Research On Problems And Countermeasures Of Fund Management Of J Construction Group

At present,the state has made adjustments to the development of macroeconomics,adopted a tight monetary policy,and reducing leverage and reducing liabilities has become the political requirement and economic responsibility of state-owned enterprises.The rapid rise in housing prices has affected the lives of the people.Therefore,the state has imposed strong control measures on first and second tier cities to limit purchases.Compared with other industries,construction companies are capital-intensive industries.When infrastructure projects are built,local governments often use PPP and BOT financing mode to relieve financial pressure.The demand for funds is large,but the implementation of construction funds is slow.These backgrounds have intensified the competitive pressure of construction companies.Construction companies want not to be eliminated and continue to operate in the torrent of reform.They must pay attention to fund management.Scientific and reasonable fund management methods and effective implementation can reduce corporate risks and help to enhance the comprehensive management capabilities of the enterprise.Different construction companies and the same construction company in different periods,the scale of enterprises,development strategies,and capital management status are all different.In the specific development of fund management activities,it is necessary to follow the basic principles of the enterprise development strategy and capital management needs,to avoid improper fund management programs that have a negative impact on fund management activities.This paper makes a longitudinal trend analysis of J Construction Group from 2015 to 2019,and makes a horizontal comparative analysis with typical companies in the same industry to objectively analyze the current status of the fund management of J Construction Group.The internal banking department is responsible for fund collection and settlement business,and the financial management department is responsible for fund budgeting business,which has brought certain benefits to the group ’s fund management work.However,due to the continuous development of the group and the existence of some deficiencies in the implementation process,the group’s fund management is facing many problems.J Construction Group has a wide geographical distribution and a large business span.Overseas projects will inevitably face the problem of managing cross-regions and cross-time zones,so that the funds are scattered in different regions,and the group ’s funds are not highly concentrated.Faced with the increasingly severe payment conditions of Party A,J Construction Group has to pay the performance bond early in the construction process of the project,and the quality guarantee will be deducted after the project is completed,which has led to the continuous increase of the accounts receivable and low capital turnover.J Construction Group currently mainly relies on bank loans.Because of the single financing channel,the cost of capital is high.The group’s blind bidding,no scientific and reasonable evaluation,and the high asset-liability ratio make the group face a great financial risk.Finally,according to the problems raised above,corresponding solutions are proposed.J Construction Group should improve the centralized fund management system;upgrade the capital management system;develop supply chain finance;improve the capital budget management system;establish a capital risk prevention system,etc.This paper analyzes the current capital management status of J Construction Group,finds problems,and proposes countermeasures.However,there are still many deficiencies in the analysis of this paper.The first-hand data of the core members of the group is inconvenient to collect,so the data used in the case study part of this paper still has certain limitations.