Cashflow Analysis

INTRODUCTION
Finance is the lifeblood of every business activity without which the wheels of
modern business organization system cannot be greased. Finance management is
managerial activity, which is concerned with planning and controlling of the firms
financial Resources. Finance is a scarce resource and it has to be managed efficiency for
the successful functioning of any company. Several companies have come to grief mainly
because of inefficient management of finance, in spite of other favorable conditions.
Cash flow statement is an important tool and is widely used in the hands of
financial analysts and managers for analyzing the financial management of a company.
Cash keep on moving in a business, which itself based on going concern concept. n a
narrow sense, it means inflow and out flow of
Cash only and a flow statement prepared on this basis is called as !cash flow
statement!. Such a statement enumerates net effects of the various business transactions
on cash and takes into account receipts and disbursement of cash. n a broader sense, the
term fund refers to money values in whatever form it may e"ists. #ere, cash mean. $ll
financial resources. %ut in a popular sense, the term cash means working capital i.e.,
e"cess of current assets over current &iabilities. 'he word fund here means net working
capital.
(efinition)
*$ statement of sources and $pplication of Cash is a technical device designed to
analyze the changes in the financial condition of a business enterprise between two
dates!.
+
NEED FOR THE STUDY
'he sources of cash for a business could be from both the long term and short
term. $ny business to survive and growth in the competitive market, cash are needed not
only to meet its long,term financial needs but also short,term re-uirements. 'he long,
'erm sources comprising of share capital, long term debt inclusive of debentures etc.,
while the short term sources comprises of the short term loans, working capital collection
from commercial banks, loans from the call money market and among these fall the sales
which has two phases the cash sales and the credit sales.
'he study is aimed at analyzing the financial position of panyam cements .rivate
&imited and also identifying the inflow and outflows of cash i.e., source and application
of cash.
'his study will evaluate the way of the firms financial condition how effectively
the cash are mobilized and utilized in the company for the financial year ending /+,0/,
01,/+./.02, /+./.03 ,/+,0/,04, /+./.+0,and/+,0/,50++. 'his study will thus help the
company in maintaining better financial performance, which is followed by a blend of
findings and suggestions.
5
+.+ STATEMENT OF THE PROBLEM:
Cash is the basic input needed to keep the operations of the business going
on the continuous basis. So every business unit should always try to keep sufficient cash,
neither more nor less because shortage of cash will threaten the firms li-uidity and
solvency, whereas e"cessive cash will not be fruitfully utilized will simply remain idle
and will effect the profitability of a concern. Cash flow analysis reveals the various
outflows and inflows of cash during a particular period.
6ith the help of the cash analysis, one can determine
6hat are the sources of cash inflows and outflows7
'he cash ability and position of the firm.
#ow the firm utilizing the cash and cash e-uivalents.
So the cash flow analysis helps to determine the future cash flows and the ability
to pay dividends and other commitments and the efficiency of cash management. So
choose the cash flow analysis in 8uari cement limited.
/
Scope of Study:
Firm create manufacturing capacities for production of goods some provide
service to customers. 'hey sell their goods or services to earn profit. 'hey raise funds to
ac-uire manufacturing and other facilities. 'hus the three most important activities of
business firm are)
Production
Marketing
Finance
$ firm as wheat ever capital it needs and employees it 9finance activity: in
activities which generate returns on invested capital 9production and marketing
activities:.
So financial management helps to the firm to take the correct decisions. $nd
also helpful to firm how to utilize the economic resources likely capital funds in the
proper way. t is also controlling tool to control the financial functions of the firm. So it is
very important aspect in every organization.

;
STATEMENT OF THE PROBLEM & HYPOTHESIS
t is proposed to analyze the li-uidity position of the company and also the timing
of availability and re-uirement of cash to match or not.
'he problem of the statement is difference between the two shows 9i.e., sources
and applications of study: the net change in the working capital during the period.
t is assumed that bad payment collection system do not lead to optimization of
inflow < outflow of cash and profits in the company.
t is general principal followed by the financial managers all over the world that
the inflows of cash are classified as long, term and short =term. t is imperative that the
business enterprise uses long =term cash for long = term purpose and short,term cash for
short,term purposes.
#owever a firm, which uses long = term cash for long = term purposes, will have
lot of business problem. 'he reason for this is the long = term cash proposed by the
company generally as a fi"ed cost to it.
n case, if this cash are not utilized for long ,term purpose to generate cash, the
company will have to pay interest without matching income thus leading to mismatch of
cash inflow and cash outflows .
>
Obect!"e# of t$e #tudy:
+. 'o review the literature of cash flow analysis?
5. 'o evaluate the sources and applications of cash of 8uari cement limited?
/. 'o study the operating, financing activities of cash inflows and outflows of the firm.
;. 'o find out the operating efficiency of the organization.
>. 'o measure the overall financial performance of 8uari cements .rivate &imited.
1. 'o offer suitable suggestions for better performance of the company.
Met$odo%o&y:
1
+. Sou'ce# of d(t(:
)* P'!+('y d(t(*
'he study of cash flow analysis is basis on primary data as well as secondary data.
,* Seco-d('y d(t(:
'he secondary data are those which have been already collected by
some agency on which have been processed. 'he secondary data is obtained from manual
reports and financial statements i.e., balance sheet and profit and loss account, annual
reports and additional data.
LIMITATIONS:
n spite of various uses of cash flow statement, it has the following limitations)
1. Cash fow statement gives the main of infow and outfow of cash only
and does not
Show the liquidity position of the company.
. !his statement is not a su"stitute of income statement which shows
"oth cash and non# items. !herefore$ net cash fow
does not necessary mean net income of the "usiness.
%. &t cannot replace funds fow statement as it cannot show the 'nancial
position of the concern in totally.
2
CEMENT INDUSTRY PROFILE
)* INTRODUCTION
Cement industry has been decontrolled from price and distribution on +st march
and de,licensed on 5>th @uly +44+. #owever, the performance of the industry, the
constraints faced by the industry are interviewed in the infrastructure co,ordination
committee meeting held in the cabinet secretariat under the chairmanship of secretary.
'he committee on infrastructure also reviews its performance. 'he industry is subAect to
e-uality order issued on +2,05,500/ to ensure -uality standards.
)*) CEMENT INDUSTRY HISTORICAL PERSPECTI.E
Cement industry is one of the maAor and oldest established manufacturing
industries in the modern sector of ndian economy. t is an indigenous industry in which
the company is well endowed with the necessary raw materials, skilled manpower and
e-uipment < machinery technology.
Firms, bridges, buildings, water supply proAects, dams, roads, hydroelectric power
proAects, seaports, airports, and irrigation schemes re-uire cement. t is thus a vital
industry, which assumes a crucial part in the economic development of the country, thus it
regards as maAor nation building industry whose importance in a developing economy
never be over emphasized. 'he Breek civilizations use some of mortar but Romans has
developed it. 6hen one speaks about the cement industry, it invariably refers to .ortland
cement, which has its origin in Cngland, but until the +4
th
century a mi"ture of limestone
with .ozzoland of volcanic earth was known as cement. 'he first cement factory was
established around +340 in both Canada and $ustralia, while it was invented in +33; in
Dew 8ealand.
'he Cement industry occupies a position of predominance not only an
infrastructure for development but also it is 3
th
largest in the world, which directly
employs about millions of persons.
3

CEMENT INDUSTRY IN INDIA
n ndia it came to be establishing during the beginning of 50
th
century. n fact the
cement era in ndia commenced with the establishment of a small cement factory at
6$S#CRE$D.C' in +40; by south ndia industry &td, a company that dates to +324.
'here was sufficient demand for that product, but because of technological defects and
inade-uate supply of raw materials, the plant did not operate economically, a later on
collapsed. ndia is ranked ;
th
in the world after China, @apan and FS$ in cement
production. Get the per,capital consumption of cement in ndia however low at 20 to 30
kgs against the world average of around 550 kgs.
Cement industry in ndia is 3
th
decades old. #owever, the growth has not kept
pace with period of its e"istence. (ecades of the government control have restricted the
growth of the industry. 'he real foundation stone of the present industry was laid in the
year +4;5, when a small factory was established .orbandar in Haythiwar by ndia cement
&imited. 'his factory commenced its production in +4+; at the rate of +44 metric tones
per day. 'his company adopted *dry process!. 'his plant had easy access of lime stone
-uarries of .orbandar. 'he initial attempt could cause the attempt of two or more
factories. Ine at Hanthi 9E.: another at &akhier 9RaAastan:. 'he government control was
lifted immediately after the world war and the boom period of the industry started. 'he
demand for cement increased very steadily as the cement was used was used not only for
housing but also for dams, roads, bridges and other developed activities.
INDIAN CEMENT SECTOR
'he boom in the housing market has given birth a higher demand in I-d!(
ce+e-t. 'he present initiatives under taken by the Bovernment for infrastructure
development has also raised the demand for cement in the country. 'he cement
companies such as Fltratech, $CC, B$C& and Brasim have grown in the country.
4
T$e p%(--ed c(p(c!t!e# of p'oduct!o- of I-d!(- Ce+e-t Co+p(-!e# ('e (#
fo%%o/#:
)*0 CAPACITIES OF PRODUCTION BY COMPANIES
Co+p(-y N(+e
Loc(t!o-
1By St(te2
Add!t!o-(%
C(p(c!t!e#
1I- +- to-e#2
Co++!##!o-!-&
D(te
@. $ssociates #imachal .radesh ;.>> (ec, 5003
Brasim
Hothputali,
RaAasthan
;.03 FG +0 J+
@. $ssociates Fttar .radesh /./; FG 5004
Fltra 'ech Cement $ndhra .radesh /.+4 J+ FG 50+0
IC& Irissa /.0; J+ FG 50+0
@H Cement Harnataka /.00 Sept 5004
%inani Cement RaAasthan 5.>2 (ec 5002
@. $ssociates Eadhya .radesh 5.00 J/ FG 5004
8uari Cement $ndhra .radesh +.43 #+ FG 50+0
.enna Cement $ndhra .radesh +.1/ #+ FG 50+0
$CC &akheri RaAsthan 0.4; (ec 5002
Eadras Cements 'amil Dadu +.3; #+ FG 50+0
+0
TYPES OF CEMENT IN INDIA
'he type# of ce+e-t !- I-d!( have increased over the years with the
advancement in research, development, and technology. 'he ndian cement industry is
witnessing a boom as a result of which the production of different kinds of cement in
ndia has also increased.
%y a fair estimate, there are around ++ different types of cement that are being
produced in ndia. 'he production of all these cement varieties is according to the
specifications of %S.
So+e of t$e "('!ou# type# of ce+e-t p'oduced !- I-d!( ('e:
Clinker Cement
Irdinary .ortland Cement
.ortland %last Furnace Slag Cement
.ortland .ozzolana Cement
Rapid #ardening .ortland Cement
Iil 6ell Cement
6hite Cement
Sulphate Resisting .ortland Cement
n ndia, the different types of cement are manufactured using dry, semi,dry, and
wet processes. n the production of Clinker Cement, a lot of energy is re-uired. Fsing
materials such as limestone, iron o"ides, aluminum, and silicon o"ides produces it.
$mong the different kinds of cement produced in ndia, .ortland .ozzolana Cement,
Irdinary .ortland Cement, and .ortland %last Furnace Slag Cement are the most
important because they account for around 44K of the total cement production in ndia.
++
COMPANY PROFILE
'his cement division proAect in +423 and according to the 'e"maco it has taken
the steps for ac-uiring the land at GCRR$BFD'&$ in H$($.$ dist. in +435.
Constructing activity is started and the cement plant is completed in Earch +43>.
'e"maco is started production at clinker by Earch +43>. Iriginal plant capacity was >
lakh tones per annum at first.
'he 8uari cement is strategically located at Gerraguntla. 'he plant location
e"istence of 1km from Gerraguntla. t is connected to the railway station on by a railway
track of 2 km length and is having on e"change plant inside the factory? plant is
connected to the nearest highway by 0.5 km land private load.
%asically this is belongs to (R.H.H. %irla. n +44; @anuary +, this cement unit of
'e"maco being handed over to 8uari agro chemical industry. Fnder working agreement
on 2,5,4>. 'his unit is sold by 'e"aco to 8aire in +442 company has conceives e"pansion
proAect investing /20 crores and making increasing rated capacity from > lakh to 2 lakh.
'his proAect was completed by formally +444 and in fact from
+,;,5000. Company entered in agreement with Aoint venture partner with taly cement
with >0K of partnership and working agreement.
'he Broup has strength of 55,/00 employees worldwide.
L 15 cement plants.
L +; Brinding Fnits.
L ; stand alone terminals.
L +;2 aggregate -uarries.
L >2> concrete batching units.
.art of the prestigious (r.H.H.%irla Broup a Rs ;000 crores conglomerate
8uari cement as within a short time span made its presence felt in the cement industry. tv
has done so by making top -uality cement.
Consistently, Cement that has won the confidence and trust of millions in the
country. 'his commitment to -uality has being it grow from a modest 0.> million ton
capacity in +44> to 5 million tons today.
+5
8uaries -uality drive originates in its state of the are cement plant, situated at
yerraguntla, Renewed for rich DarAi limestone deposits, this plant is cement
manufacturers envy. Get, strategic location is Aust factor contributing to 8uaries success.
'here are other e-ual important reasons.
Superior work force.
Cutting#edge technology.
(ecentrali)ed quality assurance teams.
$ll this combine seamlessly to ensure that every bag org cement. 'hat leaves the
plants is of consistent -uality, and worthy of bearing the 8uari label. 6orld 6ife
e"cellence with italcementi. 8uari industries ltd has entered into >0)>0 Aoint venture with
italcementi group, the largest producer and distributer of cement in Curope and one of the
leaders in cement production in the world. talcement operates in +4 countries including
Canada, France, taly, Eorocco, FS$ and %ulgaria. talic cements global industrial
network includes more than >0 cement plants, >00 concrete batching units +>0 -uarries.

H!#to'y of 3u('! ce+e-t#:
8uari cement was started in +44; to operate the cement plant of 'e"maco &td.
Subse-uently, 'e"macos cement business was taken over by the company in +44>. 8uari
cements manufacturing facility at yerraguntla in $ndhra .radesh is one of the largest in
south ndia and places 8uari cement among the top > manufacturers in the south. n 5000,
talcementi group the second largest producer and distributor of cement in Curope and
fifth largest cement producer in the world enter into a Aoint venture with 8uari cement
and 8uari cement &imited was formed.
COMPETITORS:
+. CIR$E$D($& CCECD'
5. E$#$ CCECD'
/. D$B$R@FD$ CCECD'
;. &$DCI CCECD'
>. F&'R$'CCh CCECD'
+/
Some of the other cements companies. $ll cement companies are competitors.
4o!-t "e-tu'e /!t$ It(% ce+e-t:
'he scenario of mergers and ac-uisitions is still vast in the cement industry. 'he
entry of Eay multinationals. 'he other EDCs planning to enter the ndian market and
consolidation of the companies in ndia has been forcing mergers in the cement industry.
Dow company is under Aoint venture having rated capacity of +2 lakhs per annum. tal
cements group CC%s mother company 9 Companies des cements :, and the 8uari
ndustries &td 98&: of ndia have reached an agreement to create a >0)>0 Aoint venture
which will assume the cement activities of 8&, consisting of the cement plant of
yerraguntla, in $ndhra .radesh.
It(% Ce+e-t 5'oup:
OUR MISSION:6
7Ou' #$('ed (+b!t!o-: Effect!"e (-d Eff!c!e-t8
'o become the most effective and most efficient cement manufacturer and
distributor in the world.
OUR APPROACH: 9e ('e %oc(%: /e t$!-; &%ob(%
Cement aggregates and ready mi"ed concrete manure and distribution are local
business. $round the world we serve local customers in local market with local needs.
OUR 9AY OF 9OR<IN5: Tec$-o%o&!c(% %e(de'#$!p !# ou' &o(%:
Iur technology plays the key role in realizing our ambition we are committed to
increasing the value of our group, our companies, our products and services, the
capabilities of our employees and the ecological standards by which we operate.
OUR SPIRIT: O-e te(+ /o'%d/!de*
6e operate worldwide in many diverse markets, culture and continents. 6e are
proud of our cultural diversity and our distinctions character.
+;
Loc(t!o- of t$e p%(-t:
Cement and its raw materials namely coal and lime stone, are all bulky that make
transportation difficult and uneconomical. Biven this, cement plants are located close to both
sources of raw materials and markets. Eost of lime stone deposits in ndia are located in Eadhya
.radesh, RaAasthan, $ndhra .radesh, Eaharashtra and BuAarat. 'here is a trade,off between
pro"imity to markets and pro"imity to raw materials due to which some cement plants have been
setup near big markets despite lack of raw materials. 8uari cement industries ltd., is located at
Hrishna Dagar, in Gerraguntla, Hadapa district. t was nearest to the railway station and also nearest
to the road. t was 1 km distance to yerraguntla.
&ocation of the plant at this place is having the following advantages. &ocation in
industrial belt of Rayalaseema with sophisticated facilities like water.
.resent of best suited limestone proved scientifically for cement.
&ow free limestone to ensure reduce surface cracks.
&ow heat of hydration from better soundness.
&ow magnesia content to ensure reduced tensile cracks.
Specially designed setting time to suit ndian working conditions.
PRODUCTION:
Cement production during the period has also increased from about 25.5/
million tons about 40 million tons in 500>,5001 e"cluding the contribution of mini
cement plants.
RA9 MATERIALS:
'he actual re-uirements of raw material at +00K capacity utilization would be?
+. +5.> million tons of limestone per annum.
5. 20000 tons of Bypsum per annum.
/. /4000 tons of %au"ite per annum.
;. 50000 tons of ron ore per annum.
'he limestone is maAor component re-uired for the plant is net from the mines located
adAacent to the proposed site.
1. *ypsum is procured from fertili)er factories at Madras and Cochin.
+>
. &ron is soured partly from mini steel plants located at !irupathi and
partially from +ellary.
%. +au,ite is procured from *oa$ -arnataka and Maharashtra.
PO9ER:
Ea"imum estimated power demand is ;> E.M. 'he company has an e"isting contract >0
E.M demands $.SC%, the plant presents has (.B sets with an aggregate general capacity of +5.1
E.M.
9ATER:
6ater is re-uired for seeds of consumption make for plant and machinery for general need
in plant. Company has a pumping station and underground bore wells near #anuman Butta village
at .enna River to tap the undergrounds water in riverbed.
TRANSPORT:
'he factory is when connected to different part of the country through rail and
road facilities is near to Gerraguntla railway station and has a railway lint to the factory
with an e"tern point within the factory premises 10> of the cement is dispatched by rail
gal is received through rail. 'he plant is connected to the nearest state highway to
%angalore, #yderabad and Chennai.
MANPO9ER:
C"isting plant has a total of >00 employees. $fter an addition of employees may
be re-uired.
=UARRY:
t is situated adAacent to the factory. t constituted limestone, one of the maAor materials for
cement industry. 'he -uarry has a mining base area of +052.>1 acres.
S.Do De#c'!pt!o-
M(##!"e
1MT2
&'(de %!+e#to-e
F%(&&ed
#to-e1MT2
Tot(% 1MT2
+1
+
'otal reserves of limestone
/1 blocks
+03;;5 4.34; ++3./1
5
Fn workable limestone due
to mining obstacles
54>/0 5>;0 /5.02
/ 6orkable reserves 244+5 2/>; 31.511

Chambal fertilizers and chemicals ltd 9CFC&: promoted by 8uari industries ltd., has set up a
large gas based area manufacturing plant at Badapan about /> km from Heta, a maAor industrial
town of RaAasthan state in ndia.
CFC&s plant is a state,of,the,are,high,tech comple" built at a cost of Rs.+5.12 billions.
Spread over an area of ++0> acres 9or ;;2 hectares ;.;2 s-.kms:, containing the manufacturing units
offsite facilities including captive power plant, railways siding and amenities like residential
comple", club, school, etc in a pleasant and green surroundings snamprogetti of taly and #aldor
topsoe of (enmark provided the technical know,how and Cngineering and other services for
$mmonia and urea plant while off,site facilities were built mainly by 'okyo engineering ndia ltd.
'he enterprise value of the unit has been pegged at Rs. 2;0 crores. 'he creation of this Aoint venture
company is a new step in the international of the tal cement group in $sia.
t is a new opportunity for the group, to further increase its presence in the emerging
countries by entering the promising ndian market, the third largest in the world. n combination
with a very important partner says a release issued by laggard who advised ital cement on the deal.
#ere are 1 of the many reasons why 8uari >/ grade and ;/ grades cement edges out its
competitors.
+. #igh compressive strengths.
5. &ow heat of hydration.
/. %etter soundness.
;. &esser consumption of cement for E,50 concrete grade and above.
>. Faster de,shuttering of formed work.
1. Reduced construction time.
6ith a superior and wide range of cement catering to very conceivable building
need, 8uari cement is a formidable player in the cement market. #ere are Aust a few
reasons why 8uari cement is chosen by millions in ndia.
deal raw materials
+2
&ow time and magnesia content and high proportion of silicates
Breater fineness
Slow initial and fast final setting
6ide range of application
Juality customer service
A /!de '(-&e to (dd'e## e"e'y -eed:
Residential, commercial, multistoried buildings and comple".
Eass concreting,dams, canals, spillways
Construction and repair of pavements, roads, flyovers and runways.
Spun pipes and poles manufacturing
Cold weather concreting
.re,fabricated elements such a pipes, sleepers, windows, door frames etc.
=u(%!ty cu#to+e' #e'"!ce:
n an effort to reach out to customers better, 8uari cement as set up a technical
cell named 8uari home partner. 'his cell gives guidance in the field of building.
'echnology, architecture, housing finance and economical usage of the high -uality.
'echnical e"perts provide the assistance according to the individual re-uirements. So that
customers get the best value for the investment they have made.
P'oduct#
8uari Cement manufactures and distributes its own main product lines of
cement .6e aim to optimize production across all of our markets, providing a complete
solution for customerNs needs at the lowest possible cost, an approach we call strategic
integration of activities. Cement is made from a mi"ture of 30 percent limestone and 50
percent clay. 'hese are crushed and ground to provide the Oraw meal!, a pale, flour,like
powder. #eated to around +;>0P C 951;5P F: in rotating kilns, the *meal! undergoes
comple" chemical changes and is transformed into clinker. Fine,grinding the clinker
together with a small -uantity of gypsum produces cement. $dding other 'he culture of
-uality that has always prevailed in 8uari CementNs manufacturing facilities is best
e"emplified in the process technology employed.
>u('! Ce+e-t# '(-&e of ce+e-t
+3
$dvanced technology methods are used to ensure that a high level of -uality is attained
and sustained right through the manufacturing process. Get, these high standards are
constantly improved upon by an e"perienced and dedicated R<( team to attain
performance oriented cement.
Centralised In,line .rocess Control
T$e p'oce## Tec$-o%o&y Ad"(-t(&e#
Complete homogenization of limestone is achieved by stacking the limestone in
stock,plies with the use of stackers and reclaiming it through reclaimers.
'he optimum ratio of raw mi" is attained by the use of Q,ray analyzer and
automatic weigh feeder which are linked to the centralized computers control
room.
+4
O-%!-e ?6'(y A-(%y#e' St(c;e' (-d Rec%(!+e'
Reduced variability in kiln feed and complete homogenisation of raw meal is attained
through Continuous Flow Silo. 'his ensures that every grain of cement is of consistent
-uality.
.e't!c(% R(/ M!%% Co-t!-uou# F%u!d!#ed S!%o
'he totally computerized monitoring system enables -uality clinkerisation. t dictates
the optimum retention time in the precalciner and the kiln. C-uipped with a si" stage
double stream pre,heater cyclone system, the precalciner only adds to the -uality.
'he modern closed grinding units have a high efficiency separator that produces finer
particles of cement. 'his yields cement matri" with a lower pore diameter. 'his in turn
gives concrete of higher density and lower permeability.
50
.e-to+(t!c E%ect'o-!c P(c;!-&
8uari Cement employs Mentomatic packers to ensure that the customer gets e"catly >0
kgs per bag. 'o minimize damages during transport, advanced loading techni-ues are used.
'hese steps reflect 8uari CementNs commitment to offer the best -uality and correct -uality to
its customers.
E-"!'o-+e-t6F'!e-d%y Tec$-o%o&y
'o minimize dust emission, 8uari Cement has installed the latest pollution control
e-uipment such as electrostatic precipitators in the kiln, raw mills, coal mills and cement mills.
this environmental friendly aspect of 8uariNs process technology has resulted in abundance of
greenery and clean air in the factory premises.
5+
THEORITICAL BAC<5ROUD
INTRODUCTION TO FINANCIAL MANA5EMENT:
n the earlier years of its evaluation it was created rising of funds. n the current
year literal pertaining to financial management a border scope. So as to include in
additional to procurement of funds efficient of funds efficient of resources in universally
recognized. 'he term nature as applied to financial management refers to its relationship
with the closely related fields of economics and accounting its functions, scope.
DEFINITIONS:
*Financial management is concerned with the efficient use of an important
economic resources namely capital funds!. =Solomon.
*Financial management is the application of the planning and control
function to the finance functions!. =#oward and Fpon
F!-(-ce fu-ct!o-#)
t may be difficult to separate the finance functions from production,
marketing and other functions, but the functions themselves can be readily identified. 'he
functions of raising funds, investing them in assets and distributing returns earned from
assets to shareholders are respectively known as financing decision, investing decision,
and dividend decision. $ firm attempts to balance cash inflows and outflows while
performing these functions. 'his is called li-uidity decision, and we may add it to the list
of important finance decisions or functions.
'hus finance functions include?
+. &ong term asset,mi" 9or: investment decision.
5. Capital,mi" 9or: financing decision.
/. .rofit allocation 9or: dividend decision.
;. Short term mi" asset,mi" 9or: li-uidity decision.
Me(-!-& (-d type# of f!-(-c!(% #t(te+e-t#:
$ financial statement is an organized collection of data according to logical and
consistent accounting procedures. t purposes is to convey in understanding of some
55
financial aspects of a business firm. 'hus, the term Rfinancial statements generally refers
to two basic statements.
+. ncome statement
5. %alance sheet
)* I-co+e St(te+e-t:
'he income statement may be prepared in the form manufacturing account to find
out the cost of the production, in the form of trading account to determine the gross loss
in the form of profit < loss account to determine the net profit or net loss
f the profit is increasing year after year or it is higher than the other competitors,
it means the business is a profitable one. Itherwise it is better to switch over to other
lines or to close down. Similarly if the e"penditure is more than the income then there
will be no loss. t means that the firm is losing the capital.
,* B(%(-ce #$eet:
'he balance sheet is one of the mportant statement which shows the financial
position of the firm, measured in terms of assets < liabilities i.e., %alance sheet shows all
the assets owned by the firm on one side and on other side owners funds and other
e"ternal liabilities. 'he difference between the total assets and the e"ternal liabilities is
known as *Iwners C-uity!. f the owners e-uity is increasing over a period of time, it
means. Itherwis/ it will be a cause of financial insolvency.
N(tu'e of f!-(-c!(% #t(te+e-t#:
Financial statements are prepare for the purpose of presenting a periodical review
are report by the management and deal with the state of investment in business and result
achieved during the period under review.
From this it is clear that financial statements are affected by three things.
+. Recorded facts
5. $ccounting conventions
/. .ersonal Audgments.
5/
OB4ECTI.ES OF FINANCIAL STATEMENTS:6
Financial? statement are the sources of information on the basis of which
conclusions are drawn about the profitability and financial position of a concern. 'he
primary obAective of the financial statement is to assist in decision making to those who
are interested in the financial affairs of the business enterprise. 'he $ccounting .rinciples
%oard of $merica 9$.%: state that following obAectives of financial statements.
'o provide reliable financial information about economic resource and obligation
of a business firm i.e., cash inflows and cash outflows.
'o provide other needed information about changes in such economic resource
and obligations.
'o provide a financial information the assist in estimating the earning of
potentials of the business.
'o provide information about the working capital and other funds flow.
'o disclose, to the e"tent possible, other information related to the financial
statements that is relevant to its users.
Tec$-!@ue# 1too%# o' +et$od#2 of (-(%y#!# (-d !-te'p'et(t!o-:
'he following techni-ues can be used in connection with analysis interpretation of financial
statements)
+. Comparative financial statements 9or analysis:

5. Common measurement statements 9or analysis:
/. 'rends percentages analysis
;. Funds flow statement 9or analysis:
>. Det working capital analysis
1. Cash flow statement 9or analysis:
2. Ratio analysis.
5;
CASH FLO9 ANALYSIS
INTRODUCTION:
Cash is the basic input needed to keep the operations of the business going on a
continuing basis? it is also the final output e"pected to be realized by selling the product
manufactured by the manufacturing unit. Cash is both the beginning and the end of the
business operations.
Sometimes, it so happens that a business unit earns sufficient profit, but inspire of
this is not able to pay its liabilities when they become due. 'herefore, a business unit
should always try to keep sufficient cash, neither more nor less because shortage of cash
will threaten the firms li-uidity and solvency, whereas e"cessive of cash will not be
fruitfully utilized, will simply remain idle and will affect the profitability of a concern.
Cffective cash management, therefore, implies a proper balancing between the two
conflicting obAectives of li-uidity and profitability.
'he management of cash also assumes importance because it is difficult to predict
cash inflows and outflows accurately and there is no perfect coincidence between the
inflows and outflows of cash giving rise to either cash outflows e"ceeding inflows or
cash inflows e"ceeding cash outflows. Cash flow statement is one important tool of cash
management because it throws light on cash inflows and cash outflows of a particular
period.
MEANIN5 OF CASH FLO9 ANALYSIS:
$ cash analysis is more useful because it gives detailed information to the
management about the sources of cash inflows and outflows. Cash flow analysis means
to reveal the cash outflows and cash inflows in a particular period. $n analysis of cash
flows is useful for short,run planning.
DEFINITION OF CASH FLO9 ANALYSIS)
$ cash flow analysis can be defined, *$s a statement which summaries sources of
cash inflow and of cash outflows of a during a particular period of time, say a month or a
year! Such statement can be prepared from the data made available from comparative
balance sheets, profit and loss account and additional information.
5>
t is an essential tool short,term financial analysis and is very helpful in the
evaluation of current li-uidity of a business concern. t helps the business e"ecutives of a
business in the efficient cash management and internal financial management. t is
evaluating the cash inflows and out flows of companys during a particular period. t
reveals the cash position of the company.
OB4ECTI.ES OF CASH FLO9 ANALYSIS:
+. 'he economic decisions that are taken by users re-uire an evaluation of the
ability of an enterprise to generate cash and cash e-uivalents and the timing
and certainty of their generation.
5. t deals with the provision of information about the historical changes in cash
and cash e-uivalents of an enterprise by means of a cash flow statement
which classifies cash flows during the period from operating, investing and
financing activities.
/. nformation about the cash flows of an enterprise is useful in providing users
of financial statements with a basis to assess the ability of enterprise to
generate cash and cash e-uivalents and the needs of the enterprise to utilize
those cash flows.
SCOPE OF CASH FLO9 ANALYSIS)
+. $n enterprise should prepare a cash flow statement and should present it for each
period for which financial statements are presented.
5. Fsers of an enterprises financial statements are interested in how the enterprise
generates and uses cash and cash e-uivalents. 'his is the case regardless of the
nature of the enterprises activities and irrespective of whether cash can be
viewed as the product of the enterprise, as may be the case with a financial
enterprise.
Cnterprises need cash for essentially the same reasons, however different their
principal revenue,producing activities might be. 'hey need cash to conduct their
operations, to pay their obligations, and to provide returns to their investors
51
USEFULLNESS OF CASH FLO9 ANALYSIS:
+. .redicts future cash flows.
5. (etermines the ability to pay dividends and other commitments.
/. Shows the relationship of net income to changes in the business cash.
;. Cfficiency in cash management.
>. (iscloses movement of cash.
1. (iscloses success or failure of cash planning.
2. Cvaluate management decisions.
3. Cnhances the comparability of reports.
)* .'ed!ct# futu'e c(#$ f%o/#:
'his statement is often used as an indicator of the amount, timing and
certainty of future cash flows and the basis of what happened in the past. 'his approach is
better than accrual basis data presented by profit and loss account and balance sheet.
,* Dete'+!-e# t$e (b!%!ty to p(y d!"!de-d# (-d ot$e' co++!t+e-t#)
'his statement indicates the sources and uses of cash under operating,
investing and financing activities, helps shareholders to know whether the business can
make the payment of amount of dividends on their investment in shares and creditors to
receive interest and principal amount in time.
A* S$o/# t$e 'e%(t!o-#$!p of -et !-co+e to c$(-&e# !- t$e bu#!-e## c(#$:
Benerally there is direct relation between net income and cash. #igh net
income leads to increase in cash and vice versa. %ut there may be a situation where a
companys net income is high but decrease in cash balances and increase in cash balance
when net income is low. Cvery user is interested to know the reasons or difference
between the net income and net cash provided by operations. 'he net income generally
tells the progress of the business while cash flow relates to the li-uidity of the business.
'he users are helped to assess the reliability of net profit with the help of this statement.
52
0* Eff!c!e-cy !- c(#$ +(-(&e+e-t:
'his statement is very useful to the management in evaluating financial
policies and cash position. t will help the management to make the reliable cash flow
proAections for the immediate future and will tell surplus or deficiency of cash so that
management may be able to make plan for investment of surplus cash or to tap the
sources where from the deficiency is to be met. 'hus it is an important financial tool for
the management as it helps in the efficient cash management.
B* D!#c%o#e# +o"e+e-t of c(#$:
.revious year cash flow statement when compared with the budget of that
year will indicate as to what e"tent the resources of the enterprise were raised and
applied. $ctual results when compared with the original forecast may highlight the trend
of the movement of cash that may otherwise remain undetected.
C* D!#c%o#e# #ucce## o' f(!%u'e of c(#$ p%(--!-&:
$ comparison of proAected cash flow statement with the actual cash flow
statement will reveal the success or failure of cash planning and if case in failure,
necessary remedial steps can be taken to improve the position. t also provides a better
measure for inter period and inter firm comparison.
D* E"(%u(te +(-(&e+e-t dec!#!o-#:
'his statement, by providing information relating to companies investing
and financing activities, gives the investors and creditors about cash flow information
which help them to evaluate management decisions.
E* E-$(-ce# type co+p('(b!%!ty of 'epo't:

t enhances the comparability of the reporting of operating performance by
different enterprises, because it eliminates the effect of using different accounting
treatment for the same transactions and events.
53
LIMITATIONS OF CASH FLO9 ANALYSIS:
n spite of various uses of cash flow statement, it has the following limitations)
+. Cash flow statement gives the main of inflow and outflow of cash only and does not
show the li-uidity position of the company.
5. 'his statement is not a substitute of income statement which shows both cash and non,
items. 'herefore, net cash flow does not necessary mean net income of the business.
/. t cannot replace funds flow statement as it cannot show the financial position of the
concern in totally.
MOTI.ES FOR HOLDIN5 CASH:
'he firms need to hold cash may be attributed to the following three motives?
+. 'he 'ransactions Eotive
5. 'he .recautionary Eotive
/. 'he Speculative Eotive
;. 'he Compensation Eotive.
)* T$e T'(-#(ct!o-# Mot!"e)
$n important reason for maintaining cash balances is the transactions
motive. 'his refers to the holding of cash, to meet routine cash re-uirements to finance
the transactions which a firm carries on in the ordinary course of business. $ firm enters
into a variety of transactions to accomplish its obAectives which have to be paid form in
the form of cash. For e"ample, cash payments have to be made for purchases, wages
operating e"penses, financial charges, like interest, ta"es, dividends, and so on.
Similarly, there is a regular inflow of cash to the firm from sales
operations, returns on outside investments, etc. 'hese receipts and payments constitute a
continuous two way flow of cash. %ut the inflows 9receipts: and outflows
9disbursements: do not perfectly coincide or synchronies, that is they do not e"actly
match. $t times, receipts e"ceed outflows while, at other times, payments e"ceed
inflows. 'o ensure that firm can meet its obligations when payments becoming due in a
54
situation in which disbursements are in e"cess of the current receipts, it must have an
ade-uate cash balances.
'he re-uirement of cash balances to meet routine cash needs is known as
the transactions motive at such cash balances are termed as transaction balances. 'hus,
the transaction motive refers to the holding of cash to meet anticipated obligations whose
timing is not perfectly synchronized with cash receipts. f the receipts of cash and its
disbursements could e"actly coincide in the normal course of operations, a firm would
not need cash for transaction purposes. $lthough a maAor part of transaction balances are
held in cash, a part may also be in such marketable securities whose maturity confirms to
the timing of the anticipated payments, such as payment of ta"es, dividends, etc.
5. T$e p'ec(ut!o-('y +ot!"e:
n addition the non,synchronization of anticipated cash inflows and
outflows in the ordinary course of business, a firm may have to pay cash for purposes
which cannot be predicted or anticipated. 'he une"pected cash needs at short notice may
be result of?
Floods, strikes and failure of important customers?
%ills may be presented for settlement earlier than e"pected?
Fne"pected show down in collection of accounts receivable?
Sharp increase in cost of materials.
'he cash balances held in reserve for such random and unforeseen
fluctuations in cash flows are called as Rprecautionary balances. n other words, a
precautionary motive of holding cash implies the need to hold cash to meet unpredictable
obligations. 'hus, precautionary cash balance serves to provide a cushion to meet
une"pected contingencies.
$nother factor which has a bearing on the level of such cash balances is the
availability of short term credit. f firm cash borrow at short notice to pay for unforeseen
obligations, it will need to maintain a relatively small balance and vice ,versa. Such cash
balances are usually held in the form of marketable securities so that they earn a return.
A* T$e #pecu%(t!"e +ot!"e:
t refers to the desire of a firm to take advantage of opportunities which present
themselves at une"pected moments and which are typically outside the normal course of
business. 6hile the precautionary motive is defensive in nature, in that, firms must take
/0
provisions to tide over une"pected contingencies, the speculative motive represents a
motive represents a positive and aggressive approach.
Firms aim to e"ploit profitable opportunities and keep cash in reserve to do so. 'he
speculative motive helps to take in advantage of.
$n opportunity to purchase raw materials at a reduced price on payment of
immediate cash?
$ chance to speculate to interest rate movements by using securities when
interest rates are e"pected to decline ?
(elay purchases of raw materials on the anticipation of decline in prices? and
'o make purchases at favorable prices.
0* Co+pe-#(t!"e +ot!"e:
$nother motive to hold cash balances is to compensate banks for providing
certain services and loans.
%anks provide a variety of services to business firms, such as clearance of
che-ue, supply of credit information, transfer of funds, etc. 6hile for some of the
services banks charge a commission or fee, for others a seek indirect compensation.
Fsually, clients are re-uired to maintain a minimum balance of cash at the bank. Since
this balance cannot be utilized by the firm for transaction purposes, the banks themselves
can use the amount to earn a return.
CLASSIFICATION OF CASH FLO9S:
Cash flows for a period can be classified into the three categories of cash inflows
and cash out flows as given below)
Cash flows from operating activities
Cash flows from investing activities
Cash flow from financing activities
)* CASH FLO9 FROM OPERATIN5 ACTI.ITIES:
'he amount of cash flows arising from operating activities is a key indicator of
the e"tent 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 inventions without recourse to e"ternal sources of financing. nformation
about the specific components of historical operating cash flows, in conAunction with
other information, in forecasting future operating cash flows.
/+
Cash flows from operating activities are primarily derived from the principal
revenue,producing activities of the enterprise. 'herefore, they generally result from the
transactions and other events that enter into the determination of net profit or loss.
C"amples of cash flows from operating activities are?
Cash receipts from the sale of goods and the rendering of services?
Cash receipts from royalties, fees, commissions, and other revenue?
Cash payments to suppliers for goods and services?
Cash payments to and on behalf of employees?
Cash receipts and cash payments of an insurance enterprise for premiums and
claims, annuities and other benefits?
Cash payments or refunds of income ta"es unless they cash be specifically
identified with financing and investing activities? and
Cash receipts and payments relating to future 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 item of plant, may give rise to a gain or
loss which is included in the determination of net profit or loss. #owever, the cash flows
relating to such transactions are cash flows from investing activities.
$n enterprise may hold securities and loans for dealing or trading purposes in
which case they are similar to inventory ac-uired specifically for resale. 'herefore, cash
flows arising the purchases 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.
II* CASH FLO9 FROM IN.ESTIN5 ACTI.ITIES)
/5
'he separate disclosure of cash flows arising from investing activities is important
because the cash flows represent the e"tent to which e"penditures have been made for
resources intended to generate future income and cash flows. C"amples of cash flows
arising from investing activities are?
Cash payments to ac-uire fi"ed assets 9including intangibles:. 'hese payments
include those relating to capitalized research < development costs and self,
constructed fi"ed assets?
Cash receipts from disposal of fi"ed assets 9including intangibles:
Cash payments to ac-uire shares, warrants, or debt instruments of other
enterprises and interests in Aoint ventures 9other than payments for those
instruments considered to be cash e-uivalents and those held for dealing or
trading purposes:?
Cash receipts and disposal of shares, or debt instruments of other enterprises
and interests in Aoint ventures 9other than receipts for those instruments
considered to be cash e-uivalents and those held for dealing or trading purposes:?
Cash advances and loans made to third parties 9other than advances and loans
made by a financial enterprise:?
Cash receipts from the repayment of advances and loans made to third parties
9other than advances and loans made by a financial enterprise:?
Cash payments for future contracts, forward contracts, opinion contracts, and
swap contracts e"cept when the contracts are held for dealing or trading
purposes, or the payments are classified as financing activities? and
Cash receipts for future contracts, forward contracts, opinion contracts, and swap
contracts e"cept when the contracts are held for dealing or trading purposes, or
the payments are classified as financing activities? and
6hen a contract is accounted for as a hedge of an identifiable position, the cash
flows of the contracts are classified in the same manner as the cash flows of the position
being hedged.
III* CASH FLO9S FROM FINANCIN5 ACTI.ITIES:
'he separate disclosure of cash flows arising from financing activities is
important because it is useful in predicting claims or future cash flows by providers of
//
funds 9both capital and borrowings: to the enterprise. C"amples of cash flows arising
from financing activities are?
Cash proceeds from issuing shares or other similar instruments?
Cash proceeds from issuing debentures, loans, notes, bonds, and other
short,term or long,term borrowings? and
Cash repayments of amounts borrowed?
Cash payments to redeem preference shares
.ayment of dividend
PREPERATION OF CASH FLO9 ANALYSIS:
$n organization should prepare a cash flow statement according to accounting
standered,/. 'he following basic informations are re-uired for the pr/peration of a cash
flow statement)
+. Comparative balance sheets
5. .rofit and loss account
/. $dditional data.
'his statement is prepared in three stages as given below?
Det profit before ta"ation and e"traordinary items.
Cash flow from operating, investing and financing activities.
Cash flow statement.
Changes in fi"ed assets and fi"ed liabilities have not been adAusted as these are
shown separately in the cash flow statement. t is so because current assets and current
liabilities are directly related to operations. Cash paid is deducted from cash generated
from operations in order to get the figure of cash flow before e"traordinary items in order
to get the figure of cash provided by or using from operating activities.
SPECIAL ITEMS:
n addition to the general classification of three types of cash flows accounting
standard,/ for the treatment of cash flows of certain social item as under?
a. Foreign currency cash flows
b. C"traordinary items
c. nterest and dividends
/;
d. 'a"es on income
e. nvestments in subsidiaries, associates and Aoint ventures
f. $c-uisitions and disposal of subsidiaries and other business units.
g. Don,cash transactions?
h. 'he ac-uisition of assets by assuming directly related liabilities?
i. 'he ac-uisition of an enterprise by means of issue of shares? and
A. 'he conversion of debt to e-uity.
So cash flow analysis reveals the various items of inflow and outflow of cash. t is
an essential tool for short term financing analysis and is very helpful in the evaluation of
current liability of a business concern. t helps the business e"ecutives of a business in the
efficient cash management and internal financial management.
/>
'(b%e6)
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& ,FFC6FD

P('t!cu%('#
/+,/,5002
Rs lakhs
/+,/,5002
Rs lakhs
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
.rofitSloss before ta"
$dAustments for)
C(#$ outf%o/#:
(epreciation Eiscellaneous e"penses doubtful debts
nterest e"penses and financial charges
953>4.22T+05.00T55/;.33:
.rovision for doubtful debts
C(#$ !-f%o/#:
interest income < .rofit on sale of current investments
9+/.;2T+/3.+>:
&oss on sale of fi"ed assets
Ope'(t!-& p'of!t befo'e /o';!-& c$(-&e# (-d (du#t+e-t#
6orking capital changes)
,9increase:Sdecrease in inventories
,9ncrease:Sdecrease in trade and other receivables
,9increase:S(ecrease in loans and advances
,9increase:Sdecrease in trade and other payables
C(#$ &e-e'(ted befo'e eGt'(o'd!-('y !te+#
C"traordinary item) Compensation paid to employees
Fnder Moluntary retirement scheme < other schemes.
C(#$ &e-e'(ted f'o+ ope'(t!o-#
&ess), income ta" paid 9i.e., ta" deducted at source:
Net C(#$ &e-e'(ted f'o+ ope'(t!-& (ct!"!t!e# 1A2
>+41.1>
9/0.4;:
9+>+.15:
54.44
5;>1.;1
>0;;.33
91++./2:
+>>;.>;
9/1/.;4:
1>;.+0
2>00.>;
+55/.23
32/;./5
+51./>
3102.42
9;2.5;:
3>10.2/

/1
T(b%e6,
I-f%o/# (-d outf%o/# of c(#$ du'!-& ,FFC6,FFD
P('t!cu%('#
/+,/,5002
Rs lakhs
/+,/,5002
Rs lakhs
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
C(#$ !-f%o/) Sale of fi"ed assets
Sale of current investments
nterest received
&oans repaid by Sri Mishnu cement ltd
C(#$ outf%o/) purchase of fi"ed assets
.urchase of current nvestments
nvestments in Sri Mishnu Cement ltd
nvestments in Sitapuram power ltd
%usiness advance for power management
&oans to Sri Mishnu cement ltd
Net C(#$ u#ed !- I-"e#t!-& (ct!"!t!e# 1B2
C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
%orrowings
Sales 'a" deferral
ncrease in trade deposits from stockiest
and dealers
C(#$ outf%o/) repayment of %orrowings
nterest < finance charges paid
ncreaseSdecrease in cash credit and demand
loans
Net C(#$ &e-e'(ted f'o+ F!-(-c!-& (ct!"!t!e# H
Net dec'e(#eIdec'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
1AJBJC2 : 1ADE,*AAJD)0,*)DJBCC*,)2
C(#$ & c(#$ e@u!"(%e-t# (t t$e be&!--!-& of t$e
f!-(-c!(% ye('6 c(#$ (-d b(-; b(%(-ce#
C(#$ & c(#$ e@u!"(%e-t# (t t$e e-d of t$e
f!-(-c!(% ye('6 c(#$ (-d b(-; b(%(-ce#
;.;5
11>4.3+
+5+.1+
>5>.00
94;4.34:
911;1./;:
9+/.0;:
925>.44:
9300.00:
95+5/.00:
/42;.;5
/13;.++
4;2.11
45./4
91/+;.11:
95+0;.>>:
9243.15:
9;;4/.12:
45.1;
+540.2+
+/3/./
/2

5'(p$ No*)
INTERPRETATION:
n this year company earns the cash inflows from the outside of
company. 9+540.2+,+/3/./>: U Rs. 45.1;. %ecause opening cash is less than the
closing cash balance. $nd also all cash outflows are high than the cash inflows of that
activities. nvesting outflow is Rs. /42;.;5, financing outflow is rs. ;;4/.12. %ecause
the cash inflow of operating activities are very high i.e., Rs. 3>10.2/. $nd also
payments are high.
'his year net cash is high to compare with the previous year i.e.,
Rs.3>10.2/. this year also compensation is paid to the voluntary retirement
employees. 9+51./>:. operating profit before changes is Rs. 2>00./;. ncome ta" is
also paid.
T(b%e6A
/3
Ye('# P('t!cu%('# A+ou-t
5002 Cash from operating activities 3>10.2/
Cash from investing activities /42;.;5
Cash from financing activities
9;;4/.12:
Amount
8560.73
3974.42
-4493.67
2007cash from operating activities
2007cash from investing activities
2007 cash from financing activities
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& A)6),6,FFD
1Fo' K +o-t$#2

P('t!cu%('#
/+,+5,5002
Rs lakhs
/+,+5,5002
Rs lakhs
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
.rofitSloss before ta" < e"traordinary items
$dAustments for)
C(#$ outf%o/#:
(epreciation Eiscellaneous e"penses doubtful debts
nterest e"penses and financial charges
95500.;+T12.+0T;/.51T440.13:
C(#$ !-f%o/#:
dividend on investments 910.+3T+.1>T21.00:
Ope'(t!-& p'of!t befo'e /o';!-& c$(-&e# (-d ot$e'
Adu#t+e-t#
,9ncrease:Sdecrease in trade and other receivables
,9increase:Sdecrease in trade and other payables
C(#$ &e-e'(ted befo'e eGt'(o'd!-('y !te+#
C"traordinary item) Compensation paid to employees
Fnder Moluntary retirement scheme < other schemes.
Cash generated from operations
&ess), income ta"es
Net C(#$ &e-e'(ted f'o+ ope'(t!-& (ct!"!t!e# 1A2
//0+.;>
9+/2.3/:
;>0.;+
55>.01
941>.>3:
;4.51
+245.+>
+/;;;.;+
/1+;.0/
+20>3.1>
++00.34
+3+>4.2;
,,,,
+3+>4.2;
9+02;.05:
+203>.25
T(b%e60
/4
I-f%o/# (-d outf%o/# of c(#$ du'!-& A)6),6,FFD 1fo' K +o-t$#2
P('t!cu%('#
/+,+5,5002
Rs lakhs
/+,+5,5002
Rs lakhs
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
nterest received
&oans repaid by Sri Mishnu cement ltd
(ividend on investments
nvestments in Sri Mishnu Cement ltd
nvestments in Sitapuram power ltd
%usiness advance for power management
&oans to Sri Mishnu cement ltd
C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
%orrowings
Sales 'a" deferral
ncrease in trade deposits from stockiest
and dealers
ncreaseSdecrease in cash credit and demand
loans
Net !-c'e(#eIdec'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
1AJBJC2 : 1)DFEB*D,6CKAC*)E6KKBC*0)2
C(#$ & c(#$ e@u!"(%e-t# (t t$e be&!--!-& of t$e
f!-(-c!(% ye('6 c(#$ (-d b(-; b(%(-ce#
f!-(-c!(% ye('6 c(#$ (-d b(-; b(%(-ce# 1)AEA*ABJ)KA*)A2
/.2+
+;05;.;>
1+.4/
+>43.00
+.1>
9/4+2.;>:
9+22>1.1>:
95;.35:
9452.00:
,,,,,,,,
66666
14/1.+3
+/;.++
12>.4;
9+5>.2;:
9452;.+>:
9+0/2.02:
9/54.>0:
944>1.;+:
+4/.+/
+/3/./>
+>21.;3
;0
5002 9For 4 Eonths: Cash from operating activities +203>.25
Cash from investing activities 14/1.+3
Cash from financing activities 944>1.;+:
5'(p$ No*,

I-te'p'et(t!o-:
n this year company earns cash inflows from outside of the company. 9+>21.;3,
+/3/./>:U Rs +4/.+/. %ecause opening cash is less than the closing cash balance.
$nd also all cash outflows are high than the cash inflows of that activities. nvesting
outflow is 14/1.+3, financing outflow is 44>1.;+. %ecause the cash inflow of
operating activities re very high i.e., +203>.25.
'his year net cash is high with the previous year i.e., Rs +203>.25. Iperating
profit before working capital changes is +20>3.3>. ncome ta" also paid 9including
fringe benefit.

;+
Amount
17085.72
6936.18
-9956.41
'(b%e6B
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& ,FFD6FE

P('t!cu%('#
/+,/,5003
Rs lakhs
/+,/,5003
Rs lakhs
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
$dAustments for)
C(#$ outf%o/#:
(epreciation amortization of goodwill
nterest and other finance cost
9>50;.5/T+244.50T4>0.4/:
C(#$ !-f%o/#:
dividend income9+++3.12T0./4T+4;.35:
,9ncrease:Sdecrease in sundry debtors
ncrease in current liabilities and provisions
Net C(#$ p'o"!ded by ope'(t!-& (ct!"!t!e# 1A2
24>;./1
9+/+/.33:
51>.21
53/10.+3
1401.5;
2>0.4>
202.>5
9+>24./0:
43;.>0
/>511.;5
31/.1/
/1+/.0>
9>352.0/:

/0/0/.05

;5
T(b%e6C
I-f%o/# (-d outf%o/# of c(#$ du'!-& ,FFD6,FFE
P('t!cu%('#
/+,/,5003
Rs lakhs
/+,/,5003
Rs lakhs
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
nterest received
(ividend received
.urchase of shares in SMCl
C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
.roceeds from borrowings

Net C(#$ &e-e'(ted f'o+ F!-(-c!-& (ct!"!t!e# 1 C 2
1AJBJC2 : 1AFAFA*F,6)CKKK*)A6A0D,*C,2
C(#$ & c(#$ e@u!"(%e-t# (t t$e be&!--!-& of t$e ye('
C(#$ & c(#$ e@u!"(%e-t# (c@u!'e o- (+(%&(+(t!o-
1'efe' to -ote ) o- #c$edu%e )K2
ye('1AFAFA*F,6)CKKK*)A6A0D,*C,2
Net !-c'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
;>/.>/
;00/.05
351.1;
0./4
9+2/+;.30:
9;4>0.41:
9+1.4>:
/42;.;5
5>>+./+
9>02+.02:
94>5.31:
9/;25.15:
43/+.52
+>21.23
10;.;+
+50+5.+1
43/+.52
;/
5003 Cash from operating activities 3>10.2/
Cash from investing activities /42;.;5
Cash from financing activities 9;;4/.12:

5'(p$ No*A
INTERPRETATION:
company. %ecause opening cash is less than the closing cash balance. $nd also all
cash outflows are high than the cash inflows of that activities. nvesting outflow is
Rs. /42;.;5, financing outflow is rs. ;;4/.12. %ecause the cash inflow of operating
activities are very high i.e., Rs. 3>10.2/. $nd also payments are high.
Rs.3>10.2/. this year also compensation is paid to the voluntary retirement
also paid.
'(b%e6D
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& ,FFE6FK

P('t!cu%('#
/+,/,5004
Rs lakhs
/+,/,5004
Rs lakhs
;;
Amount
8560.73
3974.42
-4493.67
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
$dAustments for)
C(#$ outf%o/#:
9>/22.13T+244.50T>/;.+4:
C(#$ !-f%o/#:
dividend income92;>.+4T3./4T;2>.45:
increase in inventories
,9ncrease:Sdecrease in sundry debtors
ncrease in current liabilities and provisions
22++.02
9+554.>:
>/>./3
/5+4;.00
20+1.4>
955+1.42:
9+04.04:
954;5.++:
+0024.;;
/45+0.4>
;3++.52
;;055.55
9++/1;.0>:

/5>5;.5>

T(b%e6E
I-f%o/# (-d outf%o/# of c(#$ du'!-& ,FFE6,FFK
P('t!cu%('#
/+,/,5004
Rs lakhs
/+,/,5004
Rs lakhs
;>
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
nterest received
(ividend received

C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
Repayment of non convertible borrowings
1AJB6C2 : 1A,B,0*,B60DD,,*FCJDKBK*),2
Net !-c'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
+/.4+
;//10.>>
+004.3+
3./4
9>;+3+.0>:
9/24//.12:
/42;.;5
+04+>.0/
9+>2>.00:
9>/;.+4:
93;1.25:
24>4.+5
25/3.14
+50+5.+1
;22/.;2
25/3.14
;1
5004 Cash from operating activities /5>5;.5>
Cash from investing activities 9;2255.01:
24>4.+5
5'(p$ No* 0

INTERPRETATION:
company. %ecause opening cash is less than the closing cash balance. $nd also all
cash outflows are high than the cash inflows of that activities. nvesting outflow is
Rs. ;2255.01, financing outflow is rs.24>4.+5. %ecause the cash inflow of operating
activities are very high i.e., Rs./5>5;.5> $nd also payments are high.
Rs./5>5;.5>. this year also compensation is paid to the voluntary retirement
also paid.

'(b%e6K
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& ,FFK6)F

;2
Amount
32524.25
-47722.06
7959.12

P('t!cu%('#
/+,/,50+0
Rs lakhs
/+,/,50+0
Rs lakhs
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
$dAustments for)
C(#$ outf%o/#:
9>;33./5T+244.50T;5;.+/:
C(#$ !-f%o/#:
interest income and dividend income
9+;+.;5T++1.>0:
(ecreaseS9increase: in inventories
ncrease in sundry debtors
(ecreaseS9increase: in loans and advances
9(ecrease:Sncrease in current liabilities and provisions
22++.1>
95>2.45:
+3.>4
522+4.5;
2;25./5
+101.0/
9+5;;.;0:
/1+0.20
9553/.5>:
/>+4+.>1
+134.03
/1330.1;
94455.5/:

513;1.41

T(b%e6)F
I-f%o/# (-d outf%o/# of c(#$ du'!-& ,FFK6,F)F
P('t!cu%('#
/+,/,50+0
Rs lakhs
/+,/,50+0
Rs lakhs
;3
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
nterest received
(ividend received

C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
1AJB6C2 : 1,CE0C*KCJ1AKEEB*CC2J,KA0D*),2
Net !-c'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
50.05
45+;/./5
++53.53
+35.4;
954>>5.3+:
9+0/302.;+:
9/433>.11:
/11;>./2
95+>+./1:
9>+;1.34:
54/;2.+5
+1/03.;5
;22/.;2
5+03+.34
+1/03.;5
;4
'

5'(p$
No*B
INTERPRETATION:
n this year company earns the cash inflows from the outside of company.
9+540.2+,+/3/./>: U Rs. 45.1;. %ecause opening cash is less than the closing cash
balance. $nd also all cash outflows are high than the cash inflows of that activities.
nvesting outflow is Rs. /433>.11financing outflow is rs.54/;2.+5. %ecause the cash
inflow of operating activities are very high i.e., Rs.513;1.41. $nd also payments are
high.
Rs.513;1.41. this year also compensation is paid to the voluntary retirement
also paid.
O"e'(%% c(#$ f%o/ (-(%y#!# of co+p(-y f'o+ ,FFK 6,F)F:
Iperating activities cash, investing activities cash are slowly decreasing
from 5002,50+0. n 5002 5003 year these are increased. n 5001, 5002 years
company earns cash inflows from outside of company. t is very less to compare
without flows. 'he overall net cash is fluctuating.
>0
50+0 Cash from operating activities 513;1.41
Cash from investing activities 9/433>.11:
54/;2.+5
Amount
26846.96
-39885.66
29347.12
T(b%e 6 ))
Sou'ce# (-d (pp%!c(t!o-# of c(#$ ope'(t!-& (ct!"!t!e# du'!-& ,F)F6))

P('t!cu%('#
/+,/,50++
Rs lakhs
/+,/,50++
Rs lakhs
A* C(#$ f%o/ f'o+ ope'(t!-& (ct!"!t!e#:6
$dAustments for)
C(#$ outf%o/#:
9>133./5T5044.50T>00.+/:
C(#$ !-f%o/#:
interest income and dividend income
9+;+.;5T+>3.>3:
(ecreaseS9increase: in inventories
ncrease in sundry debtors
(ecreaseS9increase: in loans and advances
9(ecrease:Sncrease in current liabilities and provisions
3532.1>
9/00.00:
50.>4
/02+4.5;
3103.5;
+201.0/
9+;;;.;0:
/3+0.20
95;3/.5>:
/4/52.;3
+>34.03
;04+1.>1
92455.5/:
/544;.//

T(b%e6),
>+
I-f%o/# (-d outf%o/# of c(#$ du'!-& ,F)F6))
>5
P('t!cu%('#
/+,5,50++
Rs lakhs
/+,/,50++
Rs lakhs
B* c(#$ f%o/ f'o+ I-"e#t!-& (ct!"!t!e#:
nterest received
(ividend received

C* C(#$ f%o/ f'o+ F!-(-c!-& Act!"!t!e#:
C(#$ I-f%o/:
1AJB6C2 : 1A,KK0*AAJ0K)D0*0E26AF,AD*),2
ye('1A,B,0*,B60DD,,*FC6DKBK),2
Net !-c'e(#e !- c(#$ & c(#$ e@u!"(%e-t#
5+.05
4/+;/./5
+553.53
+45.4;
9544>5.3+:
9++/302.;+:
9;4+2;.;3:
/21;>./2
95+2+./1:
9>5/1.34:
/05/2.+5
52>2.5+
;52/.;2
5503+.34
52>2.5+
5'(p$
No*B
INTERPRETATION:
company. 910;.;+,;22/.;2: U Rs. 43/+.52. %ecause opening cash is less than the
closing cash balance. $nd also all cash outflows are high than the cash inflows of that
activities. nvesting outflow is Rs. ;4+2;.;3 financing outflow is rs./05/2.+5.
%ecause the cash inflow of operating activities are very high i.e., Rs./544;.//. $nd
also payments are high.
>/
50++ Cash from operating activities /544;.//
Cash from investing activities 9;4+2;.;3:
Cash from financing activities /05/2.+5
Rs.513;1.41. this year also compensation is paid to the voluntary retirement
also paid.

O"e'(%% c(#$ f%o/ (-(%y#!# of co+p(-y f'o+ ,F)F 6,F)):
Iperating activities cash, investing activities cash are slowly decreasing
from 5003,50++. n 5003 5004 year these are increased. n 5002, 5003 years company
earns cash inflows from outside of company. t is very less to compare without flows.
'he overall net cash is fluctuating.
T(b%e6)A
O"e'(%% #ou'ce# of c(#$ f%o/ (-(%y#!#
C(#$ #ou'ce# A)6A6,FFC A)6A6,FFD A)6),6,FFD A)6),6,FFE A)6),6,FFK A)6A6,F)F A)6FA6,F))
Ope'(t!-&
Act!"!t!e#1(2 /;+1.04

3>10.2// +203>.25 /0/0/.05 /5>5;.5> 513;1.41 /544;.//
I-"e#t!-&
(ct!"!t!e#1b2 9535.53: 9/42;.;5: 914/1.+3: +1444.+/ 9;2255.01: 9/433>.11:
;4+2;.;3
F!-(-c!-&
Act!"!t!e# 1C2 9/>>4.>0: 9;;4/.12: 944>1.;+: /2;5.15 24>4.+5 54/;2.+5 /05/2.+5
Tot(% -et
C(#$ 1(JbJc2 9;5>.14: 45.1; +4/.+/ 43/+.52 25/3.14 +1/03.+5 ++5;0>.4/
>;

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED A)
ST
MARCH: ,FFC
R# !- %(;$#
P('t!cu%('# A)6FA6,FFC A)6FA6,FFB
I-co+e
Sales 9Bross: /4,334.42 />,3>+.;;
&ess ) C"cise (uty 2,53;.3+ 1,3/0.54
Sales 9Det: /5,10>.+1 54,05+.+>
Ither ncome ;+4.;0 5/1.10
AA:F,0*BC ,K:,BD*DB
EGpe-d!tu'e
.urchase of finished goods for resale +,>2;.54 +>>.03
Eanufacturing and other e"penses 53,035./0 5>,>4+.03
(epreciation 5,3/4.0> 5,3/4.0>
nterest and other finance charges 5,///./3 5,4;4.;1
(ecrease in stocks of work,in,process and finished
goods 45.22 ;>4.2+
A0:K,)*KK A,:FFB*CC
&oss before e"traordinary item +,342.;/ 5,2;2.4+
C"traordinary tem = Compensation paid to
employees under Moluntary Retirement and Ithers
Scheme 502.;4
&oss for the year 5,+0;.45 5,2;2.4+
(ebit balance brought forward from previous year
+;,>0;.51 ++,2>1./>
(ebit balance carried to balance sheet )C:CFK*)E )0:BF0*,C
>>
BALANCE SHEET AS ON A)
#t
MARCH: ,FFC
P('t!cu%('# A)6FA6,FFC A)6FA6,FFB
+. Sou'ce# of Fu-d# :
Share Capital ;5,241.+; ;5,241.+;
Reserve < Surplus 5+,40+.4/ 5+,40+.4/
C0:CKE*FD C0:CKE*FD
Lo(-# Fu-d# :
Secured &oans S Funds +2,;/+.0/ +4,0+3.>+
Fnsecured Funds 4,212.;+ 4,020.>+
52,+43.;; 53,034.05
Tot(% K):EKC*B) K,:DED*FK
5. App%!c(t!o- of Fu-d#:
Fi"ed $ssets
Bross %lock >/,>>0.02 >/,//+.4;
9,: (ep. +4,232.2; +1,435.+/
Det %lock //,215.// /1,/;4.1+
Capital work in progress +;0.;5 +53.5/
AA:KF,*DB AC:0DD*E0
nvestments /1,>>2.>2 /1,>5>.+;
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories 5,>0/.50 5,53+.45
Sundry (ebtors 5,;12./4 /,+04.25
Cash < %ank %alances +,540.2+ +,2+1.;0
&oans < $dvances +,401.50 +,22+.;1
E:)CD*BF E:EDK*BF
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
Current &iabilities /,/3+.14 /,352.;+
.rovisions +52.40 >0.;/
A:BFK*BK A:EDD*E0
Det Current $ssets ;,1>2.4+ >,00+.11
Eiscellaneous C"penditure +14.+0 523.+4
.rofit and &oss $ccount +1,104.+3 +;,>0;.51
Tot(% K):EKC*B) K,:DED*FK
>1
ST
MARCH: ,FFD
R# !- %(;$#
P('t!cu%('# A)6FA6,FFD A)6FA6,FFC
I-co+e
Sales 9Bross: ;2,/01.+3 ;0,+11.3;
&ess ) C"cise (uty 2,1+1.>1 2,53;.+4
Sales 9Det: /4,134.15 /5,335.1>
Ither ncome ;>2.;+ ;+5.>>
0F:)0D*FA AA:,KB*,F
EGpe-d!tu'e
.urchase of finished goods for resale /,533.52 +,>2;.;4
Eanufacturing and other e"penses 54,>>5.5> 53,/>4.+2
(epreciation 5,3>4.22 5,3/4.0>
nterest and other finance charges 5,5/;.33 5,///./3
9ncrease:S(ecrease in stocks of work,in,process
and finished goods 95;;.10: 31.>;
AD:CKF*BD AB:)K,*CA
.rofit S 9&oss: for the year 5,;>1.;1 9+,342.;/:
.rovision for 'a"
Current 'a" ,, ,,
Fringe %enefit 'a" 1>.00 ,,
.rofit S 9&oss: for the year 5,51>.++ 95,+0;.45:
(ebit balance brought forward from previous year 9+1,104.+3: 9+;,>0;.51:
(ebit balance carried to balance sheet )0:A00*FD )C:CFK*)E

>2
ST
MARCH:,FFD
R# !- %(;$#
P('t!cu%('# A)6FA6,FFD A)6FA6,FFC
Share Capital ;5,241.+; ;5,241.+;
Reserve < Surplus 5+,40+.4/ 5+,40+.4/
C0:CKE*FD C0:CKE*FD
Lo(-# Fu-d# :
Secured &oans S Funds +,>//.02 +2,;/+.0/
Fnsecured Funds 4,313.>> 4,212.;+
5>,+43.13 52,+43.;;
Tot(% EK:EKC*CK K):EKC*B)
5. App%!c(t!o- of Fu-d# :
Fi"ed $ssets
Bross %lock >;,50>.41 >/,>>0.02
9,: (ep. 55,>/2.+5 +4,232.2;
Det %lock /+,113.3; //,215.//
Capital work in progress 534.15 +;0.;5
A):KBE*0C AA:KF,*DB
nvestments /1,25/.10 /1,>>2.>2
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories /,++;.>2 5,>0/.50
Sundry (ebtors 4/;.24 5,;12./4
Cash < %ank %alances +,/3/./> +,540.2+
&oans < $dvances >,53;.5/ +,401.50
)F:D,B*K0 E:)CD*BF
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
Current &iabilities /,2>3.15 /,/3+14
.rovisions 534.15 +52.40
A:K,,*0E A:BFK*BK
Det Current $ssets 1,30/.;1 ;,1>2.4+
Eiscellaneous C"penditure 12.+0 +14.+0
.rofit and &oss $ccount +;,/;;.02 +1,104.+3
Tot(% EK:EKC*CK K):EKC*B)

>3
ST
MARCH: ,FFE
R#* !- %(;$#
P('t!cu%('#
A)6),6,FFE
1A+(%&(+(ted2
A)6),6,FFD
I-co+e
Sale of manufactured goods +,+1,400.5; ;2,40>.;3
&ess ) C"cise (uty +2,>5+./5 1,/33.21
KK:ADE*K, 0):B)C*D,
Sale of traded goods , 5,;0;.;;
Ither ncome +,3/5.54 ;/5.1+
):F):,))*,) 00:ABA*DD
EGpe-d!tu'e
Cost of goods sold /1,+25.>3 +1,35>./5
.ersonnel cost /,10;.3+ +,222.500
Ither e"penses 5>,++4.53 4,5/;.>/
(epreciation >,50;.5/ 5,500.;+
$mortisation of goodwill +,2,44.50 ,,
nterest and other finance cost 4>0.4/ 32+.;4
D,:EB)*FA AF:KFE*KB
P'of!t befo'e t(G 53,/10.+3 +/,;;;.35
.rovision for ta" 1,>;5.3; 435.00
, Current ta" 9435.00: ,
, E$' credit of earlier years 92+/.>4: ,
, fringe benefit ta" ++>.3/ 53.00
, deferred ta" charge >,//4./1 ,
.rofit for the year )E:FBD*D0 ),:0A0*E,
(ebit balance in .rofit and &oss account brought
forward 9+,404.5>: 9+;,/;;.02:
%alance in .rofit < &oss account carried forward )C:)0E*0K 1):KFK*,B2
>4
#t
MARCH ,FFE
P('t!cu%('#
A)6),6,FFE
1A+(%&(+(ted
A)6),6,FFD
Share Capital ;5,241.+; ;5,241.+;
Reserve < Surplus /3,0>0.;5 5+,40+.4/
EFE0C*BC C0:CKE*FD
Lo(-# Fu-d# :
Secured &oans S Funds ;,+13.;> 1,210.;4
Fnsecured Funds +5,531.;3 3,4;/.1>
(eferred ta" liability >,1>4.1/ ,,,,,,,,,
55,++;.54 +>,20;.+;
Tot(% ):F,:KCF*EB EF0F,*,)
Fi"ed $ssets
Bross %lock 34,13/.2+ >/,3++.0/
9,: (ep. 54,3>0,4/ 5;,0;/.5>
Det %lock >4,3/5.23 54,212.23
Capital work in progress /50,5;2.01 /,;>/.10
EF:FDK*E0 AA:,,)*AE
nvestments +0,0>+.01 ;5,03/.15
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories /42+.0+ 5334.>+
Sundry (ebtors 5>/+.00 +311.++
Cash < %ank %alances +50+5.+1 +>21.;3
&oans < $dvances 335+.4/ /;;5.3+
,DAAC*) KDD0*K)
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
Current &iabilities +/++/5.>5 1050.04
.rovisions +/2/.1/ >11.31
)0BFC*)E CBEC*KB
Det Current $ssets +5,354.4> /,+32.41
.rofit and &oss $ccount ,,,,,,,,,,, +,404.5>
Tot(% ):F,:KCF*EB EF0F,*,)
10
ST
MARCH: ,FFK
P('t!cu%('# A)6),6,FFK A)6),6,FFE
I-co+e
Sale of manufactured goods +/2,253.4> +,+1,400.5;
&ess ) C"cise (uty 50,502.++ +2,>5+./5
))D:B,)*E0 KK:ADE*K,
Sale of traded goods ,
Ither ncome +,302.+3 +,3/5.54
):)K:A,K*F, ):F):,))*,)
EGpe-d!tu'e
Cost of goods sold ;1,/2;.34 /1,+25.>3
.ersonnel cost ;,0/0.04 /,10;.3+
Ither e"penses 54,0+2.00 5>,++4.53
(epreciation >,/22.13 >,50;.5/
$mortization of goodwill +,2,44.50 +,244.50
nterest and other finance cost >/;.+4 4>0.4/
ED:)AA*FB D,:EB)*FA
P'of!t befo'e t(G /5,+4>.42 53,/10.+3
.rovision for ta" +5,33+.;> 1,>;5.3;
, Current ta" , 9435.00:
, E$' credit of earlier years , 92+/.>4:
, fringe benefit ta" 10.00 ++>.3/
, deferred ta" charge >+3.50 >,//4./1
.rofit for the year )K:DD,*D, )E:FBD*D0
forward 9+1,+;3.;4: 9+,404.5>:
%alance in .rofit < &oss account carried forward 1AB:K,)*,)2 1)C:)0E*0K2
1+
#t
MARCH ,FFK
R#* !- %(;$#
P('t!cu%('# A)6),6,FFK A)6),6,FFE
Share Capital ;5,241.+; ;5,241.+;
Reserve < Surplus >2,35/.+; /3,0>0.;5
)FF:C)K*,E EFE0C*BC
Lo(-# Fu-d# :
Secured &oans S Funds +0,/;5./+ ;,+13.;>
Fnsecured Funds +;,10>.4/ +5,531.;3
(eferred ta" liability >,+;+.+1 >,1>4.1/
+>,20;.+; 55,++;.54
Tot(% ):AF:DFE*CE ):F,:KCF*EB
Fi"ed $ssets
Bross %lock 4+,>/4.32 34,13/.2+
9,: (ep. /1,/>/.+0 54,3>0,4/
Det %lock >>,+31.22 >4,3/5.23
Capital work in progress 2+,/;2.4> /50,5;2.01
),C:BA0*D, EF:FDK*E0
nvestments >,+00.00 +0,0>+.01
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories 1,02+./> /42+.0+
Sundry (ebtors 5,1;0.04 5>/+.00
Cash < %ank %alances ;,22/.;2 +50+5.+1
&oans < $dvances +0,30/.04 335+.4/
,0:,EE*FF ,DAAC*)
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
Current &iabilities 55,;24.31 +/+/5.>5
.rovisions 5,2/;.+3 +/2/.1/
,B:,)0*F0 )0BFC*)E
Det Current $ssets 451.0; +5,354.4>
.rofit and &oss $ccount ,,,,,,,,,,, ,,,,,,,,,,
Tot(% ):AF:DFE*CE ):F,:KCF*EB
15
ST
MARCH: ,F)F
R#* !- %(c#
P('t!cu%('# A)6),6,F)F A)6),6,FFK
I-co+e
Sale of manufactured goods +,50,4;1.2; +/2,253.4>
&ess ) C"cise (uty +5,5+3.+4 50,502.++
):FE:D,E*BB ))D:B,)*E0
Sale of traded goods ,
Ither ncome 241./0 +,302.+3
):FK:B,0*E
B
):)K:A,K*F,
EGpe-d!tu'e
Cost of goods sold ;0,1+/.;5 ;1,/2;.34
.ersonnel cost ;,;52.33 ;,0/0.04
Ither e"penses 54,0>5.11 54,0+2.00
(epreciation >,;33./5 >,/22.13
$mortization of goodwill +,244.50 +,244.50
nterest and other finance cost ;5;.+/ >/;.+4
E):EFB*C) ED:)AB*F,
P'of!t befo'e t(G 52,2+4.5; /5,+4>.42
.rovision for ta" ++,>50.00 +5,324.;3
, Current ta" , ,
, E$' credit of earlier years , ,
, fringe benefit ta" +1.;> 10.00
, deferred ta" charge 923+.+1: >+3.50
.rofit for the year )C:KCA*KB )K:DD,*D,
forward />,45+.5+ 9+1,+;3.;4:
%alance in .rofit < &oss account carried forward B,:EEB*)C 1AB:K,)*,)2
1/
#t
MARCH ,F)F
R#* !- %(;$#
P('t!cu%('# A)6),6,F)F A)6),6,FFK
Share Capital ;5,241.+; ;5,241.+;
Reserve < Surplus 2;,232.04 >2,35/.+;
))D:C)K*,E )FF:C)K*,E
Lo(-# Fu-d# :
Secured &oans S Funds ;/,+40.4> +0,/;5./+
Fnsecured Funds +1,5>+./0 +;,10>.4/
(eferred ta" liability ;,/10.00 >,+;+.+1
Tot(% )E):AEB*0E ):AF:DFE*CE
Fi"ed $ssets
Bross %lock 4;,;1/.31 4+,>/4.32
9,: (ep. ;/,1/5.23 /1,/>/.+0
Det %lock >0,3/+.03 >>,+31.22
Capital work in progress +0+,540.11 2+,/;2.4>
)B,:),)*D0 ),C:BA0*D,
nvestments +1,21;.04 >,+00.00
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories ;,/23.;/ 1,02+./>
Sundry (ebtors /,455.24 5,1;0.04
Cash < %ank %alances 5+,03+.34 ;,22/.;2
&oans < $dvances 2,;35.34 +0,30/.04
AC:ECC*FF ,0:,EE*FF
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
Current &iabilities +4,;;>.+3 55,;24.31
.rovisions ;,45+.+2 5,2/;.+3
,0:ACC*AB ,B:,)0*F0
Det Current $ssets +5,;44.1> 451.0;
Tot(% )E):AEB*0E ):AF:DFE*CE
1;
ST
MARCH: ,F))
R#* !- %(c#
P('t!cu%('# A)6),6,F)) A)6),6,F)F
I-co+e
Sale of manufactured goods +,;0,4;1.2; +,50,4;1.2;
&ess ) C"cise (uty +>,5+3.+4 +5,5+3.+4
)BC)C0*KA ):FE:D,E*BB
Sale of traded goods , ,
Ither ncome 241./0 241./0
)BCKC)*,A
):FK:B,0*E
B
EGpe-d!tu'e
Cost of goods sold ;/,1+/.;5 ;0,1+/.;5
.ersonnel cost ;,252.33 ;,;52.33
Ither e"penses /5,0>5.11 54,0>5.11
(epreciation >,133./5 >,;33./5
$mortization of goodwill 5,044.50 +,244.50
nterest and other finance cost >00.+/ ;5;.+/
EECE)*C) E):EFB*C)
P'of!t befo'e t(G /0,2+4.5; 52,2+4.5;
.rovision for ta" +>,>50.00 ++,>50.00
, Current ta" , ,
, E$' credit of earlier years , ,
, fringe benefit ta" 50.;> +1.;>
, deferred ta" charge 923+.+1: 923+.+1:
.rofit for the year )EKCA*KB )C:KCA*KB
forward /2,45+.5+ />,45+.5+
%alance in .rofit < &oss account carried forward BCEEB*)C B,:EEB*)C
1>
#t
MARCH ,F))
R#* !- %(;$#
P('t!cu%('# A)6),6,F)) A)6),6,F)F
Share Capital ;>,241.+; ;5,241.+;
Reserve < Surplus 22,232.04 2;,232.04
),ABEA*,A ))D:C)K*,E
Lo(-# Fu-d# :
Secured &oans S Funds ;>,+40.4> ;/,+40.4>
Fnsecured Funds +3,5>+./0 +1,5>+./0
(eferred ta" liability 1/;;5.5> ;,/10.00
Tot(% )EDF,B*0E )E):AEB*0E
Fi"ed $ssets
Bross %lock 42,;1/.31 4;,;1/.31
9,: (ep. ;/,1/5.23 ;/,1/5.23
Det %lock >/,3/+.03 >0,3/+.03
Capital work in progress +0>,540.11 +0+,540.11
)BK),)*D0 )B,:),)*D0
nvestments +4,21;.04 +1,21;.04
Cu''e-t (##et#: %o(-# & (d"(-ce# :
nventories ;,123.;/ ;,/23.;/
Sundry (ebtors ;,555.24 /,455.24
Cash < %ank %alances 5>,03+.34 5+,03+.34
&oans < $dvances 3,035.34 2,;35.34
0,FCC*FF AC:ECC*FF
Cu''e-t L!(b!%!t!e# & P'o"!#!o-# :
CurCCrent &iabilities 55,;;>.+3 +4,;;>.+3
.rovisions >,55+.+2 ;,45+.+2
,DCCC*AB ,0:ACC*AB
Det Current $ssets +1,;44.1> +5,;44.1>
Tot(% )EDF,B*0E )E):AEB*0E
11
FINDIN5S:
+. (uring 500>,5001 year, cash outflows are higher than the cash inflows i.e.,
V9+++;;.4:,+02+4.5+WU9;5>.14:. %ecause purchase of fi"ed assets, interest and
payments of borrowing interest are more than the sales of fi"ed assets, investment.
'he operating income is Rs /;+1.04.
5. n 5001,5002 year, cash inflows are more than the outflows of cash. %ecause
borrowings, sales of fi"ed assets, investments are more than the purchase and
payment of amount V950>0/.04:,50>4>.2/W U45.1;. Iperating income is Rs
3>10.2/.
/. n 5002 the period of 4 months, cash outflows are higher than cash inflows.
V9+203>.25:,+1345.>4WU+4/.+/. %ecause .urchase of fi"ed assets, investments are
more than the sales of fi"ed assets. nvestments. 'he operating income is
+203>.25.
;. n 5002,5003 year, also cash outflows are higher than cash inflows. V/0/0/.05,
50;2+.2>WU43/+.52. %ecause .urchase of fi"ed assets, investments are more than
the sales of fi"ed assets. nvestments. 'he operating income is /0/0/.05.
>. n 5003,5004 year the operating income is Rs /5>5;.5>.
1. n 5004,50+0 year the Iperating income is Rs 51,3;1.41.
2. Company putting investments in Sri Mishnu cement &td every year.
3. n 5004,50+0 year, cash inflows amount is very less to compare with the
5002year.
4. Cash from operating activities are increasing from 5002,5004.n 5003 year it was
increased to Rs /0/0/.05.
+0. n 50+0,50++ year the Iperating income is Rs /544;.//.
SU55ESTIONS
12
Suggested that the company should try to reduce the purchases of fi"ed assets, current
investments and investments in Sri Mishnu Cement &td.
Suggested that reduce the borrowings from outside of the company. t will show effects
on the time of payment of interest.
Suggested that to increase the trade deposits from stockiest and dealers.
Suggest that and also should increase in cash credit and demand loans.
'o reduce the purchases and utilize this amount in the place of receiving
%orrowings.
Suggested that to reduce the provision for doubtful debts and miscellaneous e"penses.
13
CONCLUSION
T$e fo%%o/!-& co-c%u#!o-# ('e (''!"ed (t b(#ed o- t$e ob#e'"(t!o-# +(de o- t$e
p'e#e-t #tudy:6
C"cept of the first year 95002,03: the study period it is observed that the fund
for operation is on loss. t generated the funds in application of total funds. C"cept
of the first year of the study of period, funds were utilized for financing the
working capital need. 'he study revealed a mi"ed trend of application and sources
of funds in respect of Secured and unsecured loans.
Financial? statements are the sources of information on the basis of which conclusions are
drawn about the profitability and financial position of a concern. 'he primary obAective
of the financial statement is to assist in decision making to those who are interested in the
financial affairs of the business enterprise. 'he $ccounting .rinciples %oard of $merica
9$.%: state that following obAectives of financial statements.
'o provide reliable financial information about economic resource and obligation
of a business firm i.e., cash inflows and cash outflows.
'o provide other needed information about changes in such economic resource
and obligations.
'o provide a financial information the assist in estimating the earning of
potentials of the business.
'o provide information about the working capital and other funds flow.
'o disclose, to the e"tent possible, other information related to the financial
statements that is relevant to its users.
14
BIBLIO5RAPHY
FD$DC$& E$D$BCECD' , .E..$D(CG
FD$DC$& E$D$BCECD' , .R$S$DD$ C#$D(R$
FD$DC$& E$D$BCECD' , H#$D < @$D
$(M$DCC( E$D$BCECD' , R.H S#$RE$
www.8uariCement&imited.com
www.google.com
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