Abstract:
The present study looks in to the size of cash and their components, liquidity status and comparative study of SBI factors and CanBank Factors Ltd. with regards to cash management. The study is based on secondary data collected from the Annual reports of SBI Factors and CanBank Factors from 1991-92 to 2000-01. The liquidity status of SBI Factors and CanBank factors is determined by using various ratio's such as current ratio. It was found that the overall size of cash balance maintained by SBI Factors and CanBank Factors is very low as compared to sales or factored debts. It was also found that increase in sales does not require to increase the cash balance.
