"Treasury manager is required to work in a fast changing and competitive environment." Discuss this statement in the light of tools available to him.

A treasury manager is required to work in a fast changing and competitive environment. For carrying out his activities, he has to resort to certain tools and techniques. Most of the tools originate from the finance department and as such cannot be considered to be an exclusive prerogative of the treasury department. The following are the tools which are used by the Treasury Manager: Analytic and planning tools In treasury function, planning and budgeting are essential to achieve targets and to keep effective control on costs. Analysis of the data and information is necessary for planning and budgeting. Zero Based Budgeting (ZBB) Another tool of analysing the performance is ZBB wherein each manager establishes objectives for his function and gain agreement on them with top management. Then alternate ways for achieving these targets are defined and selected. With the help of costs and benefits analysis,. The alternative with the least cost is then selected. Financial Statement Analysis Financial analysis of a company is necessary to help the treasury manager to decide whether to invest in the company. Such analysis also helps the company in internal controls. Internal Treasury Control Internal treasury control is a process of self improvement. It is concerned with flows of funds, cash and credit and all financial aspects of operations. From time to time and on regular basis, the internal treasury control is exercised on financial targets. The financial aspects of operations include procuring of inputs, paying creditors, making arrangement for finance against inventory and receivables. The gaps between inflows and outflows are met by planned recourse to low cost mix of financing.