Research On Group Company Capital Centralized Management Based On "Cash Pooling" Mode

Capital, like the blood of company, is the source of company growth, flowing through the whole processes in production, operation and management. Group company is the consolidation from many each individual companies, that is facing more and more complicated outside environment. How to achieve capital scientific configuration within group companies and how to keep capital operation with high efficiency between group companies and outside capital market are the common focus both from theory and realistic aspects. For most group companies, especially larger group companies, capital centralized management is widely implemented. Among these difference modes of capital centralized management, this article select “Cash Pooling”, a more efficient and scientific capital management mode, as the research object. “Cash Pooling” mode can consolidate the advantages from both internal and external resources and is helpful for group company internal organization optimization and system improvement on capital budget management.This article is based on related theories on group company capital centralized management. Based on theory support, this article has a detail introduction of “Cash Pooling. Then through a case study of group company “Cash Pooling” setup and implementation, this article proves that “Cash Pooling” mode is originated from group company subjective and objective demand and its necessity to group company capital centralized management. Through research, “Cash Pooling” mode achieves the targets on scientific integration of group company internal resource and improvement of group company capital activities security and efficiency and internal management level, which will provide strongly capital support on group company development.