Ramesh Cashflow analysis

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This is project report on cash flow analysis

Transcript of Ramesh Cashflow analysis



IntroductionCash flow analysis is a valuable aid to the financial executive and creditors for evaluating the uses of funds by the firm and in determining how these uses were financed. A cash flow statement indicates where funds came from and where it was used during the period under review. They are important tools for communication and Very helpful for financial executives in planning the intermediate and financing of the Firm. Cash flow statement is a statement of Cash flow. Cash flow signifies the movement of cash in and out of a business concern. In flow of cash is a known as source out flow of cash is called use of cash. The term cash here stands for and bank balance. Cash flow Statement shows the changes in position between two balance sheet dates. It provides the details in respect of cash generate and applied during the accounting period. The Transactions which increase the cash position of the business are known as in flows of cash (Ex: Sales of current and fixed assets, issue of shares and debentures etc.) The transactions which decrease the cash position are known as out flows (Ex: Purchase of current and fixed assets, redemption of debentures, and performance says and other long term depicts) Cash flow statements constants on transactions that have a direct impact on cash. This statement depicts factors responsible for such in flow and out flow of cash. In brief, cash flow statement summarizes process of changes in cash position between dates of balance sheets. A cash flow statement is like receipt and payments account in summary form. The net flow cash is equal to net profit but this cannot be true in all cases because of the presence of non-cash from operations certain adjustments are to be made to the net profit as disclosed by profit and loss account. There are three methods of determining cash from operations namely. 1. Cash sales method. 2. Net Profit/Net loss method. 3. Cash from operations: Cash sales Cash purchases Cash operating expenses.


NEED AND IMPORTANCE. 1. To know about The future plans of the company depend upon the cashflow analysis of the company. 2. This study helps in finding the comparison between the past and performance Of the company. 3. This study also helps up the goals and objectives for future in the content of cash flow control. 4. This analysis to these statements will provide the decision maker to understand strengths and weaknesses of the firm.

5 This analysis is important for the management and also for outside dealing with organization is moving



The objectives of the study are as under: To Evaluate and analyze the financial performance of the Co-operative Electric Supply Society Limited (CESS LTD.) To Draw conclusions and offer suggestions for improvement of the financial performance of the above said organization in the light of finding of the study. To study the resources pattern and their utilization with a view to analysis the cash flow of CESS Limited. To evaluate the sources of funds and their application by using cash flow techniques of financial statements. To analyze profitability and capital structure of company.


METHODOLOGYThe data collection of the study consists

1. Primary source of dataThis is first hand in nature and can be collected through Officers of accounting section. Executives and staff of finance and accounts department. Personal observation.

2. Secondary dataMethods of collection of the secondary data which is already exists are Financial management text books. Journal and magazines and newspapers. Text books. Worldwide webs.

3. Tools/Techniques used for analysis Cash flow statement



The study of cash flow analysis of CESS Limited is a very wide topic. In the Study many factors that need detailed analysis could not be discussed in detail because Of the limitations regarding length of the project and available time. The scope of the Study has, therefore, been limited to the presentation of, cash flow statements and their Analysis.


LIMITATIONS OF THE STUDYThe limitations of the present study are: 1. In the study many factors that need detailed analysis could not discussed in detail Because of the limitations regarding length of the project and available time. 2. The study is subject to limitations of the nature of cash flow analysis tools and Techniques. 3. It is not always possible to make future estimation on the basis of the past as it is always does not come true.




CO-OPERATIVE SUPPLY SOCIETY LIMITED SIRCILLA HISTORY OF CESSIndia is predominantly an agricultural country. Nearly 70% of the Indian population lives in villages and about 70% of them directly or indirectly depend on agriculture for their livelihood and nearly 50% of the total income is generated from agriculture. Electric power is one form of energy, which is an essential ingredient of economic development and it is requited for commercial and non-commercial uses. Electricity plays a vital role in the development of agricultural and oriented industries require electricity at a very economical rate. The necessity of electricity is increasing day by day in all fields. Power is essential for the modern necessities in the town or villages or rural areas. Per capita consumption is an indicator for development of the country. Electricity boards have been formed states wide to meet the demand of electricity.

NATIONAL RURAL ELECTRIC CO-OPERATIVE ASSOCIATIONThe NRECA (National rural electric co-operative association) Experts investigated the feasibility in three phases dealing with identification of areas suitable for the location of pilot rural organizational and economic aspects. Five pilot rural electric co-operative societies have been started and financed by the National Rural Electric Co-operative Association in 1969. The experiAmerican co-operatives were largely drawn upon in organizing these pilot rural electric co-operatives. The five pilot co-operative projects are as follows: 1. SIRCILLA (ANDHRA PRADESH) 2. 3. 4. 5. HUKERI (MYSORE) KODINAR (GUJARAT) MULA-PRAVARA (MAHARASTRA) LUCKNOW (UTTAR PRADESH) 9

OBJECTIVES OF CO-OPERATIVES:The main objectives of co-operative projects: 1 Furnish electricity to the rural people at the lowest possible cost in order to increase agricultural production to stimulate agro-industry and improve the standard of living of the rural people. 2 3 4 Increase the responsible action of the people by giving them some degree of control over the electric supply. Establish local organizations for the financing, procurement, installation, repair and proper use of electrical appliances and equipment such as pump sets. Assure a rapid and standardized pattern of construction and operation of rural electric system in all states.

THE CO-OPERATIVE ELECTRIC SUPPLY SOCIETY LTD., SIRCILLADuring the middle of 1960s Govt. of India felt the need for establishment of a separate organization for quicker pace of rural electrification, with a view to increase food production in the country and also for socio economic development in rural India. The experts of National Rural Electric Co-operatives Association (NRECA) of U.S.A. and United States Agency for International Development (US AID) have studied the feasibility and recommended for establishment of pilot Rural Electric Co-operatives in India. With the result pilot RE Co-operatives viz. Sircilla (in Andhra Pradesh), Hukeri (in Karnataka), Kodinor (in Gujarat), Lucknow (in Uttar Pradesh) and Mulapravara (in Maharastra) were taken birth in the country in the year 1970. The Puri committee appointed by the REC, New Delhi has studied the performance of the five pilot Co-operatives during middle of 1970s and recommended for the growth of RE Co-operatives.Similarly

Mathur committee has also endorsed the

recommendations of Puri committee, during 1980s. With the result about 100 RE Co-operatives become functional in India, of which 9 Co-operatives in Andhra Pradesh. At present about 30Co-operatives

are working in the country including 4 in Andhra Pradesh.


As a result the Rural Electric Co-operatives are established. The CESS Limited, Sircilla is one of the 1st five Rural Electric Co-operative in India It is registered on 30-10-1969 with Regd.No.748/TD as per the APCS Act 1964 and started functioning from 1st November 1970. The area of operation of the society comprises of nine revenue mandals, conterminous with entire revenue division Sircilla and Nallagonda and Thippaipally villages of Kodimyal mandal, consisting 173 villages, 150 hamlets, with geographical area of 1870 sq. KmACHIEVEMENTS:

The Society has successfully grounded all the five projects sanctioned by the Rural Electrification Cooperation (REC), New Delhi and achieved the targets envisaged in the above projects reports, well in advance.


PHYSICAL ACHIEVEMENTS: Sl No. 1 2 3 4 5 6 Particulars Villages Electrified (No.) Hamlets Electrified (No.) 11 K.V. lines (Km) Transformers LT Lines (Km) Service Connections: a) Domestic (No) b) Commercial c) Industrial d) Cottage industries e)Agriculture h)Others TOTAL: 7 Sub-Station (NPDCL assets) a) 132/33 kv b) 33/11 kv 1798 474 105 ---2299 44 4720 ---1 1000 50 10 40 600 ---1700 --------2846 1105 24 215 621 45 3866 ----2 114226 5230 1743 5173 52800 1637 180809 4 29 (No.) Take over Position on 31-10-70 46 7 194 109 461 Target for 2006-07 0 0 60 90 75 Achivement for 2006-07 0 0 21 133 21 Position As on 31-03-2007 173 150 2047 2965 6401

Some of the statistics shows below indicates the pace and intensive rural electrification made by the society. This could be achieved with the active Co-operation of society members.