Theoretical Aspect of Fund Flow Analysis: Limitations of Financial Statements

Fund Flow Analysis of CIIMS Research Laboratory
Theoretical Aspect of Fund Flow Analysis

Information found in the published financial statements is often not enough to form conclusive judgments about the firms performance, financial statement do provide important clues about what needs to be examined in greater detail. Analysis of financial statement is of interest to lenders, investors, security analysts, managers, corporate boards, regulators, and others. Financial statement analysis maybe done for a variety of purposes, which may range from a simple analysis of the short term liquidity position of the firm, to a comprehensive assessment of the strength and weakness of the firm in various areas.
Limitations of Financial Statements: For many years, the balance sheet and the profit and loss account were the only financial statements. But, quite often the balance sheet is attacked as being a mere statement of assets and liabilities of the business as on a particular date, stated on an estimated basis. The critics of balance sheet say that it does not indicate the movement of resources resulting from various transactions. In order to draw useful inferences, comparison of balance sheet of two periods is necessary. The balance sheet does not show major business transactions during the year ultimately affect the financial position of a business enterprise. The income statements indicates, in a general way the resources provided by the operations but fail to show a complete analysis of financial activities and how the resources from operations have been obtained. Though, the traditional package of final statements comprising income statement and balance sheets fulfils the objectives of measuring the changes in owners equity as a result of business activities and portraying the financial position of the business as on a particular date, it fails miserable in bringing out the factors responsible for effecting the changes in assets and liabilities. Business enterprises, irrespective of their size and scale of operations are primarily interested in knowing what amount of profit has been earned by conversion of assets into funds and reconversion of funds into assets. These factors emphasize the practical importance and utility of preparing a statement that would report changes and movements not clearly reflected in the financial statement.
Page 1 Submitted By Moize Leelwala
In order to counter-act these criticisms, Statement of Funds is prepared.
Department of Management Studies & Research Tirpude College of Social Work
Nature & Meaning of Funds: The term Fund has been interpreted in many different ways as the term itself is very ambiguous. This necessitates a precise explanation of funds. In ordinary usage, the term funds usually refers to cash resources and a fund statement is prepared to show the net effect of various business events on current resources of a company. It is pertinent to note here that the net income of a business need not necessarily be collected in cash and cash collected is applied in different ways. Therefore, if the term funds are to be used to mean cash the statement prepared to show the movement of funds will be nothing but a prototype of Receipts and Payments Accounts. On other hand, some analysts are of the opinion that funds refer to the economic value of assets expressed in terms of money. Thus, according to this school of thought funds mean all resources or all assets. This is known as all financial resources concept of funds. Some other interpret funds as the equivalent of the sum total of cash and marketable securities as a large part of the inventory often represents work-in-progress usually not covered by orders from customers. To sum up, the term funds is understood by different persons in different ways viz.: i. ii. iii. iv. v. Current Assets Net Current Assets Cash Cash + Temporary Investment Special Assets Marked for special purposes like debenture redemption reserve fund investment (Sinking Fund
In this topic funds should be understood as working capital, and fund flow as to mean any change in the working capital. Therefore, flow means change. There is said to be flow of funds when any transaction affects the working capital. That is, if it changes the current assets or current liabilities. If transaction adds to the aggregate of current of current assets, the change increases the current assets and therefore, working capital increases. When the working capital increases, the increase is termed to be a source of working capital. If a transaction reduces any item of current liabilities ten also the working capital is increased; hence the transaction is taken as a source of working capital. If a transaction reduces the aggregate of current assets, the working capital is reduced and therefore the transaction is said to be an application of working capital. Similarly, when a
Submitted By Moize Leelwala
Page 2
transaction increases the aggregate of current liabilities, the transaction is said to be an application of working capital. If a transaction increases or reduces the aggregate of current assets and also the aggregate of current liabilities to the same extent, the working capital is not changed as there is no flow of funds. It is neither a source nor an applica0tion of working capital. To summarize, when a transaction affects a current and non-current account there is a flow of funds, if the transaction affects current account only or non-current accounts only, there will be no flow of funds. That is, they do not affect the current assets or current liabilities and hence the working capital is not affected. There will be flow of funds only when both current and non-current accounts are affected by a transaction. If a transaction increases the working capital either by increasing the aggregate of the current assets or by reducing the aggregate of the current liabilities, there is said to be a source of working capital. If the working capital is reduced by reducing the aggregate of current assets or by increasing the aggregate of current liabilities, there is said to be application or use of working capital.
Concept of Flow: The term Flow of funds refers to the conversion or transfer of economic values from one assets to another, from one equity to another, or vice-versa or a combination of any of these transfers. Thus, the term flow refers to the movement of funds between two balance sheet dates. In the context of Fund Flow Statement, flow is said to occur when there is a change in the working capital i.e., a change affecting current assets and current liabilities. It is always so that change in the working capital corresponds with a similar change in the noncurrent assets and non-current liabilities.
Fund Flow Analysis: Fund flow analysis consists of two distinctly different analyses namely: i. Working Capital Analysis is the analysis and reporting of working capital. Working capital is the excess of current assets over current liabilities. This analysis leads to the preparation of two distinctively separate statements;
Page 3
ii.
Statement of change in the working capital, Statements of sources and application of funds. Cash Flow Analysis is the analysis of inflow and outflow of cash. Cash flow analysis results in separate report; Sources and application of cash.
It should be understood that working capital analysis and cash flow analysis are two distinctly different analyses. The main purpose of the Statement of Sources and Application of Funds is to show the changes in the financial position and to indicate in a detailed manner, results of financial management as distinguished from operating management. Fund Flow Statement summarizes the result of financing and investing activities of an enterprise. Balance sheet is a statement financial position, whereas a statement of sources and application and funds shows what changes have taken place since the last balance sheet date. Balance sheet shows the position or status as on the particular day, while the Fund Flow Statement explains as to what caused the changes in the balance sheet items between two balance sheet dates. Income statement provides information as to the income earned and the cost and expenses incurred to earn such income during a given period. Balance Sheet which shows the assets and liabilities can be considered as a variant of the statement of funds. Capital and other items on the side constitute the sources of funds, and the items on the assets side constitute the use or application of funds.
Page 4
Company Profile
Central India Institute of Medical Sciences (CIIMS)
Central India Institute is registered under Societies Act (Registration No Maharashtra /215/83/ Nagpur) and Public Charitable Trust Act No (F - 3592) and it started its hospital cum research centre in July 1984. This centre has been developed with the help of donations from Public. For raising funds two saints, Parampujya late Shri Ramchandraji Dongre Maharaj and Parampujya Morari Bapu have helped the organisation in most crucial periods of its development i.e. 1984 and 1997 respectively. The vision and the 'commitments' of this Institute are as below: "To be a front line medical Institute in India in Tertiary Health Care Services, Medical Education and Research" Commitments:
To provide comprehensive and round the clock health care services to all, irrespective of caste, creed and economic status at affordable cost to the patients and the Institute. To bring together the Professionals and the Society to work hand-in-hand to achieve our vision. To work with full dedication, sincerity, honesty and transparency. To achieve high degree of professionalism not only in health care services but also in medical education and research
Keeping these in view Management and the staff of the Institute have been working relentlessly to achieve the objectives. To begin with hospital facilities were of outpatient only but by March 1987 in-patient services were also started. At present it is a 110 bedded hospital cum research centre. Of these 100 beds 30% beds are in general ward, 18 beds are in Intensive care areas, the remaining beds are in
Department of Management Studies & Research Tirpude College of Social Work Submitted By Moize Leelwala Page 5
semiprivate and private wards. In general wards, charges are at subsidized rates. In addition further deserving patients are given concessional or free treatment. Patient care wise areas are mainly grouped as medical and surgical specialties and in addition there are supportive departments and laboratories. All the hundred ten beds and operation theatres have central oxygen supply and central suction. In case of MSEB power supply failure, captive power of 210 KVA is available on Gensets. It has very active research lab engaged in Biochemistry and Microbiology basic research activities. Our Research Lab is engaged in Biochemistry and Microbiology basic research activities. In December 2004 Institute has been sanctioned a research grant of Rs. 12. 19 lacks over a period of three years for Development of a diagnostic kit for early diagnosis of Tuberculosis meningitis. We have been granted National patent for Diagnostic kit for early diagnosis of Tuberculosis meningitis patients. We have also put up an application for patent for developing a kit for diagnosis of extra-CNS tuberculosis. Dr. Rajpal Singh Kashyap has been awarded Young Scientist Award by the Department of Science & Technology, Govt. of India for developing a diagnostic kit for early diagnosis of extra CNS tuberculosis. For this, research grant of Rs 7.92 lacks has been sanctioned, which will be given over a period of 3 years. We have also filed an application for Patent for development of A Thrombolytic composition comprising of herbal extracts. Departments:
Medical division has following subspecialties:
General Medicine Neurology
Critical care Surgical Division has following subspecialties:
Neurosurgery General Surgery Orthopedic surgery
Other Departments / Labs:
Page 6
Clinical Pathology/Biochemistry/Microbiology lab Routine diagnostic radiology lab Cath lab for various angiographic and other interventions, diagnostic as well as therapeutic. Whole body CT Scanner

ECG / Treadmill lab 2D Echo Doppler and Ultrasound lab Electroencephalography (EEG) lab Nerve conduction / Evoked Potential / Electromyography lab Dietary Dept. / Speech therapy / Psychiatry / Clinical Psychology Depts. / Social service Dept and Physiotherapy
Emergency/Casualty area Surgical facilities: Well equipped 3 operating theaters with recovery rooms attached Outpatient Section: with patient waiting room and 12 examination chambers. Separate Research laboratory for Biochemistry and Microbiology All the departments, Laboratories, Operation theatres etc are well equipped with latest equipments and almost all the departments are manned by full time staff. Research Laboratory has MOU with National Environmental Engineering Institute; Nagpur, CSIR Lab and with Manipal College of Medical Science, Pokhava, Nepal. For Teaching/Conferences Purposes :
Library which has 1550 books and there are 60 periodicals and journals Two Conference Hall Seminar rooms Internal facilities
Page 7
CIIMS Research Laboratory Central India Institute of Medical Sciences, Nagpur was established in June 1984 and has completed 26 years of its existence. It has been recognized as a Research Institute by Department of Scientific and Industrial Research, Government of India from its inception. The major aim was to undertake research activity in clinical and basic sciences related to human illness. For the same purpose, CIIMS established in 2000 a Research laboratory, which is completing 10 years of its fruitful existence. The Research laboratory has initiated several research projects for the development of rapid and cost effective diagnostic methods especially for tuberculosis infection and also for viral infections including Herpes Simplex Virus and Chikungunya infection. In addition, several herbal preparations have been evaluated for their immunomodulatory also for clot lytic activity. The research has also been initiated in the diagnosis of Acute Ischemic Stroke by analyzing biochemical and immunological parameters and using proteomic approach to identify specific biomarkers in blood. Research is also being conducted to identify specific biomarkers for Latent TB and TBM-HIV. Two different Multiplex ELISA are being developed for efficient diagnosis of TB, one utilizing 6 different tuberculosis antigens and an Ag85 based ELISA using 4 different peptides. The research laboratory has also undertaken a project regarding the BCG vaccination and usefulness of booster doses in increasing the efficacy of BCG vaccination. Work has also been initiated regarding the diagnosis of bacterial and viral CNS infection using molecular tools such as PCR, RT-PCR, LAMP, etc. Other important initiative has been the project which focuses on the in vitro production of polyclonal antibodies.
The laboratory has published 35 research papers in National and International Journals. And more than 100 papers have been presented in different National and International Conferences. Adhoc research grants have been sanctioned for six of our research projects, four by Department of Biotechnology, one by Department of Science and Technology, Government of India and one by Indian Council of Medical Research. The Institute has been granted two Indian patents for the development of diagnostic kits, one for the diagnosis of tuberculosis meningitis and second for the diagnosis of extra CNS
Department of Management Studies & Research Tirpude College of Social Work Submitted By Moize Leelwala
Page 8
tuberculosis infection. A complete specification for a third Indian patent for the development of a thrombolytic composition using an herbal preparation for the lysis of human blood clot has been submitted. CIIMS has constructed Animal House Facility in the premises of Nagpur Veterinary College, Nagpur. A MOU has been signed with Maharashtra Animal and Fishery Sciences, Nagpur. The Institute also has sample bank, which contains various body fluids like CSF, serum, pleural, ascitic fluids of different infections. CIIMS has also initiated a collaborative research project on TB with Manipal College of Medical Sciences, Pokhara, Nepal. A collaborative project is also being conducted along with Dr. Satav for diagnosis of active and latent TB in tribal population of Melghat. Other than these, CIIMS has collaboration with various Institutes like DRDE, Gwalior; AIIMS, New Delhi; Bengal Tuberculosis Association, Kolkatta; PD Hinduja Hospital, Mumbai; NIMS, Hyderabad; Dr. B. C. Roy Institute of Postgraduate studies, Kolkatta; NIMHANS, Bangalore; NEERI, Nagpur, etc. CIIMS Research Laboratory along with Tulip diagnostics, Goa is in the process of development of rapid Immunochromatographic diagnostic kits for TB and Chikungunya. The laboratory has been recognized for Ph.D. programme in Biochemistry and Microbiology in Science Faculty by RTM, Nagpur University and in Clinical Biochemistry, Clinical Microbiology and Medical Biotechnology in Medicine faculty by Datta Meghe Institute of Medical Sciences University, Nagpur. Two of our research scholars Dr. Rajpal Singh Kashyap and Dr. Poonam Deshpande have been awarded Ph.D. degree by RTM Nagpur University. Two more scholars Mrs. Anju Rajan and Mr.Ravindra Satpute have submitted their Ph.D. thesis and are awaiting the results. Four more scholars have registered for Ph.D. One in Biochemistry, one in Microbiology and two in Medical Biotechnology in RTM, Nagpur University and Datta Meghe Institute of Medical Sciences University, Nagpur. Since last several years the staff of Research Laboratory has guided post graduate students for their dissertation projects. More than 40 students have completed their research projects. Every year the laboratory is conducting hands on training workshops in Immunological, Molecular and Animal Cell Cultural techniques for graduate and postgraduate students, researchers and teachers in life sciences.
Page 9
Completed Projects:

Identification of diagnostic marker proteins in cerebrospinal fluid for diagnosis of various types of meningitis, in particular tuberculosis. Adenosine deaminase: A complementary tool in the early diagnosis of Tuberculosis meningitis. Detection of Mycobacterium tuberculosis antigens and antibodies in CSF obtained from ventricle and lumbar puncture in patients of tuberculosis meningitis developing as complication. Identification of Biochemical and Immunological markers in serum of patients suffering from ischemic arterial stroke. A novel Multiplex PCR for simultaneous identification and discrimination of Mycobacterium tuberculosis, Mycobacterium avium complex and other nontubercular Mycobacterium directly from clinical specimen. To study the diagnostic value of 30KD protein band in the serum of patients with extra CNS tuberculosis. Development and validation of the diagnostic kit for early diagnosis of tuberculosis meningitis based on detection of 30KD/MTB antigen detection in CSF of suspected tuberculosis meningitis by immunodiagnostic tests. Development of IS6110 PCR assay for diagnosis of CNS & Extra CNS Tuberculosis infections. Development of PCR based assay for diagnosis of HSV-1 and HSV-2 infection
Ongoing Projects:

Page 10
Effects of certain herbal drugs on immunomodulation. Neuroprotective effect of certain Ayurvedic drugs after inducing Hypoxic Brain Ischemia. Cerebral Venous Sinus Thrombosis. Multiplex ELISA using different Antigens for diagnosis of pulmonary and extrapulmonaryTB Diagnosis of Chikungunya by ELISA based methods Proteomic approach for differential diagnosis of latent from active tuberculosis. Development of PCR based assay for diagnosis of CNS and extra CNS tuberculosis. Heterologous immunization approach using experimental animals to improve the efficacy of vaccines against TB. To study the role of heat shock protein in diagnosis and pathogenesis of tuberculosis. Identification of cytokine pattern secreted by monocytes (THP-1) cells after induction with Mycobacterium tuberculosis antigens.

Identification of active component(s) of herbs possessing clot lytic activity through various analytical techniques. Invitro antibody production by using goat PBMCs Development of liquid and solid medium for isolation and identification of MTB Rapid diagnosis of tuberculosis Meningitis using Loop mediated isothermal amplification assay
Upcoming Projects:

To identify the secreted components of neuroblastoma cell line mimicking as nerve growth factor for PC-12 cells. Diagnosis of Bacterial meningitis using molecular tools like PCR, Real time PCR, Loop mediated isothermal amplification assay Rapid diagnosis of tuberculosis meningitis using loop mediated isothermal amplification assay Development of animal and cell line model to study Brain edema in neurological complication. Usefulness of BacT/Alert in diagnosis of CNS bacterial infections Study on encephalitis like syndrome by development of immunological and molecular tools for the diagnosis of Human Herpes Virus CNS infection
Page 11
Objectives
To find out the different sources through which the laboratory receives funds To find out whether the funds are used efficiently or not To find out whether the there is surplus or deficit of funds
Page 12
Limitations
The accuracy of the project depends on the accuracy of the data available. The conclusion of the project depends upon my knowledge and understanding of the topic. The project is time bound.
Page 13
Hypothesis
We are assuming that the laboratory receives insufficient funds for its research purposes. We are assuming that GRANTS received from the government is the major source of income.
Page 14
Research Methodology
It is a specific way of performing an operation that implies precise deliverables at the end of each stage. Research can be defined as the search for knowledge or as any systematic investigation to establish facts. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of matters.
Data Collection: Primary Data: - Data observed or collected directly from first-hand experience. Data that has been originally collected and not undergone any sort of statistical treatment, is called primary data. Personal Interview: An interview has proven to be almost universal selection tool. In this method, an investigator collects the information personally from the person concerned. Since he interviews the informant himself, the information collected is quite accurate and complete. This method being very costly and time consuming is employed only in laboratory experiments or localized inquiries. It is not practical for an extensive field of enquiry as the field cannot be covered within a reasonable amount of time and without errors due to personal shortcomings of the investigator. Observation Method Questionnaires Secondary Data: - Published data, data collected in the past or through other party is called secondary data. A secondary data source means that the information is simply second-hand. Secondary data is the information that is already available and which is used by the researcher as source for data used in his/her research. Different forms of secondary data include. Annual Reports Website Journals Audit Reports
Page 15
During my research, I had to take in account both the primary data and secondary data. During my research I interviewed some of the staff members of the research team and their data entry team, to collect some firsthand information and to understand how their system works. And for secondary data I collected their Audit Reports of past five years, also some useful information was found in their Annual Reports, Journals, & Websites.
Data Analysis & Interpretations

According to the information that I collected first hand through personal interview, I found out that the laboratory itself does not generate any income. The only money they earn is through some tests which they conduct for some of the patients of the hospital. The major source of income for the laboratory is the hospital itself, every year the hospital has to set aside 30% of their net profit for research purposes. It is through this money the laboratory is kept in running condition, the salaries and PF are paid to the research staff, and the general expenses such as electricity, phone bills, customs charges, etc. Apart from the hospital itself, the laboratory also applies for Govt. Grants. If a grant is sanctioned then all the money required for the research is made available by the government along a pre-specified duration of years. In this project Ill be focusing on six major projects which were sanctioned government grants in the past 5 years. And the following table shows the money received and spent during the project.
Sr. No
Particulars A novel multiplex PCR for simultaneous identification & discrimination of M.Tuberculosis complex, M.avium complex and other non tubercular mycobacterium (NTM) directly from clinical specimens Development of a kit for detection of mycobacterium tuberculosis antigen in cerebrospinal fluid of tuberculosis meningitis patients Diagnostic value of 30kDa protein comprising of Ag 85 complex in extra CNS tuberculosis Screening & characterization of selected herbal preparation for the human blood clot lysis Proteomic approach for differential diagnosis of latent TB from active tuberculosis Development of immunological test for the early diagnosis of Chikungunya viral (CHIKV) infection Total
Money Received
Money Utilized
Surplus/ Deficit
10,03,000
10,65,632
-90,632
7,19,500
9,64,165
-2,44,665
3 4 5 6 7
6,25,000 1,06,000 4,04,000 7,53,000 36,11,100
6,61,444 98,108 2,82,794 6,57,818 37,29,961
-36,444 8,492 1,21,206 95,182 -1,18,861

Page 16
Whenever a grant is sanctioned to the laboratory by the government, the amount and the duration of the grant is always pre decided. Sometimes the whole amount is given at the beginning of the project and sometimes it is divided in into installments and paid yearly or every six months. The following table shows the amount of money received and utilized broken down into years.
A novel multiplex PCR for simultaneous identification & discrimination of M.Tuberculosis complex, M.avium complex and other non tubercular mycobacterium (NTM) directly from clinical specimens
2008 Received Spent 5,35,000 2,28,528 3,06,472
2009 Received Spent 4,68,000 8,37,104 (62,632) (28,000)
This particular project was started in the 2008; A grant of Rs. 5.35 Lakhs was given to the laboratory at the beginning of the project. During the year the laboratory utilizes Rs.2,28,528 and the remaining amount was carry forwarded to the next year. In the year 2009 the next installment of Rs. 4.68 Lakhs was received by the laboratory, during this year they utilized Rs. 8,37,104 for their research purposes, this led to a total deficit of Rs.90,632. This deficit was covered by the CIIMS hospital itself.
1000000 800000 600000 Total Amount 400000 200000 0 Year 2008 -200000 Year 2009 Money Utilized Surplus/Deficit
Page 17
Developm 2005 ent of a kit Rec. Spent for 7,19,500 54,230 detection of mycobacte rium tuberculos is antigen 3,75,000 in + cerebrospi 2,90,270 nal fluid of tuberculos is meningitis patients
2006/2007 Rec. Spent 6,88,320
2008 Rec. Spent 2,14,431
2009 Rec. Spent
(23,050) (7,184)
(2,14,431)
-2,14,431 + -23,050 + -7,184
This project was approved in the year 2005, and a grant of Rs. 7.195 Lakhs was sanctioned for the research purposes. For this project the whole amount was required for the project was given at the time of inception. This money received was divided into two parts money utilized for revenue expenses and money utilized for capital expenses. During the year 2005 the laboratory utilized Rs. 54,230 and the remaining amount was carry forwarded to the next year. During the financial year 2006-2007 the laboratory spent Rs. 6,88,320 similarly during the year 2008 they spent Rs. 2,14,431. This led to a deficit of Rs. 2,44,665 which was again covered by the hospital.
800000 600000 400000 Total Amount 200000 0 Year 2005 -200000 -400000 Year 2006/2007 Year 2008 Year 2009 Money Spent Surplus/Deficit
Page 18
Diagnostic 2006 value of Rec. Spent 30kDa protein 3,50,000 5000 comprisin g of Ag 85 complex in extra 3,45,000 CNS tuberculos is
2007 Rec. Spent 1,06,228 + 2,55,325
2008 Rec. 2,75,000 Spent 2,94,891 Rec.
2009 Spent 2,22,608
1,00,000
(16,553)
(36,444)
-1,59,052
This project was approved in January 2006; it was pre decided that the funds for this project will be broken up into three installments which would be given to the laboratory every year for three years. In the above table we can see that there was no money received in the year 2007. And in this project also there was a deficit of Rs. 1,59,052 which was again paid by the hospitals account.
400000
300000
200000 Total Amount 100000 Money Spent Surplus/Deficit 0 Year 2006 -100000 Year 2007 Year 2008 Year 2009
-200000
Page 19
Screening & characterization of selected herbal preparation for the human blood clot lysis
2008/2009 Rec. Spent 1,06,600 98,108 8,492
This project was approved and sanctioned in the year 2008. The project has not yet been completed hence the data is insufficient, but the 1st installment of the grant for the project was received during the year 2008.
120000
100000
80000 Total Amount 60000 Money Sent Surplus/Deficit 40000
20000
0 Year 2008/2009
Page 20
Proteomic approach for differential diagnosis of latent TB from active tuberculosis
2008/2009 Rec. Spent 4,04,000 2,82,794 1,21,206
450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Year 2008/2009 Total Amount Money Sent Surplus/Deficit
Page 21
Development of immunological test for the early diagnosis of Chikungunya viral (CHIKV) infection
2008/2009 Rec. Spent 7,53,000 6,57,818 95,182
800000 700000 600000 500000 Total Amount 400000 300000 200000 100000 0 Year 2008/2009 Money Sent Surplus/Deficit
Page 22
Conclusion/Findings
By analyzing all the data that I have collected during my research work, I have been successful in completing all my objectives. 1. To find out the different sources through which the laboratory receives funds: I have found that the major source through which the laboratory receives funds the hospital itself, 30% of the hospitals annual income is set aside for research purposes every year. Apart from the hospital the research laboratory also receives government grants for several of their projects, and the laboratory also earns small amounts of money through consultation & treatment charges. 2. To find out whether the funds are used efficiently or not: According to their balance sheets and annual reports they have detailed report of all the expenses made by the laboratory, which shows that all the money is carefully & efficiently utilized for sole purpose of completing the respective project. A copy of their annual reports relating to every single project is sent to a governing body that sanctions the grant for auditing purposes. 3. To find out whether the there is surplus or deficit of funds: What I have learnt through my research is that the funds which are sanctioned by the government are already insufficient and the money to be received from these grants is still pending in most cases. Hence, every year there is deficit of funds needed for the research projects, and the hospital has to cover this deficit from its own pocket.
Page 23
By completing all my objectives, I have gathered sufficient information to consider my hypothesis. 1. We are assuming that the laboratory receives insufficient funds for its research purposes: I assumed that the laboratory receives insufficient funds from the government for their research purposes, and the result to my 3rd objective supports my hypothesis. 2. We are assuming that GRANTS received from the government is the major source of income: I assumed that the grants from the government for each projects were the only major source of income, but according to my findings the hospital itself is the biggest sources of income the laboratory has. The grants which are sanctioned are already insufficient and are also not a stable source of income. Hence, this contradicts my hypothesis.
Page 24
Bibliography
Websites: Books: Financial Management (Prasanna Chandra) Audit Reports (2005 - 2009) Annual Reports Journals www.ciimsnagpur.com
Page 25

Theoretical Aspect of Fund Flow Analysis: Limitations of Financial Statements

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Theoretical Aspect of Fund Flow Analysis: Limitations of Financial Statements

Загружено:

Авторское право:

Доступные форматы

Fund Flow Analysis of CIIMS Research Laboratory