Treasury profile of glaxo smithline pharmaceutical company Essay

Treasury profile of glaxo smithline pharmaceutical company - Essay Examplerofile shown in the appendix at the end of this paper gives a birds eye-view of the companys treasury management framework and is considered the best suited to the reconcile day environment the company is operating under. The major five functions reviewed in the main text shows that the company is managed conservatively and that it is not engaged in questioning activities.Treasury function in an organisation is essential in order to maintain liquidity in funds flow. Liquidity will be stirred due to various risks involved. The management must foresee unavoidable risks involved and provide for such risks by structuring the fixed bang-up and working capital suitably. (ACT) phoner Glaxo Smith Kline PLC, UKs case is taken up for study of its treasury management. A brief outline of the companys treasury profile is equipped in appendix at the end of this paper. Aim and objective of this study therefore is to asce rtain the risks faced by this company and how it has designed its capital building to manage its treasury functions in order maintain its liquidity and whether the current practice of treasury management is adequate or not.Treasury functions encompass capital markets and funding, cash in and liquidity management, corporate financial management, Risk management and treasury operations and control. (ACT) The role of the treasury department is to maintain companys liquidity. The treasurer has to monitor current and projected cash flows and make use of the information to suitably invest excess funds and also be in exercise set for additional borrowings or equity in case of capital shortage that may be encountered any time. It should safeguard the existing assets by prudent investment funds of funds available and also guard against excessive losses arising out of interest rate and foreign exchange fluctuations. Cash forecasting, working capital management, cash management, investment management, treasury risk management, management advice, credit rating