(2009-2011)

SEC-”B”
 PERSENTATION

ON

FUND FLOW
STATEMENT
CHANGES IN FINANCAL POSITION : -

(a) FUNDFLOW STATEMEANT

(b) CASHFLOW STATEMENT

FUND

FLOW

STATEMENT
IN FUNDFLOW “FUND” REFER TO CASH WORIKING
CAPITAL AND ALL FINANCIAL RESOURCES WHICH ARE
USED IN BUSINESS.THESE TOTAL RESOURSE OF A
CONCREN IN THE FORM OF MAN,MATERIAL,PLANT ETC.

FUND

GROSS CURRENT ASSET

NET WORKING CAPITAL
GROSS CURRENT ASSET REPERSENT
ALL CURRNT ASSETS:-
1. CASH IN HAND
2. CASH AT BANK
3. BAILLS RECIVABLE
4. SUNDRY DEBTOR
5. SHORT TERM INVESTMENT
6. MARKETABLE SECURITIES
7. STOCK OF ROW MATRIAL,WORK
IN PROGRESS &FINISHED GOODS
8. PREPAID EXPEINSES
9. ACCRUED INCOME
WORKING CAPITAL INDICATE THE
DIFFERENCE BETWEEN CURRENT
ASSET AND CURRENT LIABILITIES .

CURRENT LIABILITIES
* BAILLS PAYABLE
* SUNDRY CREDITORE
* OUTSTANDING EXPANCES
* DIVIDANDS PAYBALE
* BANK OVER DRAFT
* PROVISIONNFOR TAXATION
* PROPESED DEVIDEND(CL/N.CL)
 MEANING OF FUND FLOW

THE “FLOW OF FUND” REFERS TO CHANGES OR MOVEMENT OF FUND

OR CHANGES IN WORKING CAPTIAL IN THE NORMAL COURSE OF
BUSINESS TRANSACTION.
IN OTHER WORD ANY INCREASE OR DECREASE IN
WORKING CAPITAL WHEN TRANSACTION TAKE PLACE IS
CALLED FLOW OF FUND.

EXAMPLE - IF THE FUND RISED BY OF ISSUE OF SHARE WILL BE

TAKEN AS A SOURSE OF FUND OR IN FLOW OF FUND.
THIS TRANSACTION RESULT IN INCREASE FINANCIAL POSITION.

WHEN THIS FUND ARE USED FOR PURCHASE OF

MACHINERY WILL BE TAKEN AS APPLICATION OR USE OF
FUND OF OUTFLOW OF FUND.
 MOVEMENT OF FUND

OUTFLOW OF
INFLOW OF

BUSINESS
TRANSACTION

FUND FUND
 FLOW OF FUND

C.A & N.C.A

C.L & N.C.L

C.A & N.C.L C.L & N.C.L
 NO FLOW OF FUND

CURRENT ASSETS & NON-CURRENT ASSETS &

CURRENT LIABILITIES NON-CURRENT LIABILITIES
 NON-CURRENT LIABILITIES NON-CURRENT ASSETS

1. GOOD WILL
1. EQUITY SHARE CAPITAL
2. LAND
2. PREFERENCE SHARE CAPTIAL
3. BUILDING
3. DEBENTURE
4. PLANT AND
4. LONG TERM LONE MACHINEARY
5. SHARE PREMIUM 5. FURNITURE AND
6. PROFIT AND LOSS ACCOUNT FITTINGS

7. CAPTIAL RESERVE 6. TRADE MARKS

8. CAPTIAL REDEMPTION 7. PANTENT RIGHT
RESERVE 8. LONG TERM
INVESTMENT
9. DISCOUNT ON ISSUE OF
SHARE AND
DEBENTURES
10.PRELIMINARY
EXPENSES
11.OTHER DEFERRED
EXPANCES
 Components of flow of fund

1. Current assets
example:-raw material are purchased and amount
unsued at the end of trading period forms part of the
current as stock of hand.etc

2. Non-current assets(fixed or permanet asset)

Example-land and bulding,plant and
machinary,good will and plant,etc

3. Current liabilities
Example-creditor,bank lone due for
payment,etc

4. Non-current liabilities
Example-debenture,long term
lone and lone are mortgage etc.

5. Provisoin for tax

6. Proposed for dividend
7. Provision against current asets and current liabilities
 IMPORTANCE OR UES OF FUND FLOW STATEMENT

1. It highlite the different sourse and application or use of fund

the two accounting period.

2. It show the financial strength and weakness.

3.It is instrument used by the investor for effective decision
at the time of their investment.
4. it help to the management to take corrective action while
deviation between two balance sheet figure.
5. It show present detailed information about profitability
operational efficiency.

6. It show thw movement of fund from particular accounting

period.
 PREPARATION OF FUND FLOW STATEMENT

FUND FLOW ANALYSIS INVLOVES THE FLOWING THERE STATEMENT

SUCH AS:-

1. FUND FROM OPERATION

: - IS PREPARED TO FIND OUT EXCAT INFLO OR

OUTFLOW OF FUND

:- FROM THE REGULAR OPERATION ON THE BASIS OF

ITEMS WHICH HAVE READJUSTED TO THE CURRENT
PROFIT OR LOSS.

2. STATEMENT CHANGES IN WORKING CAPTIAL

: - WORKING CAPTIAL IS PREPARED ON THE BASIS

OF ITEMS IN CURRENT ASSET AND CURRENT
LIBILITIEAS OF BETWEEN TWO BALANCE SHEET.
3. FUND FLOW STATEMENT .
: - IT PREPARED ON THE BASIS OF COMPONENT OF NON-
CURRENT ASSETS,NON CURRENT LIABILITIES OF BALANCE
SHEET AND RELAVENT INFORMATION.
COMPONENT OF SOURCE OF FUND
1. FRESH ISSUE IF EQUITY SHARE CAPTIAL
2. FRESH ISSUE OF PREFERENCE SHARE CAPTIAL
3. ISSUE OF DEBENTURE AND BOND
4. LONG TERM LONE ON MORTAGE
5. LONG TERM LONE RASIDE FROM BANK,FINANCIAL
INSTITUEATION AND PUBLIC.
6. SALE OF FIXED ASSETS.
7. SALE OF LONG TERM INVESTMENT.
8. NON-TRADING INCOMES
9. FUND FROM OPERATION
10.NET DECREASE IN WORKING CAPTIAL
(AS PER SHEDULE OF CHANGE IN WORKING CAPITIAL)
COMPONENTS OF APPLICATION OF FUND
1. REDEMPTION OF SHARE AND DEBENTURES
2. REPAYMENT OF LONE RISED FROM BANK,INSTITUTION
AND PUBLICK.
3. PURCHASE OF FIXED ASSETS.
4. PURCHASE OF LONG-TERM INVESTMENT.
5. NON TRADING EXPENDTURE
(PAYMENT OF TAX,PAYMENT OF DEVIDEND.
6. FUND LOST IN OPERATION.
7. NET INCRAESE IN WOKING CAPITAL
( AS PER SHEDULE OF CHANGING IN WORKING CAPITAL)
THANX