India Inc Cash Surplus: Strategy or Lack of Opportunity?|Finance|Case Study|Case Studies

India Inc Cash Surplus: Strategy or Lack of Opportunity?

Case Study | Case Studies

ICMR HOME | Case Studies Collection

To download India Inc Cash Surplus: Strategy or Lack of Opportunity? case study (Case Code: FINC072) click on the button below, and select the case from the list of available cases:

Finance | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Pay through PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Applicable Exchange Rates: Click Here
Delivery Details Click Here

Finance Case Studies
Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

Case Details:


Case Code : FINC072 For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges


About Dividend and Share Repurchase effect to investors
Case Length : 11 Pages
Period : 2007-2011
Pub. Date : 2011
Teaching Note : Not Available
Organization : Bajaj Auto Limited, Hindustan Unilever Limited, ITC Limited, Infosys Ltd., Reliance Industries Ltd., Tata Motors Ltd. and Wipro Ltd.
Industry : Various
Countries : India


The case brings to the fore that some Indian companies have accumulated huge cash balances on their books in 2011. These huge cash balances could be accumulated for some strategic requirements in the future. The total cash balances accumulated by 100 companies in BSE–500 accounted for 93% of market capitalization of BSE-500 shares.

The companies which held huge cash balances included bigwigs like Tata Motors with Rs. 109479.3 million, Infosys with Rs. 150,900 million, and Reliance Industries with Rs. 301,390.3 million. The cash was invested in short-term instruments, but the companies had a strong reason for keeping such cash pile.

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies


Understand the cash position of the companies, whether the cash position can be considered surplus or optimal.
Determine the different motives for which those companies accumulated a huge cash balance.
Determine whether there could be any adverse possibilities to the management if accumulated cash is more than market capital of the company.
Compute the minimum and maximum level of cash in hand to be maintained by the companies.
Discuss what could happen if the company could not use the cash for the set purpose.


  Page No.
Introduction 1
Cash and Excess Cash 1
What is excess cash? 2
Cash for Expansion and beating inflation: Bajaj Auto Limited 2
Cash for uncertainty: Infosys 3
Cash for Buyback: Hindustan Unilever Limited 3
Cash for Bonus and Dividends: ITC and Wipro 4
Surplus Cash for investments: Reliance Industries Limited 4
Right Direction to Surplus Cash: Tata Motors 5
Parking Excess Cash 5
Exhibits 6


Surplus, Bonus, Buyback, Dividends, Uncertainty, Investments, Excess Cash, surplus Cash, Expansion, opportunities to utilize cash, accumulated surplus cash, Parking Excess Cash, Cash Management, Payout Policy, Productivity of Assets, Liquidity

Introduction - Next Page>>

Custom Search


Marketing Financial Products
Textbooks Collection

Case Studies in Finance Volume-IV
Work Book - Rs. 750
Workbooks Collection

Case Studies in Finance Vol III

Case Studies in Finance Vol III
e-Book on Case Studies in Finance

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Workbooks, Case Study Volumes.