Research On Optimizing Centralized Funds Management Of JiHua Power Company Limited

Recently,with the goverment energetically support to the new resource construction,JiHua Power Company Limited was influenced by national policies and the electricity market environment inside and outside Jilin Province,it's urgently needed to transformate market which from a single thermal power generation to a new situation in which new green and clean energy is the main energy and traditional thermal power generation coexists.Since implementation of the "going global" strategy in 2014,The development scale of JiHua Power Company Limited is expanding rapidly.In 2014,the company has 10 branches,3 wholly-owned subsidiaries in Jilin Province.By the end of 2017,the company has 10 branches and32 wholly-owned subsidiaries in 15 provinces,such as Jilin,Jiangxi,Anhui,Qinghai,Gansu,Shaanxi and Guangdong.There are 29 stock subsidiaries,whose capital demand and risk are increasing day by day.Centralized capital management and control are the primary objectives of fund management in JiHua Electric Power Company Limited.the paper mainly adopts case analysis method,the cause of the problem-oriented analysis,after studying the internal and external environment of fund management,the mode of fund centralized management and the present situation of fund centralized development of JiHua Electric Power Company Limited,combs the problems existing in the current fund management mode from five aspects.First,too many bank accounts are opened,and lots of Funds deposited.By the end of December 2017,there were 256 bank accounts in the companies under the jurisdiction of the company,which were too many and scattered to be managed centrally across many provinces and cities.Moreover,the idle bank funds increased the cost of capital.Second,the large deviation between the capital plan and the budget,inaccurate capital plan,affect the balance of capital at the group headquarters,reduce the efficiency of the use of funds.Thirdly,the company implements a highly centralized fund management model,the fund payment examination and approval process is cumbersome,increased workload,and the financial staff of JiHua company is seriously inadequate,reducing work efficiency.Fourthly,influenced by the electricity market environment,the industrial structure of the company is adjusted,the capital demand is increased,and the contradiction between the increasing project size and the capital demand is becoming increasingly prominent.With the expansion of business scale,the debt scale of the company is expanding,the debt burden is relatively heavy,and the financial leverage is on the high side.The financing capacity of the company under the jurisdiction is insufficient and the financing space is limited.Fifthly,there is no corresponding reward and punishment mechanism for the implementation of centralized fund management,which can't mobilize the enthusiasm of the units under its jurisdiction.The supervision and evaluation mechanism of centralized fund management is the key means to ensure the normal operation of centralized fund management.Only by implementing the reward and punishment evaluation mechanism can we effectively share the resources of centralized management of funds and improve the efficiency of the use of funds.In view of the problems existing in the centralized management of the above-mentioned funds,this paper analyzes the causes of the problems,and points out that the internal control system of JiHua Electric Power Company Limited.is not perfect,the capital plan and budget are not matched,the capital examination and approval process is not perfect,the financing structure of the company is unreasonable,the internal supervision and assessment mechanism of the centralized management of the company's funds is not perfect,which leads to the capital Gold centralized management is inefficient,and capital use is at risk.In order to avoid risks and improve the efficiency of capital use,this paper puts forward an optimized scheme of centralized capital management,which includes perfecting the framework of centralized capital management system,optimizing the management of capital budget,simplifying the process of capital examination and approval,adjusting the financing structure,and establishing an internal supervision and assessment mechanism for centralized capital management.The optimization of the directconnection of enterprises measures,so as to ensure the safety of funds,improve the efficiency of the use of funds.