The Diploma is based on a description of the working structure for Cash Pooling. With it, we have tried to emphasise the importance and the influence of the system of common financing on the performance of a company, which in our case is represented by the firm Strabag d.o.o. By analysing the bussines processes of a project oriented firm such as Strabag d.o.o. we have managed to adjust the cash flow of a project-oriented company in a certain period to the shape of the normal curve . For this, we had divided the project-life cycle into 7 stages with each one showing different effects onto the liquidity of the firm.
In the second part, we have directed our focus to analysing the structure of the Cash Pooling system and all it`s combining parts, by shaping it as a two-way process. The outer processes or the outer circle which run by the activities of the partner bank and the inner circle or the inner processes, that include the activities with the purpouse of gathering and evidenting the transfered amounts between the bined firms. In this circle we have described a sustainable system of bookings that serves as a basis of the accountancy in money borrowing and money lending. The explanation has also been supported by an example from Strabag d.o.o.
Afterwards, we have described the information technology used by firms in general, applying the system, by providing the information about the properties, an information tehnology system or an information computer tool shoud have to succesfully manage the firm`s financial operations. The technology that Strabag uses in managing their finance is called ITS and it has been our task in this section of the diploma to describe it with all it`s functions, needed by the system. We have turned to describing the opertaing processes of the programm, even describing the specifics of some bookings of the transfers, which has been shown by pictures, taken directly out of the ITS.
In part four, we`ve presented different views of some public financial institutions and organizations that can have an significant impact to the success of the system, by limiting it`s transfered amounts of cash through the system or by taxating the positive interest rates, the firms in the system are entitled to, when having more money lend to others as having it borrowed from others. We have opened a topic, refering the regulation of transfer pricing between bined institutions. We have shown the improper attitude some institutions have as they are takong Cash Pooling as if it was yet another way of a conventional credit agreements between two subjects. We have argued, Cash Pooling transfers could not be handled in such matters, because of the lack of some basic parts, a conventional credit agreement does have and a Cash Pooling transfer does not.
In the fifth and final part, we have conducted an analysis of the succes of the firm Strabag d.o.o., comparing the balance sheets of the end of the year 2006 and 2007. As the result we found out, applying the system has had a substantial impact on the firms overall success. It has totaly changed the firms financial appearance, by lowering the amount of cash needed, to effectively and by enlarging other shortterm assets.