A STUD OF FUND FLOW STATEMENT

Chandrasekaran1.M, Rebaccal.A2 , Bhuvaneshwari.A3

Department of Business Administration,
Dhanalakshmi Srinivasan College of arts and science for women (Autonomous),

ABSTRACT
A Statement On Fund Flow Statement AtRk Metal RoofingsPvt Ltd Trichy“cash flow statement is
an important tool to analyze the cash position of a business firm. It can denote changes in cash
position during two financial years.it also provides information about the cash receipts and the
payments of a business for given period.lt provides notable information that compliments the profit
and loss account and balance sheet. Cash flow statement analysis is statement which provides
acomplete explanation for the change in a firm’s cash during a particular period by specify the firm
sources and uses of cash during the period from operating, investing and financing activities.lt
provides convenient information about an entity’s activities in generating cash from operations. lt
informs about programme to repay debt distributed dividends or reinvest to conserve or enlarge its
operating capacity. lt provides information about its financing activities both debt and equity and
about its investment in both fixed assets or current assets other than cash. This Article is based on
the practice followed and instruction for its preparation contained in the various text books for the
guidance of the students and accountants. lt is hoped that the content of this Article would help the
readers to understand cash-flow statement properly.
KEYWORDS: current assets, investment, financing activities ETC.,
INTRODUCTION
Funds flow statement is a statement which discloses the analytical information about the different
sources of a fund and thtransactions which change either the amount of current assets and current
liabilities (in the form of decrease or increase in working capital) or fixed assets, long-term loans
including ownership fund.
It gives a clear picture about the movement of funds between the opening and closing dates
of the Balance Sheet. It is also called the Statement of Sources and Applications of Funds,
Movement of Funds Statement; Where Got Where Gone Statement: Inflow and Outflow of Fund
Statement, etc. No doubt, Funds Flow Statement is an important indicator of financial analysis and
control. It is valuable and also helps to determine how the funds are financed. The financial analyst
can evaluate the future flows of a firm on the basi of the same in an accounting cycle.
REVIEW OF LITERATURE
Carslaw and Mills (2015) represented the concept of cash based performance ratios is not a new
system to accounting. What is new is the availability of cash flow data. The cash flow statement
offers measures to evaluate performance. If cash flow information is useful but unused, the logical
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conclusion is that analysts are not analyzing the available data properly. Carslaw and Mills found
that cash flow ratios are based on the cash flow from operations CFO of the company.
Neil et al (2013)Forecasting cash flow is a responsibility needed in different economic decision,
because cash flow plays an important role of whole decision making of every party such as security
analysts, creditors and managers. Overall, financial managers and decision makers predict the
demand cash flow of companies because they expect that current cash flow affect on future cash
flows
Giaccotto (2011) Discussed in terms of Net Pretend Value (NPV), for example, the project is
accepted if the pretend value of the cash flows for the operation exceeds the initial investment cost
or the project provides a positive net pretend value of cash flow. However, the prediction cash flow
is made very difficult because the future cash flows generated by the investment cannot be
estimated perfectly and certainly at the time of initial outlays
OBJECTIVES OF THE STUDY
 To Schedule of changes in working capital in each year and to examine the funds flow
statement position of an organization.

DATA ANALYSIS AND INTERPRETATION

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2014-2015
TABLE 1 (Rupees)

PARTICULARS 2015 2014 INCREASE DECREASE

Inventories 710.27 682.52 27.75 -

Sundry Debtors 264.79 146.74

118.05 -
Cash and Bank
68.42 52.84
Balance 15.58 -
Total Current Assets
1,043.48 938.06
(A) 105.42 -
c
Secured Loans 1,280.07 1,154.23 125.84 -

Unsecured Loans 56.46 42.52

13.94 -
Total Debt 1,336.53 1,196.75 139.78 -

Total Liabilities(B) 1,810.53 1,602.75

207.78 -
SOURCES: Secondary data
INTERPRETATION
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 Net working capital has increased (207.78) in the year 2014 when compared to 2015.
Current asset was Rs.938.06in the year 2014 and in the year 2015 the total current asset was
Rs. 1,043.48. The total current liability in the year 2014 was 1,196.75and in the year
2015was1,336.53. The net working capital in the year 2014 it was Rs.1,810.53and in the year 2015
it was Rs. 1,810.53.
SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2015-2016
TABLE 2 (Rupees)

PARTICULARS 2016 2015 INCREASE DECREASE

Inventories 679.87 710.27 -30.4

Sundry Debtors 238.15 264.79

-26.64

Cash and Bank Balance 113.77 68.42

45.35

Total Current Assets

1,031.79 1,043.48
(A)
-11.69

0
Secured Loans 1,618.26 1,280.07 338.19

Unsecured Loans 420.88 56.46

364.42
Total Debt 2,039.14 1,336.53 702.61

Total Liabilities(B) 2,416.84 1,810.53

606.31
SOURCES: Secondary data
INTERPRETATION
Net working capital has increased (606.31) in the year 2015 when compared to 2016.
Current asset was Rs.1,043.48in the year 2015 and in the year 2016 the total current asset
was Rs. 1,031.79. The total current liability in the year 2015 was 1,336.53and in the year
2016was2,039.14. The net working capital in the year 2015 it was Rs. 1,810.53and in the year 2016
it was Rs. 2,416.84.

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 SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2017-2018
TABLE 3 (Rupees)

PARTICULARS 2017 2016 INCREASE DECREASE

Inventories 420.82 679.87
-259.05

Sundry Debtors 137.87 238.15

-100.28

Cash and Bank Balance 162.3 113.77

48.53

Total Current Assets

720.99 1,031.79
(A)
-310.8

0
Secured Loans 1,393.37 1,618.26
-224.89

Unsecured Loans 764.37 420.88

343.49
Total Debt 2,157.74 2,039.14
118.6

Total Liabilities(B) 2,492.62 2,416.84

75.78
SOURCES: Secondary data
INTERPRETATION
Net working capital has increased (75.78) in the year 2016 when compared to 2017.Current
asset was Rs.1,031.79in the year 2016 and in the year 2017 the total current asset was Rs. 720.99.
The total current liability in the year 2016 was 2,039.14ayear2017was2,157The net working capital
in the year 2016 it was Rs. 2,416.84and in the year 2017 it was Rs. 2,492.62.

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2018-2019

TABLE 4 (Rupees)
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PARTICULARS 2018 2017 INCREASE DECREASE
Inventories 409 420.82 -11.82

Sundry Debtors 212.36 137.87

74.49

Cash and Bank

133.38 162.3
Balance
-28.92

Total Current Assets

754.74 720.99
(A)
33.75

0
Secured Loans 2,219.03 1,393.37 825.66

Unsecured Loans 426.12 764.37

-338.25
Total Debt 2,645.15 2,157.74 487.41

Total Liabilities(B) 3,281.80 2,492.62

789.18
SOURCES: Secondary data
INTERPRETATION
Net working capital has increased (789.18) in the year 2017 when compared to 2018.
Current asset was Rs.720.99in the year 2017 and in the year 2018 the total current asset was
Rs. 754.74. The total current liability in the year 2017 was 2,157.74and in the year
2018was2,645.15. The net working capital in the year 2017 it was Rs.2,492.62and in the year 2018
it was Rs. 3,281.80

TABLE 5
SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2018-2019
(Rupees)

PARTICULARS 2019 2018 INCREASE DECREASE

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 Inventories 2,200.52 409 1,791.52

Sundry Debtors 1,092.22 212.36 879.86

Cash and Bank

74.5 133.38 58.88
Balance

Total Current Assets

3,367.24 754.74 2,612.50
(A)

Secured Loans 3,943.88 2,219.03 1,724.85

Unsecured Loans 0 426.12 426.12

Total Debt 3,943.88 2,645.15 1,298.73

Total Liabilities(B) 4,128.39 3,281.80

SOURCES: Secondary data

INTERPRETATION
Net working capital has increased (1,298.73) in the year 2018 when compared tCurrent asset was
Rs.754.74in the year 2018 and in the year 2019 the total current asset was Rs. 3,367.24. The total
current liability in the year 2018 was 2,645.15and in the y2019was3,943.88. The net working
capital in the year 2018 it was Rs. 3,281.80and in the year 2019 it was Rs. 4,128.39.

NET CHANGES IN WORKING CAPITAL

FIGURE: 4

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 1400 1,298.73

1200

1000
789.18
800
606.31
600

400
207.78
200 75.78

0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

Findings
Changes in Working Capital
Net working capital has increased (207.78) in the year 2014 when compared to 2015.
Net working capital has increased (606.31) in the year 2015 when compared to 2016.
Net working capital has increased (75.78) in the year 2016 when compared to 2017.
Net working capital has increased (789.18) in the year 2017 when compared to 2018.
Net working capital has increased (1,298.73) in the year 2018 when compared to 2019.
CONCLUSION
This project of fund flow analysis in the production concern is not merely a work of the project.
But a brief knowledge and experience of that how to analyze the financial performance of the firm.
The study undertaken has brought in to the light of the following conclusions. According to this
project I came to know that from the analysis of financial statements it is clear the firm. Have been
incurring loss during the period of study. So the firm should focus on getting of profits in the
coming years by taking care internal as well as external factors. And with regard to resources, the
firm is take utilization of the assets properly. And also the firm has a maintained low inventory.

BIBLIOGRAPHY

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S.N. Maheshwari and S.K. Maheshwari – A Textbook of Accounting for Management 2006 (1st
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