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Financial management: analysis and application of the cash pool Financial management: analysis and application of the cash pool "Cash pool" business is a medium-sized enterprises to finance the Group's high-end centralized cash management products. Enterprise Group, parent to the "cash pool", can not affect the daily operations of the subsidiary case, Yi Wei Tuo lending approach will Suoyou the regional and inter-regional Zigong Si Jin Xing unified deployment of resources to achieve the same city Jikuadiqu Automated centralized management of funds. ? "Cash pool" business is a medium-sized enterprises to finance the Group's high-end centralized cash management products. Parent Company through the "cash pool", can not affect the daily business is a subsidiary, to entrust the form of loans, all subsidiaries of the region and inter-regional allocation of funds for unity to achieve the same city and across regions Automated centralized management of funds. In particular, by relying on bank's online banking platform for advanced, set automatic transfer of funds, target balance management, entrusted loan pricing, online interest rates to maintain interest automatic allocation, account overdraft set, large two-way transfer, recycling end of the day on many occasions, online information inquiry, the standard data interface and other functions in one, through well-designed structure and function account arrangements, so that does not affect the subsidiary enterprise groups in the normal course of business cases, to achieve the same city Ji regional management of capital concentration. If an enterprise group has six member companies, the enterprise group set up a parent account, each member of the parent company accounts opened under the sub-account, each member of the company have a certain amount of overdraft, fixed time every day (usually 16:00), a subsidiary bank account automatically scan and cleared all the subsidiary accounts, subsidiary accounts that when there is surplus, it was placed under the parent company accounts, as the Enterprise Group of loans and collect interest, subsidiary account overdraft, the parent company accounts allocated to return, as a business loan and pay interest on the Group, the parent company accounts is the "cash pool." With the continuous rise of enterprise groups, business groups on how to strengthen the financial management of member enterprises, particularly financial management, financial management has become a field of enterprise groups in a core subject. Cash flow is the business of blood, "cash Supreme" is a modern enterprise financial management of the basic idea. However, many large enterprise groups as members of the enterprise, a broad geographical distribution, concentrated in the financial management problems in particular. Such as the lack of centralized Enterprise Group's cash management system, member companies of the financial flows of the lack of effective management and supervision, Touzi risk is relatively large; Enterprise Group Bu Neng Shishidiaozheng surplus and deficiency fund, members of corporate funds Chuxian Bufen gap to bank ´û¿î, while others members of the enterprise fund balance is there, leading to increased cost of capital of enterprise groups, inefficient use of funds. Therefore, in order to achieve the effective supervision of the member companies, Baozhengzijin security, realization of Zi Yuan's Youxiaopeizhi, improve fund use efficiency, enterprise Jituanwulun is Caiqu centralized system or decentralized system, the organizational structure and management system, Financial and capital management are growing more and more highly concentrated. At present, China's enterprise groups with a centralized fund Guan Li model are: establishment of a finance company, internal settlement center, a line revenue and expenditure and balance the two lines, and a variety of financial management Duyou Qi applicability He advantages and disadvantages. One financial company is the subsidiary enterprise group, the People's Bank approved non-bank financial institutions, enterprise group mainly engaged in the intermediation of funds, and unified management, its establishment requires necessary conditions and through certain procedures, only a few have set up enterprise groups conditions for financial companies. Settlement center is usually set up in business within the group to handle its member companies within the Group cash and settlement operations between the specialized agencies, funds the operation of a functional department. Income and expenditure and revenue and expenditure line is the member enterprises to open bank accounts-one can take the form of balance of payments, you can also take the form of income and expenditure separately, the expenditure of funds by the enterprise group member companies according to the application or funding plan uniform allocation, the funds received by automatic case by case basis or daily planning time on the program to the corporate group accounts, zero balance on the existing plan, there are fixed on the plan, but the establishment of the internal settlement of accounts and accounting mechanism remains unchanged. No matter what kind of financial management, business must be by means of external commercial banks can perform their duties, therefore, whether from the management level or technical level, the "cash pool" business This is their current use of centralized management of various funds further optimization. "Cash pool" business of the enterprise group with universal applicability, its clear advantages. First, the enterprise groups through the "cash pool" set up a centralized cash management system, easy to grasp the dynamic members of the enterprise funds, effective supervision, reduce investment risks. Second, the enterprise group to adjust in time enterprises and enterprise groups and members of the member companies of funds between surplus and deficiency, the use of funds and reasonable arrangements to improve the efficiency of fund use. Third, the members of the fund management business in their own way, the are alone with bank transactions, each of the difference between lending and deposit interest rates will increase the financial cost of enterprise groups, but in the "cash pool" in spite of the burden of enterprises and the banking group to between the fees, but with the deposit and loan spreads compared to enterprise groups, business groups handling expenses well below the sum of the deposit and loan spreads, so the "cash pool" can reduce the cost of funds. Fourth, in the "cash pool" business, members of the business in the cash pool to pay interest on overdraft, whereas, in the cash pool deposits to be charged interest, help to mobilize members of the rational use of corporate funds to reduce the amount of funds used to improve the efficiency of fund use enthusiasm, but also conducive to enterprise groups, the performance of the member companies of the assessment and evaluation. However, the "cash pool" as a high-end business, and its specific application, the following problems still exist. First, the enterprise groups into the "cash pool", are included in the framework of the cash pool of member enterprises and enterprise groups will inevitably exist between the relationship between deposits and loans. In accordance with the provisions of our present, between the enterprise legal person does not allow direct loans, can only be commissioned by commercial banks to raise funds through loans and pay certain fees, the current "cash pool" business is built based on the principal loan . Therefore, the introduction of the "cash pool", the enterprise groups and members of the corporate interest expense and interest income are present, which necessarily involves the taxation of all corporate entities, interest income and interest expense related to corporate income tax payment or tax credit, which affect taxable income, so as soon as possible supporting the development of financial regulations and tax laws and regulations (or the introduction of the corresponding implementation details), to facilitate the smooth conduct of the business. Prepared to use "cash pool" of companies as a group, the funds should reduce costs and increase the trade-off between the tax burden, their pros and cons very carefully. Second, the "foreign currency cash pool" has its inherent complexity, to meet multinational companies to introduce "foreign currency cash pool" requirement, the State Administration of Foreign Exchange in October 2004 formally launched the internal operation of multinational financial management of foreign exchange regulations , qualified first in the territory of multinational corporations among its members by way of funds entrusted to save the operation, while allowing multinational companies to eligible members to outside lenders, so to regulate the functions of the regional capital. This policy is the use of multinational corporations to improve the efficiency of foreign exchange and reduce the financial cost to play a direct role in further improving the foreign investment environment, attract more multinational companies setting up regional headquarters in China mainland, and increase, increase in capital Kuaguo the international competitive edge the company has played a role in Jiji, but meanwhile should see TNCs Zijinjizhong management is ever increasing about current foreign exchange management system is a tough challenge, Thus, in order to adapt to economic systems and environmental development of foreign exchange settlement system, the premise of effective risk prevention, the need to further reform the current foreign exchange management system. Third, in the "cash pool" during the operation of the business, and many details of the deal also will directly affect the successful introduction of the business group Nengfou. First, members of the business to open accounts in the parent sub-account, the bank will give a certain sub-account overdraft limit, banks give members of the corporate uniform or differentiated overdraft limit? Either unity or difference, and how to determine the amount? Second, the sub-account overdraft limit has been established, the parent bank to ensure that the "cash pool" does not advance? Does the parent bank to "cash pool" a certain amount of overdraft, how to determine the amount? These are that banks and the introduction of the cash pool must be addressed. In specific operations, the enterprise groups, the member companies of the funds to do the budget, its capital budget needs and circumstances must be consistent with a high degree of agreement would be difficult to sub-account and bank overdraft limit, in the business carried out, the enterprise income and expenditure of funds is difficult and the banks to match the amount caused by the "cash pool" business generated obstacles in the specific application. For the banks, in ensuring the safety of their own funds and businesses to successfully use the premise of the cash pool, into the cash pool needed on the framework of Nei's business Jinxing full of credit µ÷²é, we must establish Xindaizhengce Yiji and businesses to sign Yi Jilie measures of credit lines and guarantee the legal instrument. In short, the "cash pool" business enterprises, not only is the fund management of the carrier, more is providing a management philosophy and management principles, concepts Ru Zhe Zhong Bing put into practice the expected results, needed around the state finance, taxation improve regulations and foreign exchange management system reform, and rationalize the business groups, members of the complex between enterprises and banks the funds allocation and control relationships, and make the overall design and careful organization.
"Financial management analysis and use of the cash pool"