Final Cash Flow Report

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AcknowledgementI am sincerely grateful to those people who made their way out in helping me to accomplish

my project. At beginning I was very skeptical about how to lead my project through was helped

unanimously by many persons throughout my project days. At first, my sincere thanks to Mrs.Devyani Ingale , SIOM ,Pune.

I take this opportunity as privilege to articulate my deep sense of gratefulness to theManaging Director Mr. Vijay M. Gandhi, and the staff of the M-Tech Innovations Ltd., Pune for their timely help and positive encouragement.

My sincere gratitude to Mr. Avinash Saraf, Account/Finance Head, M-Tech Innovation Ltdfor his training that helped me in learning much about the Finance methodology. Also I amgrateful to Mr.Arvind Lande for his overall support throughout my training program. Lastly Iwould like to thank my institution management for their effort in providing us this opportunity toget a firsthand experience of corporate world. I am also grateful to my friend Mr. SatishChaudhari who gave me reference to get a chance to work in M-Tech Innovation Ltd.

Place: PuneDate: Pradeep P. Sonawane.

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CHAPTER I

Introduction

1.1.1 Introduction to Study:

The ultimate objective of financial statements is to provide maximum detailed

information about the organization to the public. The financial statements like Profit &

Loss A/C and Balance Sheet fulfill this objective very well. The Profit & Loss A/c shows

the change in the owners equity as a result of productive and trade activities during the

period. The Balance Sheet, on the other hand, portrays the financial position of the

undertaking, the asset side indicating the deployment of resources in various assets andthe liability side showing manner in which these resources were obtained.

The information supplied by these statements sometimes may not be adequate. In

some cases the Profit & Loss A/c of a firm may reveal that it has earned sufficient profits

and the Balance Sheet may indicate sound solvency position but even then the concern

may not be able to distribute the profit in cash or carry out its normal operations due to

shortage of cash.

Under such circumstances, the owner or manager of the concern, unless he is well-

versed in accounting, will not be able to understand the exact reasons for this cash

shortage despite the huge profit and sound financial strength. In such a situation, tools of

financial analysis called Funds Flow Analysis & Cash Flow Analysis reveals the exact

movement of funds and cash and explains the situation well.

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1.2 Objectives of the Study :

The purpose of preparing Funds flow and Cash Flow is to determine shortage or excesses in cash.

To study the existing pattern of Funds flow and Cash Flow management in the

organization.

To reveal the importance of Funds flow and Cash Flow to the organization.

Understand the types of transactions that result in cash flows from operating,

investing & financing activities.

To know the financial soundness of the company.

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1.4 Scope of Study:

The scope of study is concerned with-

1. Industrial Overview.

2. Current status of the industry with special emphasis on electronic manufacturing

industry

3. Study includes Analysis of Financial Statements through Funds Flow & Cash Flow.

4. Study is based on data collected through primary & secondary modes of data

collection.

5. Concerned study is undertaken in M-tech Innovation Ltd, Pune for the period of 60

Days.

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CHAPTER IICompany Profile

We at M-Tech believe that Product Development and Innovation, holds key for our success.

From being a manufacturer of Labels, Dials and Stickers two decades back, we are todayone of the leading manufacturer in the country for Membrane Switches. An ultra-modern cardmanufacturing facility was commissioned in 1997 for Security Cards manufacturing.

Today we are able to offer our customers Smart Cards, Reader and Card basedapplications.

Along with that we have diversified into Health Sector. We have full fledged HealthcareDivision which caters to the segment of Oral Dental Care.

It is thus purely our people, the technology and our production which has been the key behind our success.

We are recipient of several National and International Quality Awards. That itself speaksof our capability to deliver quality products.

To speak of we are having an impressive list of multinational and domestic client who prefer to keep us their partners in quality, price and delivery.

Nature Of Business:- Supplier, Manufacturer.Number of Employee:- 101 to 500 People.Turnover:- US$ 1-10 Million (Rs.4-40 Crore Approx.)Major Markets:- Indian Subcontinent, East Asia, Middle East And South East Asia.Address:- P-1/2, Rajiv Gandhi Infotech Park, Phase I, Near Cognizant, Hinjewadi,

Pune, Maharashtra-411057, India.

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Mission

Growing with People & Technology.

Vision

Towards Global Corporation Offering best Value To Our Stakeholders.

Quality Policy

We are committed to manufacture world class products by using latest technology with eco-friendly and reliable processes. We shall achieve customer satisfaction by offering high standardsof service and being responsive to their changing needs and expectations. Our focus shall be oncontinual improvement, creativity and innovation through the involvement and development of our human resources by upgrading skills.

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History Of Company:

1988 : Company was set up in 1988 as M/s. Mahavir Printers, for the printing of Letter Headsand Visiting Cards.

1990 : Manufacturing of Plastic Labels for the Electronic Industry

1993 : Separate Division for Membrane Switches and Panels

1995 : Introduction of polyurethane coated Emblems logos

1997 : Setting up of the Security Cards Division, manufacturing PVC cards for variedapplications.

1999 : A major product innovation in the form of for flexible speaker grills for the TV Industryand Prepaid Scratch Cards for mobile phones.

2000 : Chip / RFID cards, Readers including complete applications for Smart Cards basedapplications with inhouse R & D facilities..

2002 : Healthcare Division opened with products under brand name of "Dr. Flosser" the same isa popular in the new generation product in Dental Care.

2002 : Started the production of Inmould components.

2003 : Launches Herboral product

2004 : Launches "Hexoral" Allopathic Mouthwash.

2005 : Manufacturing & Supply of RFID Tags

2006 : Lanuches Dental Material - Dr. Alginate, Dr. Sparkles, Dr. Dentoseal & Dr. Dentofill

2010 : Visa Certification.

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Address:

Corporate office : (Unit - II) P - 1/2 Rajiv Gandhi Infotech Park,PHASE- I Near Cognizant,Hinjewadi, Pune 411057Pune 411057 (India )Phone : +91 - 20 - 020-22932020 / 2025 / 2080 /4880Fax : +91 - 020-22933139Website : www.m-techindia.comEmail : [email protected]

Factory Office : (Unit - I )

33 KM Stone,Pune - Satara Highway,Before Nasrapur Turn, Gat No. 79,Village Kelawade, Tal. - Bhor,Pune. India.Phone : +91 - 2113 - 272 273.Telefax : +91 - 2113 - 272 856

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Different Products Profile Of M-Tech:

1. UNIT 1

Domed Label(Bubble Stickers). Graphic Overlays & Stickers.

Automotive Dials In Mold Decoration.

Membrane Switches.

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2. UNIT 21) Cards

ATM/ Master Visa Cards.

ID Membership Cards.

Prepaid Scratch Cards.

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Contact Less Smart Cards

Contact Smart Cards

2) Smart Cards, Readers

CONTACTLESS READER BIOMETRIC READER

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PIN-PAD BASED READER POINT OF SALE READERS

3) RFID Tags, Readers And Applications

DESKTOP ANTENNAS RFID MID RANGE READER

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Esteemed Clients:

Bharat Atomic Research Centre AndaPradesh technologyServices

Indian Railway Reliance Communications

LG Godrej

BEHR Kalyani Bharat Forge

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TATA Motors Wipro

State Bank of India Bank of India

Le Meridien Holiday Inn

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Board Of Directors:

Mr. Vijay M. Gandhi

He is the Chief promoter of thecompany. He started his career byworking as a operator in Bajaj AutoLtd., Pune Assembly line. Whileworking he completed the Diploma in Mechanical engineering from government polytechniccollege. In 1989 he started a small unit along with his fellow promoters a firm called Mahavir Industries from the intital work of Printing letterheads and visiting cards, he went on higher milestones of Printed Electronics Business to make the company what it is today. Mr. Gandhi isthe Managing Director & Chairman of the company. He is a winner of Dahanukar Award of MCCI in 1997, under his leadership company has won the award for Good Quality System andPractices in their establishment from MCCI - Tata Honeywell award in 1997 also company has

won the merit award in 2001 for the product Prepaid Cards.Mr. Rajkumar M. Gandhi

He has completed the Diploma in printing engineering. Mr. R. M. Gandhi is the ExecutiveDirector of the comapany and is looking after the material sourcing and production of MembraneDivision.

Mr. Milind S. Bhagwat

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Mr. Milind S. Bhagwat is a Mechanical Engineer & Embedded Software Engineer, Member of ISHRAE. He is looking after the R&D Division, Smart Card Division and all the TechnicalAspects of the company's operations. He has total experience of 25+ years in engineering field.Closely associated with business partners within and outside country. Providing guidance &direction to the technical team of the company to develop Innovative products particularly inlatest technology like RFID etc.

Mr. Murgesh B. Halvegar

He is the Automobile Engineer. He have developed good team of work round-the-clock 365 dayswith safety, good environment & understanding changes needed to shop floor in line with global

compitition.

Mr. Niranjan Nadkarni

Mr. Niranjan Nadkarni has Degree in Mechanical Engineering, Master Degree in Management,Diploma in Business Management, Diploma in Marketing Management & Diploma in PCSoftware. Also he has the technical qualifications like IQA and RAB Assessor, GM, Daimler-Chrysler, Ford Qualified QS 9000 Lead Auditor, VDA 6.1 Qualified Auditor, TUV Cert & TMSRegistered Lead Auditor, VETO person for all automotive standards & ISO/TS 16949:2002Qualified Lead Auditor.

Mr. Niranjan Nadkarni is a Member of the Institute of Engineers (Mechanical) & CharteredEngineers (Mechanical). He has total working experience of 20 years. He is currently working asVice President, Testing Services for TUV Southasia. He has international exposure in countriesGermany, France, Italy, Switzerland, UK, USA, South Korea, South Africa, Philippines, China,Singapore, Middle East & Japan. This includes international audits, business meetings,conducting trainings, seminars, conferences etc.

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Mr. Ramesh Gugale

He is an independent non-executive director of the Company. He is a person with progressiveideas. Nobody could have thought of having "A BANANA TISSUE CULTURE" businessJamkhed with the view to enrich the farmers. But Mr. Ramesh Gugle with his foresight has adeveloped a huge tissue culture business at Jamkhed.Mr. Ramesh Gugle has vast experience in cloth, tissue culture, medicines, healthcare &electronics.Untiring hardwork, Iron will power, pleasant personality, gentle behavior & devotion made him

pride & glory of his business. Mr. Ramesh Gugle believes "A good business is social work"

Mr. Vishal Katariya

Mr. Vishal Katariya is an independent non-executive director of the Company.Mr. Vishal Katariya, LL.B., LL.M (UK), LL.M (US), is the Chair-Professor of IPR (IntellectualProperty Rights) of Pune University. His dynamic vision and foresight will see a growingawareness of Intellectual Property Rights in industrial and academic circles.Mr. Katariya received his law degree at ILS Law College, Pune. He stood 2nd in the meritranking in University of Pune and was awarded the coveted DFID scholarship by the BritishGovernment, in recognition for his outstanding academic achievements and to study law in theUniversity of Bristol, England. The University of Bristol is one of the most reputed universitiesof England with excellence to match the fame of Oxford and Cambridge. His master's course inlaw enabled him to deepen his knowledge in intellectual property law and European law.Mr. Katariya was awarded another scholarship to study masters of law in the United States. Hisfocus of study was on Intellectual property (IP). He studied at Franklin Pierce Law Center tosharpen his Intellectual Property skills and study finer details of patent, trademark and copyrightlaw. Franklin Pierce law Center is one of the premier institutes in the US which impartsIntellectual Property education. WIPO (World Intellectual Property Organization) officials andnominees for patent office from various countries prefer to study IP law at this institute.He worked in the Atlanta office of Holland & Knight LLP, one of the top most law firms in the

US. His work in the US enriched his experience and motivated him to come back to India and tostart working in the field of Intellectual Property as it was in its infancy.

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MR. Karan Singh

Mr. Karan Singh has been nominated as a director of the company from 24th September, 2007.He is a non-executive director of the Company. Mr. Karan Singh has done his graduation in theyear 2002 from Michigan University, USA with specialization in Organizational Science andEngineering. Apart from graduation, he has attained International Baccalaureate Diploma inSingapore from the United World College of South East Asia in 1997. Also, he has completed hisBusiness School Program from Harvard in the year 2004 and has completed the LeadershipProgram from Indian School of Business. He was one of the speakers in the panel discussion held

by Hewlett Packard for its prestigious clients in New Delhi on 17th October, 2006. He is adirector of ACG Group.

Ms. RAJEE R.

Ms. Rajee R. is B.Tech [Electronics] & has also completed her MBA with specialisation inFinance. She is the nominee director of Canbank Venture Capital Fund Limited on the Board of M-Tech Innovations Ltd. w.e.f. 6th September, 2008. She has over 19 years of experience in thePrivate Equity and Venture Capital business in India with deep and thorough practical knowledgeof the industry, extensive knowledge of evaluation and analysis of deals, valuation of enterprisesand fund management & expertise in credit (project finance, working capital).

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Why M-Tech :

ISO Certified Company

Continuous Upgradation & Innovation

Latest Technology

Trusted Name

Quality Products & Best Services

Cost Competitive Products

Export Department to Cater Global Requirements

Quick Ramp up Capacity for Volume Production

Team of Professional & Dedicated Engineers

Most Reliable Customers Around The World

Strong Team of R&D Development

In-house Tooling & Designing Capability.

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CHAPTER III

Research Design & Methodology

1.3 Research Methodology :

The term research is composed of two words, re& search. This means to search

again. Research is conducted to search for new facts of to modify the existing facts. The

obvious function of research is to add new knowledge to the existing store. Research is

the pursuit of truth with the help of study, observation, comparison and experiment. It is acareful and exhaustive investigation of a phenomenon with an objective of advancing

knowledge.

Thus, research plays two major roles viz;

1) It contributes to the general fund of existing knowledge.

2) It helps to solve many complex problems faced by the business and society.

According to Clifford Woody, research is the process which includes defining and

refining problems, formulating suggested solutions, collecting, organizing & evaluating

data, making deductions & reaching conclusions & at last carefully testing the

conclusions to determine whether they fit the formulating the hypothesis.

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1.3.1 Sources of Data:

The collection of data means purposive gathering of information relevant to the subject

matter of investigation from the units of population under investigation.

Required data for the proposed study was collected by following sources of data

collection.

1) Primary Sources

2) Secondary Sources.

1) Primary Sources:

The primary data are those which are collected afresh at for the first time and thus,

it is original in character. For the concerned study data was collected through

enquiry, personal interview and discussion with officers.

2) Secondary Sources:

The data collected from the published sources of organization is called secondary

data. Secondary sources that were referred for the project work are as under.

i) Accounting and Financial Records.

ii) Annual Reports of company.

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iii) Various books of Management & Financial Accounting.

iv) Internet and Published Data viz Journals, Magazines of company.

These records were readymade but made available with prior permission of management.

1.5 Limitations:

The research was conducted in a limited area.

The study done with limited information provided by Finance Department.

The company executives were able to valuable time only for a few days in a week.

Hence the required information could not be obtained.

The respondent may be biased.

The project report is based on the analysis of three years which may not be

sufficient to in some cases.

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CHAPTER IV

Introduction Of Topic

Nature of financial Statements -

The Financial Statements are those which are prepared periodically, normally at the

end of financial year. All the information recorded in the books of accounts of a business

is summarized in these financial statements.

There are two important statements.1. Balance sheet or A position Statement and,

2. Profit and Loss Account or An Income Statement.

The Balance Sheet is prepared to show the true and fair position of the business on a

particular date. It contains a list of assets and liabilities of a business and the position of

the owner of the business. Profit and Loss Account, on the other hand, shows the net

result of the business, i.e. net income or loss during a financial year of period. Profit or net

income means the increase in owners equity or capital; and loss means decrease in the

capital.

Meaning of Financial Analysis:

To analyze is to examine. Therefore, analysis of financial statements means the

systematic classification, comparison and examination of the facts and figures as

disclosed in these statements in order to have the full diagnosis of the profitability and

financial position of the enterprise.

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Profit and Loss Statement indicates the profitability and Balance Sheet discloses the

financial position. When the absolute figures in these statements are methodically

classified and compared with similar figures of the previous years or with the figures of other firms for proper understanding of the profitability and position of the business, it is

known as analysis. Thus, the analysis of the financial statements consists of relationship

of facts with figures and to determine whether the working results and financial position

are satisfactory or unsatisfactory.

Need for Financial Analysis:

The information disclosed by the financial statement viz- Profit and Loss Account &

Balance Sheet may be misleading and misguiding if not arranged in a meaningful way

and if not studied, analyzed and interpreted properly. The very purpose of analyzing the

financial statements is to locate the areas for further investigation, in order to determine

the solvency of the business and to evaluate its profitability. For this purpose, the results

as disclosed by the financial statements are treated as mere indicators or signals based on

which further examination and investigation are carried out.

Methods of Financial Analysis:

A number of analytical methods and techniques are used in order to simplify or reduce

the complex information and to make the financial statements more meaningful. Various

methods of financial analysis are listed as under.

1) Comparative Statements.

2) Common-Size Statements.

3) Trend Percentages or Trend Analysis.

4) Fund Flow Analysis & Cash Flow Analysis.

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A) FUNDS FLOW ANALYSIS:

The success of business beside other things depends upon the manner in which its

Fund Flow is managed. Thus, Fund Flow is required as the life and blood of businessconcern. Fund Flow management in simple term is the flow of funds which a company

must have to finance its day to day operation.

Fund Flow management throws light on adequacy of the firm and also risk of

bankruptcy. If firm do not have adequate Cash i.e. it does not invest sufficient funds in

current assets, it may become liquid and consequently may not have ability to meet its

current as well as long term obligation and thus, invite risk of bankruptcy. It also focuses

on key strategy and consideration tradeoff between profitability and liquidity of the firm.

The technique of fund flow analysis is widely used by the financial analysts credit

grating institution and financial managers in performance of their jobs. It has become a

useful tool in their analytical kit. This is because the financial statement i.e. Income

Statement and the Balance Sheet have a limited role to perform. Income statement

measures fallow restricted to transaction that pertain to rendering of goods or services to

customers. The balance sheet is merely a static statement. It is statement of assets and

liabilities of the business as on a particular date. It does not sharply focus those major

financial transactions which have been behind the balance the sheet changes. One has to

draw inferences from the balance sheet of two periods. For example, if the fixed assets

worth Rs. 2, 00,000/- are purchased during the current year by raising share capital of Rs.

2, 00,000/- the balance sheet will similarly show a higher capital figure and higher fix

assets figure. In case, one compares the current years balance sheet with the previous

years balance sheet, then only one can draw an inference that fixed assets wereaccounting year might not find any place in the balance sheet. For example loan of Rs. 2,

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00,000/- was raised and paid in the accounting year. The balance sheet will not depict

this transaction. However, a financial analyst must know the purpose for which loan was

utilized and the source from which it was raised. This will help him in making a better

estimate about the companys financial position and policies.

Meaning of Funds:

The word funds has three meanings. In the narrow sense, it refers to cash

resources of the business. On the other hand, in boarder sense it includes all the resources

used in the business. It covers all the assets and all the liabilities. The entire assets side of

the balance sheet shows the application of funds, whereas the entire liability side shows

the sources of funds. But while preparing funds flow statement it is preferred to use the

term in the intermediate sense, i.e. working capital. The funds thus refers to the net

working capital i.e. the difference between current assets and current liabilities.

Benefits of Fund Flow Information:

The information in a fund flow statement statements help investors, creditors, and

other to assess the following aspects of the firms financial position.1. Such statements serve as a mechanism for predicting the ability to generate future

fund flows for the investors, creditors and others.

2. This enables managers or management to plan coordinate and control financial

operation in an effective manner.

3. It gives an indication of the relationship between profitability and cash generating

ability thus of the quality of the profit earned.

4. It furnishes information to the management regarding the entities ability to Pay

dividend and meet obligations.

5. Analyst and other users of financial information often, formally or Informally,

develop models to assess and compare the present value of the Future Fund Flow of

entities. Historical Fund Flow statements could be useful to check the accuracy of past

assessment.

6. It is free from manipulation and is not affected by subjective judgments or by

accounting policies.

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7. Such a statements dictates situations when a business has made huge profit but has

run out money or it has sustained loss but has enough fund availability.

8. The extent of fund generated from operational activity and external finance inorder to meet capital, tax, and dividend requirements can be obtained from such

statements.

9. It aids in the evaluation of risk, which includes both the expected variability of

future return and probability of insolvency or bankruptcy.

10. Such statements reveal the capability of an enterprise to pay its short obligation as

and when due to the lenders.

11. A Fund Flow statement in conjunction with a balance sheet provides information

on liquidity, viability, and adaptability. The balance sheet is often used to obtain

information on liquidity, but the information is rather incomplete for this purpose as

the balance sheet is prepared at a particular point in time.

12. It may assists users of financial statements in making judgments on the amounts,

timing and degree of certainty of future Fund Flows.

13. This statement provides information that is useful in checking the accuracy of past

assessment of future Fund Flows and in examining the relationship between

profitability and net Fund Flow and the impact of changing price.

14. This statement is of special importance in assessing future Fund Flows, quality of

income operating capability, financial flexibly and liquidity, and information on

financing and investing activities. Using Fund Flow s from operating activities from

the Fund Flow statements, different ratios such as liquidity, ratio, solvency ratio, and

profitability ratios can also be calculated to evaluate an enterprise liquidity, solvency,and profitability

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Fund flow statement and income statement

A fund flow statements differs from an income statement (i.e. Profit and loss

account) in several respects

1. A fund flow statement deals with the financial resources required for running the

business activities. It explain how were the funds obtained and how were they used,

whereas an income Statement discloses the results of the business activities i.e. how

much has been earned and how it has been spent.

2. A fund flow statement matches the funds raised and Funds applied during a

particular period. The sources and applications of funds may be of capital as well as of

revenue. An income statement matches the income of a period with the expenditures of

that period which are both of a revenue nature. For example where shares are issued for

cash, it becomes a source of funds while preparing a funds flow statements but it is not anitem of income for an income statement.

3. Sources of funds are many besides operations such as share capital, debenture sales of

fixed assets, etc. an income statement which discloses the results of operation cannot

accurately tell about the funds from operation alone because of non fund item (such as

depreciation, writing off of fictitious assets, etc.) being include therein.

Thus, both income statement and fund flow statement have different function to

perform. Modern management need both. One cannot be substituted for the other rather

they are complementary to each other.

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Sources & Application of Funds: The sources of fund can be both internal as well as external.

Internal sources

Funds from operation are the only internal source of funds. However, following

adjustments will be required in the figure of net profit for finding out real funds from

operation:

Add the following items as they do not result in outflow of funds:1. depreciation on fixed assets

2. Preliminary expenses or goodwill, etc., written off.

3. Contribution to debenture redemption fund, transfer to general reserve, etc., if they

have been deducted before arriving at the figure of net profit.

4. Provision for taxation and proposed dividend are usually taken as appropriation of profits only and not current liabilities for the purpose of funds flow statement. Tax

or dividends actually paid are taken as application of funds. Similarly, interim

dividend paid is shown as an application of funds. All these items will be added

back to net profit. If already deducted, to find funds from operations.

5. Loss on sale of fixed assets. Deducted the following times as they do not increase

funds :-

a.Profit on sales of fixed assets since the full sales proceeds are taken as a

separate source of funds and inclusion here will result in duplication.

b. Profit on revaluation of fixed assets.

c.Non operating income such as dividend received or accrued dividend,

refund of income tax, rent received or accrued rent. These item increase funds

but they are non operating income. They will be shown under separate

heads as sources of funds in the funds flow statement.

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In case the profit and loss account shows net Loss this should be takes as item

which decrease the funds.

External Sources:

Funds from long term loan:-

Long term loans such as debentures borrowing from financial institution will

increase the working capital and therefore, there will be flow of funds. However, if the

debentures have been issued in consideration of some fixed assets, there will be no flow

of funds.

Sale of fixed assets:-

Sale of land building, long term investments will result in generation of funds.

Funds from increase in share capital,:-

Issue of share for cash or for any current assets results in increase in working and hence

there will be a flow of funds.

Application of Funds:

The uses to which funds are put are called application of funds following are someof the purpose for which funds may be used

Purchase of fixed assets

Purchase of fixed assets such as a land, building, plant, machinery, long term

investment, etc., results in decrease of current assets without any decrease in current

liabilities. Hence there will be a flow of funds. But in case shares or debenture are issued

for acquisition of fixed assets. There will be no flow of fund.

Payment of dividends

Payment of dividends results in decrease of fixed liability and therefore, it affects

funds. Generally, recommendation of directors regarding declaration of dividend (i.e.

proposed dividends) is simple taken as an appropriation of profit and not as an item

affecting the working capital.

Payment of tax liability

Provision for taxation is generally taken as an appropriation of profit and not as an

application of funds. But if the tax has been paid it will as an application of funds.

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B) CASH FLOW ANALYSIS:

Before studying Cash Flow Statement it is necessary to understand the terms viz;

Cash, Cash flow.

Cash:

As per AS3 Cash Flow Statement deals with cash and cash equivalents. Cash includes

cash in hand and demand deposits with bank. Cash equivalents refer to short-term liquid

investments of an organization which are readily convertible to known amounts of cash

and are subject to an insignificant risk of change in value. This cash equivalents includeitem like Fixed Deposits for 30 days, treasury bills and market instruments.

Cash Flow:

The success of business beside other things depends upon the manner in which its

Cash flow is managed. Thus, Cash flow is required as the life and blood of business

concern. Cash flow management in simple term is the flow of funds which a company

must have to finance its day to day operation.

It includes the form near cash asset or even assets a little further from cash but yet in

process of moving towards the cash from in short period. It comprises of stock of finished

goods, semi-processed items, sundry debtors, cash and short-term investment, if any.

Cash flow management throws light on adequacy of the firm and also risk of bankruptcy.

If firm do not have adequate Cash i.e. it does not invest sufficient funds in current assets,it may become liquid and consequently may not have ability to meet its current obligation

and thus, invite risk of bankruptcy.

It also focuses on key strategy and consideration trade-off between profitability and

liquidity of the firm. Management of Cash flow gives financial position, profitability and

also efficient use of an individual current asset like cash, receivables and inventory.

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Cash Flow Statement:

In financial accounting, a cash flow statement or statement of cash flows is a

financial statement that shows how changes in balance sheet and income accounts affect

cash and cash equivalents, and breaks the analysis down to operating, investing, and

financing activities. As an analytical tool, the statement of cash flows is useful in

determining the short-term viability of a company, particularly its ability to pay bills.

International Accounting Standard 7 (IAS 7) is the International Accounting Standard that

deals with cash flow statements.

The success, growth and survival of every reporting entity depends on its ability to

generate or otherwise obtain cash. Cash flow is a concept that everyone understands and

with which they can identify. Reported profit is important to users of financial statements,

but so too is the cash flow generating potential of an enterprise. What enables an entity to

survive is the tangible resource of cash not profit, which is merely one indicator of

financial performance. A cash flow statement (CFS) is important to external users, and

should be of significant importance internally as well. Cash flow refers to the movement

of cash into or out of a business, or project, or financial product. It is usually measured

during a specified, finite period of time. Measurement of cash flow can be used.

To determine a project's rate of return or value. The time of cash flows into and out

of projects are used as inputs in financial models such as internal rate of return, and

net present value.

To determine problems with a business's liquidity. Being profitable does not

necessarily mean being liquid. A company can fail because of a shortage of cash,

even while profitable.

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As an alternate measure of a business's profits when it is believed that accrual

accounting concepts do not represent economic realities. For example, a

company may be notionally profitable but generating little operational cash

(as may be the case for a company that barters its products rather thanselling for cash). In such a case, the company may be deriving additional

operating cash by issuing shares, or raising additional debt finance.

Cash flow can be used to evaluate the 'quality' of Income generated by accrual

accounting. When Net Income is composed of large non-cash items it is

considered low quality.

To evaluate the risks within a financial product. E.g. matching cash requirements,

evaluating default risk, re-investment requirements, etc.

Cash flow is one of the most important aspects of running any business -

large or small. It is one of the single most important reasons why many

businesses fail - regardless of how good the business is. Managing cash flow

therefore is vitally important in the smooth running, survival and success of

a business. This activity will look at what cash flow is, and use some

examples to show how cash flow can make the difference between success

and failure. Failure in this case means insolvency. If you are insolvent then

you are unable to pay your debts. We often use the term 'bankrupt' to

describe this but strictly, only an individual can be declared bankrupt.

Companies are declared as insolvent. The principle however is the same.

Some firms deal with so-called 'personal insolvency' which effectively means

bankruptcy so the use of the terms can sometimes be confusing!

Business success might not be determined by how many customers you have,

the quality of your product, the price or many other things - it might be

down to a simple case of managing your cash flows!

Need and Importance:

The Balance Sheet and Profit and Loss Account are the two very important final

products of the entire financial accounting process. The balance sheet shows the financial

33


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state of affairs of an organization as on a particular date while the profit and loss account

shows the profit earned or loss incurred by an organization from its transactions over a

period. No doubt, these two statements serve various important purposes but they do not

tell the complete story which a financial analyst need to know.The Balance Sheet shows the cash balance as on a particular date. It may show

opening and closing cash balance. But does not show the details of cash received during

the year and the cash paid during the year. For analysis of financial position of an

organization, sometimes this information is essential. This limitation of balance sheet is

overcome by cash flow statement.

Similarly, the Profit and Loss Account which is another important financial statement

shows the book profit earned by a concern. Such profit is calculated after debiting non-

cash expenditure like depreciation, preliminary expenses written off etc. this book profit

is different from cash profit earned by the concern. The financial analyst who is interested

in knowing the cash profit has to adjust such book profit for noncash expenses to arrive at

cash profit.

Classification of Cash Flow:

Activity Cash Flow ExamplesOperating Activity Cash Inflow

Cash Outflow

Receipts from goods, services, debtors

Payments towards goods, services, debtorsInvesting Activity Cash Inflow

Cash Outflow

Receipts from sale of fixed assets/investments

Paid for purchase of fixed assets/investmentsFinancing Activity Cash Inflow

Cash Outflow

Receipts from fresh shares/debentures/loans

Repayment of shares/debentures/loans

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Difference between Funds flow & Cash Flow:

Fund Flow Statement Cash Flow StatementIt indicates change in working capital

between the two periods.

It indicates change in cash position between

the two periods.Schedule of changes in working capital is

prepared.

Schedule of changes in working capital is

not necessary.Opening and closing balance of cash are

not taken directly.

Cash Flow statement starts with opening

cash balance & ends with closing balance.Funds from operations are ascertained

while preparing funds flow statement.

Cash from Operations is ascertained while

preparing cash flow statement.It is the managerial tool of financial

analysis to help long term decisions.

It is the managerial tool of financial

analysis to help short term decisions.Inflow of funds does not mean inflow of

cash.

Inflow of cash however results inflow of

funds.Sound funds position does not mean sound

cash position.

Sound cash position however is always

followed by sound position.

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CHAPTER V

Data Presentation, Analysis, Interpretation

CASH FLOW STATEMENT FOR THE YEAR ENDED ON 31 ST MARCH 2009

SR.NO.

PARTICULARS

YEAR ENDED

31.03.2009(RS.)

YEAR ENDED

31.03.2008(RS)

I. CASH FLOW FROM OPERATING ACTIVITIES :Profit Before TaxAdjustments for:DepreciationMAT EntitlementDeferred Revenue Expenses Written Off

Interest Expenses

27,32,044

85,73,8052,91,1913,75,776

2,59,97,807

1,14,78,507

2,11,23,1840

3,70,603

1,14,39,6343,52,38,579 3,29,33,421

Operating Profit before working capital changesAdjustments for:Decrease/(Increase) in trade & other receivablesDecrease/(Increase) in inventories(Decrease)/Increase in trade payablesIncrease/(Decrease) in Provisions

3,79,70,623

(86,96,330)(25,36,427)2,46,61,783(99,36,514)

4,44,11,928

(16,36,335)(25,90,284)1,85,98,61758,38,010

34,92,512 2,02,10,008Cash Generated from OperationsTaxes paid (FBT)

4,14,63,1355,96,129

6,46,21,93627,08,973

Net Cash Generated from Operating Activities 4,08,67,006 6,19,12,963II. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of fixed assets including capital work in progressIncrease in Misc ExpenditureLoan Received/ (given)Unsecured Loans Received/(Paid)Repayments/(Receipt) of Capital SubsidySales proceeds of Investments

(11,19,82,717)(3,40,625)

9,74,86,4921,22,34,648(10,00,000)

1,88,900

(13,55,10,571)(11,82,943)4,22,65,34231,38,361

00

Net Cash used for Investment Activities (34,13,302) (9,12,89,811)III. CASH FLOW FROM FINANCING ACTIVITIES:

Receipts from Share Issue(Repayment)/Proceeds from LoanPayment of Dividend & Dividend Distribution TaxInterest paid

0(1,06,86,876)0

(2,59,97,807)

3,66,63,8000(71,52,380)

(1,14,39,634)Net Cash Generated from Financing Activities (3,66,84,683) 1,80,71,786

Net Increase/Decrease in Cash & Cash EquivalentsOpening Balances of Cash & Cash EquivalentsClosing Balances of Cash & Cash Equivalents

7,69,02160,12,05167,81,072

(1,13,05,062)1,73,17,11360,12,051

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SR.NO. PARTICULARS

YEAR ENDED

31.03.2010

(RS)

YEAR ENDED

31.03.2009

(RS.)I. CASH FLOW FROM OPERATING ACTIVITIES :

Profit Before TaxAdjustments for:DepreciationMAT EntitlementDeferred Revenue Expenses Written Off Profit on Sale of AssetsInterest ReceivedDividend ReceivedInterest Expenses

21,63,222

2,10,16,7033,38,1306,87,550

(35,27,415)(9,21,920)

03,02,64,266

27,32,044

85,73,8052,91,1913,75,776

0(5,14,598)(22,328)

2,59,97,807

4,78,57,313 3,47,01,653Operating Profit before working capital changesAdjustments for:Decrease/(Increase) in trade & other receivablesDecrease/(Increase) in inventories(Decrease)/Increase in trade payablesIncrease/(Decrease) in Provisions

5,00,20,535

(1,13,27,504)(86,42,488)39,29,06264,70,829

3,74,33,697

(86,96,330)(25,36,427)2,46,61,783(99,36,514)

(95,70,101) 34,92,512Cash Generated from OperationsTaxes paid(FBT)

4,04,50,4343,38,130

4,09,26,2095,96,129

Net Cash Generated from Operating Activities 4,01,12,304 4,03,30,080

II. CASH FLOW FROM INVESTING ACTIVITIES:Purchase of fixed assets including capital work in progressSale proceeds of Fixed AssetsIncrease in Misc ExpenditureLoan Received/ (given)Interest ReceivedDividend ReceivedUnsecured Loans Received/(Paid)Repayments/(Receipt) of Capital SubsidySales proceeds of Investments

(1,79,69,793)1,05,22,934(15,58,872)

(1,79,13,374)9,21,920

02,55,86,271

00

(11,19,82,717)0

(3,40,625)9,74,86,492

5,14,59822,328

1,22,34,648(10,00,000)

1,88,900Net Cash used for Investment Activities (4,10,914) (28,76,376)

III. CASH FLOW FROM FINANCING ACTIVITIES:Receipts from Share Issue(Repayment)/Proceeds from LoanInterest paid

(8,86,000)(70,39,677)

(3,02,64,266)

0(1,06,86,876)(2,59,97,807)

Net Cash Generated from Financing Activities (3,81,89,943) (3,66,84,683) Net Increase/Decrease in Cash & Cash EquivalentsOpening Balances of Cash & Cash EquivalentsClosing Balances of Cash & Cash Equivalents

15,11,44767,81,07282,92,519

7,69,02160,12,05167,81,072


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SR.NO.

PARTICULARS

YEAR ENDED

31.03.2011(RS.)

YEAR ENDED

31.03.2010(RS)

I. CASH FLOW FROM OPERATING ACTIVITIES :Profit Before TaxAdjustments for:DepreciationMAT EntitlementDeferred Revenue Expenses Written Off Profit on Sale of AssetsInterest ReceivedInterest Expenses

94,65,502

2,11,81,53017,56,3168,54,966

0(12,38,385)3,34,02,744

21,63,222

2,10,16,7033,38,1306,87,550

(35,27,415)(9,21,920)

3,02,64,2665,59,57,171 4,78,57,313

Operating Profit before working capital changes

Adjustments for:Decrease/(Increase) in trade & other receivablesDecrease/(Increase) in inventories(Decrease)/Increase in trade payablesIncrease/(Decrease) in Provisions

6,54,22,673

(1,52,77,710)(99,52,881)(65,20,846)

68,792

5,00,20,535

(1,13,27,504)(86,42,488)39,29,06264,70,829

(3,16,82,645) (95,70,101)Cash Generated from OperationsTaxes paid(FBT)

3,37,40,02817,56,316

4,04,50,4343,38,130

Net Cash Generated from Operating Activities 3,19,83,712 4,01,12,304II. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of fixed assets including capital work in

progressSale proceeds of Fixed AssetsIncrease in Misc ExpenditureLoan Received/ (given)Interest ReceivedUnsecured Loans Received/(Paid)Repayments/(Receipt) of Capital SubsidySales proceeds of Investments

(2,44,22,302)0(9,07,574)

3,62,71,50812,38,38579,80,00010,00,000(5,00,000)

(1,79,69,793)1,05,22,934(15,58,872)

(1,79,13,374)9,21,920

2,55,86,27100

Net Cash used for Investment Activities 2,06,60,017 (4,10,914)III. CASH FLOW FROM FINANCING ACTIVITIES:

Receipts from Share Issue(Repayment)/Proceeds from LoanInterest paid

0(1,93,84,388)(3,34,02,744)

(8,86,000)(70,39,677)

(3,02,64,266)Net Cash Generated from Financing Activities (5,27,87,132) (3,81,89,943)

Net Increase/Decrease in Cash & Cash EquivalentsOpening Balances of Cash & Cash EquivalentsClosing Balances of Cash & Cash Equivalents

(1,43,403)82,92,51981,49,116

15,11,44767,81,07282,92,519

Analysis & Interpretation:

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For the Year 2008-09:

The Statement of Changes in Working Capital prepared for year 2007-08 disclose

that, there is decreased in working capital by Rs.890544, where as Funds flow Statementreveals that, funds generated from operation during the year were largely used for

purchase of fixed assets.

During the year the company has taken loans from 11 parties covered in register

maintained under section 301 of the Companies Act, 1956. The maximun amount

involved during the year was Rs. 48,42,000/-. During this year company has not given

any loans secured or unsecured to companies, firms or other parties listed in register.

Cash flow Statement prepared for year 2008-09 disclose that, cash inflow in course of

operating activities are Rs. 4,08,67,006/-, cash outflow from investing activities is Rs.

34,13,302/- & cash inflow from financing activities is Rs. 3,66,84,683/-. Finally the net

cash & cash equivalents from cash flow is Rs. 7,69,021/-.


The Statement of Changes in Working Capital prepared for the year 2009-10 discloses

that, there is increase in working capital by Rs. 1,12,80,658/-. The funds flow statement

reveals that, funds generated from operations are largely used for payment of dividend &

dividend tax & direct tax.

Cash flow Statement prepared for year 2008-09 disclose that, cash inflow in course

of operating activities are Rs. 4,01,12,304/-, cash outflow from investing activities is Rs.

4,10,914/- & cash inflow from financing activities is Rs. 3,81,89,943/-. Finally the net



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The Statement of Changes in Working Capital prepared for the year 2010-11 discloses

that, there is increase in working capital by Rs. 3,82,08,304/-. The funds flow statement

reveals that, funds generated from operations are largely used for payment of dividend &dividend tax & direct tax.

Cash flow Statement prepared for year 2010-11 disclose that, cash inflow in course

of operating activities are Rs. 3,19,83,712/-, cash outflow from investing activities is Rs.

2,06,60,017/- & cash inflow from financing activities is Rs. 5,27,87,132/-. Finally the net


CHAPTER VI

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Finding And Suggestion

Observation & Findings:

1) Company has not raised additional capital from last 3 years, which shows it strong

financial position.

2) It is observed that, company raises its funds mostly by means of loans each year,

which leads to increased burden of interest.

3) The percentage of interest received is substantially lower than payment of interest

and finance charges .4) It is observed that, more than 40% of total funds generated from operating

activities were utilized for purchase of fixed assets & the remaining funds were

used for payment of direct tax & interest & finance charges.

5) Cash flow arising from operating activities is decreased by Rs. 81,28,592/- in

2010-11 as compared to previous year.

6) Cash outflow from investing activities is also increased by Rs.2,02,49,103/- which

indicates company is not in sound financial position.

7) Cash flow arising from financing activities is increased by Rs. 1,45,97,189/-, but as

a result companys interest and finance charges are also rising.

Suggestions:

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1) Company should issue Preference Shares also which will help to maintain an

optimum & properly leveraged capital structure.

2) It is suggested that company should raise its funds through its internal sources

through retention of earnings & ploughing back of profits.

3) Company should adopt a stable & optimum dividend policy as compared to its

funds generated.

4) It is suggested that company should pay attention towards cash inflow in course of operating activities, because it is declining year by year.

5) Company should try to reduce its interest and finance charges.

CHAPTER VII

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Conclusion

It can be concluded that M-Tech Innovations ltd, is an upcoming organization.

It has succeeded in adopting world class manufacturing standards. Therefore, M-Tech

Innovations ltd. has a bright future. It is all set to make the best out of the opportunities

that are available to it on account of globalization.

Throughout this study researcher has found that company has core team of

operations as well as finance. Company has strong financial position, which is apparent

from its Funds Flow & Cash Flow Analysis. Company is powering life through smart

cards production.

The researcher was fortunate to get an opportunity to undergo the internship

training project at M-Tech Innovations ltd. The experience will help the researcher in

his future career.

CHAPTER VIII

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BIBLIOGRAPHY

Books:

S.N. MAHESHWARI (FINANCIAL MANAGEMENT).

ANNUAL REPORTS.

FINANCIAL MANAGEMENT BY PRASANNA CHANDRA.

FINANCIAL MANAGEMENT BY KHAN & JAIN.

Web Resources:

www.m-techindia.com

www.Iibef.org.com

ANNEXURE

44
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YEAR 2008-09

BALANCE SHEET AS ON 31 st MARCH 2009

Sr.No.

Particulars SCHNo.

As on31.03.2009

(Rs.)

As on31.03.2008

(Rs.)I. SOURCES OF FUNDS:

SHAREHOLDERS FUNDS:Share CapitalReserve & Surplus

LOAN FUNDS:Secured LoansUnsecured Loans

DEFERRED TAX LIABILITY (NET)

12

34

5

7,08,90,760.003,87,99,853.20

24,25,31,968.422,08,59,743.78

2,39,87,624.00

7,08,90,760.005,09,08,694.38

15,57,32,263.9586,25,096.00

1,04,51,766.60

TOTAL FUNDS 39,70,69,949.40 29,66,08,580.93II. APPLICATIONS OF FUNDS:

FIXED ASSETS:Gross Block Less: Depreciation

Net Block Capital Work-In-ProgressInvestment

CURRENT ASSETS,LOAN &ADVANCESInventoriesSundry DebtorsCash & Bank BalancesLoan & Advances

LESS: CURRENT LIABILITIES &PROVISIONSCurrent liabilitiesProvisions

NET CURRENT ASSETS

MISCELLANEOUS EXPENDITURE(To the extent not written off or adjusted )

6

78

9

10

11

41,60,42,512.107,98,69,396.10

33,61,73,116.003,85,54,613.00

0.00

3,16,59,657.003,94,60,738.8967,81,071.83

2,41,03,430.55

10,20,04,898.27

7,20,10,939.0387,62,030.00

2,12,31,929.24

11,10,291.16

23,17,50,735.107,12,95,591.10

16,04,55,144.0011,08,63,673.42

1,88,900.00

2,91,23,230.383,69,54,730.3260,12,051.32

1,79,13,110.25

9,00,03,122.27

4,73,49,156.641,86,98,544.00

2,39,55,421.63

11,45,441.88

TOTAL FUNDS EMPLOYED 39,70,69,949.40 29,66,08,580.93

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31 ST MARCH 2009

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SR.NO. PARTICULARS

SCHNO.

YEAR ENDED31.03.2009

(RS.)

YEARENDED31.03.2009

(RS)

I.

INCOMEGross Sales Less ReturnsDomesticExportSub TotalLess:Excise DutyService TaxSales TaxSub Total

Net SalesOther Income

12

13

24,48,88,893.413,55,74,910.14

28,04,63,803.55

1,65,34,659.0011,57,243.00

1,49,57,121.003,26,49,023.00

24,78,14,780.5590,24,248.12

22,57,20,938.725,15,48,758.56

27,72,69,697.28

1,75,07,415.802,67,044.00

1,52,90,077.003,31,64,536.80

24,41,05,160.4874,24,138.09

TOTAL 25,68,39,028.67 25,15,29,298.57

II.

EXPENDITURECost of Material consumed(Increase)/ decrease in InventoriesCost of EmploymentManufacturing ExpensesAdministrative & Selling ExpensesFinance CostDepreciationDirectors RemunerationAuditors RemunerationDeferred Revenue Expenses W/off.

1415161718196

10,68,26,938.182,51,731.00

5,00,76,346.822,09,05,553.483,67,47,489.542,67,44,534.711,79,58,878.0035,49,810.00

55,000.003,75,775.72

10,53,93,410.54(2,57,861.00)

4,66,61,006.591,40,88,801.243,69,53,808.201,26,03,992.372,11,23,184.0030,59,847.00

54,000.003,70,602.72

TOTAL 26,34,92,057.45 24,00,50,791.66SUB TOTALEXCESS PROVISION IN RESPECTOF EARLIER YEAR WRITTENBACK

(66,53,028.78)

93,85,073.00

1,14,78,506.91

0.00

III. PROFIT BEFORE TAX 27,32,044.22 1,14,78,506.91

IV.

PROVISION FOR TAXATIONCurrent TaxDeferred TaxMAT Entitlement Credit

FRINGE BENEFIT TAX

2,91,191.001,35,35,857.40(2,91,191.00)

3,05,028.00

20,46,233.0015,17,723.60

0.00

6,62,740.00

V.PROFIT AFTER TAXAdd: Balance in Profit & Loss AccountB/F

1,11,08,841.183,10,962.38

72,51,810.312,11,532.07

PROFIT AVAILABLE FOR APPROPRIATION

(1,07,97,878.80) 74,63,342.38

Proposed/Interim DividendCorporate Dividend TaxTransfer to General ReserveBalance Carried to Balance Sheet

0.000.000.00

(1,07,97,878.80)

61,13,406.0010,38,974.00

0.003,10,962.38

VINOTES FORMING PART OF

ACCOUNTS20

YEAR 2009-10

46


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Sr.

No.

Particulars SC

HNo.

As on

31.03.2010(Rs.)

As on

31.03.2009(Rs.)I. SOURCES OF FUNDS:

SHAREHOLDERS FUNDS:Share CapitalReserve & SurplusLOAN FUNDS:Secured LoansUnsecured LoansDEFERRED TAX LIABILITY (NET)

12

34

7,00,04,760.004,95,91,012.05

22,46,18,594.603,78,86,690.001,53,59,687.00

7,00,04,760.003,87,99,853.20

24,25,31,968.421,93,40,096.002,39,87,624.00




CURRENT ASSETS,LOAN &

ADVANCESInventoriesSundry DebtorsCash & Bank BalancesLoan & Advances


NET CURRENT ASSETS


5

67

8

9

10

42,35,05,273.829,62,03,009.71

32,73,02,264.113,73,83,036.45

0.00

4,03,02,145.004,84,38,161.2682,92,519.16

2,64,53,511.74

12,34,86,337.16

7,74,59,648.511,52,32,859.00

3,07,93,829.65

19,81,613.44

41,60,42,512.107,98,69,396.10

33,61,73,116.003,85,54,613.00

0.00

3,16,59,657.003,94,60,738.8967,81,071.83

2,41,03,430.55

10,20,04,898.27

7,35,30,586.8187,62,030.00

1,97,12,281.46

11,10,291.16



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SR.NO.

PARTICULARSSCHNO.


(RS.)


(RS)

I.

INCOME

Net Sales Less ReturnsDomesticExport


10

11

24,09,40,298.593,37,86,544.62

27,47,26,843.2190,17,604.52

21,22,39,870.413,55,74,910.14

24,78,14,780.5532,52,910.12

TOTAL 28,37,44,447.73 25,10,67,690.67

II.

EXPENDITURE

Cost of Material consumed(Increase)/ decrease in Inventories

Cost of EmploymentManufacturing ExpensesAdministrative & Selling ExpensesFinance CostDepreciation

1213

141516175

12,86,32,311.78(84,52,975.00)

5,68,47,258.412,25,80,876.212,88,94,763.393,20,62,288.482,10,16,702.61

10,10,55,600.182,51,731.00

5,36,66,386.822,09,05,553.483,71,38,035.262,67,44,534.711,79,58,878.00

TOTAL 28,15,81,225.88 25,77,20,719.45SUBTOTAL

EXCESS PROVISION IN RESPECTOF EARLIER YEAR WRITTENBACK

2163221.85

0.00

(66,53,028.78)

93,85,073.00

III. PROFIT BEFORE TAX 21,63,221.85 27,32,044.22

IV.

PROVISION FOR TAXATION

Current TaxDeferred TaxMAT Entitlement CreditFRINGE BENEFIT TAX

3,38,130.00(86,27,937.00)(3,38,130.00)

0.00

2,91,191.001,35,35,857.40(2,91,191.00)3,05,028.00

V.

PROFIT AFTER TAX

Add: Balance in Profit & Loss AccountB/F

1,07,91,158.85

(1,07,97,878.80)

(1,11,08,841.18)

3,10,962.38


(6,719.95) (1,07,97,878.80)

Balance Carried to Balance SheetEarning per share-Basic

(6,719.95) (1,07,97,878.80)

VINOTES FORMING PART OFACCOUNTS

18

YEAR 2010-2011

48


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Sr.No.

Particulars SCHNo.

As on31.03.2011

(Rs.)

As on31.03.2010

(Rs.)I. SOURCES OF FUNDS:

SHAREHOLDERS FUNDS:Share CapitalReserve & Surplus

LOAN FUNDS:Secured LoansUnsecured Loans

DEFERRED TAX LIABILITY (NET)

12

34

7,00,04,760.005,78,30,298.16

26,08,90,102.972,64,82,302.00

1,75,85,903.00

7,00,04,760.004,95,91,012.05

22,46,18,594.603,78,86,690.00

1,53,59,687.00




CURRENT ASSETS,LOAN &ADVANCESInventoriesSundry DebtorsCash & Bank BalancesLoan & Advances


NET CURRENT ASSETS


5

67

8

9

10

44,02,60,746.8211,73,84,539.7132,28,76,207.114,50,49,865.45

5,00,000.00

5,02,55,026.005,88,92,080.4781,49,116.32

3,12,77,302.04

7,09,38,802.181,53,01,651.00

6,23,33,071.65

20,34,221.92

423505273.8296203009.71

327302264.1137383036.45

0.00

4,03,02,145.004,84,38,161.2682,92,519.16

2,64,53,511.74

7,74,59,648.511,52,32,859.00

3,07,93,829.65

19,81,613.44



49


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SR.NO.

PARTICULARS SCHNO.


(RS.)


(RS)

I.

INCOME

Gross Sales Less ReturnsLess: Taxes

Net Sales Less ReturnsDomesticExport


11

12

45,49,81,543.995,77,26,385.00

37,16,29,703.712,56,25,455.28

39,72,55,158.9940,47,695.17

30,87,33,479.583,40,06,636.37

24,09,40,298.593,37,86,544.62

27,47,26,843.2180,41,950.81

TOTAL 40,13,02,854.16 28,27,68,794.02

II.

EXPENDITURE

Cost of Material consumed

Increase/ decrease in InventoriesCost of EmploymentManufacturing ExpensesAdministrative & Selling ExpensesFinance CostDepreciation

13

14151617185

19,99,39,046.10

82,49,240.006,18,17,740.503,04,03,588.573,40,34,825.933,62,11,380.952,11,81,530.00

12,86,32,311.78

(84,52,975.00)5,68,47,258.412,25,80,876.212,79,19,109.683,20,62,288.482,10,16,702.61

TOTAL 39,18,37,352.05 28,06,05,572.17

III. PROFIT BEFORE TAX 94,65,502.11 21,63,221.85

IV.

PROVISION FOR TAXATION

Current TaxDeferred TaxMAT Entitlement Credit

17,56,316.0022,26,216.00

(17,56,316.00)

3,38,130.00(86,27,937.00)(3,38,130.00)

V.

PROFIT AFTER TAX

Prior Year adjustmentsAdd: Balance in Profit & LossAccount B/F

72,39,286.11

(6,719.95)

1,07,91,158.85

(1,07,97,878.80)


72,32,566.16 (6,719.95)

Balance Carried to Balance Sheet

Earning per share-Basic

72,32,566.16

Rs.0.78

(6,719.95)

Rs.1.49VI NOTES FORMING PART OF

ACCOUNTS19

TURN OVER :

50


51/51

2515.29 2568.393087.33

4549.81

0

1000

2000

3000

4000

5000

R s . (

i n L a

k h s

)

2007-08 2008-09 2009-10 2010-11

Yea r

Turnover

Final Cash Flow Report

Documents

Transcript of Final Cash Flow Report