ANNEXURE I Project Synopsis Format Name of Student: Project Undertaken: Estimated Duration: CHINKY ARORA Roll No: 11204110150

CASH FLOW STATEMENT 45 DAYS

Name of Organization & Address: AVAILTRIP ONLINE PVT. LTD. BESIDES CENTRAL BANKRAILWAY ROAD, PHAGWARA Nature of Project: Project Description: Cash Flow Statement The Standard deals with the provision of FINANCE

information about the historical changes in cash and cash equivalents of an enterprise by means of a cash flow statement which classifies cash flows during the period from operating, investing and financing activities

SINGNATURE OF STUDENT

DATE: 10/06/2013

Introduction to company
Avail Trip Online Pvt Ltd. of India is the largest Travel Company in India in terms of number of IATA approved Branches, staff strength and business turnover. Flight booking has been made simpler than ever after Avail Trip Online Pvt Ltd. launched its Travel Portal, Avail Trip Online Pvt Ltd., in 2008. The portal has been successful in assisting the passenger to book cheap flight tickets both in National and International sectors. After years of successful operations since the year 2008, Avail Trip Online Pvt Ltd. is poised for greater growth. In addition to strengthening its existing services to customers and travel partners, many new travel- related products are added to the web site. IRCTC e-train tickets are now open for booking and a number of travel agents who have signed up as partners are taking advantage of this feature.

Avail Trip Online Pvt Ltd. growth worldwide The growth from humble beginnings as a small travel agency specializing in Gulf traffic to a well diversified agency providing the entire gamut of travel services was indeed spectacular. Our growth started in the southern Indian state of Kerala. Presently there are 30 branches in Kerala, spanning almost all the districts of God's own country. We also have branches in all the metro cities of India. In-roads were made into the Northern and Eastern states of India recently, and the response from the travelling community was overwhelming. Currently, 56 non- IATA offices all over India serving the customers. Internationally, we are spreading our network in the Gulf countries. We have opened branches in United Arab Emirates, Oman, Qatar and Kingdom of Saudi Arabia.

Avail Trip Online P Ltd. - online booking portal Since 2008 Availtrip has been assisting the passengers to make wise decisions and smart travel plans using the one stop purchase place for their complete tour and travel needs. Passenger can get the cheapest Air, Rail tickets and Hotel bookings for both domestic and international sectors. Biggest success of Avail Trip Online Pvt Ltd. is in gaining direct access to many of the Low Cost Carriers operating in and out of India. Availtrip is already the leading web site promoting all the no-frill carriers operating domestic flights in India. This success was extended to the international segment by gaining access to low cost carriers operating to Gulf Sectors such as Air Arabia, Air India Express, Bahrain Air and RAK Air. With more Airlines added to the list, the website becomes a one-stop-shop for agents, who can buy all their tickets from one place. Holiday packages for the budget conscious passenger is promoted on Availtrip website. Excellent holiday packages priced at most affordable rates are available for all tourism hot spots in India and abroad.

Avail Trip Online Pvt Ltd. corporate services Corporate Travel demands promptness and efficiency. In order to provide all travel related services to this sophisticated travel segment, understanding the requirements of the corporate traveler is of prime importance. Our aim is to provide personalized service through highly trained teams at optimum cost. All auxiliary travel services as required are provided, along with our 24 hours back up service through the Customer Service help desk. Outstanding personal service being our strong point, we assign a well experienced Account Manager to each client to build up knowledge of their specific needs and business related travel requirements. This not only ensures consistency in quality

of service, but also provides us valuable insights for individual requirements. We provide all services, viz. airline tickets with competitive prices, visa services, foreign exchange, hotels, travel insurance, car pick-up and drops. Highlights of our corporate travel services: - Comprehensive travel Management services. - Assistance in negotiating exclusive Corporate Deal with airlines. - MIS to assess savings. - Dedicated Account Management team. - Regular update on changes in visa and other travel formalities. - Widest Branch network coverage with dedicated corporate division. - Conference, groups and incentive travel arrangements for business and pleasure. Based on mutual trust, we aim to build a lasting relationship with all our corporate customers. Awards and Accolades Being a top producing agent for almost all the airlines operating in India, Avail Trip Online Pvt Ltd. have been the recipients of various awards and recognitions from the airlines and other suppliers. Over the years we have built up a reputation as a reliable and professional agency and our efforts have been augmented thanks to the excellent support from our principals. It has been a mutually rewarding relationship all the way Interstate bus service Some of the passengers prefer to take a sleeper bus service direct to their native village, instead of taking a flight to a city, far away from their home town. There is

also the problem of getting a confirmed air ticket in the busy season at a reasonable fare. That is when Avail Trip Online Pvt Ltd. interstate bus service comes to the help of the passengers. We were the first Travel Agency to get government approval to open bus booking counters at the leading domestic and international airports in India

Airport Ticketing Counters For the benefit of passengers who make last minute bookings or changes in their travel plans, Avail Trip Online Pvt Ltd. have opened Airport Ticketing counters at three of the leading Airports in India Chennai, Mumbai and New Delhi. These counters are conveniently located near the Departure area and provide all travel services such as air tickets, hotels, holiday packages, car rental services and e-train tickets. International Operations Avail Trip Online Pvt Ltd. started its first overseas branch office in SingaporeWithin the short span of operations, Avail Trip Online Pvt Ltd. in Turkey is already among the top producing agents for most of the Airlines flying in this area. In addition to the strong presence in the retail market, we were able to enter the corporate travel market also in a big way. Avail Trip Online Pvt Ltd. Online also has an office in Singapore. Car Rental & Airport Bus Avail Trip Online Pvt Ltd. is one of the pioneers among the IATA approved Travel Agents in India to operate car hire service from the domestic and international airports in India. Today, we have well established car hire service from many of the airports, who offer modern fleet of comfortable cars at affordable rates. We also have dedicated fleet of vehicles for crew transportation from the Airport to hotels and back.

Directors Er.Shashank Duggal Managing Director Qualified from Chandigarh Engg

College, in stream of Computers science in year 2008.& come up with a dream of Travel Company. When they opened their first office in city Phagwara on dated 28 may 2008. Then After the graph has followed to the upward direction. Er.Shelly Nakra Duggal Chief Managing Director . The Wife &Co-Managing Director Of Avail Trip is B.Tech In Computer Science & MBA in ( HR & IT) from LPU passed in 2009. Having 2 years of experience working

Our Services

AIR TICKETING HOLIDAY PACKAGES RAILWAY BOOKING WESTERN UNION VISA SERVICES BUS BOOKING

Objective of study 1) to judge the liquidity position of the company 2) to judge the solvency position of company

Introduction to cash flow statement

Cash Flow Statements The Standard deals with the provision of information about the historical changes in cash and cash equivalents of an enterprise by means of a cash flow statement which classifies cash flows during the period from operating, investing and financing activities. Scope 1. An enterprise should prepare a cash flow statement and should present it for each period for which financial statements are presented. 2. Users of an enterprises financial statements are interested in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprises activities and irrespective of whether cash can be viewed as the product of the enterprise, as may be the case with a financial enterprise. Enterprises need cash for essentially the same reasons, however different their principal revenue-producing activities might be. They need cash to conduct their operations, to pay their obligations, and to provide returns to their investors. 3. A cash flow statement, when used in conjunction with the other financial statements, provides information that enables users to evaluate the changes in net assets of an enterprise, its financial structure (including its liquidity and solvency) and its ability to affect the amounts and timing of cash flows in order to adapt to changing circumstances and opportunities. Cash flow information is useful in assessing the ability of the enterprise to generate cash and cash equivalents and enables users to develop models to assess and compare the present value of the future cash flows of different enterprises. It also enhances the comparability of the reporting of operating performance by different enterprises because it eliminates the effects of using different accounting treatments for the same transactions and events. 4. Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows. It is also useful in checking the accuracy of past assessments of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing prices.

Definitions The following terms are used in this Standard with the meanings specified: 1) Cash comprises cash on hand and demand deposits with banks. 2) Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 3) Cash flows are inflows and outflows of cash and cash equivalents. 4) Operating activities are the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities. 5) Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. 6) Financing activities are activities that result in changes in the size and composition of the owners capital (including preference share capital in the case of a company) and borrowings of the enterprise. Cash and Cash Equivalents Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition. Investments in shares are excluded from cash equivalents unless they are, in substance, cash equivalents; for example, preference shares of a company acquired shortly before their specified redemption date (provided there is only an insignificant risk of failure of the company to repay the amount at maturity). Cash flows exclude movements between items that constitute cash or cash equivalents because these components are part of the cash management of an enterprise rather than part of its operating, investing and financing activities. Cash management includes the investment of excess cash in cash equivalents. Presentation of a Cash Flow Statement The cash flow statement should report cash flows during the period classified by operating, investing and financing activities. An enterprise presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business. Classification by activity provides information that allows users to assess the impact of those activities on the financial position of the enterprise and the amount of its cash and cash equivalents. This information may also be used to evaluate the relationships among those activities.

A single transaction may include cash flows that are classified differently. For example, when the installment paid in respect of a fixed asset acquired on deferred payment basis includes both interest and loan, the interest element is classified under financing activities and the loan element is classified under investing activities. Operating Activities The amount of cash flows arising from operating activities is a key indicator of the extent to which the operations of the enterprise have generated sufficient cash flows to maintain the operating capability of the enterprise, pay dividends, repay loans and make new investments without recourse to external sources of financing. Information about the specific components of historical operating cash flows is useful, in conjunction with other information, in forecasting future operating cash flows. Cash flows from operating activities are primarily derived from the principal revenueproducing activities of the enterprise. Therefore, they generally result from the transactions and other events that enter into the determination of net profit or loss. Examples of cash flows from operating activities are: (a) cash receipts from the sale of goods and the rendering of services; (b) cash receipts from royalties, fees, commissions and other revenue; (c) cash payments to suppliers for goods and services; (d) cash payments to and on behalf of employees; (e) cash receipts and cash payments of an insurance enterprise for premiums and claims, annuities and other policy benefits; (f) cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities; and (g) cash receipts and payments relating to futures contracts, forward contracts, option contracts and swap contracts when the contracts are held for dealing or trading purposes. Some transactions, such as the sale of an itemof plant, may give rise to a gain or loss which is included in the determination of net profit or loss. However, the cash flows relating to such transactions are cash flows from investing activities. An enterprise may hold securities and loans for dealing or trading purposes, in which case they are similar to inventory acquired specifically for resale. Therefore, cash flows arising from the purchase and sale of dealing or trading securities are classified as operating activities. Similarly, cash advances and loans made by financial enterprises are usually classified as operating activities since they relate to the main revenue-producing activity of that enterprise.

Investing Activities The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. Examples of cash flows arising from investing activities are: (a) cash payments to acquire fixed assets (including intangibles). These payments include those relating to capitalised research and development costs and self-constructed fixed assets (b) cash receipts from disposal of fixed assets (including intangibles) (c) cash payments to acquire shares, warrants or debt instruments of other enterprises and interests in joint ventures (other than payments for those instruments considered to be cash equivalents and those held for dealing or trading purposes) (d) cash receipts from disposal of shares, warrants or debt instruments of other enterprises and interests in joint ventures (other than receipts from those instruments considered to be cash equivalents and those held for dealing or trading purposes) (e) cash advances and loans made to third parties (other than advances and loans made by a financial enterprise) (f) cash receipts from the repayment of advances and loans made to third parties (other than advances and loans of a financial enterprise) (g) cash payments for futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the payments are classified as financing activities (h) cash receipts from futures contracts, forward contracts, option contracts and swap contracts except when the contracts are held for dealing or trading purposes, or the receipts are classified as financing activities. When a contract is accounted for as a hedge of an identifiable position, the cash flows of the contract are classified in the same manner as the cash flows of the position being hedged. Financing Activities The separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. Examples of cash flows arising from financing activities are: (a) cash proceeds from issuing shares or other similar instruments;

(b) cash proceeds from issuing debentures, loans, notes, bonds, and other short or longterm borrowings; and (c) cash repayments of amounts borrowed. Reporting Cash Flows from Operating Activities An enterprise should report cash flows from operating activities using either: (a) the direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed (b) the indirect method, whereby net profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows. The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method and is, therefore, considered more appropriate than the indirect method. Under the direct method, information about major classes of gross cash receipts and gross cash payments may be obtained either: (a) from the accounting records of the enterprise (b) by adjusting sales, cost of sales (interest and similar income and interest expense and similar charges for a financial enterprise) and other items in the statement of profit and loss for

Advantages of Cash Flow Statement:

1. It helps the newly formed companies to know their inflow and outflow of cash. 2. It helps the investors to judge whether the company is financially sound or not. 3. It helps the company to know whether it will be able to cover the payroll and other expenses. 4. It helps the lenders to know the companys ability to repay. 5. A cash flow statement is provided on monthly basis or quarterly basis or six monthly basis or yearly basis. 6. These statements help to have an accurate analysis of the firms ability to meet its current liabilities. 7. A cash flow statement is helpful for planning and managing future financial commitments.

8. A cash flow statement summarizes the companys cash receipts and cash payments over a period of time. 9. It is useful for determining the short term ability of the concern to meet its liabilities as it does not include non cash items. 10. A cash flow statement gives vital information not only about the companys performance but also about its major activities during the year.

11. Disadvantages of Cash Flow Statement: 1. By itself, it cannot provide a complete analysis of the financial position of the firm. 2. It can be interpreted only when it is in confirmation with other financial statements and other analytical tools like ratio analysis.

INTERNAL FACULTY ADVISOR: Cash Flow Statements

MRS. MEGHA

The Standard deals with the provision of information about the historical changes in cash and cash equivalents of an enterprise by means of a cash flow statement which classifies cash flows during the period from operating, investing and financing activities COMMENTS/OBSERVATIONS BY FACULTY ADVISOR

_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ ___ _________________________ (Signature of Project In charge)

Date:

Approved

Yes

No

_______________________ (Signature of Centre Head)

Date: