The purpose of this project is to examine the effect of cash management and cash control in business organization in Nigeria and its important base on managing the cash outflow. I use Cadbury Nigeria limited. As a cash study in order to discuss with the management and how they have been able to overcome the effect in organisation. The major finding is that after the collection of data analysis, it was discovered that cash management and cash control in business organization particularly Cadbury plc has no problem in cash managing here in Nigeria.



1.1 Background of the Study

Working capital which is t6he life of any business is defined as the amount by   which an entity’s current asse4ts excels it currents liabilities at a point in time current assets are the assets which can be easily converted into cash within an operating cycle of accounting year.

For example cash securities inventories, debtors and bills receivable while current liabilities are the chains of outsiders which are expected to mature for payment within an operating year for example creditors bill pay able, bank draft and outstanding expenses the company has to invest enough find in current assets for effective running of the business.

Cash is the most importance current assets and the most liquid of all asset employed by any business. It can be inform of currency, cheque  money order, credit card sales slip, and near cash item such as marketable secure ties or bank time deposits that are a wanting deposits in the bank and balances in it bank accounts.

The operating cycle begins and ends with cash and every transition involves frequent reoccurrence of cash since every sales and expenses leads to receipted cash disbursement respectively.

1.2 History of Cadbury limited

Coast of Africa cocoa was major raw materials purchase for Cadbury limited in united kingdom (U.K) one of the world’s biggest manufacturers of chocolate confectionary and cocoa bases products Cadbury’s existence in Nigeria dates back to 1956 when a British sell man, Mr. George Hayward come from united kingdom to live in Nigeria with the sell aim of development the sales definite mobile publicity of Nigeria for the advertizing campaign. It was very successful and sell increase speedily leading to a decision to build a deport in Apapa in the year 1959.

In December 1963, the deport extended to include a small production chart which packed balk supplier of pronto and Bournvita increases to cash a level that a complete manufacturing scheme for the product was established and production of Bournvita   commenced in may 1965 in Nigeria. In 1963 and 1964, a lot of research work was undertaken with the sole objectives of introducing new products which has been specially developed for Nigeria market as a result two new product called goody-goody and tomapep were laundry into market in 1966. Tompep has since established very wide in sage a basic ingredient in soup screw preparations Cadbury Nigeria (PLC) performance improved rapidly over the years and expansion was laugh imperative.

A factory was consequently started at Agidingbi village near ikeja, Lagos in 1966 the factory was nearing comple4tion when Nigeria and mainly,, because the eastern states at that time accounted for over 50% of the company sale’s from a sales turnover 10,121,000 in 1965, the company attained an impressive figure of over #19.5million in 1983, fi8xed asset of the company had grown to well over the #48.3 million at the end of 1983, in 1976. Cadbury Nigeria (PLC) because of a public company when in August of that year, it offered for sale to the Nigeria public 2670,000 ordinary shares. It now has well over twenty three thousands Nigeria shareholder equity participation of Nigeria in the business is now 60% in compliance with them Nigeria’s enterprises promotion decree of 1977.

Cadbury Nigeria (PLC) is investigating in the future as a mark of confidence in the business expansion work over #40million in nearing completion at Agidingbi factory in this regards great strides have been taken to revamp the Bournvita making area and with the commissioning of additional over, the factory’s production level has increase from (220) to a very land able figure of (350) tones weekly. The company’s can making factory built at a cost of #4.5 million was started in 1981. This had paid off very had solemnly. It turns out over 50% of the company to a supplement supplies from local manufacture.

From local hand full or 250 men in January 1966, the company’s staff strength now stands at over 2000, of which nearly 350 are management staff of the company’s ten directors and six are Nigeria. These are A part-time chairman one non executive director and four executive directors 1989 was a year witnessed four their strengthening of communication and corporation which have now become firmly established within the ranks of the company’s management staff. In an environment featuring great constraints and sufficient of resources for both the company and the individual. It has been most encouraging to see a real increase in the commitment and loyalty of all staff to the interest of Cadbury Nigeria (PLC) this has played a very part in the continuing whole so means of the business and they success of this development effort.

The market distribution system is fully indigenized and their product reach the final consumer through over 300 distributors in the thirty states of the federation including Abuja, with a realign company setting as a main deport. The company also operate area sale’s offices in lagos, Ibadan, Kaduna, Jos, Kano, Enuju, Aba, Benin, Sokoto, Maduguri, Ilorin and Markurdi.

Many product marketed by Cadbury Nigeria PLC constitute the main fruit of the investment in man and material over the years. Cadbury now produces Bournvita, pronto, Tomapep, Tom-Tom, Buttermilt, Malta-sweet, Bazooka, Bondon, Knor cubes, parozone,altack insecticide and however air freshner as the prospered over the so did its contribution to the Nigeria economy increase where as #1.8million was paid at tax in 1977, a sum of #5.9million was paid in 1983 correspondingly their contributions to Nigeria national life in sports social services education have increased over the years.

1.3    Operating Sale Cycle of Cadbury Nigeria Limited 

Inventory                   Cash                  Recoverable


Due to the fact that cash which is necessity in daily operations has a universal appeal and it is readily converted to man’s accusatives Instinet RIT therefore calls for a special control measures thus, a financial manager her the duty of a sound cash position through cash management cash control which can also be achieved by cash planning, cash accrued credit collective policy and sound internal control system e.t.c.

1.4 Statement of the Problem

The importance of cash management is that serve and the company fixture by lessened cash crisis and enables management to take advantage of business opportunities provided by good buying policy and expansion. It enhances the general tone of the company permitting smooth internal operations and by raising credit and public image of the company. Considerable time should be devotes by management to managing cash flow and there is no perfect coincidence between the inflow and outflow of cash.

The research work shall be focused on the company’s policies in relationship to management and control of cash to ensure the following questions Is the internal control over cash at its display.

(a) Methods do the company control cash at its

(b) Are the planning fore casting and budgeting method of control of the company adequate.

(c) Has cash any negatives effect on the company activities and how to they solve their or of cash surplus and deficit.

(d) How and what methods do the company’s control it’s creditors and debtor’s (if any) how effectives is the methods

1.5    Research Question of Hypothesis

Does cash management and cash control in based organization encourage and well practice in business organization in Cadbury Nigeria limited particularly.

Does only company has adequate cash management and cash control in ruining a business needed has the organization been strictly follow

Ho: there is no significant relationship between cash management and cash control and the performance of business organization in Nigeria

Hi: there is significant relationship between cash management and cash control and the performance of business organization in Nigeria.

 1.6    Purpose of Study

The needs for this research is to examine the effect which cash management and cash control practicalised to upgrade the running of a business organization in Nigeria and purpose of providing solution to the existing problem that can lead a business to the liquidation as a result of insolvency i.e. citable to meet up with settlement of the debt in the cause of running a business.

 1.7    Scope and Limitation of the Study

The extent of the scope of the study is limited to the accounts and administration department of Cadbury Nigeria limited. Had accessed the management policies on cash and the effectiveness of the internal control system on cash

1.7    Problem Encountered During the Research Work

  1. Administrative Constraints:

This is caused by the refused of the company to give access and permission to their financial statement and their principal documents which they classified as confidential document”

  1. Time Constraints:

This is coursed by the problem of combining class work with research work.

 1.8    Significance the Study

Cash when which is indispensable asset should be given due to attention in the everyday activities profitability extent and decision making of the company.

The importance of this research is to AIT business organization in cash management and cash control and also to serve ass part of furture4 research of this kind.

 1.9    Definition of Terms

  1. Working capital; – This is when an amount by which an entity’s current assets exceeds it currents liabilities.
  2. CASH: – this is an immediate transaction between two or more people and it can be group into two
  3. Cash at back
  4. Cash at hand

Asset: – this is a valuable thing that use to generate income to the business and it can be divided into two

  1. fixed asset b. Current asset
  2. Fixed asset: – this is an asset that is permanent in nature. Ti value for long term
  3. Current asset: – this is an asset fore very short period of time.
  4. Debtors: – these are the directors or management of a particular company or organization.
  5. Creditor:- these are the people that dividends will be distributed to i.e they are called share holders of a particular company.

Financial statement:- this is a report prepare the evidence of all money incurred during the running of a particular organisation.

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