A STUDY ON FUNDS FLOW AT FOOD FATS AND FERTILISERS LIMITED, TADEPALLIGUDEM.

A Project Report submitted to Jawaharlal Nehru Technological University, Kakinada, in Partial Fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

Mr. S. RAJA SEKHAR

(Reg. No. 10JD1E0029)

Under the Guidance of

Mr. KJNV. NARASA REDDY, M.B.A (Ph.D.)
Head of the Department

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION ELURU COLLEGE OF ENGINEERING & TECHNOLOGY (Affiliated to JNTU, Kakinada and Approved by AICTE) Duggirala(V), Pedavegi(M) ELURU 534004.

DECLARATION

I hereby declare that the Project Report entitled FUNDS FLOW STATEMENT FOOD FATS AND FERTILISERS LIMITED, TADEPALLIGUDEM submitted by me under the guidance of Mr. KJNV. NARASA REDDY, Head of the Department of MBA, ECET, ELURU, Affiliated to JNTU, Kakinada, is my original work and it has not been Submitted to any University or Institute for the award of any Degree or Diploma.

Place: Date:

Mr. S. RAJA SEKHAR (Reg.No. 10JD1E0029)

ELURU COLLEGE OF ENGINEERING & TECHNOLOGY

(Affiliated to JNTU, Kakinada and Approved by AICTE) Duggirala (V), Pedavegi (M) ELURU 534004

CERTIFICATE
This is to certify that the Project Report FUNDS FLOW STATEMENT FOOD FATS AND FERTILISERS LIMITED, TADEPALLIGUDEM, is a confide work done by Mr. S. RAJA SEKHAR, (Reg. No.10JD1E0029) as part of M.B.A., IV-Semester curricular activity of Jawaharlal Nehru Technological University, Kakinada, under my supervision. The data has been collected by the candidate from authentic sources and the analysis results will be used for academic purpose only.

Mr. KJNV.NARASA REDDY GUIDE

Mr. KJNV.NARASA REDDY HEAD OF THE DEPARTMENT OF MBA

PRINCIPAL

EXAMINER

ACKNOWLEDGEMENT
It is inevitable that thoughts and ideas of other people drift into the subconscious when one feels to acknowledge the help derived from other. I am grateful to Sri V.RAMA KRISHNA secretary and Sri Dr. P.BALA KRISHNA PRASAD M.Tech, PhD, Honorable Principal, ELURU COLLEGE OF ENGINEERING & TECHNOLOGY ELURU, for their blessings and encouragement throughout my course of study. I express my sincere gratitude and thanks to Sri KJNV. NARASA REDDY, Head Of The Department, Sri KJNV. NARASA REDDY, project guide, and the faculty members in Department of Management Studies, ELURU COLLEGE OF ENGINEERING & TECHNOLOGY, ELURU, for their encouragement, continuous support and timely suggestions. I express my thanks to the PG Librarian and other Library staff for their cooperation. I thank the administrative staff of ELURU COLLEGE OF ENGINEERING & TECHNOLOGY, and computer operator, Department of Management Studies, for their services. I am also thankful to Computer technician, who helped me in producing the work in a neat manner. I would like to thank all those who helped me at several stages of completion of this work. I would like to express my special gratitude to Sri P. GOPALA KRISHNA REDDY G.M. (HR & ADMIN) and other all the staff members of FOOD FATS AND FERTILISERS LIMITED, TADEPALLIGUDEM. For their help and guidance throughout the period of the project study was held.

(S. RAJA SEKHAR)

CONTENTS
CHAPTER 1 INTRODUCTION CHAPTER 2 INDUSTRY PROFILE CHAPTER 3 COMPANY PROFILE CHAPTER 4 THEORETICAL FRAME WORK CHAPTER5 DATA INTERPETATION CHAPTER 6 FINDINGS, SUGGESTIONS & CONCLUSION History Industry segmentation Key success factor SWOT analysis Need for the study Objectives of the study Methodology Limitations

BIBLIOGRAPHY

CHAPTER-I
INTRODUCTION

INTRODUCTION
Financial management is an important function in any organization. Every enterprise, whether big, medium or small needs finance to carry on its operations and to achieve its targets. Finance is so indispensable today that it is rightly said that it is the life blood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its objectives. Capital required for a business can be classified under two main categories namely fixed capital and working capital. Fixed capital stands for that amount of capital which is required for long term and to create production facilities through purchase of fixed assets such as plant, machinery, land and buildings. Working capital refers to that part of the firms capital which is needed for financing short term or current assets such as cash, marketable securities, debtors and inventories. Working capital in brief, is the amount of funds necessary to cover the cost of operating the enterprise. Just as circulation of blood is essential in the human body for maintaining life of a person, working capital is very essential to maintain the smooth running of a business. Today, the financial manager gives greater importance to management decision-making and policy. Today, the financial manager is not in a passive role of a store keeper of the accounting information and arranging funds, whenever directed to do so. Rather, he occupies a key role in solving the complex management problems. He now responsible for shaping the fortunes of the enterprise and is involved in the most vital management decision of allocation of resources.

FUNCTIONS OF FINANCIAL MANAGER

Investment or long term asset- mix decision. Financing or capital- mix decision. Dividend or profit allocation decision. Liquidity or shot term asset-mix decision.

Investment Decision:
Investment a decision of allocation of capital budgeting involves the decision of allocation of capital or commitment of funds to long-term assets that would yield benefits in the future. Two important aspects of the investment decisions are, a. The evaluation of the prospective profitability of new investment. b. The measurement of cut-off rates against the prospective return of new investments. There is a broad agreement that the correct cut-off is the required rate of return or the opportunity cost of capital. However, there are problems in competing the opportunity cost of capital in practice from the available data and information.

FINANCING DECISION
Financing decision is the second important function to be performed by the financial manager. Broadly, he or she must decide when, where and how to acquire funds to meet the firms investment needs. The central issue before him or her is to determine the proportion of equity that is the firms capital structure. The financial manager must strive to obtain to best financing mix or the optimum capital structure for his or firm.

DIVIDEND DECISION
Dividend decision is the third major financial decision. The financial manager must decide whether the firm should distribute all profits or retain them, or distribute a portion and retain the balance. Like the debt policy, the dividend policy should be determined in terms of its impact on yhr share holders value.

LIQUIDITY DECISION:
Current assets manager that affects a firms liquidity is yet another important financial function, in addition to the management of long term assets. Current assets to be managed efficiently for safeguarding the firm against the dangers of liquidity and risk.

FUNDS FLOW STATEMENT

The term Flow means change and therefore, The term Flow of Funds means Change in Funds or Change in working capital. In other words any increase or decrease in Working Capital means, Flow of Funds.

Concept of Funds Flow statement:

According to the International Accounting Standards 7 on Statement of changes in financial position also recognize the absence of single, generally accepted, definition of the term. Funds Flow statement is a summary from that indicates changes in items of financial position between two different balance sheets dates showing clearly the difference sources and applications of funds. as distinguished from operating management. The major purpose of the funds Its summarizes the financing and statements is to provide a detailed presentation to the result of financial management investing activities of the enterprise. The statement shows directly information that readers of the financial report could otherwise obtain only the making an analysis and interpretation of published balance sheets and statements of incomes and retained earnings. Balance sheets are statements of financial position. Whereas funds flow statement are obviously statements of changes in financial position. Balance sheets show the status of a day in contrast, funds statement income statement and statement of retained earnings over period of time they provided the explanation of why the balance sheet items have changed. The conversational financial statements show mostly the position of accounting, rather than the financial condition of the business interims of flow of funds. However, since all financial events are reflected in the conventional statements, it becomes easy to unearth unusual trends and promotions by the use of the analytical methods like the funds flow statements.

The Funds Flow statement is widely used by the financial analyst credit granting institutions and financial managers in performance of their jobs. It has become a useful tool in their analytical kit. This is because the financial statements i.e., Income Statements and the Balance Sheets have a limited role to perform. Income Statement measures flow restricted to transactions that pertain to rendering of goods are services to customers. The balance sheet consists of assets and liabilities as on particular date. It doesnt shortly focus those major financial transaction which have been behind the balance sheets changes. One has to draw inferences from the balance sheet about major financial transaction only after comparing the balance sheet of two periods.

NEED OF THE STUDY

Financial Statements: - Financial Statements are the summary of transactions
conducted during an accounting period in a business. Financial statements are broadly classified into four types. 1. Position statement-Balance sheet 2. Income statement-Profit & Loss A/c 3. Statement of retained earnings-Profit & Loss Appropriation A/c 4. Statement of changes in financial position-cash flow & Funds Flow statement. 1. Analysis of financial statement-Financial statement analysis may be classified into different categories depending upon A. On the basis of material used,& B. On the basis of the method of operation fallowed in the analysis. A. On the basis of material used:-On the basis of material used analysis of financial statement is of two types. (i) (ii) External analysis Internal analysis.

(i)External analysis:-External analysis is conducted by outside interested parties based upon audited financial statements. (ii) Internal analysis:-It is conducted by managers with in the organizations for planning and decision making purposes

OBJECTIVES
The main objective of the study is to know the overall financial position of the Company from 2006-2011

To study the financial performance of the company To study the sources and applications to the cash To find out the financial stability of the firm To know how effectively the company is using its resources To measure the extent to which the companys using its needs through borrowing. To make an overall view on theoretical approach of cash flow and funds flow statements

METHODOLOGY
SOURCES OF DATA:
The data that is necessary for doing this project is collected through the two types of data. 1. Primary data 2. Secondary data

PRIMARY DATA:
The primary data is collected through discussions with Financial Managers and General Manager of the company.

SECONDARY DATA:
The secondary data is collected through Company Annual Reports, Brochuresand Manuals. The primary and secondary data thus collected is used to know about the company, how to interpret the flow of Cash & Funds and in order to evaluate financial performance of the company.

LIMITATIONS
The study is based on accounting information. The analysis is made from the information given by the organization . The study was conducted with limited data available and analysis was done accordingly The complexity and confidentiality of various operation is also a limitation to this study. The time given to complete this project is very limited, for a period of 42days.

CHAPTER-II

INDUSTRY PROFILE

INDUSTRY PROFILE
PROFILE OF THE OIL INDUSTRY:
The power and strength of the company depends on how strong and secure it is on the food front. In trying to achieve this goal, the oil seed scenario in the country has undergone a substantial charge during the post few years. The country is moving away from a situation of scarcity and huge import bills to one of self-sufficiency and possibly even export of vegetable oils. India ranks high among the oil seeds producing countries in the world with perhaps the larges number of commercial varieties of oil seeds such as ground not, rape and mustard, sesame, kardi seed, nigerseed, soya beans, sunflower seeds, linseed, castor seed, copra, cotton seed and a number of minor seeds of tree origin oil seeds takes their place, as the second largest agricultural crop, next only to food grains. The cultivation of oil seeds in India is spread over various states with a distinct regional pattern covering about 19 to 20 million hectares, which accounts for about 11 percent of the total land under cultivation in the country. In India where fats of animal origin such as fish oil are seldom used as coking media. The term vegetable oils is used as a synonym for edible oil. However it needs to be recommended that there are, on the one hand vegetables oils such as castor, groundnut and coconut oils, which are finding increasing. Industrial applications such as in cosmetics, soap making etc edible oils are a major source of nutrition for the people in the country. Oil cakes that are byproducts of the oil extraction process are an important source of animal nutrition. They can also be processed in to protein rich edible. India has a highly developed oil based industry employing more than 15millon persons. However it remains essentially food oil. Industry accounting for a much as 83% of the total supply of vegetable oil in the country. The major non-food users of oil are soap, paint and vanish industries. Faced with major demand for their conventional products, FMCG majors have been planning their hopes on branded

staple foods to deliver rapid top line extension. Negative growth in the oils and fats business has been instruments in restraining top line growth for the FMCG.

PRODUCTS:
Broadly edible oil or fat products can be categorized as fallows. Vegetable refined oil Hydrogenated oil Bakery fats Expelled ground oil of good quality can be directly consumed. It can also be refined to have higher purity other oils such as soya has to be refined to make them edible. Vanaspathi is obtained by hydrogenation of edible oil. It is used as a suitable for ghee by some segments of sources and also for making sweets, snacks including biscuits, cakes etc

CONSUMER AWARENESS AND PENETRATION:

Among FMCG products, edible oils has one of the highest penetration of 98% in urban as well as in rural areas penetration of all these 3 cooking medium is very high at 99.8% in urban areas as well as rural areas. Vanaspathi penetration averages 17.4% at all India level, significantly higher at 28.8% in urban areas and 13% in rural areas. It is highest in medium size towns of 0.5-1mm population of 34.3% in metros and towns. In metros refined edible oil is a relatively popular cooking medium. The per capita vegetables oil consumption in the country was 7.6kg p.a in 1997-98, significantly lower than 8.5 kg p.a during 1996-97.

CONSUMER HABITS AND PRACTICES:

Edible oil is one form or other is consumed is almost every household, and Indian food habits show a strong preference for fried vegetables and several other fixed snacks. Traditionally the north and west have been milk surplus regions in the country. This has led to surplus ghee production in these areas and higher ghee consumption. The lower ends of the society which can not afford ghee consume vanaspathi. Sweet meat makers in the unorganized sector, particularly in the north represent one of the largest user segments for vanaspathi. In the south there has been abundant availability of edible oils, namely coconut oil, ground nut oil, sunflower oil etc. This had led to different consumer habits southern consumer prefer refined oil cooking medium as compared to ghee or vanaspathi. Similarly the eastern region, which is milk deficient, has preference for vegetable oil as cooking medium. There are also regional and cultural differences in the type of edible oil used for cooking. For instance Kerala uses more of coconut oil for cooking. Sesame oil is widely used in the north, mustard oil in the north and east while there is an over whelming preference for groundnut oil is in the west. Most consumers, especially in the rural areas buy edible oil in loose form. Where as in large metros loose oil is scarcely available as retailers find it difficult to handle the same. In medium sized towns, loose as well as branded oil is available. In the last few years popularity of branded oil has been increasing particularly with the introduction of low cost poly packs with the government ordering compulsory packaging of edible oil in the wake of dropsy deaths in the country due to use of adulterated mustard oil, the wage of branded oils is expected to witness phenomenal growth.

India accounts for 9.3% of world oil seed production. It has the worlds fourth largest edible oil economy. In 1999, India ranked as the worlds largest importer of edible oils, displacing china. The bulk of edible oil, India imports under the open general license is RBD palmolein of Malaysian and Indonesian origin. India is one of the worlds leading producer of oil seeds and oil, contributing to 9.3% world oil seed production. It produces the largest number of commercial varieties of oil seeds over nearly 28.4 million hectares of land. The major edible oils produced in India are ground nut, rapeseed, soya, cottonseed, sesame seed, castor seed, sunflower seed, etc. Groundnut was the most widely consumed and traded edible oil determining edible oil economics, but is now being displaced by others. India is the worlds second largest production of groundnut, next only to china. The govt. has set up a technology mission on oil seeds, to increase production of other oil seeds and oil and to reduce dependence on imports. The strategy followed was to Increase productivity with better inputs and practices Increase area under oil seed crop Encourage winter oil seed crops. This led to a sharp increase in oil seed production driven mainly by rapeseed, sunflower, castor seed and soya. India is today the worlds third largest producer of rapeseed and cottonseed and the largest producer of caster seed. India has approximately 300 edible oil refining units, 60-70% of which are in the small scale unlike the bigger refiners, the smaller one are unable to important huge quantities of crude either low capacity or lack of financial resources, and may be forced to close down or sell out to the bigger ones in the fore cable future. Another major problem is the low capacity utilization. The installed capacity of oil mills is around 36 million tones annually, but capacity utilization is only 40%

solvent extraction plants shows only 33% capacity utilization of vegetable oil refineries 40% utilization. The import of refined palm oil was put under OGC (Open general license) in March 1994. Other edible oils were put under OGC in April 1995 when an item is brought under OGC, it means that the item can be imported without seeking any approval. Originally there was no discrimination between refined and non-refined edible oil as far as import duty was concerned. The duty on both was 65% duty was then slashed to 30% for both then to 20% in 1996 and 15 % in the 1999-2000 budgets. In most parts of the world, import duty on the oil seeds is lower than that on oils. But in India, it is higher 40%. That is why no import of oil seeds (or) oil-bearing material has taken place in India. The industry wants the duty to be lowered from the present 40% to 50%. Edible oil prices in the Indian market have crashed owe to large imports by multinational trading houses. The edible oil industry is one sector in India that will see considerable reform in the foreseeable future. Major players in refined edible oils in the organizational sector are the ITC Agrotech, Marico Industries, Ahmed mills, Godrej foods. HLL and NDDB. The market is highly fragmented among various brands. Sundrop refined Sunflower oil brand with around 13l market share/ ITC Agrotechs other edible oil brands include Real Gold mustard oil, Crystal refined oil and Sudan unrefined mustard oil. Sweekar sunflower oil marketed by marica has an 8.2% share and saffola has 7.5% market share other leading edible oil brands include NDDBs Dhara rape seed oil. Godrej foods (Godrej cooklite sunflower) with 11% market share, HLLs flora with 2.5% market share (6% in sunflower oil segment) and Postman with around 8% market share.

The vanaspathi HLLs Dalda is the oldest and largest brand with close to 36% market share. Its brand extension Dalda manpasand was launched in 1996. In Feb 98, HLL launched another brand variant dalda feel light. Other major vanaspathi manufacturers are Wipro, Amrit Vanaspathi, IVP, Madhusudan industries Rasui and Pioneer Agro.

IMPORT OF EDIBLE OILS:

It has not been done away completely, but whenever import is now made is largely a measure of precaution than out of any composition from 1988-89. The edible oils import has been drastically cut down/ In 1996-97, import totaled 3 lakh tones valued at Rs 250 crores during the next 2 years it is expected around the same level. The present import is significant compared to the napping to 19.45 lakh tones imported value at Rs 969 crore in 1997-98. India has signed a memorandum of understanding with Malaysia for an annual import of two lakh tones of palm oil for two years. Besides the country is to receive 50,000 tones of soya been oil from the U.S. as a gift for meeting social objectives. Although in the context of exceptionally large oil seeds production during the current year, there is hardly and need for import, the country may avail the option to import for building a buffer stock to meet the needs of public distribution system during the lean period.

EXPORT
Export of oil mill, oil seed and minor oils and are expected to gather momentum following the enouncement regarding the full float of rupee on the trade account, according to the sources in the trade. The present export scenario shows that the trade is in a beyond mood of achieving a formidable target, with increased export earning in the current year. This basically enacts from bumper oil seeds output of 215 lakh tones in the offing. This expectation of a bumper crop, moreover has compelled the union ministry of commerce to raise the current years export target for the oil seeds from Rs 1250 crore over Rs 1300 crore.

According to the estimates made by the central coordination committee, the exports of oil mills, oil seeds and minor oils during the current year would be more than 3.3 lakh tones with a value of Rs 1362 crore as against 30 lakhs tones with the value of Rs 1043 crore achieved during the year 1996-97 the export of oil meals, oil seeds and minor oil during the period April 1996 to Jan 1998 stood at over 24 lakhs tones valued at more than Rs 1000 crores.

CUSTOMER SATISFACTION:
Satisfaction is a persons feeling of pleasure (or) disappointment resulting from comparing a products perceived performance in relation to his (or) her expectation. As this definition makes clear satisfaction is a junction of perceived performance and expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to. When a better offer comes along those who are highly satisfied are much less ready to switch. High satisfaction (or) delight creates an emotional affinity with the brand, not just a rational preference. The request is high customer loyalty.

CHAPTER-III COMPANY PROFILE

PROFILE OF THE ORGANIZATION Foods Fats and Fertilisers Limited

Foods Fats and Fertilizers Ltd., Tadepalligudem is a multinational company established in the year 1962. It is an ISO 9001-2000 and HACCP, certified company in to varied business of oil palm cultivation, manufactures of edible oil, vanaspathi and its by products, Specialty fats, Bakery Shortenings, commodities trading, garments, engineering and Power with a present annual group turnover around Rs.800 crores. This organization is professionally carrying the business activity by GOENKA family The Company is having its branches in Chennai, Mumbai, Kolkata, Baroda, Hyderabad and Kakinada and having 25 depots in major cities allover India. The Company has matured into conglomerate of 25 industrial units spread over 55 acres constantly buzzing with activity and providing employment more than 1000 persons. The wheel of fortune has turned a full circle for Mr.B.K.Goenka the architect of FFF LTD, born and brad in Burma. The Goenka family established and respected in industry and trade. The rice bran from Mr.Goenkas mill was avidly sought as a mal feed and wrapping papers used for sampling could this oil extracted. These questions have to wait because in 1942. The Japanese invaded Burma and Mr. Goenka has to abandon his business and return to India.Being an optimist is transformed the adversity into opportunity by his grit and after a brief spell in his native land in Rajasthan, his restless enterprising zeal brought Mr. Goenka to Chennai in 1943. Where he is with his brother export of handloom fabrics in due course, he established a textile business. In 1959. Mr. Goenka read on article by Dr.Raghunath prasad of central food technological institution of Mysore that oil could be extracted from bran using alcohol as a catalyst. Simultaneously his brother in Rangoon informed him of planes being setup with Japanese and German technologies for extracting oil from rice bran Mr. Goenka held deliberation with Dr Raghunathprasad and visited Burma with him to study the

relevant technology better, he was not fully satisfied and asked his brother Mr. G.G.Goenka who was in Japan to study in Europe to study the process of Hurgi of Germany and Dr smith of Belgium.

3F Group of Companies. In India :

1.Asia Pacific Commodities Ltd., 2.Modesty Garments. 3.Galaxy Granites. 4.Golden Needle Apparels 5.Aujasya Agro Power Pvt.Ltd., 6.Asian Renovable Energy .

Overseas :
1.Ceylon Specality Fats Pte.Ltd., Srilanka 2.Parker International Pte Ltd., Singapore. 3.3F Ghana Ltd., West Africa.

MISSION:
Safety and quality are wings of our success.

VISION:
To be number one edible oil and specialty fats company in the country targeting to reach 1000 cr. people by 2008.

OBJECTIVES OF THE ORGANISATION (FFF):

The main objectives of the organization are: a) To serve the society through the success in the oil out put. b) The objectives to wards organization are: i) ii) iii) iv) v) Concern Commitment Integrity Quality To make Food Fats and Fertilisers are business oil through a focus on satisfying the integrated need of international holders.

PHILOSOPHY:
Servicing the society through the industry

DEPARTMENTS OF IN FFF:Personal department Production department Marketing department Accounts department

ADMINISTRATION AND ORGANIZATION STRUCTURE OF THE INDUSTRY:

The Foods, Fats & Fertilisers Limited Industry are under the direct administrative control of board of Directors, the Industry was administered by the Board Directors under the companies act 1956. The Foods Fats &Fertilisers Limited, Board of Directors consisting the following members. BOARD OF DIRECTORS : Sri B.K. Goenka G.S. Goenka S.B. Goenka O.P .Goenka Bharat Goenka Sitaram Goenka Sushil Goenka Vinod kumar Saraoji Shiv Kumar Jatia Anand Chordia Managing Director. Whole time Director. Whole time Director. Whole time Director. Whole time Director. Whole time Director. Whole time Director. Director. Director. Director.

ORGANIZATION CHART (FFF)

DIRECTOR

VICE PRESIDENT OPERRATIONS

G GM(HR) GM(FIN) GM (COMML)

GM(SALES) GM(TECH) AM-P.R.C SEPIV /Q.A/R&D /PALMOIL AMVOP Q.A. UTILITY
W.M

MANAGER

MGR MGR 46 EXECUTIVES (ACCTS) (MKTG) /STAFF OF 20 DEPOTS (ACCTS) (ACCTS AM(HR) DY MGR (ACCTS)2/SYS

P.O(REF) RM GODOWN OFFICER AM DY. MGR DY.MGR (UTILITY) (STORES)

(ELEC)

AE PUR EXECUTIVES UTILITY OFFICER COMML

JR ENG

CIVIL OFFICER ENG (HR)/W.O/S.O

A.O.,(G.A)/A.O (I.A)/A.O(S.T & EXCISE/PROGRAMER

OFFICER COMML

Q.C. J.R.

J.R.OFFICER

J.R. OFFICER/ SUP

SUPER VISORS

J.R.OFFICER SUPER SUPER (FUAL) VISORS

SUP-

OFFICER/ SECURITY/ TIMEOFFICE /AMBULENCE

J.R.OFFICER / SUP

(OIL SEC)/ OFFICE CHEMISTS SUP-EXP R/SUP

VISORS/ CIVIL J.R.SUP

MANPOWER PARTICULARS:Total Manpower Managers and section heads Office staff Technical staff Banta workers Casuals Trainees Civil workers Garden workers Gunny Banta Contract Total 985 80 102 242 203 41 171 33 25 33 55 985

FINANCIAL STRUCTURE:
Finance is very much needed to any business so finance is as heart to the business the company was incorporated kin the year 1960. The original share capital subscribed is Rs.5lakhs. The present subscribed and paid up capital is Rs.10crores.

BANKERS:_
STATE BANK OF INDIA [CHENNAI] STATE BANK OF HYDERABAD [CHENNAI] INDUSIND BANK LTD [CHENNAI] BANK MUSCAT INTERNATIONAL SAOG [BANGALORE] THE KARUR VYSYA BANK LTD.,[T.P.GUDEM] UTI BANK LTD.,[KAKINADA

BRANCHES:-

MUMBAI HYDERABAD KAKINADA KOLKATA BARODA Foods Fats & Fertilizers Ltd. is the flagship company of the 3F Group. Today the 3F Group has matured into a conglomerate of 20 industrial units spread over 55 acres constantly buzzing with activity and providing employment to over a 1000 people. Foods Fats & Fertilizers Ltd. was conceived in 1959, born in 1960 and was on its feet by 1962. Our product range today includes oils of rice bran, soya bean, sunflower, groundnut, sesame, palm, sal seed, mango kernel; acid oils, wax, gums, defiled meals (extractions), crude distilled and hydrogenated fat for industrial use; vanaspati, bakery shortening, margarine, bakery fats, specialty fats for manufacturing chocolate, confectionery and cosmetics, canned fruits and vegetables; natural colours for use in food and feed industry; oleo resins and herbal extracts. The company also undertakes fabrication and installation of turnkey projects for processing of vegetable oils and their derivatives.

MultifariousProgress
Starting with a solvent extraction plant in 1962, units were continuously added year after year to form a wide spectrum of products. Current manufacturing activities comprise of : SolventExtractionPlant I(Lurgi, Germany)

SolventExtractionPlant SolventExtractionPlant Division 3F Group) SolventExtractionPlant

II (Desmet, Belgium/India) III (Fabricated and installed by Engineering

IV

(Fabricated and installed by Oilex India and

Engineering Division 3F Group) The above four extraction plants provide versatility of operation in processing different oil seeds/ oil cakes at the same time and hence is highly advantageous in marketing. The plants have facilities to process a wide variety of oil seeds/ oil cakes like rice bran, soya bean, sunflower, groundnut, rapeseed, sesame, mango, sal, niger, etc. Continuous upgradation of manufacturing process through inhouse and worldwide research is our hallmark. Refinery (Sharpels USA and Engineering Division 3F Group) High quality refining of a wide variety of vegetable oils.

Fats plittingPlant:
(Wurster & Sanger, USA and Engineering Division 3F Group) High pressure splitting of oil into fatty acids and sweet water.

Fatty Acid Distillation Plant

(Luwa, Switzerland) High quality distillation of crude fatty acids obtained from the splitting plant.

Glycerin Plant :
(Wurster & Sanger, USA) Processing of sweet water obtained from fat splitting plant into various grades of refined glycerin.

Stearic Acid Plant :

(Egineering Division 3F Group) Hydrogenation of fatty acids into stearic acid flakes.

Hydrogenation Plant
(Bernardini, Italy and Engineering Division of 3F Group) Hydrogenation of fats and fatty acids for industrial use.

Physical
(Yoshino Technology and

Refinery
Engineering Division of 3F Group)

Refining of high free fatty acid oils by steam distillation.

Canning Division :
(Fabrication and installation by Engineering Division of 3F Group) Processing of fruits into pulp, juice and bars.

Vanaspati - Shortening - Margarine Division :

(Fabricated and installed by Engineering Division of 3F Group) Production of vanaspati, shortening, high quality bakery fats and margarine from refined oils.

Fractionation Division :
This division produces high quality oleins and stearines from various edible fats for use in manufacture of chocolate, confectionery and cosmetics. Leading manufacturers in this field of activity all over the world are our customers.

Turnkey Engineering Division:

In collaboration with Yoshino Seisakusho Co. Ltd., Japan who have done pioneering work in developing process and technical know-how for refining high FFA Rice Bran Oil, our Engineering Division has installed and commissioned five plants of a total project cost of Rs.170 million in South India. India is the second largest producer of rice with a large potential of crude rice bran oil to be processed

and turned into a fine cooking medium to satisfy the requirements of an immense Indian market. 3F Group's Engineering Division is equipped to set up any vegetable oil and derivative processing project.

Oil Palm Project :

Plantation of Oil Palm to progressively cover 25,000 hectares in Andhra Pradesh and Karnataka, the Southern States of India is sponsored by us. High yielding variety of sprouted seeds from India and abroad are grown in our nursery and seedlings are regularly supplied for planting to the farmers to cover the targeted area. Under comprehensive extension services provided by us the maturing of plantation is expected to be ideal. Meanwhile the group has set up plant and machinery along with suitable infrastructure to crush the palm fruits and kernels into oil and process the same into refined oils, olein, stearine and a host of other products. Total project outlay is estimated to be 1 billion Indian Rupees.

POWER GENRATION :
3F Group is having 6MW biomass power plant in Tadepalligudem and another two plants in Chattisgarh. These plants are uses the agri waste like Paddy husk, fire wood and palm bunches as fuels. The generated power is utilizing for captive consumption and the remaining part is sold to AP Transco

International Trading :
Besides the export of the manufactured products, with large warehouses for dry cargo, bulk storage installation for liquid cargo at the ports, required infrastructure at our command and international trading experience of over 40 years, the 3F Group has set up high standards and achieved substantial growth in international trading of commodities like rice, edible oils, industrial fats, maize, tapioca, HPS groundnut kernels, dyes and chemicals. The group has been a pioneer in introducing various Indian products manufactured by us to new international markets and have won awards for our

performance. Through Research & Development, new products and value addition to the existing products is being done on a continuous basis for enriching the international trading both in quality and volumes.

Search and Research :

Research and development is the pivot of our activities and has made us to stand in good stead. Continuous upgradation of production processes with the help of a well equipped R & D laboratory in Hyderabad and diversification in new research based projects is our Corporation culture leading us to a steady upward movement.

Service to Society :
The 3F Group is involved in a large way in social service activities. The Goenka family Trust runs an Arts and Science College for Women in Andhra Pradesh and a Higher Secondary School in Rajasthan. It has founded a boys college in Andhra Pradesh, a Higher Secondary School in Myanmar and a multistorey building in Tamilnadu, providing accommodation to tourists, social functions and a library and reading room. In addition to the above projects, the group has also been regularly contributing to several educational, medical and social service institutions. 3F Group manufactures a variety of products, including vanaspati, granite, readymade garments, computer software etc. We have listed a few of our products here:

TANDUL
Refined Rice bran oil A multi purpose cooking medium judged as the safest cooking oil in the world. Contains tocopherol and oryzanol that reduce cholesterol. It is extensively used in Japan, an evidence for the Japanese longer living. Packing : 15 kg tin/1 litre flexi pouch

Product Logo:

SURABHI Vanaspati An economical vegetable fat for small scale bakeries. Multi utility fat widely used all over the country. Packing : 15 Kg bag-in-box/ 15 kg tin/15 kg jar Product Logo:

BAKERSPET Bakery shortening Multipurpose bakery shortening. Creamy white and bland in taste. A blend of specially formulated and texturised hydrogenated fats to provide excellent plasticity. The largest selling brand in South India for manufacturing cakes, breads, biscuits, filling cream, cookies. Also used for shallow and deep frying. Packing : 15 kg Bag-in-box / 15 kg tin / 15 kg jar

Product Logo:

3F Vanaspati:
100% granulated vegetable fat. A favourite of South Indian housewives for cooking and deep frying. A must for all festival cooking and sweet preparations. Packing : 15 kg tin / 15 litre tin /1 litre flexi pouch/ 500, 200 and 100 ml flexi pouch Product Logo:

MELLO:
Margarine made from the choicest of refined oils for bakery industries. Recommended by the best bakers in the country for cake, cream pastries biscuits, icing and cookies. Ideal because it is not coloured and not flavoured. Packing : 15 kg Bag-in-box

Product Logo:

Mello Creme (Margarine):

Application: used as filling cream and for cake icings. Packing:15kg BIB

BISCREME Aerated bakery shortening uniform dispersion of nitrogen gas in the fat produces a superior bakery shortening.(contains 10% v/wt nitrogen). Specially used for filling cream and icing. Best for premium biscuits and cookies Packing : 15 kg Bag-in-box Product Logo:

PALM DELITE:
Imported RBD Palmolein a refined, bleached and deodorised palm olein imported from Malaysia. An economical oil supplied all over the country directly from our ports on the east and west. Packing : 15 kg tin / 1 litre flexi pouch / 500 ml flexi pouch

Product Logo:

BAKERS DELITE: Puff pastry fat an in house development to produce a smooth fat designed for use in puff pastry products. A speciality fat which gives a flaky puff with a good lift. Packing : 15 kg Bag-in-box Product Logo:

GOLDEN SPREAD: Margarine for Puffs specially formulated product for puffs. There is already a great demand for this margarine, for its superior quality. Packing : 15 kg Bag-in-box Product Logo:

3F Sunflower Oil:
Packing: 1 ltr pouch x 10, 1 ltr x 20 pouches per carton.

Product Logo:

Royaldelite:
Premium quality Refined Palm Olein Packing: 1 Ltr x 15 pouches per carton, 15 kg tin.

Product Logo:

Trim:
Application: General purpose cooking fat especially for parathas & biryani. Packing: 15kg BIB Product Logo:

SUN DELITE : Refined Sunflower Oil. Imported from Argentina and refined in the most modern refinery. Contains high PUFA. It lowers cholesterol. A general purpose cooking oil. Packing : 15 kg tin/ 15 litre tin/ 5 litre jar/1 litre flexi pouch

BAHAAR:
Mango bar Aam papad made from mango pulp. Favourite mouth tingler for the young and the old. Packing : 20 gms sachet

3F GLYCERINE
Refined glycerin made from sweet water obtained in fat splitting. Grades available: Industrial White - IW Chemically Pure - CP Indian Pharmacopeia - IP Packing : 250 kg plastic drums

TRIFFA
Fatty Acids/Stearic Acids: Standard and hardened quality distilled fatty acids made from Rice bran, Palm, Coconut, Sunflower, Rape seed, Soya and Linseed oil. Custom made formulations available on order. Raw material for Cosmetic, Premium Soap, Lubricants, Chemical Industries, Rubber and PVC formulations. Packing : 110 kg in plastic carboys for liquids 50 kg woven hdpe lined bags for hardened quality in flake form

OTHERS Crude Palm Oil-bulk Refined Palm Oil-bulk : Contract farming by farmers. We provide imported seedlings after acclimatising. Know how for growing is provided to the farmers. Speciality Fats Refined Kokum Fat (Garcenia) Sal Stearine (Shorea Robusta) Produced from forest sources. An important non-timber forest produce. Mango Stearine (Mangifera Indica) Shea Stearine Cosmetic Ingredients Mango Olein Shea Olein

Refined Rice Bran Oil Wax :

Used in various industries like paper coating, candles, water proofing, floor, shoe and furniture polish, cosmetics, carbon paper, printing inks, fruit and vegetable coatings and pharmaceuticals. Rice bran oil wax may substitute wax like carnuaba. Packing:25 kg in lined paper bags Exporters Of : Importers Of : Palm Oil and its fractions Crude Sunflower Oil Indian Rice (non basmati) De oiled Rice Bran De oiled Salseed Meal-pellets, non-dusty

Crude Soya bean Oil :

Have sea-worthy barges for unloading from ships when anchored near shallow water ports. Presence in all minor ports in India: West coast-Kochi and Mangalore; East coast-Gopalpur, Kakinada and Nagapattinam Turnkey Project : Supplier for Double Solvent Refining of high FFA Oils upto 20% such as RB oil, solvent extracted high FFA Oils. The refined oil obtained is of excellent quality as per food standards.

Sales Depots/Stock Points in India:

Mumbai, New Delhi, Baroda, Calcutta, Raipur, Behrampur, Hyderabad, Visakhapatnam, Tadepalligudem, Vijaywada, Vijayanagaram, Chennai, Bangalore, Kochi, Tiruchirapalli.

GARMENT EXPORTERS
The company export women garments to United States of America, United Kingdom, Canada, Germany, Japan, Chile, France and Australia. Our customer span ranges from chain stores, mail order, boutiques and wholesalers. Order sizes vary from 1,000 to 1,00,000 units.

GRANITE EXPORTERS
The Company initially started exporting rough blocks and have expanded by exporting cut-to-size slabs and random slabs. Later we shifted towards manufacturing of finished products like monuments, artifacts items and fire places. For further details please refer the links given below:

Galaxy Granites SOFTWARE DEVELOPMENT

Goenka Infotech Limited provides the full range of IT solutions and services in the following segments: Conformance Services Web Gardening Software Maintenance and Web Enabling of Legacy Applications IT Applications in Power Sector Smart Card based Solutions

The 500 square metres of software development centre at Hyderabad has been designed to provide the state of art infrastructure for software professionals.

ETHICS
The 3F Group is proud of its inherent values which are pursued relentlessly to drive it towards sustainable growth. These values are the common language that binds all its people.

The 3F Group stands for:

an intrinsic commitment to its people a culture of trust, mutual respect, open communication and transparency of action commitment to welfare-driven initiatives that make a qualitative difference to the lives of marginalized people an environment-conscious group through its eco-friendly units Indian values with a global mind set

COMMITMENT OF FFF LTD., TO THE NEW MILLENNIUM

The new millennium has brought with it, new challenges and expectations. At 3F Group, we already have our sights firmly focussed on the future. We capitalize on our strengths to remain at the core sectors in India and expand our global presence. With a commitment to enhancing long-term value, the 3F Group: continues to build on its leadership in its existing core businesses anticipates the needs and create new products and markets for its customer in its mind continuously upgrades the quality of its products and services, by using the latest technological customers. constantly hones its skills in continuous improvement, cost reduction and knowledge integration. builds linkages-forward and backward-to gain control over critical inputs and to enhance its focus on value-added products. advances for creating growth through partnership with our

uses its strengths to seize emerging opportunities in key sectors. develops a clear sustainable advantage to be a dominant player in all its business ventures. The key to the success in these endeavours lies in the strength of the human resources of the company. We have the right people in the right positions. The company have set in motion, new development processes to help our group reach

optimum levels of performance. We believe, as our people grow, the 3F Group grows.

CHAPTER-IV THEORETICAL FRAME WORK

FUNDS FLOW STATEMENT

Funds Flow Statement measures the inflow and outflows or net working capital that result from any type of business activity.

Meaning of Funds Flow statement Meaning of funds:

The term Funds has variety of meanings. There are people who take it synonyms to cash and to them there is no difference between a Funds Flow statement and Cash low statement. While others include marketable securities besides cash in the definition of the term funds. According to the standard the term Funds generally refers to Cash and Cash equivalents or to Working Capital. One of these most common definitions of the term Funds. The statements can be classified into four: Income statement Funds Flow statement Statement of changes in financial position Cash Flow statement.

1.Income statement
As already indicated in an earlier chapter then an income statement measures the inflow of assets resulting from rending of goods or services customers over a period of time.

2.Funds Flow statement

This statement measures the inflows and the out flows of Working Capitals that result from any type of business activity.

3.Statement of changes in financial position

This statement has a wider meaning than Funds Flow statement. It measures changes both in Working Capital and non-Working Capital

4.Cash Flow statements

The statement measures in flows and the out flows of cash on account of any type of business activity.

Need for Funds Flow Statement:

The Funds Flow statement is widely used by the financial analyst and credit granting institutions and financial managers in performance of their jobs. It has become a useful tool in their analytical kit. This is because the financial statements i.e. Income statement and the balance sheet have a limited role to perform. Income statement measures flow restricted to transactions that pertain to rendering of goods or services to customers. The balance sheet of assets and liabilities as on particular date. It does not sharply focus those major financial transactions, which have been behind the balance sheet changes. One has to draw inferences from the balance sheet about major financial transactions only after comparing the balance sheet of two periods.

Working Capital:
There are 2 concepts in Working Capital Gross Working Capital Net Working Capital Gross Working Capital refers to the firms investment in current assets while the term net Working Capital means excess of current assets over current liabilities i.e., Gross Working Capital = Total Current Assets Net Working Capital = Current Assets Current Liabilities

Current Assets:
Current Assets include which are acquired with the intention of converting them into cash during the normal business operations of the company.

Definition according to Glady:

For accounting purpose, the term Current Assets is used to designate cash and other assets or resources commonly identified as those which are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business.

The Current Assets are:

Cash including fixed deposit with banks. Accounts receivable. Inventory. Raw materials. Work-in-progress. Finished goods. Trade Debtors. Bills Receivable.

Stores and spare parts. Advances recoverable i.e., the advances given to supplier of goods and services or deposit with government or other public authorities. Prepaid expenses.

Current Liabilities:
The term Current Liabilities is used principally to designate such obligations whose liquidation is reasonably expected to require the use of assets classified as current assets in the same balance sheet or the creation of other current liabilities or those expected to be satisfied within a relatively short period of time usually one year.

Current Liabilities are

Accounts payable i.e. Bills Payable Creditors

Outstanding expenses i.e., expenses for which services have been received by the business but for which the payment has not been made. Bank Overdraft Short-term loans i.e., Loans from Banks Advance payments received by the business for the service to be rendered or goods to be supplied in future Current maturities of long-term loans i.e., long-term debts due within a year of the balance sheet date.

Provisions against Current Assets:

Provisions against current assets, such as provisions for doubtful debts, provision for loss of stock, provision for discount on debtors etc are treated as current liabilities, since they reduce the amount of current assets.

Non-Current Assets:
All assets other than current assets come within the category of non-current assets. Such assets including Goodwill Land & Building Machinery Furniture Long-term investments Payment rights Trade marks Debit balance of Profit & Loss account.

Non-Current Liabilities:
All liabilities other than current liabilities come within the category of Noncurrent assets General reserves Dividend equalization Debentures sinking fund Capital redemption reserve.

Importance of Funds Flow Statement:

Funds Flow analysis is an invaluable analytical tool for a financial manager or a creditor for evaluation of the employment of funds by a firm and in determining the sources for such funds. In addition to studying past flow by means of fundsstatement based upon forecasts. Such a statement provides an efficient method to the

financial mang4er to assess the growth of the firm and it results in the financial needs, and to determine the best way to those needs. In particular, Funds Flow analysis is very useful in planning intermediate and long term financing. The traditional package of final of final accounts and statement through very significant statements has such a limited role to play in financial analysis. The balance sheet is a statement of assets and liabilities on a particular date. Similarly the income statements will show in more detail only the profit or loss, change in owners equity arising during accounting period as a result of the productive and commercial activities in that period. The main criticism against the balance sheet of two periods shown in a separate of source and Application of funds. Where got and where gone statement. Statement simply Funds Statement.

Sources of Funds:
In business several transactions take place. Some of these transactions increase the funds while others decrease the funds. Some may not make any change in the fund position. In case a transaction result in increase in funds, it will be termed as a sources of funds.

Applications of Funds:
In case a transaction result in decrease in funds, it will be termed as an Application of funds.

Limitations of Funds Flow Statement:

Despite its multiple managerial uses, the Funds Flow statement suffers from certain limitations: 1. As this statement ignores non-fund items, it becomes a crude device compared to the income statement and balance sheet. 2. This statement does not reveal shifts among the items making up the current assets and current liabilities. it does not tell whether any loss of Working Capital has unduly wakened the financial position. Only an examination of the balance sheet at the end of the period will show the under effect of these changes. Therefore the Funds Flow statements either in whole or in part. 3. The information used for the preparation of the fund flow statement is essentials historical in nature. Though attempts are made to protect the funds statement for the future period Despite these limitation the information supplied by the Funds Flow statement is really invaluable and the management in planning capital expenditure, devising dividend and other financial policies etc. Taken in conjunction with ratio analysis provides a rich sources of information regarding possible managerial uses.

Preparation of Funds Flow Statement:

In order to prepare a Funds Flow statement, it is necessary to find out the source and application of funds.

Sources of Funds:
The sources of funds can be both internal & external

Internal Sources:
Funds from operations are the only internal source of funds. However following adjustments will be required in the figure of net profit for finding out real funds from operations. Add: the following items, as they do not result in outflow of funds: Depreciation of fixed assets Preliminary expenses or goodwill etc written off Contribution to debenture redemption fund, transfer to general reserves, etc. Provision for taxation and proposed dividend. Loss on sale of fixed assets.

Deduct: the following items, as they do not increase funds Profit on sale of fixed assets Profit on revaluation of fixed assets Non-operating incomes such as dividend received or accrued dividend, refund of income tax, rent received or accrued rent.

External Sources:
Funds from long-term loans Sale of fixed assets Funds from increase in share capital

Application of Funds:
The uses to which funds are put are called application of funds. Following are some of the purpose for which funds may be used: Purchase of Fixed Assets. Payment of Dividend. Payment of Fixed Liability. Payment of Tax Liability.

Technique for preparing a Funds Flow Statement:

A Funds Flow statement depicts change in Working Capital. It will therefore, be better for the students to prepare first a schedule of change in Working Capital before preparing a fund flow statement.

Schedule of Changes in Working Capital:

The Schedule of change in Working Capital can be prepared by comparing the current assets and current liabilities of two periods. It may be in the following form.

Schedule of changes in working capital Particulars Opening Balance Current Assets: Cash Debtors Stock Marketable securities Any other ---Current Libilities: Creditors Bills payable Outstanding expenses Bank over draft Any Other XXX XXX XXX XXX Total ------XX ------XX XXX XXX XXX XXX XXX XXX ------------------XXX XXX ---XXX XXX XXX XXX XXX XXX XXX XXX ----------------------Closing Balance Increase in W.C. Decrease in W.C.

Rules for preparing the schedule: Increase in a Current Assets, result in increase (+) in Working Capital Decrease in a Current Assets, result in decrease (-) in Working Capital Increase in a Current Liability, result in decrease (-) in Working Capital Decrease in a Current Liability, result in increase (+) in Working Capital Funds Flow Statement: While preparing a Funds Flow Statement, Current Assets and Current Liabilities are to be ignored. Attention is to be given to change in fixed liabilities. SOURCES Funds from operations Issue of share capital Issue of debenture Longterm borrowings Sale of Assets/ Investments Total XXX XXX Purchase of Assets/ Investments XXX XXX XXX XXX XXX AMOUNT XXX APPLICATIONS Funds from operations Redemption of share Capital Redemption of Debentures Payment of loans XXX XXX XXX AMOUNT XXX

CASH FLOW STATEMENT

Meaning of Cash Flow statement:
A Cash Flow statement is a statement depicting change in cash position from one period to another. The Cash Flow statement explains the reasons for such inflows or outflows of cash, as the case might be. It also helps management in making plans for the immediate future. A project Cash Flow statement or a cash budget will enable the management in ascertaining how much cash will be available to meet obligations to trade creditors, to pay bank loans and to pay dividend to the shareholders. A proper planning of the cash resources will enable the management to have cash available whenever needed pan put it to some profitable or profitable or productive use in case there is surplus cash available. The term cash stands for cash and bank balances. The term funds in a narrow sense is also used to denote cash. In such case the term fund will exclude from its purview all other current assets and current liabilities and the term Funds Flow statement and Cash Flow statement will have synonymous meaning.

Types of Cash Flow

While preparing a Cash Flow statement, two types of Cash Flows viz., Actual Cash Flow and National Cash Flow are identified. Actual Cash Flow refers to actual movements of cash into out of the business. Purchase of fixed assets, borrowings from bank of financial institutions, trading profits and redemption of debentures are all examples of actual Cash Flow. National Cash Flows results only in the cash of increase or decrease in current assets. National Cash Flow result indirect cash movements into or out of business, for Example, increase in the balance of debtors does not result in any actual cash outflow since it is part of credit sales. But form of material costs, labour cost, overheads etc., looked up in the goods sold on credit.

Preparation of Cash Flow Statement:

A Cash Flow statement can be prepared on the same pattern on which a Funds Flow statement is prepared. The change in the cash position from one period to another is computed by taking into account Source and Application of cash.

Sources of Cash:
Sources of cash can be both Internal External.

Internal sources:
Depreciation. Amortimization of intangible assets Loss on sale of fixed assets Gains from sale of fixed assets Creation of reserves

External sources:
Issue of new shares Raising long-term loans Purchase of plant and machinery on deferred payments Short-term borrowings cash credit from banks Sale of fixed assets, investment, etc.

Applications of Cash:
Application of cash may take any of the following forms: Purchase of fixed assets Payment of long-term loans Decrease in deferred payment liabilities Loss on account of operations Payment of tax Payment of dividend Decrease in unsecured loans, deposits etc.

Limitations of Cash Flow analysis:

Cash Flow analysis is a useful tool of financial analysis. However, its own limitations. These limitations are as under: 1.Cash Flow statement cannot be equated with the income statement. An income statement takes into account both cash as well as non-cash items and, therefore, net Cash Flow does not necessarily mean net income of the business. 2.The cash balance as disclosed by the Cash Flow statement may not represent the real liquid position of the business since it can be easily influenced by postponing purchases and other payments. 3.Cash Flow statement cannot replace the income statement or the Funds Flow statement. Each of them has a separate function to perform.

Format of Cash Flow Statement Cash Flow Statement For the year ending on----Particulars Cash flows from operating activities Cash receipts from customers Cash paid to Suppliers and employees Income tax paid Cash flow before extra-ordinary item Extra-ordinary items Net cash from operating activities Cash flows from investing activities: Purchase of fixed assets Proceeds from sale of equipment Interest received Dividends received Net cash from investing activities Cash flows from financing activities: Proceeds from issuance of share capital Procedure from long-term borrowings Repayments of long-term borrowings Interest paid Dividend paid (XXX) XXX XXX XXX XXX Amount Rs.

XXX XXX (XXX) XXX XXX XXX

XXX XXX (XXX) (XXX) XXX

Format of Cash from Operations

Particulars Profit as per Profit and Loss account Add: Increase in Current Liabilities Decrease in Current Assets Amount XXX XXX XXX XXX Rs.

Less : Increase in Current Assets Decrease in Current Liabilities

XXX XXX XXX

CHAPTER-V DATA ANALYSIS AND INTERPRETATION

TABLE-5.1 FUNDS FLOW STATEMENT OF THE YEAR 2006-2007 STATEMENT OF CHANGES IN WORKING CAPITAL Particulars Current Assets : Inventories Debtors Cash at Bank Other current Assets Loans & Advances Total Current Assets Current Liabilities : Liabilities Provision Total Current Liabilities (B) Total working capital (A-B) Changes in Working Capital 43,27,71,837 36,42,25,932 7,32,53,857 3,34,344 9,65,64,227 96,71,50,197 55,87,58,958 17,25,45,861 3,73,85,785 4,77,294 15,31,35,283 92,23,03,181 12,59,87,121 --1,42,950 5,65,71,056 -19,16,80,071 3,58,68,072 --2006 (Rs.) 2007 (Rs.) Increase Decrease

36,24,07,808 1,91,80,165 38,15,87,973 58,55,62,224

32,49,92,501 70,08,921 33,20,01,422 59,03,01,759

3,74,15,307 1,21,71,244

---

47,39,535 23,22,87,678

47,39,535 23,22,87,678

Analysis and interpretations:

In this year changes in working capital is 47,39,535 due to increase current liabilities In the company has increased due to increase in production in demand in this year production has come up compared to the previous year

TABLE-5.2 FUNDS FLOW STATEMENT OF THE YEAR 2006-2007 SOURCES Share Capital Reserves Secured Loans Unsecured Loans RS. 32,82,650 2,46,11,049 17,12,01,211 94,22,179 APPLICATION Differed Tax Investments Fixed Assets Changes in working Capital. RS. 77,16,279 3,84,09,810 15,76,51,865 47,39,535

20,85,17,489

20,85,17,489

Analysis and interpretation:

In this year working capital year is very low due to amount invested in investments and fixed assets the short term funds are utilized for acquiring fixed assets. The company did not used adequate share capital or long term loans for long term Requirements.

TABLE-5.3 FUNDS FLOW STATEMENT OF THE YEAR 2007-2008 STATEMENT OF CHANGES IN WORKING CAPITAL Particulars Current Assets : Inventories Debtors Cash at Bank Other current Assets Loans & Advances Total Current Assets Current Liabilities : Liabilities Provision Total Current Liabilities (B) Total working capital (A-B) Changes in Working Capital 63,06,95,669 10,71,30,660 4,99,30,293 4,11,209 8,84,02,008 87,65,74,839 29,14,46,102 17,79,55,351 3,26,49,740 3,80,474 4,38,03,561 54,62,35,228 --7,09,23,691 --33,92,49,562 -1,69,32,636 30,735 4,36,68,338 2007 (Rs.) 2008 (Rs.) Increase Decrease

60,69,18,927 76,89,449 61,46,08,376 26,19,66,463

23,50,68,241 31,60,932 23,82,29,173 30,80,06,055

36,16,30,686 38,28,517

-----

3,83,69,636 3,83,69,636 43,63,82,89 43,63,82,894

Analysis and interpretation:

In this year changes in working capital is 47,39,535due to increase current liabilities In the company has increased due to increase in production in demand in this year production has cone up compared to the previous year

TABLE-5.4 FUNDS FLOW STATEMENT OF THE YEAR 2007-2008 SOURCES Reserves Unsecured Loans Fixed Assets RS. 2,23,04,246 3,89,77,545 2,36,39,050 APPLICATIONS Share Capital Secured Loans Investments Changes in working Capital 3,83,69,636 RS. 63,00,000 4,18,68,396 81,218

8,49,20,841

8,49,20,841

Analysis and interpretation:

In this year working capital year is very low due to amount invested in investments and fixed assets the short term funds are utili8sed for acquiring fixed assets The company did not used adequate share capital or long term loans for long term Requirements.

TABLE-5.5 FUNDS FLOW STATEMENT OF THE YEAR 2008-2009 STATEMENT OF CHANGES IN WORKING CAPITAL PARTICULARS Current Assets: Inventories Debtors Cash at bank Other current assets Loans & advances 64,06,95,669 11,71,30,660 5,99,30,293 5,11,209 9,84,02,008 30,14,46,102 18,79,55,351 4,26,49,740 4,80,474 56262321 ___________ 58,8793988 ____________ _ 7,08,24,691 _ _ _ 33,92,49,562 _ 1,72,80,553 35.735 4,45,98,447 2008 (Rs.) 2009 (Rs.) INCREASE EE DECREAS

Total Current Assets (A) _____________ 91,66,74,839 Current LiabilitiesLiabilities Provisions 61,69,18,927

24,50,68,241 5719692 ____________ 24,83,29,173 ____________ 33,80,06,055

37,18,50,686 45,28,517

_ _

Total Current 77,89,449 Liabilities (B) ______________ 62,47,08,376 Total Working Capital ______________ (A-B) 29,19,66,463 Changes in Working Capital 4,60,39,592

_ ___________ 44,72,03,894

4,60,39,592 ___________ 44,72,03,894

Analysis and interpretation:

This year change in Working Capital is 4,60,39,592 due to the decrease of current assets except debtors. This year the production of various plants are increased but the turn over of the company decreased. In this year inventories are highly decreased to 33,92,49,567 due to the decrease in demand in sales.

TABLE-5.6 FUNDS FLOW STATEMENT OF THE YEAR 2008-2009 SOURCES Reserves Unsecured Loans Fixed Assets Rs. 3,23,04,246 4,89,77,545 3,36,39,050 APPLICATIONS Share Capital Secured Loans Investments Changes in Working Capital ___________ 11,49,20,841 __________ 11,49,20,841 Rs. 67,00,000 6,20,90,031 91,218 4,60,39,592

Analysis and interpretation: In this year the sources of Funds Flow is sale of fixed assets, unsecured loans and reserves only. In this year the company applications are very high due to redemption of preference shareholders, payment of secured loans and purchase of investments.

TABLE-5.7 FUNDS FLOW STATEMENT OF THE YEAR 2009-2010 STATEMENT OF CHANGES IN WORKING CAPITAL PARTICULARS 2009 (Rs.) 2010 (Rs.) INCREASE DECREASE

Current Assets:Inventories Debtors Cash at bank Other current assets Loans & advances 5,6262321 Total Current Assets (A) ___________ 58,8793988 Current Liabilities: Liabilities Provisions Total Current Liabilities (B) Total Working Capital (A-B) Changes in Working Capital 4,50,42,994 __________ 19,08,15,396 _ _______ 4,50,42,994 __________ 19,08,15,396 ___________ 24,50,68,241 5719692 ___________ 250787933 33,80,06,055 38,84,47,827 _ 56,53,748 ____________ 338006055 38,29902792 23,92,816 _ 14,37,79,586 11,10,25,326 ____________ 77,71,50,624 ____________ 5,72,21,765 30,14,46,102 18,79,55,351 4,26,49,740 4,80,474 37,53,70,792 22,98,55,707 5,89,07,374 19,91,425 7,39,24,690 4,19,00,356 1,62,57,634 15,10,951 _ _ _ _ _

Analysis and interpretation: In this year the situation is reversed that means current assets are increased and current liabilities are increased. In this year the company has the increase in inventory due to increase production demand. In this year production activity is more or less stable as compared to the previous year

TABLE-5.8 FUNDS FLOW STATEMENT OF 2009-2010 SOURCES Share Capital Unsecured Loans Fixed Assets Deffered Tax Rs. 2,67,00,000 3,52,04,299 2,13,45,570 7,23,46,262 APPLICATIONS Reserves Secured Loans Investments Changes in Working Capital _____________ 15,55,96,131 ____________ 15,55,96,131 Rs. 5,45,31,980 2,70,27,847 2,89,93,310 4,50,42,994

Analysis and interpretation:

In this year the sources of funds are increased because of issue of Equity shares and deffered tax. And also company gather unsecured loans and sell the fixed assets. Applications are the company paid the secured loans, transfer of reserve and surplus and purchases of investments.

TABLE-5.9 FUNDS FLOW STATEMENT OF THE YEAR 2010-2011 STATEMENT OF CHANGES IN WORKING CAPITAL PARTICULARS Current Assets:Inventories Debtors Cash at bank Other current assets Loans & advances Total Current Assets Current Liabilities: Liabilities Provisions Total Current Liabilities Total Working Capital(A-B) Changes in Working Capital 37,53,70,792 22,98,55,707 5,89,07,374 19,91,425 11,10,25,326 _____________ 77,71,50,624 43,27,71,837 36,42,25,932 7,82,53,857 3,34,344 9,65,64,227 ______________ 96,71,50,197 ______________ _ 38,84,47,827 56,53,748 ______________ 39,41,01,575 ______________ 38,30,49,049 20,25,13,175 36,24,07,808 1,91,80,165 ______________ 381587973 ______________ 20,25,13,175 58,55,62,224 ___________ 23,21,57,772 _ __________ 23,21,57,772 2,60,40,019 _ 1,35,26,417 5,74,01,045 13,43,70,225 1,43,46,483 _ _ _ _ _ 16,57,081 1,44,61,099 2010(Rs.) 2011 (Rs.) INCREASE DECREASE

Analysis and interpretation: In this year change in Working Capital is very high due to decrease in loans & advances i.e., the company received the amounts from them. And also the company sells the some of the current assets. In this year the production has gone up compared to the previous year, where as there is drop in volume. Company has the increase in inventory due to increase in production demand. And also company paid the some of the current liabilities in this year.

TABLE-5.10 FUNDS FLOW STATEMENT OF THE YEAR 2010-2011 SOURCES Reserves Secured Loans Unsecured Loans Fixed Assets Rs. 2,28,62,420 15,83,59,478 22,01,827 2,67,18,462 _____________ 20,51,42,187 ____________ 20,51,42,187 APPLICATIONS Deffered tax Investments Changes in Working Capital Rs. 22,54,772 3,74,240 20,25,13,175

Analysis and interpretation:

In this year the applications of funds high due to payment of deferred tax liability, purchase of investments and this year company did not issue any share capital.The sources of funds are very high in this year. The company gathered high funds from secured loans & unsecured loans. And also the balance of reserve increased.

TABLE-5.1 CASH FLOW STATEMENT OF THE YEAR 2006-2007 STATEMENT OF CASH FROM OPERATIONS 2006-2007 PARTICULARS Net Profit as per P&L A/c Add : Decrease in Current Assets : Debtors Increase in current liabilities 19,16,80,071 ___________ 21,25,53,059 Less : Increase in Current Assets : Inventories Current Assets Loans & Accounts Decrease in Currents liabilities 4,95,86,551 Cash from operations 12,59,87,121 1,42,950 5,65,71,056 23,22,87,678 _____________ -1,97,34,619 Rs. Rs. 2,08,72,988

Analysis and Interpretations :

The turn over during the year under review has come down to 210.76 crores as compared to Rs285.66 crores in the previous year showing a decline of 26.22% the decline in turnover is mainly on account of reduction in the commodity trading.

TABLE-5.2 CASH FLOW STATEMENT OF THE YEAR 2006-2007 PARTICULARS Opening Balance as per B/S Add : Sources of Cash Share capital Loans 32,82,650 18,06,23,790 ____________ Less : Application of Cash Reserves Investments Fixed Assets Cash from operations 39,78,218 3,84,09,810 15,76,51,865 1,97,34,619 ___________ Closing Balance 21,97,74,512 ____________ 3,73,85,785 18,39,06,440 ___________ 25,71,60,297 Rs. Rs. 7,32,53,857

Analysis and Interpretations :

This year application of cash are very high due to the sources from financing activity and operations activity . In this year net cash generated from operating activities 100358504 an amount of 50938956 against previous year net negative cash generated from operations were

TABLE-5.3 CASH FLOW STATEMENT OF THE YEAR 2007-2008 STATEMENT OF CASH FROM OPERATION (2007-2008) PARTICULARS Net profit as per P & L A/c Add : Decrease in Current Assets Inventories Other Current Assets. Loans and Advances Increase in Current Liabilities : 32,92,49,567 34,735 3,45,98,447 ---------36,38,82,749 39,89,98,136 Less : Increase in Current Asset Debtors Decrease in Current Libilities Libilities Provision 38,18,50,686 46,28,517 46,73,03,894 Cash from Operations Analysis and Interpretation : In this year has been overall increasing in production capacity utilization of the plants. Despite decrease in the total turnover of the company. this was due to the case of increase in customs duty on refund oil In this year inventories are decreased to 32,92,49,567 because of less demand in sales. Loans and advances and other current libilities also decreased. In this year debtors are increased. 6,83,05,758 8,08,24,691 RS. RS. 3,51,15,387

TABLE-5.4 CASH FLOW STATEMENT OF THE YEAR 2007-2008 PARTICULARS RS. RS.

Opening balance as per B/S

4,99,30,293

Add : Sources of Cash Unsecured Loans Fixed Assets 3,89,77,545 2,36,39,050 6,26,16,595 11,25,46,888 Less : Applications of Cash Share Capital Reserves Secured Loans Investments. Cash from operations Closing Balance 68,00,000 2,28,11,141 6,24,90,031 91,218 6,83,05,145 8,84,05,145 2,41,41,743

Analysis and interpretation In this year source of cash is sale of fixed assets and unsecured loans only. In this year company applications are very high due to the redemption of preference shares payment of the unsecured loans and purchase of investments.

TABLE-5.5 CASH FLOW STATEMENT OF THE YEAR 2008-2009 STATEMENT OF CASH FROM OPERATIONS 2008-2009 PARTICULARS Net profit as per P&L A/C Add: Decrease in Current Assets Inventories Other Current Assets Loans and Advances Increase in Current Liabilities: Less: Increase in Current Assets Debtors Decrease in Current Liabilities Liabilities Provision Cash from operations -1,82,04,758 Analysis and interpretation: In this year there has been an over all increase in production and capacity utilization of the plants. Despite decrease in the total turn over of the company. This was due to the cause of increase in customs duty on refined oils. In this year inventories are decreased to 33,92,49,567 because of less demand in sales. Loans &advances and other current liabilities also decreased. In this year debtors are increased but there is no increase in current liabilities. Thus the cash from operations is in a negative position. TABLE-5.6 CASH FLOW STATEMENT OF THE YEAR 2008-2009 PARTICULARS Rs. Rs. 37,18,50,686 45,28,517 _____________ 44,72,03,894 ______________ 7,08,24,691 Rs. Rs. 4,51,15,387

33,92,49,567 35,735 4,45,98,447 ______ 38,38,83,749 _______________ 42,89,99,136

Opening balance as per B/S Add: Sources of Cash Unsecured Loans Fixed Assets 4,89,77,545 3,36,39,050

5,99,30,293

8,26,16,595

14,25,46,888 Less: Applications of Cash Share Capital Reserves Secured Loans Investments Cash from operations 67,00,000 1,28,11,141 6,24,90,031 91,218 1,82,04,758 9,98,97,148 ________________ Closing Balance _______________ 4,26,49,740

Analysis and interpretation: In this year the sources of cash is sale of fixed assets and unsecured loans only. In this year the company applications are very high due to the redemption of Preference shares, payment of the secured loans and purchase of investments.

TABLE-5.7 CASH FLOW STATEMENT OF THE YEAR 2009-2010 STATEMENT OF CASH FROM OPERATIONS 2009-2010 PARTICULARS Net profit as per P&L A/C Add: Decrease in Current Assets Increase in Current Liabilities: Liabilities Provisions ------Rs. Rs. 3,51,30,650

14,33,79,586 23,92,816 14,57,72,402 _______________ 18,09,03,052

Less: Increase in Current Assets Inventories Debtors Other Current Assets Loans & Advances Cash from operations

7,39,24,690 4,19,00,357 15,10,951 5,72,21,765 17,45,57,763 _____________ 63,45,289

Analysis and interpretation:

In this year there is a mixed trend in production and capacity utilization of various plants i.e., the production in Solvent Extraction Plants and Physical Refineries has gone up. In other plants the production activity is more or less stable as compared to that of the previous year Net profit is decreased in the year due to decrease in the company efficiency and increase in material cost, labour & overheads. In this year the company has increase in current assets.

TABLE-5.8 CASH FLOW STATEMENT OF THE YEAR 2009-2010 PARTICULARS Opening balance as per B/S Add: Sources of Cash Share Capital Unsecured Loans Fixed Assets Cash from operations 2,67,00,000 3,52,04,299 2,13,45,570 63,45,289 Rs. Rs. 4,26,49,740

8,95,95,158 13,22,44,898

Less: Applications of Cash Reserves Secured loans Investments Closing Balance

1,73,16,368 2,70,27,847 2,89,93,310 ________________

7,37,11,764 _______________ 5,89,07,374

Analysis and Interpretation: The cash balance of 2010-2011 has increased to 1,61,11,377 because of increase in the cash from operation and the increase of share capital, sale of fixed assets and getting of unsecured loans. Application of cash is high due to the payment of the secured loans and purchase of investments.

TABLE-5.9 CASH FLOW STATEMENT OF THE YEAR 2010-2011 STATEMENT OF CASH FROM OPERATIONS 2010-2011 PARTICULARS Net profit as per P&L A/C Add: Decrease in Current Assets: Other Current Assets Loans and Advances Increase in Current Liabilities: __ Liabilities Provisions Less: Increase in Current Assets Inventories Debtors Decrease in Current Liabilities Liabilities Cash from operations Analysis & Interpretation: The production in Expellers, Palm Oil Plant, Fatty Acid Plant has gone up compared to the previous year, where as in the Solvent Extraction Plants, Physical Refineries and Vanaspati Plant there is drop in volumes. In this year cash from operations shows the negative balance due to the increase in inventories and debtors. And also current liabilities are reduced. 2,60,40,019 - 13,86,31,189 1,35,26,417 ________ ____ 2,96,44,597 ______ _________ 7,91,80,100 Rs. Rs. 4,95,35,503` 16,57,081 1,44,61,099

5,74,01,045 13,43,70,225 21,76,11,289 _____________

TABLE-5.10 CASH FLOW STATEMENT OF THE YEAR 2010-2011 PARTICULARS Opening balance as per B/S Add: Sources of Cash Secured Loans Unsecured Loans Fixed Assets 15,33,59,478 22,01,827 2,67,18,426 18,22,79,767 Rs. Rs. 5,89,07,374

24,11,87,141 Less: Applications of Cash Reserves Investments Cash from operations 2,89,27,855 3,74,240 13,86,31,189 ______________ Closing Balance 16,79,33,284 _______________ 7,32,53,857

Analysis and interpretation: In this year the net profit is increased which shows the company efficiency. The closing balance of cash has increased by Rs. 1,44,92,740 due to the cause of increased secured loans. This year applications of cash are very high due to the negative cash from operations and reduction of reserve balance.

CHAPTER-VI FINDINGS SUMMARY SUGGESTIONS

FINDINGS
Net profit of the company decreased due to increase in operating cost. Unsecured loans are increasing every year.

The company got secured loans from banks under the hire purchase scheme. Cash from investing Activities was decreased due to increase of purchase of fixed assets.

In respect of loans and advances the company gives interest free loans only to the employees. The amount of such profits depends up on the magnitued of their sale is always time tap gap between the goods and receipts of cash.

SUGGESTIONS

Reduce the Debtors Collection Period should speed up Debetor collection period to determine liquidity position. Reduce the purchasing of Investments. Funds should be raised on long -term basis, which have been used for invest activities of organization. Current liabilities should be decreased for increasing the Working Capital in the organization. Thus the financial manager should estimate correct amount of working capital and should be able to determine the correct sources from which funds have to be raised. Net profit is satisfactory. Adequate promotional activities should be taken to achive their profits.

SUMMARY
Cash Flow & Funds Flow statements is an essential part of over all corporate financial management. It is the art of anticipating and preparing for risks and uncertainties and over coming obstacles. Management should be particularly interested to know the financial strengths of the firm as well as weakness of the firm to take suitable corrective decisions. Hence a study has been conducted on the Cash Flow & Funds Flow statements with reference to FFF Ltd., Tadepalligudem. The main objective of the study is to evaluate the Cash & Fund position and its management thorough various Cash Flow & Funds Flow statements. The FFF Ltd. has a unique place in Indian economy and rural development because of its multiple contributions in terms of employment & provisions of raw materials to other industries thats why it is suffered with a problem of over employment. The components of Cash Flow & Funds Flow statements have been explained preview of FFF Ltd., of which the study products the results regarding the net Working Capital of Cash Flow & Funds Flow statements. The investments of the company increased every year so the company should decrease the purchase the investments. And the credit sales of the company are increasing every year so the company should be reducing the debtor collection period. The company should decrease the current liabilities for increasing Working Capital in the organization. This enables the smooth functioning of the organization.

ANNEXURE ANNUAL REPORTS OF FFF LIMITED 2011-2010 TO 2007-2006

BALANCE SHEET AS ON 31ST MARCH 2011 As at 31st march 2011 As at 31st march 2010 SOURCE OF FUNDS SHARE HOLDERS FUNDS: Share capital 106167250 106167250 Reserve surplus 643073254 487393328 Total: 74240504 593560578 LOAN FUNDS: Secured loans Unsecured loans Total: Deferred tax: Liabilities Assets Total: OVERAL TOTAL: APPLICATION FUNDS FIXED ASSETS: Gross block Less: depreciation Net block Capital work in progress OF 1269998369 474297200 795701169 28370927 824072096 228419038 1137903418 414194266 723709152 58024791 781733943 129459996 1808705113 325658869 123204267 224178076 316641 2482062966 1233592526 42891924 1276484450 1205578516 2116772455 1093430515 299314587 1392745102 140937164 2581403 138355761 2280341367 1157156467 234136049 1391292516 136209995 4290634 131919361 2116772455

INVESTMENTS: CURRENT ASSETS, LOANS & ADVANCES Inventories 1154890146 Sundry debtors 392626922 Cash & bank balances 126192880 Loans and advances 280419669 Other current assets 474360 1954603977 LESS:CUR.LIBLITIES &PROV: Liabilities 708729235 Provisions 18024509 726753744 Net current assets 1227850233 TOTAL 2280341367

BALANCE SHEET AS ON 31ST MARCH 2010 As at 31st march 2010 As at 31st march 2009 SOURCE OF FUNDS SHARE HOLDERS FUNDS: Share capital 106167250 106167250 Reserve surplus 487393328 367400603 Total: 593560578 473567853 LOAN FUNDS: Secured loans Unsecured loans Total: Deferred tax: Liabilities Assets Total: OVERAL TOTAL: APPLICATION FUNDS FIXED ASSETS: Gross block Less: depreciation Net block Capital work in progress OF 1137903418 414194266 723709152 58024791 781733943 129459996 1077642458 358859039 718783419 8459533 727242972 101788296 1179386830 261599670 71353331 93100773 289561 1605730165 804207614 21117812 825325426 780404739 1609436007 1157156467 234136049 1391292516 136209995 4290634 131919361 2116772455 815098034 206328364 1021426398 138994865 24553109 114441756 1609436007

INVESTMENTS: CURRENT ASSETS, LOANS & ADVANCES Inventories 1808705113 Sundry debtors 325658869 Cash & bank balances 123204267 Loans and advances 224178076 Other current assets 316641 2482062966 LESS:CUR.LIBLITIES &PROV: Liabilities 1233592526 Provisions 42891924 1276484450 Net current assets 1205578516 TOTAL : 2116772455

BALANCE SHEET AS ON 31ST MARCH 2009 As at 31st march 2009 As at 31st march 2008 SOURCE OF FUNDS SHARE HOLDERS FUNDS: Share capital 106167250 106167250 Reserve surplus 367400603 309094405 Total: 473567853 415261655 LOAN FUNDS: Secured loans Unsecured loans Total: Deferred tax: Liabilities Assets Total: OVERAL TOTAL: APPLICATION FUNDS FIXED ASSETS: Gross block Less: depreciation Net block Capital work in progress INVESTMENTS: CURRENT ASSETS, LOANS & ADVANCES Inventories Sundry debtors Cash & bank balances Loans and advances Other current assets LESS:CUR.LIBLITIES &PROV: Liabilities Provisions Net current assets TOTAL : OF 1077642458 358859039 718783419 8459533 727242972 101788296 1179386830 261599670 71353331 93100773 289561 1605730165 804207614 21117812 825325426 780404739 1609436007 799212545 307260955 491951590 291367049 783318639 90375546 519446973 265405373 52207212 106656431 699643 944415633 427745526 15379488 443125013 501290619 1374984804 815098034 206328364 1021426398 138994865 24553109 114441756 1609436007 714864154 175088351 889952505 70757363 986719 69770644 1374984804

BALANCE SHEET AS ON 31ST MARCH 2008 As at 31st march 2008 As at 31st march 2007 SOURCE OF FUNDS SHARE HOLDERS FUNDS: Share capital 106167250 103282650 Reserve surplus 309094405 276538963 Total: 415261655 379821613 LOAN FUNDS: Secured loans Unsecured loans Total: Deferred tax: Liabilities Assets Total: OVERAL TOTAL: APPLICATION FUNDS FIXED ASSETS: Gross block Less: depreciation Net block Capital work in progress OF 799212545 307260955 491951590 291367049 783318639 90375546 645387081 278574584 366812497 190924834 557737331 74265792 558758958 172545861 37385785 153135283 477294 922303181 324992501 7008921 332001422 590301759 1222304882 714864154 175088351 889952505 70757363 986719 69770644 1374984804 631774218 148333840 780108058 63351715 976504 62375211 1222304882

INVESTMENTS: CURRENT ASSETS, LOANS & ADVANCES Inventories 519446973 Sundry debtors 265405373 Cash & bank balances 52207212 Loans and advances 106656431 Other current assets 699643 944415633 LESS:CUR.LIBLITIES &PROV: Liabilities 427745526 Provisions 15379488 443125013 Net current assets 501290619 TOTAL : 1374984804

BALANCE SHEET AS ON 31ST MARCH 2007 As at 31st march 2007 As at 31st march 2006 SOURCE OF FUNDS SHARE HOLDERS FUNDS: Share capital 103282650 100000000 Reserve surplus 276538963 251927914 Total: 379821613 351927914 LOAN FUNDS: Secured loans Unsecured loans Total: Deferred tax: Liabilities Assets Total: OVERAL TOTAL: APPLICATION FUNDS FIXED ASSETS: Gross block Less: depreciation Net block Capital work in progress INVESTMENTS: CURRENT ASSETS, LOANS & ADVANCES Inventories Sundry debtors Cash & bank balances Loans and advances Other current assets LESS:CUR.LIBLITIES &PROV: Liabilities Provisions Net current assets TOTAL : OF 645387081 278574584 366812497 190924834 557737331 74265792 558758958 172545861 37385785 153135283 477294 922303181 324992501 7008921 332001422 590301759 1222304882 641803567 260134298 381669269 18416197 400085466 38555982 432771837 364225932 73253857 96564227 334344 967150196 362407808 19180165 381587973 585562224 1021503672 631774218 148333840 780108058 63351715 976504 62375211 1222304882 460572607 138911661 599484268 70641370 549880 70091490 1021503672

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Financial management

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Tata MC. Graw Hill, NEW DELHI _1998

PRASANNA CHANDRA

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Tata MC Gaw Hill, NEW DELHI-1998

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