mba-mba-batch no-35

Download as pdf or txt
Download as pdf or txt
You are on page 1of 88

A STUDY ON CASH FLOW ANALYSIS AT TUBE

INVESTMENT INDIA LIMITED

Submitted in partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

by

ARJUN.S
Register No.41410036

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600 119

APRIL 2023
SCHOOL OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of ARJUN S 41410036
who carried out the project entitled “A Study on the Cash Flow Analysis at Tube
Investment India Limited” under my supervision from January 2023 to March 2023.

MR. ROBIN BRAHMA M.COM.,


Internal guide External Guide

Dr. BHUVANESWARI .G
Dean – School of Management Studies

Submitted for Viva voce Examination held on 05/05/2023

Internal Examiner External Examiner


DECLARATION

I ARJUN S (41410036) hereby declare that the Project Report entitled “A Study on
Cash Flow Analysis at Tube Investment India Limited ” done by me under the
guidance of MR.ROBIN BRAHMA is submitted in partial fulfillment of the
requirements for the award of Master of Business Administration degree.

DATE: 05/05/2023

PLACE: CHENNAI ARJUN.S


ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of


SATHYABAMA for their kind encouragement in doing this project and for
completing it successfully. I am grateful to them.

I convey my sincere thanks to Dr. G. Bhuvaneswari, Dean - School of


Management Studies and Dr. A. Palani, Head - School of Management
Studies for providing me necessary support and details at the right time during
the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
MR.ROBIN BRAHMA for her valuable guidance, suggestions and constant
encouragement paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of


the School of Management Studies who were helpful in many ways for the
completion of the project.

ARJUN.S
TABLE OF CONTENTS

CHAPTER
TITLE PAGE NO.
NO.

ABSTRACT (i)

LIST OF TABLES (ii)

LIST OF CHARTS (iii)

LIST OF ABBREVIATIONS (iv)

INTRODUCTION (v)

1.1 .Introduction 1

1.2 .Industry Profile 2

1.3 .Company Profile 3-9

1 1.4 Need for the study 10

1.5 Statement of the problem 10

1.6 Objectives of the study 10

1.7 Scope of the study 11

1.8 Limitations of the study 11

REVIEW OF LITERATURE 12-37


2
2.1 Review of Literature 13-31

2.2 Theoretical Framework and Review 32-37

RESEARCH METHODOLOGY 38-40

3.1 Methodology 39
3
39
- Introduction
3.2.Research Design 39
3.3. Sources of Data 39

3.4 Tools for the Study 40

3.5 Period Of Study 40

DATA ANALYSIS AND INTERPRETATION 41-59


4
4.1 Data Analysis & Interpretation 41-59

FINDINGS,SUGGESTIONS AND CONCLUSION 60-63

5.1.Findings of the Study 61


5
5.2.Suggestions & Recommendations 62

5.4.Conclusion 63

REFERENCES 64,65

ANNEXURE – BALANCE SHEETS 66


ABSTRACT

The engineering sector is essential for promoting innovation and technological


development in a variety of industries. Mechanical, electrical, civil, and chemical
engineering are just a few of the many disciplines that fall under this umbrella. It also
involves the design, development, and production of systems, processes, and
products. Significant improvements have been made in fields like manufacturing,
transportation, healthcare, and renewable energy as a result of the industry's
emphasis on innovation and problem-solving.

The industry must also contend with issues including fast advancing technology,
shifting laws, and escalating competition. Engineering companies must constantly
adapt and spend in R&D, talent acquisition, and process improvement if they want to
be competitive. Overall, the engineering sector is essential to advancing economic
development and solving some of the most important problems facing the planet.

Tube Investments of India Limited is one of the major players in the country in the
field of engineering and moulding of raw materials into finished products. The
company main field of workings are bicycles, engineering steel tubes ,train rims and
also other steel parts and its relative products. The company is one of the most
reputed company from Murugappa Group that represents India across the world.

i
LIST OF TABLES

S.NO CONTENT PAGE


NO
1 Percentage of cash flow from operating activities to total 42
cash flow
2 Percentage of cash flow from investing activities to total 44
cash flow
3 Percentage of cash flow from financing activities to total 46
cash flow

4 Showing changes in cash flows from the operating activity 48

5 Showing changes in cash flows from investing activity 50

6 Showing changes in cash flows from financing activities 52

7 Showing alteration in net cash and cash equals 54

8 Showing changes in opening cash and cash equals 56

9 Showing alteration in closing cash and cash equivalents 58

ii
LIST OF CHARTS

S.NO CONTENT PAGE


NO
1 Percentage of cash flow from operating activities to 43
total cash flow
2 Percentage of cash flow from investing activities to 45
total cash flow
3 Percentage of cash flow from financing activities to 47
total cash flow

4 Showing changes in cash flows from the operating 49


activity
5 Showing changes in cash flows from investing activity 51

6 Showing changes in cash flows from financing 53


activities
7 Showing alteration in net cash and cash equals 55

8 Showing changes in opening cash and cash equals 57

9 Showing alteration in closing cash and cash 59


equivalents

iii
ABBREVATIONS

SHORT FORM FULL FORM

II Interest Income

LTB Long Term Borrowings

LTLA Long Term Loans and Advances

NPBT Net Profit/(Loss) before tax

OCL Other Current Liabilities

OP Operating Profit

STB Short Term Borrowings

STLA Short Term Loans and Advances

STP Short Term Provisions

TP Trade Payables

TR Trade Receivables

iv
CHAPTER – 1
INTRODUCTION

v
1.1 INTRODUCTION

This project work will be undertaken in the context of partial fulfillment of MBA. The
process of manufacturing can be termed as the process of creation of producing a
product with the help of machineries, manpower and tools etc. The raw materials are
therefore transformed into finished products. It includes the manufacturing of
products such as steel tubes, strips , automotive and car door frames and also
bicycles.
It holds the largest form of industries and factories that helps to produce and
transform raw materials into finished products. The manufacturing form of industries
or factories provide maximum amount of turnovers. The products are first
engineered and it is then transformed as finished products. Manufacturing industries
are therefore classified under the title of engineering industries.

Management of cash is one of the most important operative area of any business
operating as a working capital directing as a portion from the reality which is mostly
liquid form of current asset. Cash can be determined as a ordinary denomination for
which all the current assets which is to be received and stocks will get finally
regenerated into a cash underscore which is the implications of managing the cash.
For all the firm whatever the size it may be, cash management is one of the most
important aspects of its operations.

A cash flow statement is one of the major financial statements for the purpose of a
planning or for the purpose of the business. The statement can be constructed in
different ways. It may be constructed in the easy format of one page synthesis or
may including various agendas to make a centralized evidence.
A cash flow statement is nothing but maintaining the cash flows of the business and
also evaluating the books of accounts of the firm. The cash flow statements are not
only concentrated with the total sum amount of the flow of cash. Some cash flows
are formatted with period of time. This statements not only predict the remaining
scale of cash at the end of the year but also we can get cash proportion at the end
of the year.
But if the working capital of a firm seems to be inadequate to meet its needs a cash
flows will spotlight liquidity issues that may occur in the upcoming future periods.
Few cash flows plans are developed so that we can effortlessly supervise the quality
of the future predictions. This plan will help us in predicting the flows of monthly cash
for the coming future period and also get into a potential inflow and outflow as we
move forward for the period of time. This process will finally helps to examine the
predictions to potential cash flow and to make alterations to those prepared
projections for the remaining period of the year.

1
1.2 INDUSTRY PROFILE

Engineering
The Murugappa Group is an undisputed leader in light engineering, with a name for
quality, value and reliability. Its companies are preferred suppliers across the globe,
manufacturing a wide range of components and parts for industrial applications,
fitness and mobility solutions.

The engineering sector is the largest of the industrial sectors in India. It accounts for
27% of the total factories in the industrial sector and represents 63% of the overall
foreign collaborations. Demand for engineering sector services is being driven by
capacity expansion in industries like infrastructure, electricity, mining, oil and gas,
refinery, steel, automobiles, and consumer durables.

India has a competitive advantage in terms of manufacturing costs, market


knowledge, technology, and innovation in various engineering sub-sectors. India’s
engineering sector has witnessed a remarkable growth over the last few years,
driven by increased investment in infrastructure and industrial production. The
engineering sector, being closely associated with the manufacturing and
infrastructure sectors, is of huge strategic importance to India’s economy.

The development of the engineering sector of the economy is also significantly aided
by the policies and initiatives of the Indian government. The engineering industry
has been de-licensed and allows 100% foreign direct investment (FDI). Additionally,
it has grown to be the biggest contributor to the nation's overall merchandise
exports.

India became a permanent member of the Washington Accord (WA) in June 2014. it
is now a part of an exclusive group of 17 countries who are permanent signatories of
the WA, an elite international agreement on engineering studies and mobility of
engineers.

2
1.3 COMPANY’S PROFILE
Tube Investments of India Limited (TII)

Overview

One of India’s leading engineering companies, TII manufactures tubes, metal


formed products, chains and cycles. A preferred supplier for the automotive industry,
TII also has the distinction of pioneering cycle retailing in India, with prestigious
brands like BSA, Hercules, Ladybird, Roadeo, Montra and Mach City in its stable.

Bicycles, metal formed goods, and chains are the areas of expertise of Indian
engineering and manufacturing firm Tube Investments of India Limited. It belongs to
the Murugappa Group and has its headquarters in Chennai. As a joint venture firm, it
was founded in 1949 under the name TI Cycles of India Limited.

Highlights

Largest manufacturer of precision tubes in India

2nd largest bicycle producer in India with 4 million cycles per year; market leader in
the ‘specials’ segment

2nd largest producer of transmission chains in India

3
Every second two wheeler in India uses TPI's safety-critical front fork

Frontrunner in developing a complete and premium buying experience for cycles in


India through its concept ‘Track & Trail’ stores and online sale.

History

 1949: Established TI Cycles of India Limited (present day Tube Investments


of India Limited) in association with Tube Investments Limited, UK (present
day TI Group)
 1955: Established Tube Products of India Limited in association with Tube
Products (Old Bury) Limited, UK
 1960:
 Established TI Diamond Chains Limited in association with Diamond Chain
Company (Usa)
 Established TI Miller in association with Miller, UK
 1965: Established TI Metal Forming
 1990: Acquired Press Metal Corporation
 1993: TIDC acquired Satavahana Chains
 1999: TPI acquired Steel Strips And Tubes Limited
 2001:
 TII acquired Cholamandalam Investment and Finance Company Limited
 Established Cholamandalam MS General Insurance Company Ltd
 2010: TI India acquired French chain manufacturer Sedis
 In 2012, Tube Investments bought a 44.12% controlling stake in Coimbatore-
based Shanthi Gears for ₹ 292 crore.
 In 2014, the large diameter tubing plant was inaugurated

The TII Heritage


The Group traces its origins to 1898, when Dewan Bahadur A M Murugappa Chettiar
went as an apprentice to Burma (now Myanmar). Quick to learn financial skills and
Burmese, he realized he was destined to greater achievements; he founded a firm in
Moulmein, a large port-city in Lower Burma. This grew into a prosperous family-owned
business, with interests in Banking, Rubber and Trade, covering Malaya (Malaysia),
Ceylon (Sri Lanka), Indonesia and Vietnam. The outbreak of the World War II and
subsequent political upheavals in the region cut short the firm’s growth. While a good
portion of its hard earned fortunes were lost, the family had the foresight to move
significant assets to India; this financial prudence ensured that the business would
rebound after the disaster. And rebound it did.

Back home in India, the Group had engaged in businesses like Rubber, Steel
cabinets, Yarn and other traded goods. But the real major industrial opportunity came
soon after Independence. Political Independence spawned Economic Independence:
and AMM Murugappa Chettiar, Dewan Bahadur’s eldest son (and by then, head of
the family) was quick to realise it. His vision was to start a business that would
manufacture a product for the common man which they could sell in large numbers.
4
Thus, in 1949, TI Cycles of India (TICI) was born in collaboration with TI of UK. It was
the Group’s first of many successful Joint Ventures and also its first foray into large
scale manufacturing. Later, as a measure of backward integration two more
companies were formed: Tube Products of India (TPI) in 1955, to make steel tubes
for bicycle frames and TI Diamond Chain (TIDC) in 1960 to make bicycle chains. Over
a period of time these two businesses have moved up the value chain from bicycle
parts to higher technology products.

In 1959, Tube Investments of India (TII) was formed by merging TI Cycles of India and
Tube Products of India. TI Diamond Chain was merged with the parent company, in
2004. In 1962, the company saw a potential to leverage its engineering skills to
address the market for roll formed metal products. So a new unit called TI Metal
Forming was created to realize this potential; to this day it is recognized as the pioneer
in this business.

Meanwhile, the Management was also progressively Indianised. The first Board of
Directors had equal representation from Indian promoters and TI-UK. TI-UK divested
a major portion of its share holdings in two tranches in 1978 and 1985 by mutual
agreement. TI-UK continued to hold a minority shareholding and participated in the
management with a representative in the Board of Directors till 2001. Today TII is an
Indian company with a global outlook.

During the 1990s TII made many bold acquisitions to enhance its presence in its core
businesses. The most notable, was the case of Satavahana chains, a sick BIFR
company that was turned round to a highly profitable unit. Other success stories were
the acquisition of a Japanese Tube plant and a German Chains plant which were re-
erected in Chennai to address the growing export markets. A successful GDR issue
in 1994 increased its financial muscle and accelerated both acquisitions and
expansions. Capacities were increased in all its units to meet the growing customer
demands.
In over six decades of its existence, TII has built significant skills in engineering and
metallurgy, which is fully supported by a central R&D function. A Total Quality
Management approach has ensured a satisfied community of customers and TII is the
preferred supplier in all the markets it operates. TII continues the tradition of financial
discipline and prudence set by the founding fathers. It is this tradition that has earned
TII the unique distinction of uninterrupted dividend distribution since 1954.

VISION OF THE COMPANY


Build a globally admired Indian engineering company creating
stakeholder delight
MISSION OF THE COMPANY
Metal to mobility and also engineering products for the future.

5
VALUES OF THE COMPANY

 Strong image
 recruitment
 Turnkey solution
 Proximity
 Serenity

STOCK MARKET
TII is listed on both NSE and also BSC. The valuations are as follows:

Tube Investments of India Ltd

2,718.00 INR+119.45 (4.60%)


17 Apr, 3:30 pm IST •

Major Divisions of Tube Investments India :


The major divisions are:

TI Cycles of India (TICI)


TI Cycles of India (a unit of Tube Investments of India Ltd.) is a bicycle manufacturer
based in India. Established in 1949 by the Murugappa Group and Sir Ivan Stedeford
of Tube Investments Group in UK, TI Cycles is the maker of brands
like Hercules, BSA and Philips cycles.
Currently it is the first largest cycle manufacturer in India and number one
manufacturer in special segments like mountain bikes, sports lite roadsters, racing
bikes etc. It has a manufacturing capacity of around three million bicycles per year.
Of late, TI Cycles has begun to sponsor a variety of cycling events, one of them
being the 900+ km Tour of Nilgiris, through its brand BSA.

 BSA Motors (BSAM)


BSA Motors is a manufacturer of non-pollutant electric vehicles. It has its
manufacturing plant in Avadi, Tiruvallur district

6
 Tube Products of India (TPI)
Tube Products of India (TPI) is a steel tubes manufacturer based in India. Tube
Products of India was established in the year 1955 in collaboration with Tube
Products (Old Bury) Limited, UK to produce Electric Resistance Welding (ERW)
and Cold Drawn Welded (CDW) tubes also called as Drawn Over Mandrel tubes.
The manufacturing locations of Tube Products of India are located at:

 Avadi , Chennai , Tamilnadu


 Shirwal ,Maharashtra
 Mohali , Punjab
 Tiruthani , Tamilnadu (Large Diameter Plant)

 TI Diamond Chains (TIDC)


TI Diamond Chains, simply known as TIDC India, was established as a joint venture
between Tube Investments of India Limited & Diamond Chain Company Inc USA.
Tube Investments of India Limited merged it with as a division called TIDC India.
TIDC India is a chain manufacturer in segments such as industrial, automotive and
fine blanking.
TIDC India's manufacturing plants are:

 TIDC India, 11, M. T. H Road, Ambattur,Tiruvalur District


 Gangnouli, Laksar, Haridwar, Uttrakhand.
 Kazipally Village, Jinnaram Mandal, Medak District, Telangana.

 TI Metal Forming (TIMF)


TI Metal Forming was established in 1965 as a division of Tube Investments of India
Limited. It manufactures car door frame (skin parts), glass separator channels, door
guide rails (stainless steel), window channels, side impact beams, casing for starter
motor (deep drawn part), HCV chassis and CRF sections for railway wagons and
coaches.
 Shanti Gears
 TI TMT Macho

7
Murugappa Group
Founded in 1900, the INR 547 Billion Murugappa Group is one of India's leading
business conglomerates. The Group has 29 businesses including ten listed
Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies
of the Group include Carborundum Universal Ltd., CG Power and Industrial Solutions
Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam Investment and
Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd.,
Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry
(India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd.,
Tube Investments of India Ltd. and Wendt (India) Ltd. The Group holds leadership
position in several product lines including Abrasives, Technical Ceramics, Electro
Minerals, Auto Components & Systems, Bicycles, Fertilisers, Sugar, Tea and Spirulina
(Nutraceuticals). The Group has forged strong alliances with leading international
companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan
Advanced Materials, Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG).

The Group has a wide geographical presence all over India and spanning 6
continents. Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster,
Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa
stable. The Group fosters an environment of professionalism and has a workforce of
over 53,000 employees.

The Group has presence in several segments including abrasives, auto


components, bicycles, sugar, farm inputs, fertilizers, plantations, bioproducts and
nutraceuticals. It owns brands like BSA, Hercules, Montra, Mach City, Ballmaster,
Ajax, Parry's, Chola, Gromor, Shanthi Gears and Paramfos. The Group has a
workforce of over 50,000 employees. The current executive chairman is MM
Murugappan

8
PRODUCT PROFILE

Products

Tube Products of India (TPI)


CDW and ERW Tubes, Tubular Components, Large Diameter Tubes for
Hydraulic Cylinders and off-road Applications and Special Grade Cold-rolled
Steel Strips(CRSS)

TI Cycles of India (TICI)


Cycles, Cycle Components, Fitness Equipment and Accessories

Metal Formed Products Division


Drive and Cam Chains Two-wheelers, Fine Blanked Precision Components, Auto
Components, Stainless Steel Coach, Agri Implements

Industrial Chains
Chains for Industrial Applications, Engineering Class Chains

Industrial Gears
Worm Gearboxes, Helicals, Gears & Pinions and Gear Servicing

9
1.4 NEED FOR THE STUDY

• To make sure that the best investment plan is practiced. As there are variety
of investment opportunities present the best one can be taken off.
• To assess the pattern do that it is beneficial for all the other small company to
follow and execute the plans and male sure that they are also benefitted from
it.
• To choose the best one for the company’s growth.

1.5 STATEMENT OF THE PROBLEM

An income statement showing sales, revenue, taxes, expenses, etc. is part of an


accounting statement. The liabilities and asset positions for the prior year are shown
on another section of the balance sheet. With the aid of the previous and most
recent five years' worth of cash flow statements and financial condition, I sought to
analyse the data in my study objectively.

1.6 OBJECTIVES OF THE STUDY

• To understand the various investment provided to the customers.


• To provide the level of investments and also the various methods of
investments in the company.
• To analyse the choice of interest of the employers on the basis of the work
• To provide various schemes and investment opportunities of the business.
• To understand the type of investments design of the company and also the
allocation of the funds.
• To maintain better cash flow in the company and also yield maximum profits.

10
1.7 SCOPE OF THE STUDY

• To understand the pattern of investment provided by TII and make sure that it
is followed up by the smaller company.
• To enhance the growth of the company and also its beneficial products for the
company.
• To understand the new ways of operation in various new areas and also new
sectors.

1.8 LIMITATIONS OF THE STUDY

1. Time: the time period given for the purpose of preparation of project has been
about 12 weeks. The study can be done only for the period of 5 years
2. Finance: as I got a limited financial resource indepth research cant be
undertake.
3. The cash flow statement of 5 years of a firm is used for the purpose of project.

11
CHAPTER – 2
CONCEPTUAL BACKGROUND AND LITREATURE REVIEW

12
2.1 REVIEW OF LITREATURE

1.Güleç, Ö.F. & Bektaş, A. (2019). Cash Flow Ratio Analysis: The Case of
Turkey. Muhasebe ve Finansman Dergisi Ağustos Özel Sayısı, 247-262
Cash flow-based information provides more insights about liquidity, profitability and
financial structure of companies with the other primary financial statements. Hence,
using cash flow ratios together with the conventional financial ratios will contribute to
the financial statement analysis. Since cash flow ratios are not common as much as
the traditional ratios and are still evolving, developing benchmarks and determining
normative values are relatively harder for the assessment of firms. Thus, the main
motivation of this study is to demonstrate the power of the statement of cash flows
by using 8 fundamental cash flow ratios with 10 traditional ratios in the areas of
liquidity, profitability and financial structure.

2.(Chang et al., 2019; Li et al., 2017; Tsao et al., 2019).


Timely payment is necessary for the efficient delivery of goods and services to all
entities in the supply chain. Traditionally, there has been a lot of manual processes
related to payment. Nowadays the technology advancements make the payment
process in electronic form. Even the electronic form is not easily accessible to all
parties in the supply chain. Each entity of the supply chain maintains separate
transaction records that remain difficult, inefficient, and error prone. Often
companies face difficulties in monitoring the status of shipments and linking them to
payments.

3.Amrizah Kamaluddin & Norhafizah Ishak & Nor Farizal Mohammed, 2019.
"Financial Distress Prediction Through Cash Flow Ratios Analysis," International
Journal of Financial Research, International Journal of Financial Research, Sciedu
Press, vol. 10(3) The purpose of this study to examine the relationship of cash flow
ratios in predicting financial distress companies, with industrial and consumer
product companies in Bursa Malaysia as the sample. The study on financial distress
is critical as it can lead to bankruptcy, which may adversely affect the economy of
the country. Therefore it is worth exploring any indicators that can identify the
possibility of financial distress in the company.

13
4.(U. Lee et al., 2020)
Once the product performance and attributes are linked based on engineering
models, profit can be obtained through a marketing model that determines demand
based on customer decisions. A discrete choice analysis is a statistical technique
that explores customer decision-making and measures the trade-offs for product
attributes based on the choice data observed from respondents

5. Markus, G. and Rideg, A. (2021)

The purpose of this paper is to interconnect the firm level competitive performance
(competitiveness) to the financial performance of the firms. The goal is to give
evidence on how successful small- and medium-sized enterprises (SMEs) use their
financial performance to support their competitive performance.

6. Günay, F. & Ecer, F. (2020)

The cash flow of a company is a key element for the firm value. The firm value of a
company is depending largely on the ability to generate cash flows. In other words, a
company’s firm value is calculated by using cash flows. Financial performance
analysis helps companies in effective decision-making, planning, and auditing
functions. Traditional ratio analysis uses the statement of financial position (balance
sheet) and the profit and loss statement (income statement) to measure financial
performance.

7. Michael Aba , Ayodeji Ladeinde and Emmanuel Afimia (2019)

The outcome of the assessment conducted by Evans et al. [2] on the available
renewable technologies was considered in selecting the combination of RETs to be
included in the HRES. Thus, solar photovoltaic (PV) and wind technologies have
been selected for inclusion in the HRES. These two types of RETs were selected
because, as posited by Evans et al. [2], wind is the most sustainable RET, while PV
is the third most sustainable RET in the world.

8. Samet, M. and Jarboui, A. (2017), "CSR, agency costs and investment-cash flow
sensitivity: a mediated moderation analysis"
The purpose of this paper is to document the relation between investment-cash flow
sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities
in European context. Specifically, this paper aims to empirically examine how CSR
moderates the sensitivity between investment spending and firm internal funds.

14
9. KhusainovaL.Yu. (2021)

At any point in time, a firm can be viewed as a collection of capital coming from
various sources: from investors, creditors, as well as income received as a result of
the firm's activities. These funds are used for various purposes: the acquisition of
fixed assets, the creation of inventories, the formation of receivables, and others.
The article discusses theoretical approaches to the analysis of cash flow, compares
the formation of indicators by direct and indirect method, examines the directions of
cash flow, and explains the essence of cash flows and methods of their assessment.

10. Jan-Pieter Oosterom, Charles A.S. Hall 2022

Energy companies, like companies more generally, routinely have to make


investment decisions by comparing alternative investment projects. In the face of the
uncertainty of the current energy transition, traditional economic tools, such
as discounted cash flow (DCF) analysis, that depend on long term cash forecasting,
offer limited, deterministic and potentially misleading insights.
Additionally there are many pressures on companies to expand decision making
criteria to “ESG” (Environmental, Social and Governance) considerations. But these
are often qualitative with no clear standards, leaving investors often forced to make
significant investments based on poorly understood, at times misleading and even
self-defeating considerations.
We explore the application of Biophysical Economics (BPE), an approach to
economics based on the natural sciences, as an alternative to provide an additional
lens that cuts through the uncertainty and political pressures to help companies
navigate this uncertainty and make more robust long term investment decisions. The
most immediately useful tool within BPE is the concept of Energy Return on Energy
Invested (EROI).

11. S Ogbeide, B Akanji - Revista de Management Comparat International, 2017

The study uses both descriptive and inferential statistics to determine the
relationship among the variables. It also employs the series of diagnostic tests to
ensure stability of the time series used as well as to ensure the model meets the
assumption of ordinary list square.The findings reveal that cash flow was observed
to determine insurance firms’financial performance and is statistically significant.
Cash flow from operating activities was observed to significantly increase financial
performance of insurance companies in the period examined. Cash flow from
financing activities was found to increase the financial performance of the sampled
insurance firms, but was not statistically significant. The size of the insurance
company did not increase the financial performance of the insurance firms and was
also not statistically significant.
The paper recommends that managers in insurance firm should regularly change
the extent at which cash is spent to avoid negative cash flow position as well as
15
financial crisis. Adequate investment appraisal is really a concern that insurance
firms need to take into consideration when customers are taking up insurance
coverage. The costs have to be weighed against the benefits accruable thereto.

12. G Vayas-Ortega, C Soguero-Ruiz, JL Rojo-Álvares, 2020

The Discounted Cash Flow (DCF) method is probably the most extended approach
used in company valuation, its main drawbacks being probably the known extreme
sensitivity to key variables such as Weighted Average Cost of Capital (WACC) and
Free Cash Flow (FCF) estimations not unquestionably obtained.
In this paper we propose an unbiased and systematic DCF method which allows us
to value private equity by leveraging on stock markets evidences, based on a
twofold approach: First, the use of the inverse method assesses the existence of a
coherent WACC that positively compares with market observations; second,
different FCF forecasting methods are benchmarked and shown to correspond with
actual valuations.
We use financial historical data including 42 companies in five sectors, extracted
from Eikon-Reuters. Our results show that WACC and FCF forecasting are not
coherent with market expectations along time, with sectors, or with market regions,
when only historical and endogenous variables are taken into account.
The best estimates are found when exogenous variables, operational normalization
of input space, and data-driven linear techniques are considered (Root Mean
Square Error of 6.51). Our method suggests that FCFs and their positive alignment
with Market Capitalization and the subordinate enterprise value are the most
influencing variables. The fine-tuning of the methods presented here, along with an
exhaustive analysis using nonlinear machine-learning techniques, are developed
and discussed in the companion paper.

13. K Singh, M Misra - Agricultural economics–Czech, 2019

A significant number of studies have been conducted on the determinants of cash


holding levels for different corporates. However, no such study has been witnessed
so far on the agricultural enterprises. In this study, we examine the determinants of
the cash-holding levels for the Indian agrarian enterprises during 1995–2016 period.
With the help of weighted least-squares (WLS) regression analysis, we find
evidence that the Indian agro-enterprises with greater lucrative opportunities tend to
hold less cash.
On the other side, we found that large agro-enterprises tend to hold some other
mode of liquid assets rather than cash. The firms with higher capital expenditure and
distributing profits as a dividend were shown to hold more cash. In our analysis, we
find supportive evidence of the static trade-off theory of cash holding. In general,
transaction motives and precautionary motives also play an important role in
explaining the determinants of cash holding levels for Indian agrarian enterprises.

16
14. V Mohagheghi, SM Mousavi, B Vahdani - Neural Computing 2017

Reliable knowledge of project cash flow is essential for effective project


management. Since the nature of project is uncertain and easily effected by different
criteria, considering uncertainty has become a vital part of any effective project
management approach. Cash, as one of the most important project resources,
requires reliable management techniques.
In this paper, a new interval type-2 fuzzy project cash flow analysis model based on
interval type-2 fuzzy project scheduling is proposed to predict project cash flow in
different periods of project life cycle. Despite using type-2 fuzzy sets in various
practical problems, they are new to project management; thus, they are used in this
paper to address the uncertainty and lack of sufficient knowledge in project activity
durations and costs.
In the first part, interval type-2 fuzzy project scheduling model is introduced, and
then the forward and the backward passes are defined. In order to improve this part,
a new flexible and controllable method of interval type-2 fuzzy ranking is introduced.
In the second part, a model of cash flow assessment is proposed under an interval
type-2 fuzzy environment.
15. A Nosov, O Tagirova - Scientific Papers 2021

In financial management a special attention has to be paid on the main financial


indicators among which cash flow is very important as it is closely related to
efficiency of the company. In any sector of activity, but especially in the agricultural
companies, the success in their development depends, first of all, on how efficiently
its cash flows are organized .
Cash flow management is a tool that helps to achieve a high level of enterprise profit
. Assessment and forecasting of cash flows allow management to control the
synchronization of income and expenditures of funds, thereby maintaining the
amount of funds required to fulfill payment obligations.
In addition, this allows a more realistic assessment of the payment capabilities of
the enterprise, making such a choice of funding sources and purposes of use that
will create an optimal cash flow scheme that can lead to growth of economic value
and long-term viability of the enterprise . The purpose of this study is to propose
practical recommendations for improving the management of cash flows in an
agricultural organization.
16. A Litvinenko, J Alver - Accounting and Management Information 2023

Credit risk modelling becomes an important part of the daily operations to assess a
borrower’s solvency and liquidity, especially with the increase in the number of
applications to obtain business financing (European Central Bank, 2021). However,
the researchers and business practitioners question the validity and completeness of
the analysis obtained from credit risk modelling based on traditional financial
statements, such as income statements and balance sheets (Jury, 2012). To acquire

17
certain benefits (i.e. additional funding) managers may internally manipulate the
information in traditional accrual-based financial statements.
The researches show plenty of evidence that accounting professionals within the
companies intentionally manipulate the financial records and reports to meet a
specific target (Bhasin, 2016). On the other hand, when financial institutions make
decisions to grant a loan, it is essential for them to determine the exact numerical
value of risk exposure.
Having clear credit risk estimations is not only important to improve decision-making
and its possible financial consequences, but it is also a legal requirement to the
financial institutions set by the controlling institutions (European Bank Authority,
2021). For investors, it is crucial to have a clear analysis of the financial state of their
potential investment, especially foreign direct investment.

17. Y Yannizar, W Wazirman International Research 2020

The phenomenon of the "megadolar" case that occurred in Enron Corporation and
the profits stated over stated at PT. Kimia Farma caused by earnings management.
Earning management results in reporting on financial statements asymmetry with
the actual situation. This can bring huge losses to shareholders because financial
statements are the main basis for shareholders in conducting business transactions.
Utami (2005) in his research stated that Indonesia is the country with the most rice
earning management. Thus, it is important for investors and shareholders in
Indonesia to look at things that can trigger earnings management and what can
prevent earnings management. In this study the researchers tested the effect of
good corporate governance, free cash flow, and leverage on wealth earning
management and shareholders.
The researcher examines the effect of good corporate governance as a variable that
can prevent earnings management and test free cash flow and leverage as triggers
for earnings management. In this study using a sample of 178 service sector
companies taken through the Yamane method with a sampling method namely
purposive sampling in the 2016-2018 period. Data analysis and hypothesis testing in
this study using the Partial Least Square Path Modeling (PLS-SEM) method.
The results showed that good corporate governance proved to have a significant
negative effect on earnings management while shareholders in wealth had a
significant positive influence. Free cash flow proved to be insignificant to earning
management while shareholder wealth had a significant positive effect. The leverage
variable proved to have a significant negative relationship to earnings management
as well as wealth shareholders.

18. EAG Adjei, FD Fugar, E Adinyira, DJ Edwards, EA Pärn – 2018

This paper identifies and explore significant quantifiable cash flow factors influencing
building projects profitability in Ghana. A thorough literature was undertaken to
18
unravel the quantifiable cash flow factors which facilitated design of questionnaire. A
survey with prime focus on large firms registered with the Association of Building
and Civil Engineering Contractors, Ghana was undertaken. A total of 50
questionnaires were received from 63 administered representing 79.36% response
rate with a Cronbach Alpha value of 0.895 and Kappa value of 0.743 respectively
were attained.
One-sample t-test was performed on the rated responses to establish 12 significant
factors. Principal component analysis was subsequently employed to reduce factors
to the most significant components. Prominent variables selected from rotated and
component score matrixes were: wages of labour and staff; progress payment
duration; bank interest rate; and replacement of defective works as significant
variables.
This study was limited to quantifiable cash flow factors and large construction firms
hence, recommended further study with focus on qualitative factors, procurement
types, broader scope of construction firms and other developing countries. The
outcome of this is to aid construction managers effectively manage the significant
cash flow factors to maximize profit.

19. J Natolski, R Werner - Risks, 2017

The replicating portfolio approach is a well-established approach carried out by


many life insurance companies within their Solvency II framework for the
computation of risk capital. In this note, we elaborate on one specific formulation of a
replicating portfolio problem. In contrast to the two most popular replication
approaches, it does not yield an analytic solution (if, at all, a solution exists and is
unique). Further, although convex, the objective function seems to be non-smooth,
and hence a numerical solution might thus be much more demanding than for the
two most popular formulations.
Especially for the second reason, this formulation did not (yet) receive much
attention in practical applications, in contrast to the other two formulations. In the
following, we will demonstrate that the (potential) non-smoothness can be avoided
due to an equivalent reformulation as a linear second order cone program (SOCP).
This allows for a numerical solution by efficient second order methods like interior
point methods or similar.
We also show that—under weak assumptions—existence and uniqueness of the
optimal solution can be guaranteed. We additionally prove that—under a further
similarly weak condition—the fair value of the replicating portfolio equals the fair
value of liabilities. Based on these insights, we argue that this unloved stepmother
child within the replication problem family indeed represents an equally good
formulation for practical purposes.

19
20. A Kustra, S Lorenc - Energies, 2021

The use of geothermal energy to produce heat and electricity has become
increasingly important in recent years. This is mainly due to environmental issues
and the need to ensure energy security. The aim of the article was to analyse and
compare the ability to maintain cash balance of selected geothermal companies in
Poland. The following were taken for verification: Przedsiębiorstwo Energetyki
Cieplnej PEC Geotermia Podhalańska S.A., Geotermia Poddębice Sp. z o.o.,
Geotermia Mazowiecka S.A., Geotermia Pyrzyce Sp. z o.o. and Geotermia
Czarnków Sp. z o.o. The adopted research methodology, combining accrual and
cash recognition, allowed the analysis of the ability to create cash flows and
maintain cash stability in 2016–2019. The study used financial data from the
financial statements of the analysed companies.
The analysis shows that the highest cash flows from assets defined as Free Cash
Flow to Firm FCFF (over PLN 11,318 thousand) and the highest cash flows for
owners Free Cash Flow to Equity FCFE (over PLN 10,005 thousand) are generated
by Geotermia Mazowiecka S.A. At the same time, the balance between cash flows
meeting the inequality FCFF ≥ FCFE + FCD, where FCD Free Cash Flow to Debt,
determines the ability of assets to generate cash covering the current distribution of
capital for its donors.
Consequently, there is an increase in the value of cash resources identified in
investments in the management balance sheet. Such a situation occurred in the
case of Geotermia Poddębice Sp. z o.o. and Geotermia Mazowiecka S.A. The
reverse situation, i.e., FCFF < FCFE + FCD is characteristic for cash imbalance. In
such conditions there is a decrease in cash resources identified in the management
balance. This occurred in PEC Geotermia Podhalańska S.A., Geotermia Pyrzyce
Sp. z o.o. and Geotermia Czarnków Sp. z o.o.

21. DD NGUYEN, AH NGUYEN - The Journal of Asian Finance 2020

The paper investigates the impact of the statement of cash flows of listed companies
on lending decisions of commercial banks in the context of Vietnam. Survey data for
the research were collected from 160 credit officers of Vietnamese commercial
banks for short-term and long-term lending decisions, whether the cash flow
statement includes complete information or has a lack of information. The cash flow
statement, in which the information on the cash flow is completely contrary to the
profit information on the income statement is examined.
This paper employed T-tests to address the research issues in a market considered
to be ineffective, like Vietnam. The research results show: (1) the information on the
cash flow statement affects both the short-term and long-term lending decisions of
credit officers, and (2) the lack of information on the cash flow statement in both
cases of positive and negative profits affects the comfort and confidence of credit
officers in making decisions. The research findings also indicate that cash flow
statements are important for lending decisions of credit institutions in Vietnam.

20
Therefore, this paper provides a new insight to managers on how to improve the
quality of cash flow statement to meet the needs of lenders.
22. A Dirman - International Journal of Business, Economics and Law, 2020

The research objective to be achieved is to provide understanding and knowledge to


the public, especially investors and creditors about the effect of profitability, liquidity,
leverage, company size, and free cash flow on financial distress and can be used as
a reference for future researchers and stakeholders (investors, creditors, and
government) in making relevant and reliable decisions. The method used is
quantitative research with secondary data taken from the issuer's financial
statements on IDX with data collection techniques using the purposive sampling
method. Analysis of the data used is multiple linear regression. The population in
this research is manufacturing companies of basic and chemical industry sectors
which are listed on the Indonesia Stock Exchange which is conducted for 3 years of
observation, namely 2016-2018.
The sample is determined by the purposive sampling method so that as many as 90
samples are obtained. The analysis technique used is the statistical test t, and the
classic assumption test which includes normality test, multicollinearity test,
heterokedasticity test, and autocorrelation test. The results of this study indicate that
the profitability variable has a positive effect on financial distress; variable liquidity,
leverage, and free cash flow do not effect financial distress; and firm size variables
have a negative effect on financial distress
23. FA SULEHRI, M RIZWAN, I SENTURK - Bulletin of Business 2022

Cash flow plays a vital role to bring many benefits to the smooth functioning of the
financial system and the economy as a whole. So, it is interesting to study factors
affecting cash flow. This study has examined the impact of intangible assets and
firm-specific factors on cash flow. We have done our empirical analysis of public
firms listed on the Pakistan stock exchange for the years 2009 to 2020. The data
has been collected from the financial statements of automobile sectors which are
listed on public firms on the Pakistan stock exchange (PSX).
Cash flow is most significantly influenced in a positive way by the results that are
expected to be generated by intangible assets. The firm size has a negative and
significant impact on cash flow. The estimated results of firm growth have a
significant and positive impact on cash flow.
The estimated profitability results have a significant and negative impact on cash
flow. The estimated results of earnings volatility have an insignificant and negative
impact on cash flow. The overall results conclude that selected explanatory
variables play an important role in determining the level of cash flow.

24. AK Bhar - Global Journal of Business, Economics and 2019

A program that keeps record of personal financial details and also mines the data for
insightful analysis is definitely a good day-to-day companion. In this generation,
such tool is inevitable in the financial dealings of any individual or company. In this
study, we developed an easy but highly intuitive method of tracking financial
21
dealings, budgeting and forecasting personal financial expenditure using Microsoft
Excel
Among others, this program can aid in implementing financial strategies designed to
meet specific goals based on percentages in specific categories. From such data,
mathematical models were also developed and prediction was made. With little or
no modification, the Cash flow program presented in this study could be adopted for
use in any type of the organisation where money or any article of business comes in
and goes out in a particular cycle (typical of which is monthly). Results and method
presented here proved to be effective.
To curb financial miss-management, among others, one needs to track his/her
spending. Once a system is in place for tracking money spent, two certainties will
transpire. First, you will spend less money than you would have compared to the
absence of the tracking expenses. Second, you will be developing the discipline
necessary to accumulate true wealth.

25. J Kulejewski, N Ibadov, J Rosłon, J Zawistowski - Energies, 2021

This study concerns the use of the critical chain method to schedule the construction
of renewable energy facilities. The critical chain method is recognized as a useful
project management tool, transforming a stochastic problem of uncertainty in activity
durations into a deterministic one. However, this method has some shortcomings.
There are no clear principles of grouping non-critical activities into feeding chains.
Another ambiguity is sizing the feeding buffers with regard to the topology of the
network model and the resulting dependencies between activities, located in
different chains. As a result, it is often necessary to arbitrarily adjust the calculated
sizes of feeding buffers before inserting them into the schedule.
The authors present the new approach to sizing the time buffers in the schedule,
enabling a quick assessment of the quality of a given solution variant and finding a
solution that best meets the established criteria, conditions, and constraints. The
essence of the presented approach is the two-step sizing of time buffers with the
use of deterministic optimization and stochastic optimization techniques.
Taking into account construction management needs, the optimization criteria are
based on the construction project cash flow analysis. The effectiveness of the
presented approach is illustrated by an example of developing a wind power plant
construction schedule. According to the results, the presented approach ensures the
protection of the scheduled completion date of the construction and the stability of
the schedule.

26. H Mahmoud, V Ahmed, S Beheiry - Journal of Risk and Financial 2021

As investment increases in capital projects, financial risks increase, and cash flow
prediction and control become more paramount. Higher risks could hinder project
performance and increase the chances of failure in multiple aspects of a project.
While there are models that aim to assess and forecast risks in the construction
22
industry, none present a technique to include the impact of risks on a project’s cash
flow. Therefore, cash flow forecasts tend to exceed the actual cash flow of a project
due to inaccurate risk assessment.
Thus, this paper presents the Cash Flow Risk Index (CFRI) development process
quantifying the impact of risks on a project’s cash flow from an owner’s perspective.
To that end, the study explored the literature to identify the risk factors that might
impact a construction projects’ cash flow and uncovered 44 factors. The study also
validated and consolidated these factors to build a CFRI via a Delphi exercise, which
reduced the factors from 44 to 36. In further iterations, the 36 factors were also
shared with 32 construction industry professionals to rate their relative importance
on a five-point Likert scale, from which relative importance index and weights were
obtained. As a result, the CFRI was developed to measure the impact of different
risk factors on a typical construction project’s cash flow.

27. EA Gordon, E Henry, BN Jorgensen - Review of Accounting 2017

International Financial Reporting Standards (IFRS) allow managers flexibility in


classifying interest paid, interest received, and dividends received within operating,
investing, or financing activities within the statement of cash flows. In contrast, U.S.
Generally Accepted Accounting Principles (GAAP) requires these items to be
classified as operating cash flows (OCF). Studying IFRS-reporting firms in 13
European countries, we document firms’ cash-flow classification choices vary, with
about 76, 60, and 57% of our sample classifying interest paid, interest received, and
dividends received, respectively, in OCF.
Reported OCF under IFRS tends to exceed what would be reported under U.S.
GAAP. We find the main determinants of OCF-enhancing classification choices are
capital market incentives and other firm characteristics, including greater likelihood
of financial distress, higher leverage, and accessing equity markets more frequently.
In analyzing the consequences of reporting flexibility, we find some evidence that
the market’s assessment of the persistence of operating cash flows and accruals
varies with the firm’s classification choices and the results of certain OCF prediction
models are sensitive to classification choices.

28. NM Kottayi, RB Mallick, JM Jacobs - Journal of Infrastructure 2019

An increase in the number of extreme weather events and gradual shifts in climate
parameters due to a changing climate pose a serious threat to the nation’s roadway
infrastructure. A systematic approach is needed to define risks and assess
consequences of climate change, consider the uncertainties, rank priorities, and
initiate an adaptation strategy in a cost-effective manner.
The objective of this study is to develop a framework that could be used to assess
the impact of climate change on pavements in a rational way using either the net
present value (NPV) or the real option (RO) approach to compare several options

23
and to make the most prudent decision regarding selecting an option and the time of
adopting that option.
The NPV approach will generally go against an investment in cases with high
uncertainty, even if they are very promising, and does not take into account the
flexibility or decisions that could be implemented on the basis of changing
conditions. In contrast, the RO method offers a flexible deferment option when the
uncertainties regarding outcomes are resolved to a certain extent.
A framework with a step-by-step method for evaluating the feasibility of building
roads that are resilient to a changing climate is presented, along with an example.
The worked-out example shows that there could be considerable value in using RO
analysis, and this value can be leveraged to develop better economic policies for
building roads that are resilient to a changing climate.

29. HL Yang - International Journal of Systems Science: Operations 2021

Many products deteriorate with time and have a maximum lifetime. An expiration
date will be marked. And then the product will no longer be sold after the expiration
date. Thereafter, the demand rate for the deteriorated item will near zero as its
expiration date is due.
Thus, to consider the demand rate incorporates with the expiration date is practical.
Furthermore, as the storage capacity is limited, the retailer needs to rent a
warehouse to store the excess quantities than can be stored. Consequently, to
consider a two-warehouse inventory model is necessary.
Nowadays, the supplier often provides a cash discount or permissible delay in
payments to its retailers, if the order quantity attains a certain amount. Likewise, the
retailer also provides a downstream trade credit period to his customers. In addition,
the cost is usually affected by the present value of time.
For these reasons considered, a supplier-retailer-customer chain model here is
established. The main task of this research is to find the optimal replenishment cycle
and order quantity to keep the present value of the total relevant cost per unit time
as minimum as possible. Numerical examples are performed for illustration and
sensitivity analysis on the expiration date is conducted.

30. M Pavlović, Č Gligorić, poslovni magazine, 2021

Cash flows are one of the main indicators of liquidity and solvency of the company.
In practice, the Statement of cash flows is very often done as "following document"
to Balance sheet and Income statement.
This is wrong. The statement of cash flows can give the information to its users
about the ability of the company to make cash. The balance sheet and Income
statement, due to their accrual basis, are not saying anything about the cash flows
of the accounting period, and that is why the Statement of cash flows is very
important.
24
A good analysis of this statement can be the basis and support to the process of
decision making both for internal and external users of financial information. In this
paper we are presenting the methodology of the Statement of cash flows report
analysis. The subject of this paper is the analysis of the Cash Flow Statement. The
aim of this paper is to point out the importance of reporting on cash flows and its
information capabilities to users of accounting information.

31. EM Egwu, FI Orugun - Asian Journal 2021

The study explored cash flow management for enterprise’s business performance.
The study specifically investigated SMEs’ fulfilment of financial obligations through
cash flow management, and determines the influence of cash flow management
strategy on their performance in FCT Abuja. Survey research design was used. Data
were gathered and analysed using the descriptive method and regression analysis.
Findings showed that cash flow management influences the fulfilment of financial
obligations, and that cash flow management strategies influence the performance of
enterprises in Abuja. The study concluded that cash flow is critical to the success of
enterprises.
The study recommended that owners and managers of enterprises in Abuja should
improve on their cash flow management, and that policy makers should incorporate
strategy in management of cash flow framework to enhance improved performance.

32. C Hamdiyah, A Rizki - International Journal of Innovation, 2020

Using a sample of mining companies listed on the Indonesia Stock Exchange (BEI)
over the period of 2014–16, this study aims to investigate the relationship of cash
flow analysis and good corporate governance with financial distress. The cash flow
analysis ratio includes CFFO / TL; CFFI / TL; CFFF / TL; CFFO / TR; and CFFO /
CL. Good corporate governance is the composition of the board of commissioners,
the ownership of institutional shares to the total shares, the ownership of shares of
internal parties to the total shares and the composition of the audit committee.

The target of observation in this research is all mining sector companies based on
set criteria. The logistic regression method, G-test and t-test are used to analyse the
relationship between the variables. Our results show that one ratio of cash flow
analysis shows the relationship between cash flow analysis and financial distress.

This study did not find any relationship between good corporate governance and
financial distress. The results of this study contribute to investors and users of
financial statements to consider the company’s financial performance, especially

25
regarding the solvency of the company, because it is able to provide information on
whether the company’s long-term financial condition is healthy.

33. JE Boritz, LM Timoshenko - Behavioral Research 2022

Using verbal protocol analysis, this study examines how 21 experienced auditors
from four different firms assess the seven key inputs in a discounted cash flow
(DCF) model used by management to value goodwill. The analysis compares the
auditors' processes against a theoretical model derived from an analysis of
accounting and auditing standards and authoritative sources of valuation
methodology and identifies systematic omissions and inaccurate applications of key
audit steps.
It also relates those issues to audit outcomes at the individual input and the overall
goodwill evaluation levels. The study's findings can help regulators, standard setters,
practitioners and academics to better understand the limitations of auditors'
competencies so that they can design strategies for mitigating them.

34. CS Maqfiroh, K Kusmuriyanto - Accounting Analysis Journal, 2018

The purpose of this research is to obtain empirical evidence concerning the


influence of book tax differences, operating cash flow, leverage, and firm size to
earnings persistence. Population in this research is company of consumer goods
industry sector which registered in Indonesia Stock Exchange in 2011-2016.
Years observed are 2012-2015. Sampling technique is using purposive sampling,
gained 22 samples out of 33 companies. There are 85 units of analysis in this study.
The analysis techniques used are descriptive statistic and multiple regression by
using SPSS program.
The result of the research shows that book tax differences indicated by large
negative book tax differences has significant and negative influence on earnings
persistence. Besides, large positive book tax difference has no influence on
earnings persistence.
Operating cash flow and firm size in this study are proved to have no influence on
earnings persistence. Leverage is proved to have negative and significant influence
on the persistence of earnings. The conclusion of this research is that earnings
persistence is influenced by large negative book tax difference and leverage.

35. DV NGUYEN, DQ DANG, GH PHAM - The Journal of Asian 2020

CEOs Overconfidence can bring potentially risky early decisions to businesses,


along with large enterprise free cash flow that can bring different investment
decisions with CEOs Overconfidence. Especially in the context of Vietnamese
enterprises, CEOs are often influenced by behavioral psychology about
overconfidence in investment decisions (due to individual cultural characteristics as
26
well as operating financial markets also depend on many factors outside the
market).
Therefore, the authors study the impact of overconfidence and cash flow on
investment in Vietnamese to find the internal relationship between these three
factors in the financial environment in Vietnam. With 480 companies listed on the
Vietnam Stock Exchange from 2014 to 2018 (companies have continuous reports),
the regression analysis results with panel data (FEM, GLS models, correction of
robust and GMM dealing with endogenous problems) have shown Overconfidence
has a positive impact on investment. At the same time, the results also indicated that
enterprises with overconfident CEOs and large cash flows tend to invest less than
enterprises with low cash flow.
The results of this study have shown the behavioral behavior of CEOs in
Vietnamese enterprises that exist under both prospect theory and effective market
theory.

36. R Myšková, P Hájek - Journal of International Studies, volume 10, 2017

Indicators of financial performance, especially financial ratio analysis, have become


important financial decision-support information used by firm management and other
stakeholders to assess financial stability and growth potential. However, additional
information may be hidden in management communication. The article deals with
the analysis of the annual reports of U.S. firms from both points of view, a financial
one based on a set of financial ratios, and a linguistic one based on the analysis of
other information presented by firms in their annual reports.
Spearman correlation coefficient is used to compare the values of financial and
linguistic indicators. For the purpose of the comprehensive assessment, novel word
lists are proposed, specifically designed for each category of financial analysis. The
aim is to assess the information ability of annual reports and whether successful
firms present their results precisely or not. The results show that the proposed topic
dictionaries can be beneficial, especially for the assessment of cash flow and
leverage ratios.

37. Z Novak Pintarič, Z Kravanja - Journal of Sustainable Development of 2017

This study illustrates how to properly apply the discounted cash flow methodology
when assessing and planning energy and chemical manufacturing facilities. These
procedures typically correspond to lengthy, capital-intensive undertakings. Simple
economic criteria, such as profit or production cost, are inappropriate for this form of
decision-making because they undervalue the viability of the analysed plants and do
not account for the time value of money.

27
This study demonstrates how some of the criteria based on discounted cash flows
provide acceptable trade-offs between profitability and long-term cash flow
generation. It is demonstrated how to appropriately rank mutually exclusive
alternatives and how to choose the best option from them because multiple
alternative possibilities are typically reviewed in concurrently.

38. A Afiezan, G Wijaya, C Claudia -International Research 2020

In the current economic development, manufacturing companies are required to be


able to compete in the industrial world. Manufacturing companies need to invest to
increase the company's business capital. To invest, various kinds of information
about the issuer are needed, both company performance information in the form of
financial statements or other relevant information. The economic development of a
country can be measured in many ways, one of which is by knowing the level of
world capital market development. (Angelia and Toni, 2020).
The manufacturing industry plays a very important and strategic role in contributing
Gross Domestic Product (GDP) to the national economy and labor absorption. This
study is aimed atanalyzing factors influencing labor absorption of themanufacturing
industry. (Pramusinto and Daerobi, 2020). The fact of the misuse of debt can also be
seen from a company that has been established since 1919, namely Nyonya
Meneer having to accept the fact that the company was declared bankrupt because
it failed to pay its debt to creditors amounting to 7 billion.

39. N Burgess - Available at SSRN 3851351, 2021

In this paper we outline how to value private companies and work through a real
case study. The corporate finance and valuation techniques on display can be used
to value any private company or project that is illiquid with little or no market data.
Together with this paper we provide the full background information for the case
study, including consolidated balance sheet, cash flow and income statements and
an Excel workbook with a full valuation breakdown.

Two valuation approaches are presented. The first approach is called ‘multiples’ and
requires we first identify sensible comparable companies with public data and can
serve as a reasonable proxy for our underlying firm or project. Known proxy
enterprise values are converted into multiples of EBITDA and extrapolated to value
the private company or project of interest.
Enterprise value can be measured as a multiple of sales, earnings, EBITDA, EBIAT
and many income factors. Typically practitioners measure enterprise value as a
multiple of EBITDA to exclude sales margin, capital structure, debt and leverage and
other idiosyncratic biases.

40. E Adu‐Ameyaw, A Danso, M Uddin Journal of Finance 2022

28
In this study, we examine whether investments in fixed (identifiable) intangible
assets and tangible assets are sensitive to cash flow and the extent to which this
sensitivity differs for firms with different levels of financial constraints. Using both UK
private and public firms' data, our overall analysis shows strong positive (negative)
effects of cash flow on intangible assets (tangible assets) investments.
When we split the data on the basis of listing status, we observe that cash flow is
positively (negatively) and significantly related to intangible assets (tangible assets)
investments for private firms but not so for public firms. In addition, we further
observe that both public and private firms' investments follow a similar pattern when
we split our data based on the availability of internal funds.
Moreover, we also find that the sensitivity of investment (identifiable intangible
assets) to cash flow is higher for young and large private firms but lower for small
and old ones. Our results remain similar to other econometric specifications, which
account for possible endogeneity issues.

41. Frankalin (2018)

he has completed and proved through studies that for the results of increment in the
functional cashflow the main reason will be day by day spreading capital diminution.
Especially if any diminution in current assets and hike in the current debit will finally
give rise in the cash flow from the operations.
Franklin further noticed that there will be an appreciable diminution in capita1 and all
of manager intentions to encourage from specific margin for the purpose of
functional cashflows. So the manager will aims at diminishing the spreading of the
capital in resect to utilize for fulfilling the appropriate targets of the functional
cashflow.
With this it can also be notified that if there are any of contractual encouragement
made for the purpose of alteration of accounts of a firm and the statement shows
that governing body of cashf1ow is more in common companies. In finding
allowance contracts for managers and their encouragements can be got in the
subject of “Circulating capital”.

42. Lazarides (2019)


He provided that if possibility of investing with a higher sum of amount will be
increasing with availability of money in surplus sum. We can see a number of
executions which could be engaged for paradigm of money, as a ligament transfer,
Automative Clearing House (ACH), conveyance and assessment. Trade can be
carried on between two factors value and period.

43. Eljely (2019)

29
He constituted a credit entry index with a loaner in a way for managing the flow of
money and for preventing disadvantages. Many of the firms have built an index of
covering of credit in those periods when sales event is falling shortened or
disbursement will be running higher. For the utility of producing an extra liquidity and
management of money for which they are necessary during a down month they
could be used for short period loan.

44. Kimabowa (2020)


He noted that the organizational profitability has been affected by the factors such
as cost of input, management of cashflows, government policy and borrowing
culture. If the school relies more on loans, costs such as interest rates will not be
prevented and this has a unsupportive result on the profitable condition of a firm

45. Ker Dunkan Euromoney (2019)


in correspondent banking is the provision by the banking of the service such as the
payment of cash management and trade finance to the customers via other banks
has being the primary channel for the purpose of delivery of cross border service for
many years.

46. Johnson (2019)


He has found as it is crucial to differentiate betwixt management of a true cash and
much generic topic of a liquidity managing. The differentiation will become a
reference for creation misleads as a term cash is used in dual antithetic terms.
Firstly its having a literal meaning that is actual cash in hand. Sometimes the
financial manager generally used the word cash to elaborate the possession of a
firms cash on its saleable instruments.
By creating distinction between liquidity management and management of a cash is
directly will be an addition to a liquidities management business an optimum
measure of a liquid asset associate contract. Managing of a cash is intimately
affiliated for the purpose of optimization mechanisms for collection and distribution of
cash and it is the subject that we are focusing primarily.

47. Pandey (2020)


According to him Cash is nothing but the money that a company used to pay by not
having whatsoever restrictions. The terms coin, currency and cheque can also be
termed as a cash. These are clenched by a firm and excess of a remaining balances
of money would be deposited into a bank account opened by a firm.

30
Sometimes cash can be also termed as close money units for example saleable
bonds and time deposits made into a bank. Pandey further noted that management
of a cash is involved with managing the flows of cash inside of a firm and outside of
a firm, cashflows inside a business unit and cash scale lent by company at a period
of supporting of financing of shortfall of excess cash balance.

48. Asahari (2021)

at the singapores stock exchange organization by conducting an investigation under


an efficient elements of managing of profits among all of the recognized business
units he has analyzed that applicable any of the applicatory element of how to
manage the profit arises from the activities of a firm.
The investigation conducted by him primarily considers 4 concepts of examining
magnitude difference, gainfulness, manufacturing unit and nationality of
management of earnings. The results which got lastly from above quoted concepts
will eventually displays high level of management of income will be relevant for all
those firms which have less profit margin. Finally it can be known that the effects of
manufacturing units and much involvement of a firm with higher risks in cause. The
status of nationality has an effectual on managing of income but magnitude of a
company will not make impression on it.

49. Milton & Scand (2019)


He made a research and finally investigated a affirmative betwixt day to day
variation in functional cashflows by taking into the consideration statement of 3
month period and also he took various scales of supply of a financial needs from
some of a overseas countries including the debit prices. This will be a mark of this
truth that if there is a high variations in cashflow which will directly affect on high
debit prices of a firm. They also displays that if a firm is dealing with low value of
variations will drive a high debit prices for an institution. They shown that the firms
having lower operational cashflow would aims at a high cash flow alterations.
Results of an crucial factor for an capitalist will be frequency of the cashflows and
and the interactions between the cashflows and the further fluctuations.

50. Jiyang (2017)


He provided some proofs for finding the positively operational cash flows and
obtaining of their approximation and applicable dividends and money contents for a
companies which may implement cash flows management. He discovered that a
non-deviant portions of a cash flow having a lesser rigid status in the 28 ground of
literary study record about functional cash flow. This will become a conformation
non-rigid management of a functional cash flow with a lower quality.

31
2.2 Theoretical background and review
Cash Flows Statement
The statement of cash flows, also known as a cash flows statement, is one of the
financial documents that provides a clear picture of how changes to the balance
sheet account and gains affect cash and cash equals. The statement will divide the
analysis into three main categories: operating, investing, and financing activities.
This claim is made in reference to or concerned with the movement of money within
and outside of the company. The statement will include the current operating results
as well as any changes to the balance sheet. The statement is highly helpful in
determining the company's short-term viability and, peculiarly, its ability to pay.

Persons and units who are curious about cash flows statement are:
1. Latent borrowers or creditors are those who are interested in learning
about a company's ability to pay back its obligations.

2. The reporting staff is responsible for examining the company's capacity


to manage its paysheet and any other related disbursement.

3. Bridge players or prospective employees are the ones who are most
interested in learning whether a company can pay commissions on
schedule.

4. Prospective investors are those who carefully consider whether a


company is financially sound or not.

5. Stakeholders or stockholders of the firm

Previously known as a flows of funds statement, a statement is now known as a


cash flows statement. This assertion reflects the firm's liquidity position in its purest
form. The cash flows statement can be seen of as a clear representation of the
types of financial innovation that an induces at a particular point in time, whereas the
financial gains statement elaborates a firm's financial transactions over a
predetermined period of time. The accumulative basis of accounting, which is
employed in a company to equate the item that creates the income to the total
income, is indicated by cash flow statements and the income argument.

Cash flows statements take into account the inflow and outflow of the value of cash
and cash equals, and they will exclude any transactions that do not immediately
affect the amount received and all of the payments made. A cash ground

32
examination of three 18 types of activity (operation, financial, and investment), as
well as non-cash activity, is what a cash flows statement is.

Cash Flows Activity:


Cash flows statement is mainly divided into three main activities
1. Cash flows resulting from the operating activity.
2. Cash flows resulting from the investing activity.
3. Cash flows resulting from the financing activity.

Operating Activity:
This comprises displaying, marketing, and transferring the company's products, as
well as collecting customer money. Transporting the product, purchasing raw
materials, creating an inventory, and publicity are all part of the operating activity.

Under International Accounting Standard operating activity of cash flow


Statement having the following items:
1. Interest which is accepted on loan.
2. Paid to workers or paid on lieu of workers.
3. Received for the purpose of selling of loan, debt or equity instruments in a trade
listings.
4. Purchasing of goods.
5. Paid to the distributors of goods and services.
6. Payments of interest.

Items which are added back to the net income figure to arrive at cash flows from
operating activities basically includes the following items:
1. Depreciation.
2. Postponed tax.
3. Amortization.
4. Any profit or loss connected with the selling of a non-current assets related cash
flow does not belong to an operative segment.
5.Dividend accepted.

33
Investing Activities:

Examples for the investing activity are:


1. Payment made for the purpose of merger and acquisition.
2. Loans made to providers or took from the clients.
3. Buying or selling of an asset.

Financing Activity:
The capital that businesses raise for their transactions and external expansion
constitute all financing activity. This activity excludes financing for the company's
internal operations. The parties who are eager in learning how the firm is spending
its current cash effectively and how successfully a firm can raise funds for its
impending proceedings are all investors and the firms' creditors. The financing
activities part of the cash flows statement helps accurately determine the firm's
liquidity.

Financing activities includes following items:


1. Nett borrowing.
2. Repayment of the debt principal amount including the capital leases.
3. Dividend payment.
4. Selling or repurchasing the stocks of the firm.

Preparation modes of the cash flow statement


The cash flows statement can be prepared in a direct manner, which makes it very
simple to interpret. However, Financial Accounting Standards 95 requires a
subsidiary statement to indirect mode if a firm chooses to construct cash flow
statement in this manner, despite the fact that indirect mode will be widely utilised
throughout the world.

Direct Mode
Major classes of gross cash receipts and payments are reported using the direct
approach for constructing a cash flow statement. Dividends may be recorded under
operating activities or investing activities under IAS 7.
The taxes paid are recorded under operating activities if they are directly related to
such operations. Taxes that are aimed at financing or operating activities are
34
described as funding or 20 investing activities. International Financial Reporting
Standards (IFRS) are different from generally accepted accounting principles
(GAAP).
Dividends obtained from an organization's investing activities are classified as an
operating activity, not an investing activity, under GAAP regulations.

Sample format of the cash flow statement with the help of direct method.

Cash flow from the operating activity


Cash received from the client XXXX
Cash payment to provider and worker XXXX
Cash made from from the dealing (total) XXXX
Interest payments XXXX
IT payment XXXX
Nett cash flow from the operating activity XXXX
Cash flow from the investing activity
Returns from the selling of an equipment XXXX
Dividend accepted XXXX
Net cash flow from the investing activity XXXX
Cash flows from the financing activity
Dividend payment XXXX
Net cash flow from the financing activity XXXX

Nett addition in cash and cash equals XXXX


Cash and cash equals, opening of the year XXXX
Cash and cash equals, end of the year XXXX

Indirect Mode
Using net gain as a starting point, the indirect mode makes improvements for all of
the carry outs from the non-cash based trading. Gain from the asset account is
deducted from the net gain, and the increase in the susceptibility account is added
back to the net gain. By applying a series of additions and subtractions, an indirect
method tries to turn the accumulation basis of net gain into cash flows.

35
Sample format of the cash flow statement with the help of indirect mode.

XYZ co. Limited. Cash Flow


Statement
31st March
Period ending 2015 2016 2017
Net income xxxx xxxx xxxx
Operating activities, cash flow provided by or used in:
Diminution or reduction xxx xxx xxx
Corrections for net gain xxx xxx xxx
Lessening (addition) in accounts receivables xxx xxx xxx
Gain (lessening) in liabilities (A/P, tax has to be paid) xxx xxx xxx
Drop-off (addition) in stock xxx xxx xxx
Growth (decrement) in other operating activity xxx xxx xxx
Net cash flows from the operating activity xxx xxx xxx
Investing activity, cash flow provided or used
Capital outlay xxx xxx xxx
investments xxx xxx xxx
Other cash flow from the investing activity xxx xxx xxx
Nett cash flow from the investing activity xxx xxx xxx
Financing activities, cash flow provided by or used in
Dividends remunerated xxx xxx xxx
Sales event (repurchase) of inventory xxx xxx xxx
Growth (decrement) in obligation xxx xxx xxx
Cash flow from the financing activity xxx xxx xxx
Nett cash flow from financing activity xxx xxx xxx
Effect on exchange rates change xxx xxx xxx
Net growth (decrease) in cash and cash equals xxx xxx xxx

Cash flow management needs to carry out three important classic tasks:
1. Monitor cash position: current income and expenditure assessment.
2. Management of cash balances: cash has turned to regional areas where a deficit
area and investment of excess cash surplus from profit making activities.
3. Interest rate risk management practices and communication mobility

36
CASH MANAGEMENT CYCLE:

Cash
Collectio
n
Business
Defici Borro
Operatio t w

ns

Surplu Inves
s t
Information
And Control

Cash
Payment
s

Importance of Statement of cash flows:


1. An organisation can learn about the operating activities, or the net difference
between the net cash flow, through the cash flow statement.
2. Through its expanded operating activities, it assists the organisation in arranging
additional funding for the company.
3. It helps the firm to find-out if there is any requirement of financial assistance from
outside.
4. It helps to know the strength and weakness of the company.
5. It will reveal the size and sector in which the cash flow of the business with
reference to different speeds.

37
CHAPTER-3
RESEARCH DESIGN

38
3.1 INTRODUCTION
The project is entitled as “A study on cash flow analysis at Tube Investments India
Limited”. As this is a Company Based Finance project secondary data of the company
that is available in the company’s website is used. The 5 Years balance sheet of the
company is being used for this project.

3.2 RESEARCH DESIGN


The study will be descriptive type with a quantitative approach is employed for the
analysis of the data collected.
Data sources and Sampling design:
To achieve the objective of Cash Flow analysis, data of Tube Investment India Limited
have been gathered.

3.3 SOURCE OF DATA


Research methodological analysis applied for the purpose of studying the theme is
mainly of two types

1. Primary
2. Secondary

PRIMARY:
1. In primary content we will use a fresh form of records which has been used for
first time use and it indicates Germinal records of an institution.
2. In this project the primary data has been taken from the staffs of Tube Investment
India Limited and guide of the project.
3. Information will be collected with the help of auditor of the firm.
4. Observation method was has been used for understanding various tools used in
Logistic Management and their features.

39
SEC0NDARY:
The secondary contents will be majorly interpreted from various web site, publication,
periodical, etc.

3.4 TOOLS FOR THE STUDY


The cash inflows and outflows within a given period are shown on the cash flow
statement, which aids in determining the sources and uses of cash.
Total cash flow = Cash from Operations + Cash from investing + Cash from Financing

3.5 PERIOD OF STUDY


The project is completed within the time span of 10-12 weeks of study and also with the
help of employees at Tube Investments India.

40
CHAPTER 4
ANALYSIS AND
INTERPRETATION

41
4.1 Data Analysis and Interpretation:

4.1.1 Table indicating cash flow from operating activities to total cash
flow

YEAR CASH FLOW TOTAL CASH PERCENTAGE


FLOW

2018 347.41 774.18 44.87

2019 411.18 800.4 51.37

2020 527.72 994.67 53.05

2021 664.77 1996.38 33.24

2022 325.82 657.87 49.52

INTREPRATION:
From the above table and chart it is understood that the cash flow from operating
activities of the firm is less in the year ending 31st March 2021 with 33.29%.
Cash flow of 664.77 cr and total cash flow 1996.38 cr. the cash flow from
operating activities is more for the year ending 31st March 2020 cash flow is
527.72 Cr cash flow and total cash flow 9 94.67 with 53.05%.

42
4.1.1 Chart indicating cash flow from operating activities to total cash
flow

Cash from operating


300 activities
0

250
0

200
0

150
0

100
0

50
0

0
201 201 202 202 202
8 9 0 1 2
Cash Total Cash
Flow Flow

Inference:
The cash flow and total cash flow from operations in high in the year 2021

43
4.1.2 Table indicating cash flow from investing activities to total cash
flow

YEAR CASH FLOW TOTAL CASH PERCENTAGE


FLOW

2018 127.66 774.18 16.48

2019 134.44 800.34 16.79

2020 217.54 994.67 21.87

2021 1005.51 1996.38 50.36

2022 290.40 657.87 44.14

INTERPRETATION:
From the book table and chart it is understood that the cash flow from investing
activities of the firm is less in the year ending 31st March 2028 with 16.48% and
Cash flow of 127.66 cr and total cash flow of 774.18 cr. the cash flow from investing
activities is more for the year ending 31st March 2020 is 1005.51 Cr cash flow and
total cash flow 1996.38 with 50.36%.

44
4.1.2 Chart indicating cash flow from investing activities to total cash
flow.

Cash from Investing


350 Activities
0

300
0

250
0

200
0

150
0
201 201 202 202 202
100 8 9 0 1 2
0 Cash Total Cash
Fow Flow

50
0

Inference:
The cash flow and total cash flow from investing in high in the year 2021

45
4.1.3 Table indicating cash flow from financial activities to total cash
flow

YEAR CASH FLOW TOTAL CASH PERCENTAGE


FLOW

2018 299.11 774.18 38.64

2019 254.72 800.34 31.82

2020 249.41 994.67 25.07

2021 326.10 1996.38 16.33

2022 41.65 657.87 6.33

INTERPRETATION:
From about table and chart it is understood that the cash flow from financial activities
is less in the year ended 31st March 2022 with 6.33%. The cash flow is 41.65 cr and
total cash flow is 657.87 cr. The cash flow from financial activities is more in the year
ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and total cash flow is
873.79 cr.

46
4.1.3 Chart indicating cash flow from financial activities to total cash
flow

Cash from financial


250 activites
0

200
0

150
0

100
0

50
0

0
201 201 202 202 202
8 9 0 1 2
Cash Total Cash
flow flow

Inference:
The cash flow and total cash flow from financial activities is high in the year 2021

47
4.1.4 Table indicating cash flow from operating activities

YEAR CASH FLOW

2018 347.41

2019 411.18

2020 527.72

2021 664.72

2022 325.82

INTERPRETATION:
From about table and chart it is understood that the cash flow from financial
activities is less in the year ended 31st March 2022 with 6.33%. The cash flow is
41.65 cr and total cash flow is 657.87 cr. The cash flow from financial activities is
more in the year ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and
total cash flow is 873.79 cr.

48
4.1.4 Chart indicating cash flow from operating activities

Cash flow from operating activities

2018 2019 2020 2021 2022

Inference:
The cash flow from operating activities is high in the year 2021 with 29%.

49
4.1.5 Table indicating cash flow from investing activities

YEAR CASH FLOW

2018 127.66

2019 134.44

2020 217.54

2021 1005.51

2022 290.40

INTERPRETATION:
From the above table and chart we can say that the cash flow is increasing from the
year 2020 March 31 and 2021 March 31. But due to covid and shut down the cash
flow from investing activities has been decreased in the year 31st March 2022.

50
4.1.5 Chart indicating cash flow from investing activities

Cash flow from Investing activities

2018 2019 2020 2021 2022

Inference:
The cash flow from investing activities is high in the year 2021 with 57%.

51
4.1.6 Table indicating cash flow from financial activities

YEAR CASH FLOW

2018 299.11

2019 254.72

2020 249.41

2021 326.10

2022 41.65

INTERPRETATION:
From the above table, we can say that the cash flow financial activity has been
decreased in the year 2019 from 2018 and further reduced by small margin in 2020
and saw a drastic increase in financial activities in the year 2021 and then there is
sudden and large decrease in the year 2022.

52
4.1.6 Chart indicating cash flow from investing activities

Cash flow from Financing activities

2018 2019 2020 2021 2022

Inference: The cash flow from financial activities is high in the year 2021 with 28%.

53
4.1.7 Table indicating alterations in net cash and cash sales

YEAR CASH FLOW

2018 79.36

2019 17.38

2020 66.05

2021 216.06

2022 101.35

INTERPRETATION:
From the about table and chart we can say that the net cash and cash equals was
80.75 in the year 2018 March 31 but decrease to 22.02 in 2019 March 31. it is again
increased in 2020 it has started to decline in 2021 and for the decrease to 6.23 in
2022.

54
4.1.7 Chart indicating alterations in net cash and cash sales

Alterations in net cash and cash sales

2018 2019 2020 2021 2022

Inference:
The alterations in net cash and net cash sales is high in the year 2021 with 28%.

55
4.1.8 Table indicating alterations in opening cash and cash equals

YEAR CASH FLOW

2018 9.57

2019 61.18

2020 39.16

2021 21.61

2022 6.97

INTERPRETATION:
In 31st March 2018 the cash and cash equals are 14.36 2019 it's a rapid increase to
61.18 and in 2020 it was reduced to 39.16 and reduced to further to 21.61 in 2021. It
saw an all time low of 6.97 in 2022.

56
4.1.8 Chart indicating alterations in opening cash and cash equals

Alterations in Opening and cash equals

2018 2019 2020 2021 2022

Inference:
The alterations in opening cash and cash equals is high in the year 2019 with 44%.

57
4.1.9 Table indicating alterations in closing cash and cash equals

YEAR CASH FLOW

2018 69.79

2019 39.16

2020 21.61

2021 6.97

2022 0.74

INTERPRETATION:
In 2018 closing cash balance is 57.08 and there is for the decline in the value 39.16
in 2019, 21.61 in 2020 and 6.97 in 2021 and further it is reduced to 0.74 in 2022.

58
4.1.9 Table indicating alterations in closing cash and cash equals

alterations in closing cash and cash equals

2018 2019 2020 2021 2022

Inference:
The alterations in closing cash and cash equals is high in the year 2022 with 50%.

59
CHAPTER 5
SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS

60
5.1 Findings:
1. From the above table and chart it is understood that the cash flow from operating
activities of the firm is less in the year ending 31st March 2021 with 33.29%. Cash flow
of 664.77 cr and total cash flow 1996.38 cr. the cash flow from operating activities is
more for the year ending 31st March 2020 cash flow is 527.72 Cr cash flow and total
cash flow 9 94.67 with 53.05%.

2. From the above table and chart it is understood that the cash flow from investing
activities of the firm is less in the year ending 31st March 2028 with 16.48% and Cash
flow of 127.66 cr and total cash flow of 774.18 cr. the cash flow from investing activities
is more for the year ending 31st March 2020 is 1005.51 Cr cash flow and total cash flow
1996.38 with 50.36%.

3. From above table and chart it is understood that the cash flow from financial activities
is less in the year ended 31st March 2022 with 6.33%. The cash flow is 41.65 cr and
total cash flow is 657.87 cr. The cash flow from financial activities is more in the year
ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and total cash flow is
873.79 cr.

4. From about table and chart it is understood that the cash flow from financial activities
is less in the year ended 31st March 2022 with 6.33%. The cash flow is 41.65 cr and
total cash flow is 657.87 cr. The cash flow from financial activities is more in the year
ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and total cash flow is
873.79 cr.

5. From the above table and chart we can say that the cash flow is increasing from the
year 2020 March 31 and 2021 March 31. But due to covid and shut down the cash flow
from investing activities has been decreased in the year 31st March 2022.

6. From above table we can say that the cash flow financial activity has been decreased
in the year 2019 from 2018 and further reduced by small margin in 2020 and saw a
drastic increase in financial activities in the year 2021 and then there is sudden and
large decrease in the year 2022.

7. From the about table and chart we can say that the net cash and cash equals was
80.75 in the year 2018 March 31 but decrease to 22.02 in 2019 March 31. it is again
increased in 2020 it has started to decline in 2021 and for the decrease to 6.23 in 2022.

61
8. In 31st March 2018 the cash and cash equals are 14.36 2019 it's a rapid increase to
61.18 and in 2020 it was reduced to 39.16 and reduced to further to 21.61 in 2021. It
saw an all time low of 6.97 in 2022.

9. In 2018 closing cash balance is 57.08 and there is for the decline in the value 39.16
in 2019, 21.61 in 2020 and 6.97 in 2021 and further it is reduced to 0.74 in 2022.

5.2 Suggestions
As I found that the companies financial position is very good, but I found some areas
during my analysis which gives a sharp alarm for the firm to have an effective cash
management.

- In order to increase efficiency in the delivery of services and, in turn, increase profit, I
advise the company to develop and implement an effective management strategy.

- For the increase of profit the firm must make an alternative plans.

- The company must diverge its plan into other areas such as EV’s etc.

- The firm should make market research at an regular intervals which could help the firm
in increasing the demand for the sales and services.

- It would be suggested to the firm to replace the fixed assets with the new and modern
and improved technology which helps in reducing the idle capacity and increase the
overall stability and which would help in earning high returns.

- The firm should try to decrease its liability through payback of all the debts which will
results in high interest payment.

- The company should implement innovative advertising strategies to promote its sales
and enhance its reach.

62
- The firm should form a research and development department to update with the
recent trends in global competitive market.

- It is suggested to the firm to increase its fleet to give equal competition to its
competitors.

5.3 Conclusion:
The process of managing financial risk has been going on for a while.

It is necessary to develop and improve new strategies in order to transform the market.

Changes in consumer expectations, charges in the corporate environment, or potential


changes in the global environment can all be considered as reflections of refinement.
In general way the following will summarize the process.
> Prioritizing and identifying the key financial risks.
> Appropriate level of risk tolerance should be determined.
> In accordance with the policy the risk management strategy should be implemented.

63
REFERENCES
1. Jiang, John Xuefeng. “Beating Earnings Benchmarks and the Cost of
Debt.” The Accounting Review, vol. 83, no. 2, 2008, pp. 377–416. JSTOR,
http://www.jstor.org/stable/30245362.

2. Thierry Chopin, Albert G. J. Tacon. (2021) Importance of Seaweeds and


Extractive Species in Global Aquaculture Production. Reviews in Fisheries
Science & Aquaculture 29:2, pages 139-148.

3. Yousef Ghiami,An analysis on production and inventory models with


discounted cash-flows,Omega,Volume 117,2023,102847,ISSN 0305-
0483,https://doi.org/10.1016/j.omega.2023.102847.

4. Construction Cash Flow Risk Index by Hasan Mahmoud 1,2,Vian Ahmed


1,2 and Salwa Beheiry 1,2, and Mr. J. Risk Financial Manag. 2021, 14(6),
269

5. Kumar Duari N, Nowaj S, George Varghese J. Inventory Policies for


Deteriorating Items with Maximum Lifetime under Downstream Partial
Trade Credits to Credit-Risk Customers by Discounted Cash Flow Analysis
[Internet]. Application of Decision Science in Business and Management.
IntechOpen;2020.Availablefrom:http://dx.doi.org/10.5772/intechopen.9068
9

6. Samet, M. and Jarboui, A. (2017), "CSR, agency costs and investment-cash


flow sensitivity: a mediated moderation analysis", Managerial Finance, Vol.
43 No. 3, pp. 299-312.

7. Prasanta Kumar Ghosh, Amalesh Kumar Manna, Jayanta Kumar Dey,


Samarjit Kar. (2022) An EOQ model with backordering for perishable items
under multiple advanced and delayed payments policies. Journal of
Management Analytics 9:3, pages 403-434.

8. Gordon, E.A., Henry, E., Jorgensen, B.N. et al. Flexibility in cash-flow


classification under IFRS: determinants and consequences. Rev Account
Stud 22, 839–872 (2017).

9. Pavlović, M., Gligorić, Č. and Cvijić-Rodić, J. (2021) 'Methodology of cash


flows analysis', Ekonomski signali: poslovni magazin, 16(1), pp. 27-47.
doi:10.5937/ekonsig2101027P.

64
10. Kumar Duari, Nirmal, et al. ‘Inventory Policies for Deteriorating Items
with Maximum Lifetime under Downstream Partial Trade Credits to Credit-
Risk Customers by Discounted Cash Flow Analysis’. Application of Decision
Science in Business and Management, IntechOpen, 4 Mar. 2020. Crossref,
doi:10.5772/intechopen.90689.

1. https://tiindia.com/
2. https://tiindia.com/financial-information/
3. https://en.wikipedia.org/wiki/Tube_Investments_of_India_Limited
4. https://www.encyclopedia.com/history/encyclopedias-almanacs-
transcripts-and-maps/engineering-industry

5. https://www.murugappa.com/engineering/
6. https://www.tubeproductsindia.com/

7. https://www.lendingtree.com/business/cash-flow-analysis/

8. https://www.extension.iastate.edu/agdm/wholefarm/html/c3-14.html
9. https://corporatefinanceinstitute.com/resources/accounting/stateme
nt-of-cash-flows/

10. https://www.moneycontrol.com/india/stockpricequote/auto-
ancillaries/tubeinvestmentsindialtd/TIIND54076

11. https://www.wallstreetmojo.com/cash-flow-analysis/

12. https://www.sciencedirect.com/science/article/abs/pii/S092552
7317302724

13. https://www.sciencedirect.com/science/article/abs/pii/S092552
7319301689

14. https://www.tandfonline.com/doi/abs/10.1080/13657305.2019.16
41572

65
ANNEXURE
BALANCE SHEET
Cash flow statement for the year ended 31-Mar-2018

66
67
Cash flow statement for the year ended 31-Mar-2019

68
69
Cash flow statement for the year ended for the year ended 31-Mar-
2020

70
71
Cash flow Statement for the year ended 31-Mar-2021

72
73
Cash flow statement for the year ended 31-Mar-22

74
75
76

You might also like