Darshan PPT 1

A STUDY ON FUNDS FLOW STATEMENT
A Study of FUNDS FLOW STATEMENT ANALYSIS of Bharathi Cement,

Kamalapuram,YSR Kadapa
A Project Report
Submitted in partial fulfilment of the
requirement for the award of the degree of
Master of Business Administration
Jawaharlal Nehru Technological University, Anantapur
by
Y SUDARSHAN REDDY, II MBA
(Reg. No: 17P11E0079)
Under the guidance of

Dr. S.Dilli
M.COM MBA Ph.D.
Associate Professor
DEPARTMENT OF MANAGEMENT STUDIES

CHADALAWADA RAMMANAMMA ENGINEERING COLLEGE::TIRUPATI
(AUTONOMOUS)
(2017-2019)
Page1
CHADALAWADA RAMMANAMMA ENGINEERING COLLEGE
I CHAPTER-1
1.1 INTRODUCTION
1.2 INDUSTRY PROFILE
1.3 COMPANY PROFILE
II CHAPTER-2
2.1 NEED FOR THE STUDY
2.2 SCOPE OF THE STUDY
2.3OBJECTIVES OF THE STUDY
2.4 RESEARCH METHODOLOGY
2.5 LIMITATIONS OF THE STUDY
III CHAPTER-3
3.1 DATA ANALYSIS AND
INTERPRETATION
IV CHAPTER-4
4.1 FINDINGS
4.2 SUGGESTIONS
4.3 CONCLUSION
V CHAPTER-5
ANNEXURE
BIBILOGRAPHY
Page2
CHAPTER-1
INTRODUCTION
Managing is the art of getting things done through people in formally organized
groups. Management can thus be defined as the art or skill of directing human activities
and physical resources in the attainment of predetermined goals. The ability to manager
can take advice from technical or function experts consider the information given by him.
And come to a conclusion that results in a management decision. Management is
practiced with the help of five basic functions:
 Planning
 Organizing
 Staffing
 Directing and
 Controlling
“Management ’’ is a wide term; it carries different meanings depending on the
Context in which it is used . It is described as an “activity”, a “process”, and a “group of
people” vested with the authority to make decisions.
DEFINITION:
 Management is what a manager does.
-Louis Allen
 To manage is to forecast and plan. to organize, to command, to coordinate, and to
control
- Henry FAYOL.
 Management is a multipurpose organization that manages a business, manages a
manager and manages a worker and work.
-Peter Ducker
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1.2 INTRODUTION TO FINANCIAL MANAGEMENT
Financial Management is concerned with the proper management of financial

resources. Thus, Finance manager must see that the funds are procured in a manner that
the risk, cost and control considerations are properly balanced in a given situation and
there is optimum of funds.
DEFINITIONS:
“Financial management is the application of the planning and control function
to finance function”.
-Howard and Upon
“Financial management is concerned with the planning &controlling of firm’s
Financial resources” -I.M.PADEY.
“Financial management is concerned with the efficient use of an important
economic resources namely capital funds”. -Solomon
1.2 FINANCIAL MANAGEMENT:
In the earlier years of its evaluation, it was created rising of funds. In the
current year literal pertaining to financial management a border scope . So as to include
in additional to procurement of funds efficient of resources in universally recognized.
The 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” -HORWARD and UPO
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FUNDS FLOW STATEMENT
The basic financial statements i.e., the Balance Sheet and Profit & Loss A/c or
Income Statement of business reveals the net effect of various transactions on operational
and financial position of the company. The balance sheet gives a summary of the assets
& liabilities of an undertaking at a particular point of time.
There are many transactions that take place in an undertaking and which do not
operate Profit & Loss A/c. Thus another statement has to be prepared to show the change
in Assets & Liabilities from the end of one period of time to the end of another period of
time. The statement is called a statement of changes in financial position or a Funds
Flow Statement.
` The Funds Flow Statement is a statement which shown the movement of funds
and is a report of financial operations of business undertaking. In simple words it is a
statement of source and application of funds.
MEANING & CONCEPT OF FUNDS
The term “Fund” has been defined and interpreted differing by different experts.
Broadly the term fund refers to all the financial resource of the company on the other
extreme fund has been understood as cash only. The most acceptance meaning of the
“fund” is “working capital”.
Working Capital is excess of current assents over current liability.
The term fund has a variety of meaning.
A) CASH FUND OR NARROW SENSE In a narrow sense, funds mean only cash.
‘Cash flow statement portrays net effect of various business transactions cash into
account receipts & disbursement of cash.
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The concept of preparing funds from statement is not accepted, as there are many such
transactions that do not affect cash but represent the flow of fund.
For Ex:
Purchase of furniture on credit does not affect cash but there is flow of fund.
B) CAPITAL FUND (or) BROADER SENSE
Here funds means all financial resources used in business, whether in the form
of men, money, material, machine & others.
C). NET WORKING CAPITAL (or) POPULAR SENSE
Networking capital means differences between current assets & liabilities. A

fund generally refers to cash or cash equipment or to working capital.
INTRODUCTION OF FUNDS FLOW ANALYSIS:
In any business we cannot under estimate the flow of funds from two operations.
The business runs with funds but the organization knows how to flow of funds.
The Funds Flow Statement is concerned with sources and applications of

organization. Statement of changes in working capital shows the increase or decrease
in the working capital.
“Funds from Operations” statement shows how much funds from operations.
HOW TO PREPARE A FUND FLOW STATEMENT
Fund flow statements are prepared by taking the balance sheets for two dates
representing the coverage period. The increases and decreases must then be calculated
for each item. Finally, the changes are classified under four categories: (1) Long-term
sources, (2) long-term uses, (3) short-term sources, (4) short-term uses.
It is also important to zero out the non-fund based adjustments in order to capture only
the changes that are accompanies by flow of funds. However, income accursed but
received and expenses incurred but not received reckoned in the profit and loss statement
should not be excluded from the profit figure for the fund flow statement.
Page6
Fund flow statements can be used to identify a variety of problems in the way
a company operates. For example, companies that are using short-term money to finance
long-term investments may run into liquidity problems in the future. Meanwhile, a
company that is using long-term money to finance short-term investments may not be
efficiently utilizing its capital.
MEANING & CONCEPT OF FLOW OF FUNDS:
The term flow means movement & includes both ‘inflow’ & ‘outflow’. The
term flow of funds means transfer of economic values from one asset of equity to another.
Flow of funds is said to have taken place when any transaction makes changes in amount
of funds available before happening of transactions. If the effect of transaction results it
increase of funds. It is called a “source of funds” and it is results in decrease of funds, it
is known as an application of funds.
RULE
The flow of funds occurs when a transaction changes on one hand a non-current
A/c and on the other a current A/c and Vice-versa. According to working capital concept
of funds the term “Flow o Funds” return to movement of funds in working capital.
If any transaction results it increase in working capital. It is said to be a “source”

or “inflow of funds” and if it results in decrease of working capital, it is said to be
“application” or “out flow of funds”.
CURRENT ASSETS
Current Assets are those assets, which in the ordinary course of business can be
or will be converted into cash within a short period of normally one accounting year
. CURRENT LIABILITIES
Current liabilities are those liabilities which are intended to be paid in ordinary
course of business with in short period of normally one accounting year out of the current
assets or the income of the business.
Page7
Features of current liabilities & current assets
CURRENT LIABILITIES CURRENT ASSETS

1. Bills Payable 1. Cash in Hand
2. Sundry Creditors 2. Cash at Bank
3. Accrued or O/s Expenses 3. Bills Receivable
4. Dividends Payable 4. Sundry Debtors or A/c’s receivable
5. Bank Overdraft 5. Short term loans & advances
6. Short term loans, advances & 6. Short term investment
deposits
7. Provision for taxation. 7. Inventories or stock
8. Proposed Dividend 8. Prepaid Expenses
9. Accrued incomes.
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MEANING & DEFINITION OF FUNDS FLOW STATEMENT
Funds Flow Statement is a method by which we study changes in the financial

position of business enterprise beginning & ending financial statement dates. It is a
statement showing sources & uses of funds for a period of time.
FOUIKE DEFINES
“A statement of sources & application of funds is technical devices designed to

analyses the changes in the financial condition of business enterprise between two dates’
ANTHONY DEFINES
“The Funds Flow Statement describes the sources from which additional funds
were derived and the use to which these sources were put.
I.C.W.A IN GLOSSARY OF MANAGEMENT ACCOUNTING
TERMS DEFINES FUNDS FLOW STATEMENT
 Funds Flow Statement as “a statement either prospective or retrospective setting out

of sources & application of the funds of an enterprise.
 The purpose of statement is to indicate clearly the requirement of funds and how they
are proposed to be raised and efficient utilization & application of the same.
 Funds Flow statement is called by various names such as sources and application of
funds, statement of changes in financial position, sources and uses of funds, summary
of financial operations, movement of working capital, movement of funds statement,
sources of increase and application of decrease etc…
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USES, SIGNIFICANCE AND IMPORTANCE OF FUNDS FLOW STATEMENT
 A Funds Flow Statement is an essential tool for the financial analysis and is of
primary importance to financial management. Now a day it is being widening used by
the financial analysis.
 Fund Flow Statements are prepared for financial analysis in order to meet the needs
of people serving
 It highlights the different sources and applications or uses of funds between the two
accounting Period.
 It brings into light about financial strength and weakness of a concern.
 It acts as a effective tool to measure the causes of changes in working capital.
 It helps the management to take corrective actions while deviations between two
balance sheets figure.
 It is an instrument used by the investors for effective decisions at the time of their
investment Proposals.
 It also presents detailed information about profitability, operational efficiency and

financial affairs of a concern.
 It serves as a guide to the management to formulate its dividend policy, retention

policy and Investment policy etc.
10.It helps to evaluate the financial consequences of business transactions involved in

operational
The basic purpose of funds flow statement is to reveal the changes in working capital on
2 balance sheets.
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DIFFERENCE BETWEEN FUNDS FLOW STATEMENT & CASH FLOW

STATEMENT
BASIS OF FUNDSFLOW CASHFLOW

DIFFERENCE STATEMENT STATEMENT
1.Basis of concept It is based on a wider concept It is based on a narrower
of funds, i.e., working capital. concept of funds, i.e., cash.
2. Basis of Accounting It is based on accrual basis of It is based on cash basis of
accounting accounting.
3. Schedule of changes in Schedule of changes in working No such Schedule of changes
working capital capital is prepared to show the in working
changes in current assets and Capital is prepared.
current liabilities.
4. Method of preparing Funds flow statement reveals It is prepared by classifying all
the sources and applications of cash inflows and outflows in
funds. The net difference between terms of operating, investing
sources and applications of funds and financing activities. The
represent net increase or decrease net difference represents the
in working capital. net Increase or decrease in
Cash and cash equivalents.
5. Basis of usefulness. It is useful in planning It is more useful for short-term
intermediate and long term analysis and cash planning of
financing. the business.
INDUSTRY PROFILE
INTRODUCTION:
GLOB AL SCENARIO:
Cement is a key infrastructure company. It has been decontrolled from price and
distribution on 1st march, 1989 and deli censed on 25th July, 1991. However, the performance
of industry and prices of cement are monitored regularly. The constraints faced by the industry
are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet
Secretariat under the chairmanship of Secretary (Coordination). Its performance is also
reviewed by the Cabinet Committee on Infrastructure.
Global bigwigs in cement
 Large, France
 HOLCIM ,Switzerland
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 VICAT, France
 CEMEX, Mexico
 ITALCEMENTI, Italy
 Heidelberg Cement, Germany
Capacity and production

The cement industry comprises of 125 large cement plants with an installed
capacity of 148.28 million tones and more than 300 mini cement plants with an estimated
capacity of 11.10 million per annum.
For the development of the cement industry ‘Working group of cement Industry’
was constituted by the Planning Commission for the formulation of X Five Year Plan. The
Working group has projected a growth rate of 10% for the cement industry during the plan
period and has projected creation of additional capacity of 40-62 million tones mainly through
expansion of existing plants.
Technological change
Cement industry has made a tremendous change strides in technological up gradation
and assimilation of latest technology. At present ninety three per cent of the total capacity in
the industry is based on modern and environment-friendly dry process technology and only
seven per cent of the capacity is based on old wet and semi-dry process technology. There is
tremendous scope for waste heat recovery in cement plants and thereby reduction in emission
level. One project for co-generation of power utilizing waste heat in an Indian cement plant is
being implemented with japans assistance under Green Aid Plan. The induction of advanced
technology has helped the industry immensely to conserve energy and fuel and to save
materials substantially.
INDIAN SCENARIO
Sector structure/Market size

Page12
India is the world's second largest producer of cement with total capacity of 219
million tones (MT) at the end of FY 2009, according to the Cement Manufacturer’s
Association.
According to the Cement Manufacturer’s Association, cement dispatches during

2009-10 were 159.43 million tones (MT) increasing by 12 per cent over 142.23 in 2008-09.
Cement production during 2009-10 was 160.31 MT an increase of 12.37 per cent over 142.65
MT in 2008-09.
Moreover, the government’s continued thrust on infrastructure will help the key
building material to maintain an annual growth of 9-10 per cent in 2010, according to India’s
largest cement company, ACC.
In January 2010, rating agency Fitch predicted that the country will add about 50
million tone cement capacity in 2010, taking the total to around 300 million tone.
New Investments
Cement and gypsum products have received cumulative foreign direct investment
(FDI) of US$ 1.71 billion between April 2000 and February 2010, according to the Department
of Industrial Policy and Promotion
 In January 2010, Swiss cement company HOLCIM announced plans to invest US$ 1
billion for setting up 2-3 greenfield manufacturing plants in India in the next five years.
The expansion will take the company’s total cement-making capacity to 60 per annum
(million tones, per annum) from 50 per annum currently.
 JAIPRAKASH Associates Ltd will invest US$ 984.1 million to take its cement
manufacturing capacity from 20 per annum to 33 per annum by 2012.
 Madras Cements Ltd is planning to invest US$ 178.4 million to increase the
manufacturing capacity of its ARIYALUR plant in Tamil Nadu to 4.5 MT from 2 MT
by April 2011.
 Monnet ISPAT & Energy (MIEL) will set up cement plants in Chhattisgarh and Gujarat
with an investment of about US$ 527.9 million. Work on the two plants will begin in
the October-December quarter under a new division of the company to be christened
Monnet Cement.
Page13
 AMBUJA Cements, the country’s third-largest cement maker, plans to spend around
US$ 756.3 million to expand its capacity to 24 per annum from the current 19 per
annum by year-end to meet strong demand from the infrastructure sector.
Mergers and Acquisitions (M&As)
 DALMIA Cement has increased its stake in OCL India to 45.4 per cent from 21.7 per
cent at an investment of US$ 38.24 million as part of its plan to expand its footprint in
eastern India.
 In April 2010, French cement maker VICAT bought 51 per cent in BHARATHI
Cement.
 ULTRATECH Cement, the country’s second-largest cement maker and a part of
ADHITYA Birla group is acquiring Dubai-based ETA Star Cement for an enterprise
value of US$ 382.1 million.
Government Initiatives
Government initiatives in the infrastructure sector, coupled with the housing sector
boom and urban development, continue being the main drivers of growth for the Indian cement
industry.
 Increased infrastructure spending has been a key focus area. In the Union Budget 2010-
11, US$ 37.4 billion has been provided for infrastructure development.
COMPANY PROFILE
INTRODUCTION-BHARATHI CEMENT CORPORATION LIMITED
Page14
Founded by the promoters of SAKSHI Telugu daily and SAKSHI TV,
BHARATHI Cement Corporation Limited produces superior quality cement which help you
to sets new standards in construction. Driving this venture is a dynamic team led by Sri Y.S.
JAGAN MOHAN REDDY and senior professionals with vast experience in power, cement
and infrastructure.
The company was formerly known as RAGHURAM Cements ltd and changed its
name to BHARATHI Cement Corporation Pvt. Limited (BCCPL) commenced its commercial
operations from its NALINGAYAPALLI manufacturing plant, located in KADAPA district of
Andhra Pradesh, .The . The company had set up the cement plant in September 2009.
NALINGAYAPALLI-KAMALAPIRAM belt in KADAPA district of Andhra

Pradesh has rich limestone quarries. The company has also tied up with RTTP for Fly Ash and
Slag will be procured from Jindal Steel, TORNAGAL Karnataka.
BHARATHI Cement Corporation Pvt. Ltd., headquartered in Hyderabad, has

set up a cement plant using state of art technology from FL SMIDH & LOESCHE at
NALINGAYAPALLI (Village), KAMALAPURAM (MANDAL), KADAPA (DIST), Andhra
Pradesh. BHARATHI Cement will be supplying cement to six states in Southern India - Andhra
Pradesh, Tamil Nadu, Karnataka, Kerala, Maharashtra and Goa.
“The first phase to supply 2.5 million tone(ml) is ready for production and the Phase-II of 2.5
ml will be ready in the last quarter of 2010,” the company said in a press release.
“BHARATHI Cement will initially focus on Andhra Pradesh, Tamil Nadu,

Karnataka, Goa, Kerala and parts of Maharashtra. It will gradually increase its pan-India
presence through organic and inorganic growth,” the company added, saying 50 per cent of the
company's cement will be dispatched by road and the rest by rail.
The BHARATHI Cement plant has the most advanced German Technology
equipment has a capacity of producing 360 tons per hour to produce a range of high quality
cements such as OPC, PPC, PSC’BCC,. With claims of being the largest in the world with a
360 ton per hour grinding capacity, is also planning to set up a thermal-based captive power
plant at the plant location, besides entering the ready-mix concrete segment.
Page15
VICAT S.A. is France's third-largest producer of cement, concrete and granulates,
and also holds a strong share in these markets in the United States, through its National Cement
Company subsidiaries in Alabama and California. VICAT produces more than 17 million tons
of cement In a bid to increase its presence in the Indian market, French cement major VICAT
is set to acquire a 51-per cent stake in BHARATHI Cement Company Ltd, promoted by
YS.JAGAN MOHAN REDDY, MP, from KADAPA and son of late Y S RAJASEKHARA
REDDY, former Chief Minister of Andhra Pradesh..
BHARATHI Cement is committed to take this business to a market leading position

and already has a strong network of 600 dealers and 1,000 sub-dealers,”
BHARATHI CEMENT CORPORATION LIMITED

Industry: cement- South India
Incorporation year- 2006
Registered office- Hyderabad
Telephone08563-200400
Chairman&Managing director: Sri. Y.S JAGAN MOHAN REDDY GARU
Director: Sri J.J.REDDY GARU
Web: www.bharathicement.com
Regd. office & works:

BHARATHI Cement Corporation Ltd
NALINGAYAPALLI village, KADAPA( District)516289
ANDHRA PRADESH, INDIA
p
pin
Corp office:
H .no .8-2-696, CARMEL POINT, Banjara hills Hyderabad
Page16
VISION & MISSION
To partner our customers in building the best, by delivering superior quality cement
that’s produced with best in class technology. To grow by building lasting relationships with
business associates and contribute to the well-being of society
Organizational Structure:
Using the basic object types – constructs of relationships is built to mirror the
business edifices and processes. By assigning object characteristics, validations, requirements
etc, we can capture complex organizational realities with relative ease.
Process Flow:
• Before creating all of the other necessary objects and relationships, the user must first create
a root organizational unit. Once one organizational unit has been created, it is recommended
to create the appropriate organizational units below it.
• Jobs may be created after an organizational unit exist.
Inputs:
Organization chart
• Root org unit
• Additional Org units
Page17
• Jobs if Required
• Positions
• Details to where the positions need to be mapped.
• Position Details like Position Type, Position Sub Type, Department, and Sub department.
Every organization has its organizational structure. According to this every employee has
some specific work. The work also depends upon their levels. As per their levels in different
departments they will have to do their work.
BUSINESS LEVEL FUNCTIONS
BUSINESS LEVEL FUNCTIONS OF BHARATHI CEMENT
 HR FUNCTION
 MARKETING FUNCTION
 FINANCE FUNCTION
 PROCESS & QUALITY FUNCTION
CHAPTER-3
Page18
NEED FOR THE STUDY
It tells about the amount of working capital and changes in the amount of
working capital .It is to analyse the balance sheet and to reveal the financial and inventing
objective .It is a tool of planning future activities of business. It analysis the profit and
loss account to reveal the effect of business activities of concern on the flow of funds .It
is an instrument for allocation of resources.
SCOPE OF THE STUDY
The funds flow statement is to analyse the financial performance of BHARATHI cement
.Funds flow statement studies how the firm obtained funds and how those funds are used
.They are more appropriately called as sources and application of funds.
Funds flow analysis can be seen in 3 forms.
1. Schedule of changes in working capital.
2. Calculation of operating profit.
3. Calculation of sources and application
OBJECTIVES OF THE STUDY
1. To know the statement of changes in working capital of company.

2. To calculate and reveal the funds from operation.
3. To evaluate the financial position of the company.
4. To know the various sources which the company is using for funds.
5. To know how the company is utilizing the funds in an effective manner
LIMITATIONS OF THE STUDY:
Though sincere attempt has been made during the study certain the limitations are
they are:
1. The study based on the data given by the officials and reports of the company the
confidentially of some facts and figures are also one limitation.
2. Financial statement analysis is based on balance sheet, profit and loss account prepared
as per accounting practice.
3. This study is based on past only 5 year’s financial information.
4. The project duration limited period that is two months only.
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SOUECES OF DATA
There are one type of data collection method availabl
the study confined to secondary data only
1. SECONDARY DATA
The secondary data was collected form already published sources such as
annual reports, returns and internal records, journals, annuals reports of the company etc.,
it will save the time , money and efforts to collect the data. Secondary data also made
available through trade magazine, balance sheets, books etc.,
CHAPTER-4
Page20
DATA ANALYSIS & INTERPRETATION

STATEMENT OF SCHEDULE OF CHANGE IN WORKING CAPITAL
PARTICULARS 2013 2014 EFFECT ON WORKING
CAPITAL
INCREASE DECREASE
Current Assets :
Inventories 1,412.21 1,513.12 100.91 -
Sundry Debtors 104.01 202.41 98.4 -
Cash & Bank Balances 824.05 902.05 78 -
Loans & Advances 1,525.34 1,579.53 53.89 -
Total Current Assets(A)
3865.61 4,197.11
Current Liabilities :
Current Liabilities - 198.97
Provisions 1,624.25 1,823.22 - 7.7
Total current liabilities(B) 124.5 132.27
Working Capital(A-B)
Net increase in working 124.53
1,748.75 1,955.49
capital
Total Net Working Capital 2,116.86 2,241.62
124.53
2,241.6 2,241.6 331.2 331.2
ADJUSTED PROFIT & LOSS ACCOUNT AS ON 31st MARCH 2014

Particulars Amount Amount
Net Profit &Loss account(Current 694.68
Year)
Add: Transfer to reserve 232
Provisions 124.5 356.5
1,051.18
Less: Profit &Loss 654.21
account(Previous year)
Funds from operations 396.97
STATEMENT OF SOURCES & APPLICATION OF FUNDS FOR THE PERIOD

(2013-14)
Page21
AMOUNT APPLICATION OF AMOUNT
RS FUNDS RS
Secured loans 17.58 Unsecured loans 154.47
Funds from Net increases in
operations 396.97 working capital 124.53
Capital work in Other Expenses 109.06
progress 5.37 Employee Benefit
Expenses 31.86
419.92 419.92
Amount
180
160
140
120
100
80
60
40
20
0 Amount
Net increase other Employee Un secured
in working expenses Benefit loans
capital Taxes
17.58 396.97 5.37
Secured Funds From capital work in progress
Loans Operations

CAPITAL
INCREASE DECREASE
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Current Assets :
Inventories 1,513.12 1,855.61 342.49
Sundry Debtors 202.41 887.02 684.61
Cash & Bank Balances 902.05 917.85 15.8
Loans & Advances 1,579.53 2,077.38 497.85
4,197.11 5,737.86
Current Liabilities :
Current Liabilities 545.54
Provisions 1,823.22 2,368.67 16.36
Total current liabilities(B) 132.27 148.63
Net increase in working
1,955.49 2,157.3
capital
Total Net Working Capital 2,241.62 3,220.56 978.94
978.94
3,220.56 3,220.56 1,540.75 1,540.75

Net Profit &Loss 693.27
account(Current Year)
Add: Transfer to reserve 467
1,308.9
Less: Profit &Loss 694.46
account(Previous Year)

(2014-15)
Page23
SOURCES OF AMOUNT APPLICATION OF AMOUNT
FUNDS RS FUNDS RS
Un Secured loans 701.85 Secured loans 351.49
Funds from operation 614.44 Net increase in
Capital work in working capital 978.94
progress 112.49 Employee benefit
expenses 30.34
Other expenses 68.01
1,428.78 1,428.78
Amount
900
800
700
600
500
400
300
200
100
0
Amount
Net increase Employee Other
in working Benefit expenses
capital expenses
14.22 692.93 291.79 19.52
Secured Un Secured Funds from Capital work
loans loans operations in progress
STATEMENT OF SCHEDULE OF CHANGES IN WORKING CAPITAL
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CAPITAL
INCREASE DECREASE
Current Assets:
Inventories 1,855.61 1,264.89 590.72
Sundry Debtors 887.02 1,610.89 723.87
Loans & Advances 2,077.38 1,969.20 108.18
Current Liabilities: 5,737.86 5,297.74
Current liabilities 364.82
Provisions 2,368.67 2,733.49 49.97
Total Current Liabilities(B) 148.63 198.60
Net decrease in WC 2,517.3 2,932.09
Total Net working capital 854.91
3,220.56 2,365.65
854.91
3,220.56 3,220.56 1,578.78 1,578.78

Net profit and loss 443.99
account(current year)
Add: Transfer to reserve -195.63


(2015-16)
Page25
Sources of Funds Amount Application of Funds Amount

RS RS
Funds from operation 446.96 Secured loans 533.07
Net decrease in working Capital work in progress
capital 854.91 Employee benefit 204.5
expenses
Other expenses 16.8
Unsecured loans 47.77
499.7
1,301.8 1,301.8
4.4.4: Graph:
Amount
1200
1000
800
600
400
200
0 Amount
Net Employee Other
increase Benefit expenses
in working expenses
capital
14.22 692.93 291.79 19.52 1,018.46
Secured loans
Un Secured
Funds
loans
from operations
Capital work in progress
INTERPRETATION:
Sources of funds:
Net decrease in working capital 854.9 Funds from operations 446.96.
Applications of funds:
Secured loans 533.07and capital work in progress 204.5, employee benefit expenses
16.8and other expenses 47.
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STATEMENT OF SCHEDULE OF CHANGES IN WORKING CAPITAL
CAPITAL
INCREASE DECREASE
Current Assets:
Inventories 1,264.89 1,671.40 406.51
Sundry Debtors 1,610.89 1,294.14 316.75
Loans & Advances 1,969.20 1,657.72 311.48
Current Liabilities: 5,297.74 5,080.29
Provisions 2,733.49 3,244.25 6.9
Total Current Liabilities(B) 198.6 191.7
Net decrease in working capital 2,932.09 3,244.25
Total Net working capital 721.31
2,365.65 1,644.34
721.31
2,365.65 2,365.65 1,138.99 1,138.9

PARTICULARS AMOUNT AMOUNT
Net profit and loss account(Current year)

Add: Transfer to reserve 344.85
Provisions 57.44
191.7
249.14
Less: Net profit and loss account(Previous

593.99
year)
443.99
Funds from operations
150

(2016-17)
Page27
Sources of Funds Amount Application of Funds Amount
RS RS
Funds from operation 150 Unsecured loans 1,211.08
Secured loans 379.66 Capital work in
Net decreased in working 4,355.74 progress 1.02
capital 721.31 Employee benefits 38.74
1,250.84 1,250.84
4.4.4: Graph:
Amount
900
800
700
600
500
400
300
200
100
0
Amount
Net increase in Employee Other expenses
working capital Benefit
expenses
14.22 692.93 291.79
Secured loans Un Secured Funds from
loans operations
INTEPRETATION:
Sources of funds:
Funds from operations 364.56 and secured loans 150 and net decrease in working capital
is 721.31.
Unsecured loans 1211.08 and capital work in progress 1.02 and employee benefit expenses
is 38.74.
Page28
CAPITAL
INCREASE DECCREASE
Current Assets:
Inventories 1,671.40 2,252.35 580.95
Sundry Debtors 1,294.14 1,436.68 142.54
Loans & Advances 1,657.72 2,599.44 901.72
5,080.29 5,080.29
Current Liabilities:
Provisions 68.86
3,244.25 3,920.98
Total Current Liabilities(B)
191.7 122.84
Working capital(A-B) 3435.95 4043.82
Net increase in working capital
Total net working capital 1,644.34 2501.33 856.47
856.47
2501.33 2501.33 1,694.07 1,694.07
ADJUSTED PROFIT & LOSS ACCOUNT AS ON 31st DEC 2018

PARTICULARS AMOUNT AMOUNT
Net profit and loss

account(Current year) 403.14
Add: Transfer to reserve 110.66
Provisions 122.84
636.64
Less: Profit and loss
account(Previous year) 344.85
Funds from operations

291.79
Page29
(2017-18)
Sources of Funds AMOUNT Application of Funds AMOUNT
RS RS
Secured loans 14.22 Net decrease in working
Funds from operations 291.79 capital 856.47
Un secured loans 692.93 Employee benefit
Capital work in progress 19.52 expenses 19.52
Other expenses 142.47
1,081.36 1,081.36
4.4.5: Graph:
1000
900
800
700
600 Amount
500
400 Appilications Of
Funds(Outflow)
300
200 Amount
100
0
Secured Un Funds Capital
loans Secured from work in
loans operations progress
INTERPRETATION:
Sources of funds:
Secured loans 14.22 and Un Secured loans 692.93 and Funds from operations
291.79 and Capital work in progress 19.52.
Net increase in working capital 856.47 and employee benefit expenses 19.52 and the
other expenses was 142.47.
Page30
CHAPTER-5
FINDINGS
1. The company working capital will be increased in the year of 2014 to 2015,when
compared to 2013 to 2104.
2.The company reserves and surplus fluctuated in throughout the company.
3. The capital work in progress fluctuated in year by year from 2013 to 18.
4.The purchase of fixed assets will be increased in 2017 to 18 and decreased in 2016
to 2017.
5.Secured loans will be fluctuated in year by yearand to in increased 2018 when
compared to other years
SUGGESTIONS:
1. Financial measures should be taken in order to maintain the adequate working capital.
2.The company always maintain good reserves and surplus.
3. Trading activity should be operated effectively to generate more funds.
4. Try to reduce the sale of fixed assets.
5.To maintain the effective utilization of funds and try to control the wastages of funds.
CONCLUSION:
By the analysis of funds flow statement ,I conclude that overall performance of the
company is good but take more preventive steps on work in progress, maintain good working capital
is suggest earlier and avoid losses to get more returns. So the company can improve its profitability
of the business.
CHAPTER- 5
ANNEXURE
Page31
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2014, RS
IN LAKHS
PARTICULARS 2014 2013
INCOME
Revenue From Operations[Gross] 3,324.86
Less:Excise/Service Tax/Other Levies 56.93 2,241.56
Revenue From Operations[Net] 3,267.93 48.53
Other Operating Revenues 4371.33 3,126.87
Total Operating Revenues 7,639.26 4121.33
Other Income 79.76 6,041.27
Total Revenue 7,719.02 69.03
EXPENSES 6,491.72
Cost Of Materials Consumed 4,991.07
Purchase of stock in Trade 885.69 3,941.76
Changes In Inventories Of FG,WIP,And 756.84
Stock-In-Trade -219.97
Employee Benefit Expenses 157.88 -123.95
Finance Costs 86.29 126.02
Depreciation And Amortisation 80.67
Expenses 61.74
Other Expenses 767.86 54.54
Total Expenses 6,730.56 658.80
Mar-14 5,375.40
12 mths
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax 988.46
Exceptional Items 0 849.52
Profit/Loss Before Tax 988.46 0
Tax Expenses -Continued Operations 989.46
Current Tax 298
Less:MAT Credit Entitlement 0 278
Deferred Tax -4 0
Total Tax Expenses 294 -4
Profit/Loss After Tax And Before 312
Extraordinary Items 694.46
Profit/Loss continuing Operations 694.46 695.52
Profit&Loss for the Period 694.46 654.21
695.68
BALANCE SHEET AS ON 31-3-2014, RS IN LAKHS

Page32
Source of Funds
Total Share Capital 28.18 28.09
Equity Share Capital 28.18 28.09
Share Application Money 0 0
Reserves 1,875.93 1,643.93
Net Worth 1904.11 1807.56
Secured Loans 382.15 364.57
Unsecured Loans 982.05 827.58
Total Debt 1,364.20 1,124.53
Total liabilities 3268.31 2,642.53
Mar'14 Mar'13
12mths 12mths
Application Of Funds
Gross Block 1344.1 1320.1
Less:Accum .Depreciation 550.4 505.24
Net Block 793.7 694.78
Capital Work -in-Progress 20.64 15.27
Investments 212.35 210.25
Inventories 1,513.12 1,412.21
Sundry Debtors 202.41 104.01
Cash And Bank Balances 902.05 824.05
Total Current Assets 2617.58 2340.27
Loans And Advances 1,579.53 1,525.34
Total,Loans And Advances 4197.11 3,426.24
Current Liabilities 1823.22 1,624.25
Total CL &Provisions 1,955.49 1,950.49
Net Current Assets 2241.62 2,121.50
Total Assets 3268.31 3,192.21
Contigent Liabilities
Book Value Rs. 264.25 245.9
67.56 54.9

IN LAKHS
Page33
INCOME
Revenue From Operations[Gross] 5,054.21 3,324.86
Less:Excise/Service Tax/Other Levies 85.34 56.93
Revenue From Operations[Net] 4,968.87 3,267.93
Other Operating Revenues 4854.4 4371.33
Total Operating Revenues 9,823.27 7,639.26
Other Income 116.67 79.76
Total Revenue 9,939.94 7,719.02
EXPENSES
Cost Of Materials Consumed 5,860.65 4,991.07
Purchase of stock in Trade 1,934.91 885.69
Changes In Inventories Of FG,WIP,And
Stock-In-Trade -258.87 -219.97
Employee Benefit Expenses 188.22 157.88
Depreciation And Amortisation
Expenses 56.16 61.74
Total Expenses 8934.64 6,730.56
Mar-15 Mar-14
12 mths 12 mths
ExtraOrdinary Items And Tax 1005.3 988.46
Exceptional Items -35.53 0
Profit/Loss Before Tax 969.77 988.46
Tax Expenses -Continued Operations
Current Tax 1,969.95 298
Less:MAT Credit Entitlement 1813.446 0
Deferred Tax 1,969.95 -4
Total Tax Expenses 1813.446 294
Profit/Loss After Tax And Before 1,656.94
Extraordinary Items 1500.437 694.46

Page34
Source of Funds 28.26 28.18
Equity Share Capital 0 0
Share Application Money 2,342.93 1,875.93
Reserves 2371.19 1904.11
Net Worth 733.64 382.15
Unsecured Loans 2,417.54 1,364.20
Total Debt 4788.73 3268.31
Total liabilities Mar'15 Mar'14
12mths 12mths
Gross Block 1397.32 1344.1
Less:Accum . Depreciation 590.22 550.4
Net Block 807.1 793.7
Inventories 1,855.61 1,513.12
Sundry Debtors 887.02 202.41
Total,Loans And Advances 5737.86 4197.11
Current Liabilities 2368.67 1823.22
Net Current Assets 3220.56 2241.62
Total Assets 4788.73 3268.31
Book Value Rs. 371.92 264.25
83.92 67.56
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2016, RS IN

LAKHS
Page35
PRATICULARS 2016 2015
INCOME
Total Revenue 8,627.27 9,939.94
EXPENSES
Purchase of stock in Trade 1,529.99 1,934.91
Stock-In-Trade 147.20 -258.87
Total Expenses 8,060.94 8934.64
Mar-16 Mar-15
12 mths 12 mths
Exceptional Items 0 -35.53
Current Tax 114.01 290.5
Less:MAT Credit Entitlement 104.01 0
Deferred Tax 112.34 -14
Total Tax Expenses 122.34 276.5
Profit/Loss After Tax And Before
Page36
Source of Funds
Share Application Money 0 0
Reserves 2,147.30 2,342.93
Net Worth 2175.61 2371.19
Total Debt 2,239.58 2,417.54
Total liabilities 4415.19 4788.73
Mar'16 Mar'15
12mths 12mths
Gross Block 1766.28 1397.32
Less:Accum.Depreciation 624.23 590.22
Net Block 1142.05 807.1
Inventories 1,264.89 1,855.61
Sundry Debtors 1,610.89 887.02
Total Assets 4415.19 4788.73
Contigent Liabilities 772.82 371.92

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2017, RS IN

LAKHS
Page37
2017 2016
PRATICULARS
INCOME
Total Revenue 9,441.89 8,627.27
EXPENSES
Purchase of stock in Trade 1,229.22 1,529.99
Stock-In-Trade -123.95 147.20
Total Expenses 8,934.90 8,060.94
Mar-17 Mar-16
12 mths 12 mths
ExtraOrdinary Items And Tax
Exceptional Items 506.99 566.33
Profit/Loss Before Tax -12.61 0
Tax Expenses -Continued Operations 494.38 566.33
Current Tax
Less:MAT Credit Entitlement 153.9 114.01
Deferred Tax 0 104.01
Total Tax Expenses -4.37 112.34
Profit/Loss After Tax And Before 149.53 122.34
Extraordinary Items
344.85 443.99
Page38
Source of Funds
Share Application Money 0.26 0
Reserves 2,204.74 2,147.30
Net Worth 2233.32 2175.61
Total Debt 1,393.06 2,239.58
Mar'17 Mar'16
12mths 12mths
Gross Block 1928.73 1766.28
Net Block 1211.11 1142.05
Inventories 1,671.40 1,264.89
Sundry Debtors 1,294.14 1,610.89
Total Assets 3626.38 4415.19
Book Value Rs. 538.15 772.82
78.86 76.86

IN LAKHS
Page39
PRATICULARS 2018 2017
INCOME
Total Revenue 11,340.86 9,441.89
EXPENSES
Purchase of stock in Trade 1916.23 1,229.22
Stock-In-Trade -407.56 -123.95
Expenses 103.31 82.03
Total Expenses 10,744.48 8,934.90
Mar-18 Mar-17
12 mths 12 mths
Exceptional Items -3.94 -12.61
Current Tax 186.92 153.9
Less:MAT Credit Entitlement 0 0
Deferred Tax 2.38 -4.37
Total Tax Expenses 189.3 149.53
Profit/Loss After Tax And Before
BALANCE SHEET AS ON 31-DEC-2018, RS IN LAKHS

Page40
Particulars 2018 2017
Source of Funds
Total Share Capital 29.13 s28.32
Share Application Money 0 0.26
Reserves 2,135.40 2,204.74
Net Worth 2,164.53 2233.32
Total Debt 2,100.21 1,393.06
Mar'18 Mar'17
12mths 12mths
Gross Block 2274.05 1928.73
Net Block 1365.28 1211.11
Inventories 2,252.35 1,671.40
Sundry Debtors 1,436.68 1,294.14
Total Assets 4264.74 3626.38
Contigent Liabilities 507.72 538.15

Page41
BIBILOGRAPHY
S.P. JAIN, K.L.NARANG, “ADVANCED ACCOUNTANCY” , volume: 2, 15th

Edition, KALYANI publishers, 2006.
M.Y.KHAN, P.K.JAIN, “ FINANCIAL MANAGEMENT” , 2nd edition, Tata

MC GRAW-HILL publishers, 1992, NEW NEW DELHI.
PRASANNA CHANDRA, “
FINANCE MANAGEMENT” ,6th edition, Tata
MC GRAW-Hill piblishers, 2004.
WEB SITE : www.bharathicement.com
www.moneycontrol.com
Page42

Darshan PPT 1

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A STUDY ON FUNDS FLOW STATEMENT

A Study of FUNDS FLOW STATEMENT ANALYSIS of Bharathi Cement,

Under the guidance of

DEPARTMENT OF MANAGEMENT STUDIES

1.2 INTRODUTION TO FINANCIAL MANAGEMENT

Financial Management is concerned with the proper management of financial

“Financial Management is the application of the planning and control

FUNDS FLOW STATEMENT

MEANING & CONCEPT OF FUNDS

Working Capital is excess of current assents over current liability.

The term fund has a variety of meaning.

B) CAPITAL FUND (or) BROADER SENSE

C). NET WORKING CAPITAL (or) POPULAR SENSE

Networking capital means differences between current assets & liabilities. A

The Funds Flow Statement is concerned with sources and applications of

HOW TO PREPARE A FUND FLOW STATEMENT

MEANING & CONCEPT OF FLOW OF FUNDS:

If any transaction results it increase in working capital. It is said to be a “source”

Features of current liabilities & current assets

CURRENT LIABILITIES CURRENT ASSETS

MEANING & DEFINITION OF FUNDS FLOW STATEMENT

Funds Flow Statement is a method by which we study changes in the financial

“A statement of sources & application of funds is technical devices designed to

I.C.W.A IN GLOSSARY OF MANAGEMENT ACCOUNTING

TERMS DEFINES FUNDS FLOW STATEMENT

 Funds Flow Statement as “a statement either prospective or retrospective setting out

USES, SIGNIFICANCE AND IMPORTANCE OF FUNDS FLOW STATEMENT

 It brings into light about financial strength and weakness of a concern.

 It acts as a effective tool to measure the causes of changes in working capital.

 It also presents detailed information about profitability, operational efficiency and

 It serves as a guide to the management to formulate its dividend policy, retention

10.It helps to evaluate the financial consequences of business transactions involved in

DIFFERENCE BETWEEN FUNDS FLOW STATEMENT & CASH FLOW

BASIS OF FUNDSFLOW CASHFLOW

 Heidelberg Cement, Germany

Capacity and production

Sector structure/Market size

According to the Cement Manufacturer’s Association, cement dispatches during

Mergers and Acquisitions (M&As)

INTRODUCTION-BHARATHI CEMENT CORPORATION LIMITED

NALINGAYAPALLI-KAMALAPIRAM belt in KADAPA district of Andhra

BHARATHI Cement Corporation Pvt. Ltd., headquartered in Hyderabad, has

“BHARATHI Cement will initially focus on Andhra Pradesh, Tamil Nadu,

BHARATHI Cement is committed to take this business to a market leading position

BHARATHI CEMENT CORPORATION LIMITED

Regd. office & works:

BUSINESS LEVEL FUNCTIONS

BUSINESS LEVEL FUNCTIONS OF BHARATHI CEMENT

 PROCESS & QUALITY FUNCTION

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

1. To know the statement of changes in working capital of company.

LIMITATIONS OF THE STUDY:

the study confined to secondary data only

DATA ANALYSIS & INTERPRETATION

ADJUSTED PROFIT & LOSS ACCOUNT AS ON 31st MARCH 2014

STATEMENT OF SOURCES & APPLICATION OF FUNDS FOR THE PERIOD

STATEMENT OF SCHEDULE OF CHANGE IN WORKING CAPITAL

3,220.56 3,220.56 1,540.75 1,540.75

ADJUSTED PROFIT & LOSS ACCOUNT AS ON 31st MARCH 2015

STATEMENT OF SOURCES & APPLICATION OF FUNDS FOR THE PERIOD

STATEMENT OF SCHEDULE OF CHANGES IN WORKING CAPITAL

ADJUSTED PROFIT & LOSS ACCOUNT AS ON 31st MARCH 2016