch MMF rating is also the regular, independent surveillance performed by Fitch’s analysts, which supports ongoing dialogue with fund managers, so that systematic mechanical reactions are avoided. To better serve investors, Fitch provides information on rated MMFs and developments in the money market industry, notably based on MMF surveillance information, through freely available periodic publications and online tools. A Disciplined procedures ensure consistency Fitch conducts analysis and assigns ratings on MMFs following a consistent, disciplined process that is applied globally. The diagram in Figure 1 provides a summary view of the major steps followed by Fitch when assigning or reviewing a MMF rating. At the start of the rating process, each MMF is assigned to a group of two analysts: the primary (or lead) analyst, and the secondary (or back-up) analyst. Analysts are responsible for leading the analysis and formulating a rating recommendation. The primary analyst is typically responsible for the continuous surveillance of the rating, once it has been assigned, and maintaining the...

Words: 2130 - Pages: 9

Premium Essay

The Us Fiscal Outlook & China’s Role in the Us Treasury Market

...------------------------------------------------- The US Fiscal Outlook & China’s Role in the US Treasury Market ------------------------------------------------- -Fixed income project key words FISCAL, DEBT CEILING, TREASURY, THE FED, CHINA Written by Gong Li 1155019071 Jiang Peng 1155038183 Yang Mengdi 1155020855 Zhang Yiwen 1155010794 Zheng Qianfei 1155038175 Written by Gong Li 1155019071 Jiang Peng 1155038183 Yang Mengdi 1155020855 Zhang Yiwen 1155010794 Zheng Qianfei 1155038175 CONTENT Executive Summary 1 1, The US Fiscal Outlook 3 -Recent and historical fiscal outlook 3 -The US debt ceiling and recent crises 4 -Financial cliff (2013) and its impacts to the US economy 5 -The US fiscal future 6 2, Fiscal Situation and Treasury Market 9 -The role of US department of the treasury 9 -The role of the Federal Reserve 9 -The US treasury market 10 -The Fed, the interest rates, the QE and the taper 12 -The prediction of the future interest rate 13 -Summary 14 3, China’s involvement in the US Treasury market 15 -China’s Ownership of US Treasury Securities 15 -Reasons of China’s preference for the US Treasuries 16 -The Symbiosis between China and the US in Terms of US Public Debt Holdings 18 -Our Suggestion on China’s Future Position in the US Treasury Market 20 References 22 Executive Summary The state and local governments continue to face fiscal challenges in the short- to medium-term term. According to the Government......

Words: 6091 - Pages: 25

Free Essay

Us Treasury Bills Auction Pricing

... 2013       MANAGERIAL  ECONOMICS   GROUP  PROJECT:   “US  TREASURY  BILLS  AUCTION  PRICING:  ANALYSIS  OF  THE  STRUCTURE  AND  PROCESSES”   Professor:                     Done  by:   The goal of this paper was to analyze and explain the auction system process held by US Treasury and the possible alternatives for it (multiple-pricing auction). Introduction. The U.S. Treasury Department regularly borrows to finance the Federal Government's debt. From 1980 to 2006, the public debt of the United States grew from $930 billion to $8.68 trillion. Approximately one-half of that debt is held in Treasury bills, notes, and bonds, or "treasuries." The Treasury Department sells these securities at auctions held at the Federal Reserve Bank of New York, and the Bureau of Public Debt (BPD) in Washington, D.C. The rest of the debt is held mostly in federal and federally sponsored agency securities and U.S. Savings Bonds, and is not sold through the auction process.1 The modern auction process for bills, notes, and bonds begins with a public announcement by the Treasury. A typical announcement might read, "The Treasury will auction $11,000 million of 91-day bills to refund $9,000 million of maturing securities and to raise about $2,000 million new cash." This statement clearly describes the 2 goals of Treasury: to refund old debt and to raise new funds. Such announcement is carried......

Words: 4454 - Pages: 18

Premium Essay

Treasury Management

...Executive Summary Perwaja Steel Sdn Bhd has recently downgraded their bonds to non-investment grade and this has led to questioning regarding their ability to pay bondholders. The problem arise because of the operational risk involved due to the market price of steel is very low and by selling these steels to pay bondholders would be a loss to Perwaja as the selling price will be lower than its cost price. Perwaja also faced currency risk due to the weakened ringgit against country of suppliers whom they rely heavily upon imported raw material. Moreover, high reliance upon debt financing which in return has also directed to higher liquidity risk and cash flow problems. As the result of these, Perwaja may encounter higher interest rate risk, as it would be difficult for the company to source for funds and higher cost of borrowings. Company profile Perwaja Stell Sdn Bhd is primarily involved in manufacturing and trading of reduced iron, steel billets, beam blacks and blooms which is supplied to downstream producers, both domestic and international markets mainly in Asia and the Middle East. The company operates as a subsidiary of Perwaja Holdings Bhd. Perwaja is categorised under the MISC Structural Metal Work Industry. Perwaja Steel Sdn. Bhd. was founded in 1982 and is based in Kuala Lumpur, Malaysia. It was formerly known as Perwaja Terengganu Sdn Bhd, but in year 1989, the company changed its name to Perwaja Steel Sdn Bhd. The Executive Chairman is Tan Sri Abu......

Words: 2110 - Pages: 9

Premium Essay


...Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include trading in bonds, currencies, financial derivatives and the associated financial risk management. Most banks have whole departments devoted to treasury management and supporting their clients' needs in this area. Until recently, large banks had the stronghold on the provision of treasury management products and services. However, smaller banks are increasingly launching and/or expanding their treasury management functions and offerings, because of the market opportunity afforded by the recent economic environment (with banks of all sizes focusing on the clients they serve best), availability of (recently displaced) highly seasoned treasury management professionals, access to industry standard, third-party technology providers' products and services tiered according to the needs of smaller clients, and investment in education and other best practices. For non-banking entities, the terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger (and includes funding and investment activities mentioned above). In general, a company's......

Words: 1469 - Pages: 6

Free Essay

Treasury Caino Bri

...Treasury Casino Briefing The Treasury Casino, also known as The Treasury is a casino in Brisbane, Queensland, Australia. It also houses a hotel, five restaurants, seven bars, and a nightclub. The casino is operated by ECHO Entertainment Group. The Treasury Building is one of three structures in this Brisbane neighbourhood full of historical value. Treasury Casino is housed in and gets its name from the Treasury Building, built in the opulent style of the late 19 th century. Nearby sites noteworthy in both Queensland and Australia’s past: the former Officer’s Quarters and Military Barracks from the time of British colonial control. The building itself is a large structure with carvings and artistic flourishes covering its exterior. Inside is the actual Treasury Casino, which opened in 1995. Multiple floors of casino entertainment including one of the largest collections of table games on the continent, are sprinkled with standards like blackjack (available at a variety of wager sizes) as well as a big variety of gambling machines. Restaurants Treasury Casino is part of a larger complex that includes four restaurants serving four world cuisines – Cafe 21, Blackjack’s, Pastano, and Marco Polo. A trend in modern casino-resorts toward a variety of bar scenes gave rise to the five on-site pubs, where casino customers and tourists visiting Brisbane rub elbows with locals. The formal Livewire Bar is the polar opposite of Sports Bar, where casual dress and big-screen TVs are......

Words: 1244 - Pages: 5

Premium Essay

Who Is Buying Us Treasury Bonds and Why

...“who is buying US treasury bonds and why”. With the development of economic globalization, countries have a deep communication on the import and the export. Generally speaking, US dollar is the main way to trade in this environment. Therefore, to keep a relative stable exchange rate between home currency and US dollar becomes a topic for every country. Buying US treasury bonds is the main way to control the balance between home currency and US dollar. On the other hand, different countries have their own reasons to buy US treasury bonds except this main reason as well. We are going to answer this question from talking about the reasons China, Japan and EU buying US treasury, because they are the first three holders. To answer this question, we found the data from the website called “US department of the treasury”. The first data is a table showed “Foreign holdings of U.S. securities, by country and type of security, for the major investing countries into the U.S., as of June 30, 2011”. In this table, China, Japan and EU are the three main economic entities hold more U.S treasury bonds than others. In 2011, China and Japan were the first two countries held 1,727 billions of dollars and 1,585 billions of dollars respectively. European countries followed them after. While the UK held 982 billions of dollars, Luxembourg, Switzerland, Belgium and Ireland held 817,488,443, and 405 billions of dollars. The second table is called “Major foreign holders of treasury......

Words: 1101 - Pages: 5

Free Essay

Treasury Bill

...CURRICULUM VITAE ARADHYA SRIVASTAVA B 37/175, A-4, Birdopur, Baijanatha, Varanasi, 221010 Uttar Pradesh. Tel: 0542-2363829 ARADHYA SRIVASTAVA +919616164414 Email: - OBJECTIVE:-. * To work in challenging environment in the organization and by using my capability to enhance the growth and prosperity of organization and to simultaneously enrich my skills. PERSONAL SKILLS:- * Comprehensive problem solving abilities, excellent verbal & written communication skill, ability to deal with people diplomatically willingness to learn, team, facilitator. ACADEMIC QUALIFICATION:- * High school from CBSE board in 2004 with 60%. * Intermediate from CBSE board in 2006 with 74% * Completed for SCHOOL OF MANAGEMENT SCIENCE VARANASI affiliated to VBSP university in 2009 with 62% * Completed from FACULTY OF COMMERCE BHU in 2011 with 68% * Pursuing PGDM (financial services) from JAIPUIAN INSTITUTE OF MANAGEMENT lucknow EXPERIENCE Six month experience with an C.A as an assistant audit officer in different office COMPUTER SKILLS:- * DIPLOMA IN FINANCE AND ACCOUNTING in 2011 from NIIT * ADVANCE DIPLOMA IN COMPUTER APPLICATION in 2009 from * TALLEY 7.2 form tally academy * Certificate of merit from school of management science PERSONAL DETAILS:- * Name : ...

Words: 255 - Pages: 2

Premium Essay

Treasury Analyse

...considered for incorporation in the LTP portfolios and a result of that the performance of LTP at the end of 2004 turned out to be excellent. Moreover, the Investment Committee wanted to expand the investment of the real assets and Mr. Manning had to recommend the composition and the size of the real assets to be incorporated into the LTP. Analysis Structure of Healthcare Partners System and Importance of Investment Returns There were several centrally managed pools operating at Partners Healthcare and the main objective of the organization was to satisfy the needs of the various hospitals that were operating under the network of Partners Healthcare. These investment pools had been devised and managed by the Partner’s Treasury. All the physician organizations and the hospitals could contribute their funds and invest in these pools. The structure is as follows: There were many centrally managed pools at Partners Healthcare however, Mr. Manning had focused on two of these pools which were the STP and LTP. The fixed income managers managed the STP and this pool comprised of all the low risk assets that’s why its current annual yield of 3.2% was also considered as the risk free rate. On the other hand, the LTP comprised of different types of equities, which had higher returns but their risk was also pretty much higher as compared to all the other asset classes. All the hospitals were different in terms of their characteristic and the risk tolerance......

Words: 481 - Pages: 2

Free Essay

Bank Treasury

...There was a general increase in the Bank’s portfolio of both assets and liabilities for the year ending December 31, 2010 when compared to the previous comparative period. This was mainly attributed to increases in the Bank’s loans and advances, investment securities and customer deposits. Assets for the year ending December 31, 2010 increased by $240,359 (29.22%) when compared to the previous year and this was primarily due to increases in Loans and Advance and Investment Securities which were $127,732 (29.41%) and $101,654 (39.97%) respectively. Although there was an increase in the Loans and Advance figure, General Loan Loss Reserve also increased by $1,261 (63.40%). Included in the Investment Securities are USD investments totaling $70 million and this represents 19.66% of the total investment portfolio. Liabilities increased by $214,000 (31.47%) for the comparable periods. The Bank’s debt to equity ratio moved from 4.77 to 5.29 from December 31, 2009 to 2010 indicating the additional loans and investments and deposits obtained in 2010. A comparison the Bank’s current ratio doubled from 1.08 in 2009 to 2.11 in 2010 reflecting an increased liquidity position. These analyses also demonstrate a greater appetite for Bank T & T Ltd. Capital Management Bank T & T limited’s objective is to continue operating as a going concern and as such when managing capital would be required:- • To comply with the capital requirement set by the regulators under the Financial......

Words: 1229 - Pages: 5

IMDb: 4 HD Shutter | Beyond The Mask | Killjoys 2.Sezon izle