Structure Of Financial Management Mode In Sichuan Tobacco Company

It was raised for the first time in the Decision of the Third Plenary Session of the 16th Central Committee of the Communist Party of China that property right is the kernel and main content of the ownership system, and a modern property right system with clear ownership, definite right and responsibility, strict protection and smooth circulation should be built up. The modern property right system is the foundation of the modern enterprise system. Clearly defined property right is the primary feature of the modern enterprise system. The publication of the State Council's No.57 Document indicates a new stage for the reform and development of Chinese tobacco industry. In 2005 the tobacco industry began to progressively set up the property right relation linked by assets, and conducted pilot work of establishing parent-subsidiary company system in Yunnan/ Guangdong tobacco industry enterprises and Sichuan business enterprises. On the basis of the success, it then completed the work of asset integration in the whole industry in 2006. Thus, a three-level parent-subsidiary company system including the General company, the Provincial companies and the Prefecture-level city/City companies was set up, with a two-level management and three-level accounting system. By further clarifying the property right relation and setting up a business management model linked by assets, the tobacco modern property right system was accordingly established. The industry management has been transformed from focusing on administrative management to attaching equal attention to both administrative management and asset management. Entrusted by China National Tobacco Corporation, Sichuan Tobacco Company has fulfilled its right as a contributor and borne the responsibility of preserving and increasing the State-owned asset value.The enterprise group is an integrity linked by property right, where the act of each member unit of the group is restricted by the property right power. That makes the financial management of the enterprise group distinctly different from that of individual enterprise. The key of the enterprise group's future development is to establish an efficient financial control system. In theoretical research, it has achieved many important theoretical breakthroughs on group financial control; however there has been no systematic discussion on the scheme of financial governance and financial right after the asset integration of Sichuan tobacco industry. How to combine the industry development and having a deeper thinking on the financial management, asset management and financial accounting of Sichuan tobacco, is the fundamental work to totally enhance the enterprise financial management level.This paper intends to start from the current status of Sichuan tobacco's management system and financial management, interpret the asset integration of Sichuan tobacco, and meanwhile clarify the effect of asset integration on financial management. Further, commencing with financial governance and financial management, the author will have systematic research and explanation on the theoretical problems relating to financial control framework and the practice of Sichuan tobacco industry, in order to build up a set of financial management model applicable to Sichuan tobacco development under the background of asset integration reform.This paper is divided into three parts for research on Sichuan tobacco's financial management model:The first part analyses the current status of Sichuan tobacco industry's financial management. Firstly it introduces the historical development and evolution of Sichuan tobacco, it elaborates in details the current tobacco circulation status of the tobacco business enterprises, the current status of tobacco leaf's manufacture-supply-sale, the development trend of domestic tobacco business and the current business status of Sichuan tobacco, and clearly outlines the existing situation of Sichuan tobacco. Secondly, it makes an exhaustive introduction of the original management system, the reform idea, current management system. On such basis, it addresses the features of Sichuan tobacco's financial management. Finally, it points out the changes brought by the continuous adaptation of Sichuan tobacco's financial management to the system reform of tobacco industry, and in the meantime, it discusses the current financial management status in terms of organizational structure, financial accounting, asset management, financial management etc. and points out the weakness in the current financial management.The second part anatomizes asset integration and its effect on financial management. Because of the great effect of asset integration on the whole management system reform in tobacco industry, a very important part, the reform background, specific content and the implementation course of asset integration are discussed in details, including the definition of asset integration, and the basic principle, major target and the scheme of tobacco business asset integration, especially the clear orientation of the Provincial and the Prefecture-level city/City companies'function. It indicates that, via asset integration, the tobacco industry sets up a property right relation by the linking of asset, which brings effect of different degrees to industry financial accounting, asset management and financial management.The third part makes a consideration of the financial control framework of Sichuan tobacco industry. Commencing with the directive thinking of building up a Sichuan tobacco financial control framework, it emphasizes the crucial function of financial control in the enterprise group financial management. By pointing that the enterprise group financial management contains two levels: financial governance and financial management, it describes in details the meaning, necessity and features of enterprise group financial governance. Based on the above analyses, combining Sichuan tobacco's features, it raises the planning principles for the financial control framework of Sichuan tobacco industry. Finally, upon the scheme of financial management right, financial organizational structure, responsibility and procedure, it proposes the plan for Sichuan tobacco financial governance; upon the nine aspects, namely investment management, capital management, budget management, cost management, distribution of profits, performance evaluation management, tax management, assets management, adjust accounting and accountant management, it sets out the main content of Sichuan tobacco's financial management and constructs Sichuan tobacco's financial control framework.This paper is about researches on relevant problems relating to group financial management system after the asset integration in the tobacco system. This paper is of strong practice and closely connecting to the very practical and latest process in the tobacco industry reform. Relevant theory based, experience summarization and aiming at solving practical problems are the main features of this paper.Due to the author's limited professional knowledge and capability of handling relevant documentation, as well as comparatively insufficient understanding of the practice and relevant policies in the tobacco industry reform process, there are some insufficiencies in this paper, which the author will keep improving in the future study and research, and the author appreciates any criticism and correction from the experts and scholars.