1. FUNDS FLOW
Dr. Shete N.P

2. WHAT IS FUNDS FLOW STATMENT
FUNDS : WORKING CAPITAL
FLOW OF FUNDS: THE TERM FLOW MEANS CHANGE AND THEREFORE THE TERM FLOW OF FUNDS MEANS “CHANGES IN FUNDS” OR “CHANGES IN WORKING CAPITAL”. IN OTHER WORDS, ANY INCREASE OR DECREASE IN WORKING CAPITAL MEANS “FLOW OF FUNDS”.

4. Marketable investments
Current assets
Cash in hand and bank
Marketable investments
Accounts receivables
Stock
Prepaid exp.
Fixed assets
Goodwill
Land and building
Plant and machinery
Long term investment
Current liabilities
Bank overdraft
Outstanding expenses
Accounts payable
Fixed liabilities
Share capital
Reserve and surplus
Debentures
Long term loans
Flow in fund
Not flow in funds

5. USES OF FUNDS FLOW
WHY THE LIQUED POSITION OF THE BUSINESS BECOMING MORE AND MORE UNBALANCED IN SPITE OF COMPANY IS MAKING MORE AND MORE PROFITS.
WHERE HAVE THE PROFIT GONE
WHAT WILL BE THE SOURCES FOR DIVIDEND IF COMPANY IS NOT EARNING SUFFICIENT PROFIT
WHAT ARE THE SOURCES OF REPAYMENT OF THE LOAN TAKEN
HOW MUCH FUNDS GENERATION THROUGH NORMAL BUSINESS OPERATION.

6. IN WHAT WAY THE MANAGEMENT HAS UTILIZED THE FUNDS IN THE PAST AND WHAT ARE GOING TO BE LIKELY USES OF FUNDS ?

7. Funds flow Analysis
This statement is based on the ‘working Capital’ concept of funds.
It measures the inflows and outflows of working capital resulting from different transactions.
Funds flow statement measures and presents in an analytical manner the summarized version of the numerous flows of funds for a specific period.
‘Funds Flow’ is the change in ‘Working Capital’

8. Schedule Of Changes In Working Capital
4885.6
7186.7
TOTAL
3005
Increase In Working Capital
4181.7
CA - CL
6290.1
8170.7
Total
44.85
4477.4
4522.2
Bills for collections
645.02
1236
1881
Short term borrowings
576.72
1767.5
Other liabilities
Current liabilities
10472
15357
1220.6
302.3
1522.9
Bills receivables
3139.9
6696.6
9836.5
Loans & adv.
486.95
2917.5
3404.4
Investments
38.25
555.36
593.61
Cash & bank bal.
Decrease
Increase
2005
2004
Current assets

9. CALCULATION OF FUNDS FROM OPERATION
220.07
FUNDS FROM OPERATION
321.03
OPENING BAL. OF P&L A/C
NIL
(-) NON FUND CR.
541.1
197.79
195.23
Transfer Of R/S
2.56
Depreciation On Fixed Assets
(+) Non Fund Items
343.31
Closing Balance Of P&L A/c

10. Funds Flow Statement 3491.02 TOTAL 966.37 BORROWINGS 2253.02
 TOTAL
966.37
BORROWINGS
LONG TERM LOANS
2.56
SALE OF FIXED ASSET
486
Investments
220.07
FUNDS FROM OPERATION
Increase In WC 49
ISSUE OF CAPITAL
AMT.
APPLICATION
SOURCES

12. Cash Flow Analysis
Cash flow includes cash inflows and outflows – cash receipts and cash payments during a period.
A cash flow statement is a statement which portrays the changes in cash position between two accounting periods.
It helps in taking short term financial decisions and also in the preparation of cash budget for the next year.

13. How Cash Flow Differ From funds Flow ?
Unlike funds flow Cash Flow does not has non-cash items.
It comprises only those entries in which cash has come in or gone out.

14. (Less) Non-cash Incomes 80.80 Provisions 33.86 Amortizations 12.52
Statement Of Cash From Operations
449.36
Cash From Operations
43.19
Profit on sold Assets
(Less) Non-cash Incomes
80.80
Provisions
33.86
Amortizations
12.52
Interest Payable
35.15
Depreciation
(Add) Non-cash Expenses
330.22
Net Profit Before Tax

15. Outflow Of Cash Inflow Of Cash
Cash Flow Statement
Trade And Other Receivables
593.61
Closing Cash Balance
449.36
Cash From Operations
12.52
Interest Paid
Long Term Borrowings
529.80
Purchase Of Investments
42.85
Sale Of Investments
32.91
Purchase Of Fixed Assets
43.50
Sale Of Fixed Assets
2.80
Payments For Extraordinary Items
Deposits
137.00
Direct Taxes Paid
Trade Payables
Advances
555.36
Opening Cash Balance
Outflow Of Cash
Inflow Of Cash