Revenue Planning and Cash Management (A Case Study of Nepal Telecom)

Abstract

The main objective of the study is to analyze and examine the revenue planning and cash management of NTC. Mainly, the study has been conducted on the designed basis of Primary and secondary data. This study is based on the recent historical data of 5 year periods, from fiscal year 2069/70 B.S. to 2073/74 B.S. Required facts and figures have been obtained from the annual reports collected from official website of NTC. Descriptive tool has used to obtain the meaningful result of the collected data and to meet the research objectives. Firstly, collected data are tabulated under various heading and then tabulated data are analyzed using various financial and statistical tools and compared these values with the help of different figure. The sales revenue achievement of NTC is highly satisfactory, which is itself a good signal for the company, which shows that the Nepal Telecom has clear guidelines of selling and revenue collection. The relationship between budgeted and actual sales is positive. Therefore, it can be concluded that the actual sales revenue in future will be increased. Nepal Telecom prepares revenue reports monthly which shows the revenue planning is quiet effective. Few investments are made into debenture purchase and hydro-electricity business to diversify other investments by NTC. The company has no define policy of cash management in the initial year but it maintained in the following years. The cash turnover ratio of NTC is Satisfactory so, the overall cash management aspect of NTC is in good position and the liquidity position of NTC is satisfactory.