Treasury Management (நிதி நிர்வாகம்)

Revenue (வருவாய்)

The Chief of an organization has to constantly enlarge source of income and  improve the wealth. At the same time, he should also overcome possible hurdles that might crop up in new ventures.  This is most relevant in the current context, where each company had to face intense competition and unless otherwise constant attempt is made to innovate to enhance the revenue, even a well established organization can face dangers threatening ir mere existence.

வாரி பெருக்கி வளம்படுத்து உற்றவை
ஆராய்வான் செய்க வினை. (512)

 Vaari Perukki Valampaduththu Utravai
 Aarayvaan Saiga Vinai

வருமானம் வரக்கூடிய வழிகளை விரிவாக்கி, செல்வத்தை பெருக்கி இடையூறுகளை ஆராய்ந்து நீக்கிட வல்லவனாக தலைவன் இருத்தல் வேண்டும்.

The leader must have the capability to enlarge the sources (of revenue), increase wealth and  with indepth analysis prevent  accidents (which would destroy it).      

Budgeting (வரவு செலவு திட்டமிடல்)

This ‘Kural’ is extension of the earlier one, wherein it covers the whole gamut of the responsibility of the CEO with respect to Finance. The sage elaborates  vital four vital functions that contributes to keep intact the financial health of the organization.

இயற்றலும் ஈட்டலும் காத்தலும் காத்த

வகுத்தலும் வல்லத் தரசு (385)

Iyatralum Yeetalum Kaaththalum Kaatha
Vakuththalum Vallath Tharasu.

முறையாக நிதி ஆதாரங்களை வகுத்து, அரசாங்கக் கருவூலத்திற்கான வருவாயைப் பெருக்கி, அதைப் பாதுக்காத்துத் தேவையானவைக்கு திட்டமிட்டுச் செலவிடுவதே திறமையான நல்லாட்சியாகும்.

Opening up new avenues for earning revenue, Ensure regular earning, conserve the earned income, and proper allocation of resources are the prime responsibility of the chief executive.

Cost Control ( செலவின கட்டுப்பாடு)

In any business, there can always be fluctuations in the income. Same is the case for expenditure too. Hence, in order to maintain  the financial health, the CEO must constantly monitor and review the income and expenditure and ensure that there is no cost overrun. A Project Director has to maintain the expenditure well within the stipulated budget. Many projects become unviable because of cost overrun.

Even the most powerful and highly developed rich nation is burdened with heavy borrowing from other countries and it has become the biggest issue confronting many governments. The real estate bubble triggering the economic downturn in USA is a case in point where banks had not bothered to check the credit worthiness of the borrowers before sanctioning huge loan resulting in default by borrowers to the extent of closure of many banks. Companies involved in hedging huge amounts with out proper security back up run the risk of incurring heavy loss. Hence economic health must be constantly monitored and the management must resist the temptation to over reach than their capacity.   

ஆகாறு அளவிட்டதா யினும் கேடில்லை
போகாறு அகலாக் கடை (478)

 Aagaru Alavittatha Yinum Kedillai
 Pogaru Agalak Kadai

 வருவாய் குறைவாக இருந்தாலும் தவறில்லை; செலவு

  வரவைக்காட்டிலும்) கூடுதலாகக்  கூடாது.

  while limited income may not be bad, expense beyond income   

  (cost overrun) should  never be allowed.    

cost overrun - (மித மிஞ்சிய  செலவு)

This is a great lesson in treasury management. The CEO has to guard against over zealous attitude to indulge in uncontrolled expenditure, way beyond the revenue. It may be investment, new expansion or even measures towards employee welfare. Whatever be the reason, the chief should always ensure that the commitment towards expenditure is done taking into account the income. The recent economic crisis throughout the world is the reflection of individuals, companies and even Governments living beyond their means landing the whole world in deep depression. One should not get carried away by irrational exuberance and fall a pray to greed.

அளவறிந்து வாழாதான் வாழ்க்கை உளபோல
இல்லாகித் தோன்றாக் கெடும் (479)

 Alavarindhu Vaazhaathaan Vazhkkai Ulapola
 Illagith Thondraak Kedum

 தன்னுடைய வருமானத்தை கணக்கில் கொண்டு செலவுசெய்யாதவனின்

 செல்வச் செழிப்பு , இருப்பது போல் தோன்றி பின்னர்  அழிந்துவிடும்.

   

  The wealth of an individual, who indulges in expenditure without

  taking account of his income is sure to vanish away, though it

  may appear to be intact.