Treasury Management and Working Capital Management of Akij Cement Company Limited

Abstract

After completing my three-month internship at Akij Resources Limited, I have been able to prepare this internship report. During these three months, I have gathered a huge deal of real-life experience in the corporate sector. The major aim of this report is to incorporate a descriptive discussion of Treasury Management and Working Capital Management of Akij Cement Company Limited -Akij Group. To support this study and write the report, both primary and secondary sources were utilized. I have discussed some basic things in the first chapter of this study, such as the report's background, methodology, objective, and limitations. In the second chapter, the literature review of working capital management has discussed. I have summarized many journals and articles regarding working capital management in my own language In the third section, I examined the company's history, mission vision, product-service details, values, and core competencies. This section will give a good overview of Akij Resources Ltd. People can easily get to know about Akij Resources limited. In the fourth section, I have discussed the Treasury Management of Akij Cement Company Limited and a brief description of the Letter of Credit. The treasury management is divided into 3 procedures. Payment, Accounts Receivables, and bank reconciliation. Akij Cement Company Limited pay different types of payments and for that, they use different modes of Payment. The important key data of accounts receivables management has been given in this third section. Akij Cement Company limited does bank reconciliation by following auto and manual reconciliation. There are 20 banks are involved with |Akij Cement Company Limited. Letter of Credit is an important term for this organization. As different raw material imports from outside of the country, the most use this contract (LC). In the fifth chapter, I explained what is Working Capital and Working Capital Management. I did an analysis of Working Capital Management. The Working Capital Cycle is given, where it can be understood that how many days it will take to convert inventory into payables. So, this working capital cycle is divided into three parts. One is inventory management. There the economic order quantity and inventory reorder point has been described to understand the ACCL’s inventory. The second part is accounting receivable management. The main factor of accounts receivable management has also been elaborately described in this part which trade credit. This trade credit policy gives a huge advantage to any kind of production company. How the trade credit is granted, and how the decision is taken are also described here. Some mathematical case of Akij Cement Company limited is given here. The final part is Accounts payable where the relationship between cash flow timeline and accounts payable of ACCL has shown there. In the sixth chapter, findings and analysis of the report have mentioned. One manual reconciliation has stated and explained the whole mathematical process of doing Bank reconciliation and how the dissimilarities of statements can be solved or recovered has also been explained in this chapter. The credit granting decision of Akij Cement Company Limited has also been analyzed in this part by using the credit scoring model. Finally, in the last section, I attempted to come to a conclusion and provide a recommendation for the company.