Note 1-50
- Japanese version
- English version
50 Recently, the method whereby computers and telecommunications circuits are used to achieve unified control of fund receipts and payments by companies of corporate groups is growing widespread. This technique is called Cash Management System (CMS). CMS is a system whereby fund receipts and payments generated by various group companies are closely controlled at the head office. If a fund surplus occurs in group Company A, the surplus is transferred to group Company B which has a shortage of funds, allowing efficient usage of funds. As a result, the system cannot be linked easily to borrowings from financial institutions.