Research On Management Of Cash Pool In Group A

With the continuous improvement and rapid development of China's market economy system,a large number of groups develop fast in various industries,China's various sectors of the economy ushered in the rapid development for the economies of scale and synergies of the group.Multi-level corporate structure of the situation in large group companies is much common,the lack of effective management tools and information systems,highly decentralized of funds and capital flow information feedback lag are not conducive to improving the efficiency and reducing the management risks effectively of the Group's funds.As the key link of enterprise financial management,it makes great practical significance to promote the healthy and stable development of the group.At the same time,capital management is the most important guarantee for enterprise development and profit.At present,centralized management of funds has become an important part of financial management in large groups.It is very important to take centralized management approach to co-ordinate the allocation of funds and enhance the use of funds efficiency for the Group management and sustainable development.Since the "fund pool" management model officially landed in China in 2005,more and more domestic companies began to use the "pool" model of centralized management of funds,and the model is also vigorously implemented in power construction enterprises.Because the smooth implementation of the “cash pool” involved in the Group headquarters,the member units,the financial institutions,the network operators,the financial software providers and other aspects of collaboration,as a pool of funds managers,the Group headquarters must promptly improve their own mechanism of construction and supervision level to ensure full play the advantages of centralized management of funds.The domestic "cash pool" management theory gradually increased in recent years,but mostly concentrated in the theoretical aspects,such as the introduction of the pool management model,the effectiveness of centralized management of funds for the Group,the deficiencies of centralized management of funds,the importance and expectations to enhance the information system.It is not enough on the practice research of cash pool,especially for a specific industry,such as "cash pool" management research of the power construction industry.It needs further study in how to strengthen the control force of the group in the centralized management of funds,how to mobilize the enthusiasm of member companies,how to strengthen the capital budget process control and other aspects.Based on the analysis of the fund management methods and the choice of fund management mode,this paper analyzes and discusses the management of cash pool by taking the management practice of cash pool management of Group A as the case.A Group Company completed reorganization and integration in August 2012,facing the phenomenon of a high degree of decentralization of funds,high loans,high financial costs and low financing bargaining power,inefficient internal arrears clearance and low financial supervision.A Group Company used the "cash pool" management model.This paper introduces the process of building and the problems encountered in cash pool from the bank account,management system,organizational structure and budget management and other aspects,and analysis the effect in the use of cash pool in Group A,whether it solves the problems and difficulties in the early management of the Group's funds,meets the objectives of the Group's overall management of funds,so as to maximizing the internal funds of the Group and exerting the overall advantages of the Group.At the same time,the paper puts forward the countermeasures and suggestions to optimize and perfect the management of the fund pool combining the internal and external environmental changes,and strives to make more effective use of the role of "cash pool" management in order to further enhance the level of fund management of Group A.The research significance of this paper is to explore the construction,implementation and effect of the "cash pool" model through the discussion of the theory of centralized management of funds and the characteristics of the power construction industry,making a useful exploration for the centralized management of the funds in China,and improving the efficiency of funds,playing the overall advantages of the Group,achieving the financial synergies between the Group members.