Study On The Funds Centralized Mangement Of Tongling Nonferrous Metals Group Based On The "Cash Pool" Model

The current domestic and international economy is in a downward period,and the external financing is limited.Therefore,the management of internal funds is particularly important.For the real economy,especially enterprise group,how to collect and co-ordinate the use of stock funds,to deal with financial risk,and to save financial costs will have a significant impact on business management."Cash pool" model is one of the most effective management models of internal financial management.Under this model,the internal funds' use and balance can be grasped and monitored in time,and the enterprise group can centralize the funds of each member unit,and it can also effectively co-ordinate,deploy and re-distribute the funds,so as to improve the funds efficiency and save the cost.Domestic scholars' studies on the "cash pool" funds centralized management mainly focus on theoretical research,and case study of large enterprise groups in line with China's national conditions is relatively few,and studies on the centralized fund management experience,the operation process and the existing problems are especially less.Tongling Nonferrous Metals Group is one of the copper processing industries which attempt to apply "cash pool" model.In November 2010,the group set up a finance company as its platform,and apply the "cash pool" model in the whole group,the group.Through the concentration of funds is largely increased,this model is still needed to be improved.The purpose of this study is to give a brief introduction to Tongling Nonferrous Metals Group "cash pool" funds centralized management model,so that more enterprises can understand the "cash pool" model's operation process,understand its advantages and spread its application in other enterprise groups.This study uses theory research,case analysis,and comparative analysis methods.Through the study,some improvement measures are proposed to perfect the Tongling Nonferrous Metals Group "cash pool" model.This thesis is divided into six parts.The first part is the introduction to the concept of "cash pool" model and its current research at home and abroad.The second part discusses the relevant theories of funds centralized management,the characteristics of "cash pool" model and the connotation and function of other related concepts are also defined.The third part is a case study,in which a large state-owned enterprise group,Tongling Nonferrous Metals Group,is taken as an example,and the characteristics ofthe management of the implementation of the "cash pool" model is analyzed.The fourth part analyzes the problems and the reasons of the "cash pool" model of Tongling Nonferrous Metals Group according to its external environment.The fifth part introduces one of the most successful "cash pool" model: Harbin Pharmaceutical Group's model.The sixth part suggests some improvement measures to perfect Tongling Nonferrous Metals Group "cash pool" model according to HPGC's experience."Cash pool" model can effectively integrate the funds,improve funds efficiency and save the cost,but in actual operation,it must be optimized according to the nature of the national policy,the enterprise and the industry.In this thesis,through the analysis of Tongling Nonferrous Metals Group "cash pool" model,especially through the analysis of the existing problems and reasons,some improvement measures of cash pool management are put forward,which has practical significance for guiding the management of funds of Tongling nonferrous metals metal group;at the same time,it also has a certain significance for other groups to use the “cash pool” centralized management of funds.