A CRITICAL APPRAISAL OF CURRENT ASSEST MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES

(A CASE STUDY OF NIGERIAN BREWERIES PLC ENUGU)

ABSTRACT

This project examined the management of current assets in public Limited Liability Company. It is obvious that no company can perform well without good current asset management. This cares for proper accountability and utilization of these assets for day-to-day transaction of a business concern.

A well co-ordinated current asset management will go a long way to boost productivity, availability of funds, profit and encourage expansion. Investigation ha shown that failure of many business concerns or why some companies perform below expectations lies mostly in the inability of the management to manage their current asset very well.

Current asset is an asset on the balance sheet usually lasting less than one year or any asset that can be converted into cash within 12 months. Current asset as an essential tool of any business organization needs efficient and effective management.

Current asset includes – cash, Government boned, inventors, marketable securities, account receivables, prepaid etc and also other assets that are capable of being converted into cash within relatively short period without intervening with the normal operation of the business.

The relevant data for this study were obtained through the review of related literature and use of questionnaire oral interviews as well as direct observation. This helps us to understand how the various component of current asset should be managed.

In the aspect of cash management, cash should be reduced to a minimum, which implies that the firms should keep sufficient cash neither more nor less, and this could only be achieved through cash planning, managing cash inflows and out flow of the firm, investing the cash, white the excess should be invested in marketable securities.

In inventory control, form is faced with problem of meeting two conflicting needs to maintain a minimum investment in inventories, to maximize profitability and to minimize a large size of inventory, few efficient and smooth production and sales operation. And care must be taken to ensure that stock is ordered through purchase requisition note by the officer responsible for it.

The presentation of the analysis look the form of chi-square to test the three hypotheses formulated. From the interpretation of data, the following findings were made;

(1) Proper current asset management has increased the growth of a company.

(2) Effective and efficient current asset management enhances the profit of public limited liability companies.

(3) Proper management of current asset leads to high investment and high production.

Equally, Improper management of current asset reduced the growth of company.  And losses of cash are caused not only by mismanagement off current asset but also by decrease in the value of cash as a result of socio-economic situation in the country.

The researcher therefore tends to carry out research to investigation and know actually how their current assets are manage in public limited ways for further improvement which includes;