Submitted By: Project Submitted in Partial Fulfillment For The Award of Degree of

A
SYNOPSIS REPORT
ON
FUND FLOW STATEMENT
AT
ZUARI CEMENT LTD
Submitted
By
D. CHANDRAKALA
H.T.NO: 130320672042
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Department of Business Administration

AURORA’S PG COLLEGE
PEERZADIGUDA, UPPAL
(Affiliated to Osmania University)
2020-2022
Aurora’s PG College ,Peerzadiguda, Uppal
Department of Management
SYNOPSIS
Title of the Project : FUND FLOW STATEMENT
Student Name : D. CHANDRAKALA
Hall Ticket Number : 130320672042
Signature of the Student :
Signature of the Guide :

TABLE OF CONTENTS
S. No. CHAPTER Page No
1 INTRODUCTION
2 NEED FOR THE STUDY
3 SCOPE OF THE STUDY
4 OBJECTIVES OF THE STUDY
5 RESEARCH METHODOLOGY
6 LIMITATIONS OF THE STUDY
INTRODUCTION
The basic financial statements i.e., the Balance Sheet and Profit & Loss A/c or
Income Statement of business reveals the net effect of various transactions on operational and
financial position of the company. The balance sheet gives a summary of the assets &
liabilities of an undertaking at a particular point of time.
There are many transactions that take place in an undertaking and which do not operate Profit
& Loss A/c. Thus another statement has to be prepared to show the change in Assets & 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 shown the movement of funds and is
a report of financial operations of business undertaking. In simple words it is a statement of
source and application of funds.
MEANING & CONCEPT OF FUNDS
The term “Fund” has been defined and interpreted differing by different experts. Broadly the
term fund refers to all the financial resource of the company on the other extreme fund has been
understood as cash only. The most acceptance meaning of the “fund” is “working capital”.
Working Capital is excess of current assents over current liability. The term fund has a variety
of meaning.
A) CASH FUND OR NARROW SENSE

In a narrow sense, funds mean only cash. ‘Cash flow statement portrays net effect of
various business transactions cash into account receipts & disbursement of cash.
The concept of preparing funds from statement is not accepted, as there are many such
transactions that do not affect cash but represent the flow of fund.
For Ex:
Purchase of furniture on credit does not affect cash but there is flow of fund.
B) CAPITAL FUND (or) BROADER SENSE
Here funds means all financial resources used in business, whether in the form of men,
money, material, machine & others.
C). NET WORKING CAPITAL (or) POPULAR SENSE
 Networking capital means differences between current assets & liabilities. A fund generally
refers to cash or cash equipment or to working capital.
 In any business we cannot under estimate the flow of funds from two operations. The
business runs with funds but the organization knows how to flow of funds.
 The Funds Flow Statement is concerned with sources and applications of organization.
 Statement of changes in working capital shows the increase or decrease in the working
capital.
 “Funds from Operations” statement shows how much funds from operations.
NEED AND IMPORTENCE OF STUDY

Many business owners disregard the importance of Funds flow statements because they
unwittingly believe that their current financial standing can be construed from other financial
reports and projections. Unfortunately, however, a Funds flow statement is necessary to
adequately assess the incoming and outgoing flow of Funds and other resources in a business.
Not only will a business owner with a Funds flow system be more aware of his or her
financial standing, but it will also help investors to make educated decisions on future
investments. A business with regular and reliable Funds flow statements shows more
economic solvency, and is more attractive to investors.
A Funds flow statement documents the incoming and outgoing Funds in plain terms. Future
sales and sales made for credit (unless they have been paid off) are not included in the Funds
flow statement, and most of the data will come from core operations. Payables and
receivables should be expressly defined, as should depreciation of product value and
inventory that has not yet been moved.
This will allow a business owner to compare past periods with the current financial standing
and determine whether your receivables have increased or decreased.
This can also help to track your investments next to your receivables and payables. Are your
investments increasing or decreasing in value? And has your inventory moved at a steady
pace? New or expanding businesses can expect to see a decrease in Funds flow, but this
doesn’t mean that the business is going under. More stables businesses should see a steadily
increase in Funds flow over a period of several months or years.
There are typically five different sections in a Funds flow statement, though large businesses
might have more complex Funds flow systems as required.
OBJECTIVES OF THE STUDY

 To know the operational efficiency of ZUARI CEMENT LTD
 To show the manner in which the operations have been financed , and how the financial
resources have been used.
 To analyze the movement of funds between the dates of two balance sheets in period of study.
 To identify the changes in the working capital in between above mentioned year.
 To improve the financial performance of the company.
 It focuses attention on resources available for capital investment.
 They provide usefull guide to creditors & lenders
SCOPE OF THE STUDY:
Financial analysis consists of ratio analysis and funds flow analysis. To know funds flow
from one to one, as the time available is very limited and the subjects are very vast, the study is
continued to overall financial condition of a firm. This study is to know working capital increase or
decrease funds from operation, sources and application of funds of M/S ZUARI CEMENT LTD.
Financial analysis consists of funds flow analysis. To know funds flow from one to one, as
the time available is very limited and study is continued to overall financial condition of a firm. The
study to know working capital increase or decrease, funds from operation, source and application of
funds
RESEARCH METHODOLOGY
SOURCES OF DATA
SECONDARY DATA
The secondary data was collected form already published sources such as annual reports,
returns and internal records.
THE DATA COLLECTION INCLUDES:
a. Data collected from annual reports of ZUARI CEMENT LTD).
b. Reference form JOURNALA AND PERIODICAL relating to financial management.
RESEARCH TOOLS: Funds Flow Statement
Tools of Analysis
Various statistical tools such as percentages averages were used to process the date, of effectiveness
of funds flow in organization & management in ZUARI CEMENT LTDLTD(ZUARI CEMENT
LTD).
Research Design: Analytical Study
Data Sources : Secondary Data

LIMITATIONS OF THE STUDY:
 The study is only pertaining to ZUARI CEMENT LTD.
 The period of study is of 5 years and the performance evaluation is also limited to 5
years.
 The study is purely based on the data available the form of annual reports...
 Analysis is only means and not an end itself; different people interpret the same
analysis in different ways.
 The overall financial performance is taken into consideration without taking into
account the minute values or individual values.
This study is conducted within a short period. The time factor is also a limitation.

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A

FUND FLOW STATEMENT

ZUARI CEMENT LTD

PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

Title of the Project : FUND FLOW STATEMENT

Student Name : D. CHANDRAKALA

Hall Ticket Number : 130320672042

Signature of the Student :

Signature of the Guide :

S. No. CHAPTER Page No

2 NEED FOR THE STUDY

3 SCOPE OF THE STUDY

4 OBJECTIVES OF THE STUDY

6 LIMITATIONS OF THE STUDY

liabilities of an undertaking at a particular point of time.

statement of changes in financial position or a Funds Flow Statement.

a report of financial operations of business undertaking. In simple words it is a statement of

source and application of funds.

MEANING & CONCEPT OF FUNDS

A) CASH FUND OR NARROW SENSE

B) CAPITAL FUND (or) BROADER SENSE

money, material, machine & others.

C). NET WORKING CAPITAL (or) POPULAR SENSE

refers to cash or cash equipment or to working capital.

NEED AND IMPORTENCE OF STUDY

reports and projections. Unfortunately, however, a Funds flow statement is necessary to

economic solvency, and is more attractive to investors.

receivables should be expressly defined, as should depreciation of product value and

inventory that has not yet been moved.

and determine whether your receivables have increased or decreased.

increase in Funds flow over a period of several months or years.

might have more complex Funds flow systems as required.

OBJECTIVES OF THE STUDY

resources have been used.

 To improve the financial performance of the company.

 It focuses attention on resources available for capital investment.

 They provide usefull guide to creditors & lenders

SCOPE OF THE STUDY:

returns and internal records.

THE DATA COLLECTION INCLUDES:

a. Data collected from annual reports of ZUARI CEMENT LTD).

b. Reference form JOURNALA AND PERIODICAL relating to financial management.

RESEARCH TOOLS: Funds Flow Statement

of funds flow in organization & management in ZUARI CEMENT LTDLTD(ZUARI CEMENT

Research Design: Analytical Study

Data Sources : Secondary Data

 The study is only pertaining to ZUARI CEMENT LTD.

analysis in different ways.

account the minute values or individual values.

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