Professional Documents
Culture Documents
CHAPTER
TITLE
PAGE NO
INTRODUCTION
1- 12
1.1 Introduction
13
13
13
14
14
16 - 43
Company Profile
44 - 48
49 68
69 70
Bibliography
71
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
FUNDS FLOW STATEMENT:
The basic financial statement i.e., the balance sheet and profit and loss account
(or) income statement of the business, reveal the net effect of the various
transaction on the operational and financial position of the assets and liabilities of
an undertaking at particular point of time. It reveals the financial status of the
company. The assets side of a balance sheet shows of the deployment of
resources of an undertaking while the liabilities side indicates its obligation i.e.,
the manner in which these resources were obtained.
The profit and loss account reflects the results of the business operations for a
period of time. It contains a summary expenses incurred and the revenue
realized in an accounting period. Both these statement provide the essential
basis information on the financial activities of a business. The balance sheet give
a static view of the resource(liabilities) of a business and uses(assets) to which
these resources have been put at a certain point of time. It does not disclose the
close for changes in the assets and liabilities between two different points of time.
The profit and loss account, in a general way, indicates the resources an
undertaking and which do not operate through profit and loss account. Thus
another statement has to prepare to show the change in the assets and 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 shows the movement of funds
and is a report of the financial operations of the business undertaking. It indicates
various means by which funds were obtained during a particular period and the
ii)
iii)
iv)
A fixed liability and current liability. And funds do not move when the
transaction effects fixed assets and fixed liability or current assets and
current liabilities.
1.3 OBJECTIVES
1) To analyze the changes in assets and liabilities from the end of one
period of the time to the end of another period of time.
2) To know various needs for which funds were obtained during a particular
period based in which these funds were employed.
3) To understand flow of funds in current or non current accounts.
4) To find out the sources form which additional funds were derived and the
use to which their sources were put.
5) To indicated the relationship between profits from operations, distribution
of dividends and rising of new capital or term loans.
6) To point out the financial strengths and weaknesses of the business.
7) To inform as to how the loans to the business have been used.
SECONDARY DATA:
The secondary data was collected from published and unpublished manuals,
records, broachers, files etc., of the organization. The secondary information was
collected from the company manuals and office records pertaining to production,
financial position and welfare activities.
1.5 SCOPE
Funds Flow Statement is a Technical Device to analyze the changes in the
financial condition of the business enterprise between two dates. This funds
flow statement is a statement which indicates various means by which the funds
have been obtained during a certain period and the ways to which these funds
have been used during the period.
The term funds used here means working capital that is the excess of current
assets over current liabilities. It is an essential tool for the financial analysts and
is of primary importance to the financial management.
1) The present study focuses as sources of funds and applications of funds
for a period of time.
2) The study is confirmed to find out the changes in the financial position of
the Mind Links Pvt Ltd between the beginning and the ending financial
date.
3) This Funds Flow Statement is a statement which indicates various means
by which the funds have been obtained during a certain period.
4) The basic purpose of funds flow statement is to reveal the changes in the
working capital on the two balancing dates.
5) It helps in the analysis of financial operations.
6) It helps in the formation of realistic dividend policy.
1.6 LIMITATIONS
1) It should remember that a Fund Flow Statement is not a substitute of an
income statement or a balance sheet.
2) It provides only some additional information as regards in working capital.
As such it must be remembered that funds flow statement is not a
substitute of the income statement.
3) It cannot reveal continuous changes.
4) The study based on the available annual reports and internal information
only.
5) It provides information about changes in the working capital only and
ignores information about changes in cash, which are more relevant and
important than working capital.
6) It is prepared taking into consideration only funds items and non funds
items are ignored. As such, it is complete and unscientific.
7) Time constraint is another limitation for the study because the study is
limited to 45Days.
8) The information is mostly depends upon the secondary data.
CHAPTER 2
LITERATURE SURVEY
&
LITERATURE REVIEW
LITERATURE SURVEY
Survey-1:
Title: Funds flows into tax effective OEICs and Australian based funds has held
up well.
Source: Traders Magazine
The latest Good Returns' survey of tax-effective offshore funds shows that funds
flow into UK-based Open-Ended Investment Companies held up well in the
September quarter compared to the rest of the industry.
Net funds flow (applications minus redemptions) for the quarter was $24.3 mill,
exactly the same figure as it was in June quarter.
While funds flow was positive the total amount of money invested in the sector
took a hit from poor fund performance with net assets under management
growing just 8% to $86.3 mill in the quarter.
These figures compare well with a very flat quarter for mainstream managed fund
sector.
According to researchers Fund Source the New Zealand domiciled funds had net
funds flows of $69.1 mill, which made it the worst quarter for the industry since
June 2010
It says the September quarter figure was down 81% on the $354 mill figure
recorded for the previous quarter this year.
The second part of the Good Returns' survey covers money invested into taxeffective Australian-based funds.
There are three confirmed funds in this area, including Money Managers First
Step Mortgage fund, which is run by NZ Funds Management, and two Frank
Russell Funds (international shares and international bonds) which are market as
ANZ's Ascent investment programmer.
First Step continued to attract significant volumes of new investment, with a net
funds flow of $39 mill, taking it to $219 mill net assets under management.
Although there are only three funds included in this part of the survey, it is
understood that other Australian based funds are being operated by managers,
and quite a few managers are looking at establishing funds offshore to get
around issues of paying tax on capital gains.
Although there are concerns that these funds could lose their tax-advantage if
the Government adopts the risk free return model (RFRM) advocated by the
McLeod tax review, that is unlikely to happen soon.
Under such a scheme investors would have to pay tax on the amount of money
they have invested at the start of the year no matter what happens during the
year.
This means that in a situation where markets are declining in value investors
would be paying tax although their funds are making losses.
SURVEY-2:
Title- Funds Flow Model and Production Management
SourceFUNDS & FLOWSElements crossing the boundaries classified in:
Funds: elements entering and leaving the process, providing certain
Services over a certain period;
Example: workers in shoes production
Flows: elements either entering (as input) or leaving (as output) the
Process Ex.: Input flows: energy and leather in shoes production;
Output flows: shoes and waste generated in the shoes production
Process.
strong connections between the analysis of idleness
reduction for processes in line and some issues addressed by
production (and inventory ) management.
The fund-flow model is:
Not suited for:
1) General equilibrium analysis;
2) Analysis of reciprocal influences between economic sectors;
3) Analysis of optimal patterns of utilization of fixed capital.
Suited for:
1) Analysis of organizational aspects of production processes;
2) Analysis of inter-relations between production scale, organization and
Costs;
3) Analysis of process innovations and their effects on costs:
a) A new category: time-saving innovation;
b) Bottlenecks;
c) Temporal coordination.
LITERATURE REVIEW
MEANING AND OBJECTIVES OF FUNDS FLOW STATEMENT:
The basic financial statement i.e., the balance sheet and profit and loss account (or)
income statement of the business, reveal the net effect of the various transaction on the
operational and financial position of the assets and liabilities of an undertaking at
particular point of time. It reveals the financial status of the company.
The assets side of a balance sheet shows of the deployment of resources of an
undertaking while the liabilities side indicates its obligation i.e., the manner in which
these resources were obtained. The profit and loss account reflects the results of the
business operations for a period of time. It contains a summary expenses incurred and the
revenue realized in a accounting period. Both these statement provide the essential basis
information on the financial activities of a business. The balance sheet give a static view
of the resource(liabilities) of a business and uses(assets) to which these resources have
been put at a certain point of time. It does not disclose the close for changes in the assets
and liabilities between two different points of time.
The profit and loss account, in a general way, indicates the resources an undertaking and
which do not operate through profit and loss account. Thus another statement has to
prepare to show the change in the assets and 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 shows the movement of funds and is a
report of the financial operations of the business undertaking. It indicates various means
by which funds were obtained during a particular period and the way to which these
funds were employed. In simple words, it is a statement of sources and applications of
funds.
vi)
vii)
viii)
A fixed liability and current liability. And funds do not move when the
transaction effects fixed assets and fixed liability or current assets and current
liabilities.
Kenneth midgley and Ronald G.Burns define the term Funds as one used in the sense of
spending power, it refers to the value embedded in assets. According to Bonneville and
Dewey Funds constitute the prime importance in sharing and operating any business
enterprise. In ordinary parlance funds mean cash only, but it has got several different
concepts as mentioned below. Funds may mean:
Cash only
Current Liabilities
Current Assets
1. Bills payable
1. Cash in hand
2.Cash at bank
3. Bills receivable
4. Dividends payable
5. Bank overdraft
6.Temporary or marketable
investments
8.prepaid expenses
9.accurued income
Good will
Land
Building
.
2
.
3
Debentures
Trade Marks
Patent Rights
.
5
.
6
.
7
.
8
Capital reserve
loss account
10.
10.
11.
11.
Discount on issue of
debentures
Funds flow statement is the statement of sources and application of funds. It is also
called as funds where got and where gone statement Almond Coleman observed.
The funds statement in a statement summarizing the signification financial changes
which have occurred between the beginning and the end of companys accounting
period.
There are 4 steps involving in preparation of funds flow statement
a.
b.
c.
d.
e.
2) Managements of various companies are able to review their budget with the
aid of fund flow statement.
3) Investors are able to measure as to how the company has utilized the funds
supplied by them and its financial strengths with the aid of funds statement.
4) Helps in the planning process of a company.
5) It is an effective tool in the allocation of resources.
6) It explains the relationship between the changes in the working capital and net
profits.
DISADVANTAGES:
1) It should remember that a Fund Flow Statement is not a substitute of an income
statement or a balance sheet.
2) It provides only some additional information as regards in working capital. As
such it must be remembered that funds flow statement is not a substitute of the
income statement.
3) It cannot reveal continuous changes.
4) It provides information about changes in the working capital only and ignores
information about changes in cash, which are more relevant and important than
working capital.
5) It is prepared taking into consideration only funds items and non funds items
are ignored. As such, it is complete and unscientific.
Sometimes a concern may operate profitably and yet its cash position may become
more and more course. The funds flow statement give a clear answer to such a situation
explaining what has happened to the profit of the firm.
(2)
(3)
Sometimes a firm has sufficient profit available for distribution as dividend but yet it
may not be advisable to distribute dividend for lack of liquid or cash resources. In such
causes, a funds flow statement helps in the formation of a realistic dividend policy.
(4)
The resources of a concern are always limited and it works to make the best use of these
resources. A projected funds flow statement constructed for the future help in making
managerial decision. The firm can plan the deployment of its resources and allocate them
among various applications.
before granting loans to know the credit worthiness and paying capacity of the firm.
Hence, a firm seeking financial assistance from these institutions has no alternative but to
prepare funds flow statement.
The following rules are followed while preparing a schedule of changes in working
capital,
a) An increase in current assets results in increase in working capital.
b) A decrease in current assets results in decrease in working capital.
c) An increase in current liabilities results in decrease in working capital.
d) A decrease in current liabilities results in increase in working capital.
Previous yr
Current yr
Decrease
Current Assets
a) Cash in hand
b) Bills receivable
c) Sundry debtors
d) Temporary investments
e) Stocks/inventories
f) Prepaid expenses
g) Accrued income
Total current assets
xxx
xxx
Current Liabilities
a) Bills payable
b) Sundry creditors
c) Bank overdraft
d) Short term advances
e) Dividends payables
f) Provision for taxation
Total current liabilities
Working capital
xxx
xxx
CA-CL
Net increase or decrease in working capital=
Increase in working capital - Decrease in working capital
Add non-fund and non operating items which have been already
Debited to profit and loss account
a) Depreciation
b) Amortization of fictitious and intangible assets
1. goodwill
2. patents
3.
trade marks
4.
preliminary expenses
5.
xxxx
Less - Non Fund or non operating items which have already been
credited to profit and loss account
a)Profit or gain from the sale of non current / fixed assets such as
b) Appreciation in the value of fixed assets such as increase in the value of land if it has
been credited to profit and loss account
c) Dividends received
d) Excess provision retransferred to profit and loss account or written back.
e) Any other non operating item which has been credited to profit and loss account
f) Opening balance of profit and loss account or retained earnings as given in the
balance sheet
Total ( B)
Funds received from operation or business activities = Total ( A) Total ( B).
xxxx
Amount
xxxx
xxxx
CHAPTER-3
COMPANY PROFILE
COMPANY PROFILE
MiNd LiNks IT R&D Labs Pvt. Ltd. is a software engineering services company in the business of
providing Information technology based solutions to various business entities operating in different
segments of the company.
The Company applies robust and optimal methodologies; state of art technologies with software
engineering skills to domain knowledge in creating information technology based solutions of clients
in the respective domains.
MiNd LiNkS IT R&D Labs keeps abreast with the state of art technologies. Knowledge of the
technologies are carefully analyzed for suitability and appropriately deployed with the solution. The
company has in-depth domain as well as functional knowledge.
MiNd LiNkS IT R&D Labs helps public sector and commercial clients build their organizations by
delivering measurable improvements every time. Whether through enhancing productivity,
improving operational efficiencies or increasing revenue and growing profitability, MiNd LiNkS IT
R&D Labs understands both the immediate and long-term goals that work for todays
organizations. Our proven experience and innovative solutions are designed for one purposeto
give the edge.
Technology Solutions
Business Consulting
Management Solutions
Strategic Design
Outsourcing
MiNd LiNkS IT R&D Labs growth can be attributed to the company's focus on
quality, consistency, and long-term vision. In order to thrive in an interconnected
economy, the service offerings by MiNd LiNkS IT R&D Labs meet the demands of
VISION
When our clients think of MiNd LiNkS IT R&D Labs, we want them to envision a company that will
give them the edge in their business needs through a combination of professionalism, cooperation,
integrity, and excellence in performance with objective results and high quality. We provide our
customers with the highest levels of service, quality, and efficiency. The enduring and personal
relationships we hold with our clients, gives us the advantage of a loyal, well-established client and
partnership base. We offer the assurance that company needs will be met now and in the future.
MISSION
VALUES
There are six driving factors behind our corporate philosophy, our day-to-day
operations and ultimately our success. These values guide everything we do,
shape who we are and how our customers, our associates, and our partners
perceive us.
BUSINESS INTELLIGENCE
MiNd LiNkS IT R&D Labs Business Intelligence solutions are designed to
empower organization with information. In today's highly competitive and
dynamic business environment, information is vital to survival.
Organizations spend millions of dollars on business solutions that are designed
to capture data, but little is done to transform this data into meaningful business
information. That's where MiNd LiNkS IT R&D Labs Business Intelligence
solutions come in. Using our proven methodology, we deliver key business
metrics to desktop in a timely fashion, with a format that is both intuitive and
highly interactive.
Our Business Intelligence solutions are designed to give you direct access to the
information that you need, when you need it. This effectively removes IT from the
middle of the information-delivery chain, freeing this critical resource to focus on
other business problems.
BUSINESS CONSULTING
The greatest accomplishments begin with an architect plan. We believe that
MiNd LiNkS IT R&D Labs is the advisor that the company needs most as you
begin to conceptualize the business road map.
Our business consulting is the cohesive mortar that unites our various disciplines.
By focusing on company's strategic objectives, we are able to design, develop,
and implement the solutions that will produce measurable change across the
enterprise.
As the foundation of MiNd LiNkS IT R&D Labs, this business-centric philosophy
permeates our various discipline leaders. Whether a developer or a designer, the
goal of producing custom business solutions is paramount.
FORMING A STRUCTURE
Our skill in analyzing company's internal structure enables MiNd LiNkS IT R&D
Labs to enhance business processes, operational efficiencies and manage or
reduce overall costs. By optimizing supply chain through supplier collaboration
and rationalization we can improve the relationships that support business.
EXTENDING RELATIONSHIP
By helping to orientate leadership direction and formulate operational practices,
MiNd LiNkS IT R&D Labs can also effectively refine how company goes to
market. By improving the ways in which the company deploy their sales force,
manage traditional customer relationships and build an integrated marketing and
communications plan, we can help the craft every touch point between the
company and customers.
BRAND DEVELOPMENT
The company brand is the company promise to the marketplace. It is the
message, quality, personality, and differentiation that make the organization or
product unique. Its company image.
Developing a brand begins with an understanding of the product or company
strengths, positioning within the marketplace, as well as consumer perception.
MiNd LiNkS IT R&D Labs can help out to determine where the brand is and
where it wants to be. Through competitive market analysis, we will expose
company brands key differentiators and recognize marketplace opportunities.
INTEGRATED MARKETING
Successful Integrated Marketing solutions take three key elements in order to
produce value: solid strategy, quality design, and measurability.
Integrated Marketing utilizes a variety of media and channels. It employs
designers that understand these mediums and can translate their designs into
Aligns technology infrastructure and initiatives with high-priority business processes and
organizational objectives
Focuses on the needs of the key stakeholders (customers, suppliers, employees) and not
on the limitations of technology.
Provides qualitative and quantitative measures of the success of the strategy or business
continuity plan.
Creates alignment, consensus, and accountability for the prioritized initiatives among
executive leadership and line of business management.
SERVICES
MiNd LiNkS IT R&D Labs delivers wide-ranging and value added services
adopting the unique approach of integrating people, processes and technology.
This approach has allowed our teams to map business requirements to the
technology solution that fit project goals. Our consultants focus on understanding
customer needs to devise design and development strategies to efficiently create
reliable applications, on time and within budget.
Our expertise at strategic, technical, operational and organizational levels help
organizations takes advantage of new business opportunities.
Study and Analysis : Once the problem Ticket issue is received, the Onsite technical team makes
a careful study of the issue and analyzes its complexity.
Estimation: After a thorough analysis the work estimation is made and it is placed before the client
through an offsite support Manager. Based on the estimated time and priority, the issue is then
scheduled to be resolved either by the onsite team or by the offshore team.
Scheduling: Identify the best suitable team member(s) for solving the issue and assign the tasks to
that particular resource(s).
Solution: The assigned team member(s) provides the solution as specified in the given task
document in a scheduled time adhering to the quality standards, he also provides a standard
document describing the work done.
Testing: Test the changed code as per the Maintenance Manual. Update the documentation as
required
Log Maintenance: Logs will be maintained for future use by the offsite as well as offshore team for
all the support issues that have come up.
APPLICATION DEVELOPMENT
With increasing demands, enterprises worldwide are finding it difficult to
implement, and support new applications, while at the same time, maintaining
and upgrading their existing systems. To overcome the situation, companies must
seek to expand development capacity, accelerate time-to-market, and build
flexible distributed delivery models to negotiate risk.
Efficient Data Entry and Data Conversion with 100% percent quality.
APPLICATION MAINTAINENCE
MiNd LiNkS IT R&D Labs provides comprehensive software application
maintenance services for medium to large enterprises. Services range from
Promptly fixing software problems that cause the system to be non-operative or to perform
incorrectly
INTERACTION
MiNd LiNkS IT R&D Labs has rich experience in successfully executing large IT
outsourcing projects with well-established Infrastructure. MiNd LiNkS IT R&D
Labs Interactions, the BPO arm of MiNd LiNkS IT R&D Labs Aims about reducing
the operational costs for its Clients by improving the outsourced processes and
increasing their productivity. The strong parentage of MiNd LiNkS IT R&D Labs
provides the right mix of Infrastructure, People and Processes to the clients. The
partnership offers technical expertise coupled with global call center expertise.
To keep pace with today's economic environment, organizations need to focus on
their core competence. The easiest way of doing this is to partner with a service
provider like MiNd LiNkS IT R&D Labs Interactions, who understands the
company business and solves non-core, yet critical business processes.
MiNd LiNkS IT R&D Labs Interactions interest lies in a long-term partnership
addressing all aspects of the outsourcing requirements from clients. MiNd LiNkS
IT R&D Labs Interactions gives the very best in bringing cost efficiency with
quality processes, round-the-clock operations, state-of-the-art infrastructure and
a committed people force. It offers Industry-specific services to customers. For
instance, in the Insurance and Healthcare sector, it addresses Claims
Processing, Policy Issuance, Premium Accounting, etc. It also offers Front Office
services like Contact Centers for Customer Service. It provides Product Support
& Technical Help Desk services as well as Back-Office Processes in the areas of
Accounting, HR and other Transaction Intensive activities.
email support and online chat, we can help out to make the most of every
contact.
MEDICAL TRANSCRIPTION
MiNd LiNkS IT R&D Labs Pvt. Ltd. is a trailblazing Medical Transcription Company. MiNd LiNkS IT
R&D Labs has pioneered its medical transcription operations by recruiting young graduates with
background in of various subjects and orienting them by imparting to them six months of
comprehensive training. MiNd LiNkS IT R&D Labs has a handpicked and individually trained
specialized team of personnel who deal with multiple branches of medicine including the following:
Cardiology
Pulmonologists
Gastroenterology
Genitourinary
Obstetrics and Gynecology
Orthopedics
Oncology and Radiology
Psychiatry
ENT
Neurology
The growth of MiNd LiNkS IT R&D Labs in this field is a saga of success, for it has always
endeavored to provide quality transcription services. At present it has more than 20 Medical
Transcribers with an average of 12 months experience in transcription of a variety of medical reports
involving
Clinical Notes
History and Physical
Consultation
Operative Reports
Discharge Summaries
MiNd LiNkS IT R&D Labs offers Quality Transcription Services with Turn-Around
Schedules that match the best in the industry.
MiNd LiNkS IT R&D Labs creates a congenial work atmosphere and provides
and sustains ample resources to its personnel. In addition, all our Medical
Transcribers have
Appropriate education
Training
Experience
Work experience under supervision of a skilled management team
MiNd LiNkS IT R&D Labs has its own in-house, fully equipped facility to train 20
Medical Transcribers at a time. Training at MiNd LiNkS IT R&D Labs facilitates
individuals in the effort to attain international standards in delivering work within
stipulated time.
LEADERSHIP TEAM
The varied and successful business careers of the principals at MiNd LiNkS IT
R&D Labs, combined with seasoned senior management with decades of
experience, have given the company an unprecedented wealth of resources
unique to the con.
CHAPTER-4
DATA ANALYSIS AND
INTERPERTATION
Particulars
Openin
g
closin
g
Changes in W.C
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
If INCREASE in
CA take in
increases column
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
If INCREASE in
CL take in
decrease column
A. Current Assets
1)
2)
3)
4)
5)
6)
7)
8)
If DECREASE in
CA take in
decreases column
B. Current LIABILITIES
1)
2)
3)
4)
5)
6)
7)
8)
Sundry Creditors
Bills Payable
Out Standing Expenses
Short Term Loans
Bank Overdraft
Provision for doubtful debts
Provision for Tax(Refer Note)
Proposed Dividends(Refer
Note)
If DECREASE in
CL take in
increase column
xxxx
xxxx
xxx
xxx
xxxx
xxxx
is an APPLICATION of
is a SOURCE of Funds.
is a SOURCE of Funds.
is an APPLICATION of
Amt
APPLICATIONS
Amt
xxx
1) Funds Lost in
Operation(FLO)
2) Redemption of
Pref.sh.capital
3) Redemption of Debentures
4) Purchase of Fixed Assets
5) Purchase of long term
investments
6) Repayment of L/T loans
7) Payment of Taxes
8) Payment of Dividends
9) Increase in W.C
xxx
xxx
3) Issue of Debentures
xxx
4) Sale of Fixed Assets
5) Sale of long term investments
6) Raising of L/T loans
7) Refund of Taxes
8) Non-Operating Incomes
9) Decrease in W.C
xxx
xxx
xxx
xxx
xxx
xxx
xxxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Xxxx
A) Current Assets
1)Inventories
Previous
year 2008
Current year
2009
Working capital
Increase
Decrease
3792.64
4795.79
1003.15
----
513.17
---418.59
831.12
---439.33
317.95
---20.74
----------
839.99
785.34
----
54.65
22.58
27.03
4.45
----
5586.97
6878.61
1781.98
24.13
43.92
1171.85
207.25
1.77
1754.16
26.04
39.67
1132.17
192.98
2.92
27.82
---4.25
39.68
14.27
----
---1.91
---------1.15
3230.90
3147.94
2356.07
3730.67
B)Increase / Decrease
1374.60
----
3730.67
3730.67
2) Debtors
3)Work in progress
4)Cash and bank
5)Loans and advances
6)Other current assets
A) Total Current Assets
B) Current Liabilities
1) Creditors
2) Cash credit
3)Proposed dividend
4) Other liabilities
5) Provision tax
6) Dividend
in W.C
TOTAL
1432.31
1432.31
SOURCES
OF
FUNDS
1) Issue of share
AMOUNT
APPLICATION OF
AMOUNT
----
FUNDS
1)Reduction
of
----
of
----
capital
share capital
2)Issueof
----
Debenture
3)Raising
2)Reduction
Debenture
of
new
3)Repayment
loans :-
1149.57
Loans:-
----
* Secured loans
162.20
* Secured loans
----
* Unsecured loans
----
* Unsecured loans
472.24
4)Sale
of
Fixed
Assets
4)Purchased
of
579.20
Fixed Assets
----
5)Purchase
----
Investments
----
6) Decrease in W.C
6)Lossfrom
1374.60
7)Decrease
Operation
44.13
5)Profit
from
Operation
in
Investment
---of
7) Increase in W.C
8)Payment
of
Dividend
TOTAL
INTERPRETATION:
1890.97
1890.97
The funds flow statement of 2008-09 clearly shows that the companys working capital
has increased by Rs 1374.60 lakhs. The sources of the company were achieved from
the following.
1. Funds from operation. 579.20 lakhs.
2. From secured loans.
1149.57 lakhs.
Previous year
Current year
2009
2010
Working capital
Increase
Decrease
A) Current Assets
1)Inventories
4795.79
6307.35
1511.56
----
3)Work in progress
831.12
501.30
----
329.82
----
----
----
----
5)Loansand
439.33
441.10
1.77
----
6)Othercurrent
785.34
869.77
84.43
----
assets
27.03
17.37
----
9.66
6878.61
8136.89
4) Other liabilities
1754.16
1587.31
166.85
----
5) Provision tax
26.04
251.01
----
224.97
6) Dividend
39.67
30.00
9.67
----
1132.17
1112.93
19.24
----
Total Current
192.98
0.65
192.33
----
Liabilities
2.92
3.47
----
0.55
3147.94
2985.37
2) Debtors
advances
A)TotalCurrent
Assets
B) Current
Liabilities
1) Creditors
2) Cash credit
3)Proposed dividend
B)Increase/Decreas
e in W.C
3730.67
TOTAL
5151.52
1420.85
5151.52
1420.85
5151.52
1985.85
1985.85
of
OF
share
AMOUNT
APPLICATION OF
AMOUNT
----
FUNDS
1)Reduction
----
capital
of
share capital
2)Issueof
----
2)Reductionof
Debenture
Debenture
3) Raising of new
3)Repayment
----
loans :-
1499.04
Loans:-
----
* Secured loans
----
* Secured loans
16.21
* Unsecured loans
----
* Unsecured loans
283.87
4)Sale
261.56
4)Purchased
of
Fixed
Assets
of
Fixed Assets
----
5)Profitfrom
----
5)Purchaseof
Operation
----
Investments
----
6) Decrease in W.C
6)Lossfrom
1420.85
7)Decreasein
Operation
39.67
Investment
7) Increase in W.C
8)Payment
of
Dividend
TOTAL
1760.60
1760.60
INTERPRETATION:
The funds flow statement of 2009-2010 clearly shows that the companys working capital
has increased by Rs 1420.85 lakhs. The sources of the company were achieved from
the following.
1. Funds from operation. 261.56 lakhs.
2. From secured loans.
1499.04 lakhs.
The company used funds worth Rs 283.87 lakhs for acquisition of fixed assets.
In addition to the funds generated from operation the company acquired secured loans
for acquisition of fixed assets, repaying un-secured loans and meeting the increased
need of working capital. The management also proposed payment of dividend of Rs 2.50
per equity share, which let an out flow of funds of Rs 39.67 lakhs including dividend tax.
Previous year
Current year
Working capital
Particulars
2009
Previous year
2010
Current year
Working capital
2009
2010
Increase
Decreas
e
A) Current Assets
1)Inventories
6307.35
3966.03
----
2341.32
2) Debtors
501.30
836.39
335.09
----
3)Work in progress
----
----
----
----
441.10
831.71
390.61
----
5)Loansand
869.77
1609.31
739.54
----
advances
17.37
26.35
8.98
----
8136.89
7269.79
6)Othercurrent
assets
A) Total Current
Assets
B) Current
1587.39
3407.65
----
1820.34
Liabilities
251.01
146.98
104.03
----
1) Creditors
30.00
33.84
----
3.84
3)Proposed
1112.93
1430.72
----
317.79
Dividend
0.65
0.65
----
18.06
4)Other liabilities
3.47
21.53
----
----
2985.37
5041.37
5151.52
2228.42
2923.10
----
----
2923.10
5151.52
5151.52
4501.35
4501.35
2)Cash credit
5)Provision tax
6)Dividend
Total Current
Liabilities
Net working capital
(A-B)
Increase/Decrease
in W.C
TOTAL
Amount
Application of funds
Amount
----
----
2) Issue of debenture
----
2) Reduction of debenture
----
3) Repayment loans: -
* Secured loans
----
* Secured loans
1035.13
* Unsecured loans
22.25
* Unsecured loans
----
----
2000.00
118.78
5) Purchase of investment
----
6) Decrease in W.C
2923.10
----
7) Decrease in investment
1.00
7)Increase in W.C
----
8)Payment of dividend
30.00
TOTAL
3065.13
3065.13
INTERPRETATION:
The funds flow statement of 2010-2011 clearly shows that, working capital decreased by
Rs 2923.10 lakhs. The sources of the company were achieved from the following.
1. Funds from operation. 118.78 lakhs.
2. From un-secured loans. 22.25 lakhs.
3. From sale of investments. 1.00 lakhs.
4. From working capital.
2923.10 lakhs
CHAPTER - 5
CONCLUSION & SUGGESTIONS
CONCLUSION
The MiNd LiNks IT R&D Pvt Ltd. Net Working Capital is satisfactory between the
years since it shows increase trends, but after that it is in declining position. The
company had taken Secured Loans in the assessment year 2010-2011. The
company has repayment total Unsecured Loans in the assessment year 20092010.
Equipment required for profits under construction but not installed by end of year
is shown under Capital work in progress. Depreciation is calculated from year to
year. Investments is carried at cost less provisions where ever necessary.
The purchase of fixed assets by the company is up to mark. The company not
raising additional capital share is same.
Better awareness to increase the sale is suggested. Cost cut down mechanics
can be employed and better techniques can be employed.
SUGGESTIONS
1) Most of the years the company is having increase in working capital; this is
due to increase in levels of current assets. This is due to increase in level of
current assets.
Bringing the level of current assets can reduce this increase in working capital.
2) Loans and advances are fluctuating in a disorder. This may be due to disorder
of current assets and current liabilities.
3) Every company should have upper & lower limits which produce reasonable
combination of profitability in management of working capital.
4) The company should not maintain the resources surplus Current Assets &
Current Liabilities. This is not good for the company so maintain the reserves &
supply, increase the Current Assets & Current Liabilities is healthy for the
organization.
5) Funds flow statement has shown twice losses from operations these are
mainly due to heavy increase in current liabilities like creditors and other
liabilities. To avoid this in the coming years it can be suggested to reduce the
level of credit to supplier of raw materials. I.e. to purchase the raw material from
those suppliers who give them at low costs.
7) Cash balances are not maintained properly. They have to be maintained to
meet the day-to-day operations with out fail.
8) To improve the financial health of the company & maximizing
CHAPTER 6
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
Finance Management by L.M Pandey
Management Accounting by S.P Guptha
Fundamentals of Financial Management by S.N Maheshwari
WEBSITES:
www.mindlinks.org
www.wikipedia.org
www.ffs.com