A STUDY

ON

FUNDSFLOW ANALYSIS ON M.S TYRES

NAME: - A. BALA SHOWREDDY

ROLL NO.: - 121418672084

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS MANAGEMENT

ST. JOSEPH’S DEGREE AND PG COLLEGE

(AUTONOMOUS)
(AFFILIATED TO OSMANIA UNIVERSITY)
GUNFOUNDRY, HYDERABAD.

BATCH 2018 – 2020.

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1.1INTRODUCTION:
Funds constitute prime importance in starting and business enterprise the most significant of
all financial activities is the raising and management of funds financial decisions are those
which concern the generation and flow of funds from various sources and the use of these
funds.

The accounting standards state that in many countries the approach to provide a statement of
changes in financial position as a part of audited accounts is the trend in India. companies are
under no legal obligation to publish a statement of changes in financial position statement a
long with financial statement especially in the case of companies listed on the stock exchanges
and other large commercial, industrial and business enterprise in public and private sectors.

The funds flow statement is a statement which shows the movement of funds and is a report of
funds and is a report of the financial operation of the business under taking. It indicates various
means by which funds where obtained during a particular period and the way in which there
funds were employed in simple words it is a statement of sources and application of funds.

Funds flows analysis refers to the process of determining the financial strengths and weakness
of the by establishing relationship between the items of balance sheet and profit and loss
account. Fund flow statement serves as a handy tool in financial analysis. Making financial
planning, Preparation of budget. Through this analysis firm group the changes in the allocation
resources between the two balance sheets.

The funds flow statement expresses the changes in working capital and assesses the impact
upon liquidity position of the undertaking with the help of this statement the financial
management can plan the intermediate and long term financial of the concern. Repayment of
loans and expansion of business and distribution of resources. It is helpful in the crucial
decision making process in case of expansion. Diversification or conservation of more funds
for profitable utilization of sound projects in the sequent years. It is useful to economize,
financial institution investors, owners for analyzing performance of the firm.

1.2NEED FOR THE STUDY/SIGNIFICANCE OF STUDY:

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The traditional package of financial statements has as such limited role to play in financial
analysis. The balance sheet is statement of assets and liabilities on a particular date and portrays
the financial position as on that particular date. Similarly the income statement will show in
more detail only the profit or loss arising out of the productive and commercial activities of the
enterprise during that period. However, they fail to throw light on those major financial
transactions, which are behind the balance sheet changes.

In order to ascertain such major financial transactions or movement of financial resources or

funds, a separate statement is prepared by comparing the balance sheets of two periods. This
statement is variously known as funds flow statement or statement of sources and uses of funds.
The funds statement aims to supplement the two conventional statements. It shows information
that can only be obtained through analysis and interpretation of income statements and opening
and closing balance sheets.

This information relates to the overall investment and financial activities of the company,
showing the principal sources and application of funds. By recording these changes in the
financial structure that have resulted from the company’s trading activities, and at the same
time indicating the reasons for those changes, the funds statement serves the dual role of an
accounting report and an analytical tool. The is so because the funds statement can be used as
part of budgetary process in forecasting the company’s financial requirements for the future.

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1.3OBJECTIVES OF STUDY:

1. To study the concept of funds flow analysis.

2. To study the funds flow process of M.S TYRES.
3. To study the working of the M.S TYRES with regards to budget and capital and
utilization of funds.
4. To study the factors which cause change in working capital of business organization
5. To study the changes which cause fluctuation in fund flow of M.S TYRES.

1.4 Research methodology

1.4.1 RESEARCH DESIGN:

The primary data is collected by consulting the manager. Data used in the study is secondary
data. The data is collected from the annual reports of the company over a period of three years
2015-18.the ratio and index is used in the study are,

1. Working capital statement for three years.

2. Balance sheet for three years.

1.4.2 SCOPE OF THE STUDY:

1. On the basis data sources and convenient of data collection the scope of the study is
focused on “MS TYRES”
2. The area where the study mainly on the firms. Liquidity financial position. Analysis of
inflow and outflow of the funds, the main scope is to study the changes in the working
capital.

1.4.3 TOOLS &TECHNIQUES:

1. Statement or schedule of changes in working capital

2. Adjustment accounts (i.e. appropriation accounts)
3. Statement of sources and applications of funds

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1.5 STRUCTURE OF THE STUDY:

First chapter: consists of introduction to the study includes the need and importance of the
study, objectives, research methodology –sources of data, data analysis and interpretation,
scope of the study, period of the study and structure of the study.

Second chapter: consist of review of literature which reflects the theoretical data of the study
or any previous studies done on the topic.

Third chapter: consists of the company profile which contains information about the company
where the project has been conducted and includes its history, services being offered, number
of employees working and various department in the organization.

Fourth chapter: consists of data presentation, analysis and interpretation based on the
collected data.

Fifth chapter: consists of finding, conclusions and limitation along with suggestion and is
concluded with bibliography.

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REVIEW OF LITERATURE

The basic financial statement that is the balance sheet and profit and loss accounts or income
statement of business. Reveal the net effect of the various transactions on the operational and
financial position of the company. The balance sheet gives a summary of the assets and
liabilities of an undertaking at particular point of time. It reveals the financial status of the
company. The assets sides of a balance sheet show the deployment of resources of an
undertaking while the liabilities side indicates its obligations.

That is the manner in which these resources were obtained. The profit and loss accounts reflects
the results of the business operation for period of time.it contains a summary of expenses
incurred and the revenue realized in an accounting period. Both these statements provide the
essential basic information on the financial activities of business, but their usefulness is limited
for analysis and planning purposes. The balance sheet gives a static view of the resources
(liabilities) of business and the uses (assets) to which resources have been put at a certain point
of time. It does not disclose the cause for change in the assets and liabilities between two
different points of times.

The profit and loss accounts in general way, indicates the resources provided by operations.
But there are many transactions that take place in an undertaking and which do not operate
through profit and loss account. Thus, another statement has to be prepared to show the change
in the assets and liabilities from the end of one period of time to the end of another period of
time. The statement is called a statement of change in financial position or a funds flow
statement. The funds flow statement is a statement, which shows the movement of funds and
is report of the financial operation of the business undertaking. It indicates various means by
funds were employed. In simple words, it is a statement of sources and application of funds.

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2.1 MEANING AND DEFINITION OF FUNDS FLOW STATEMENT:

Funds flow statement is a method by which we study changes in the financial position of
business enterprise between beginning and ending financial statements dates. It is a statement
showing sources and uses of funds for a period of time.

Foulke defined this statement as “A statement of sources and application of funds is a technical
device designed to analyze the changes in the financial conditions of a business enterprise
between two dates”.

Thus, funds flow statement is a statement, which indicates various means by which the funds
have been obtained during a certain period and the ways to which these funds have been used
during that period. The term ‘funds’ used here means working capital, i.e., the excess of current
assets over current liabilities.

Funds flow statement is called by various names such as application of funds; statement of
changes in financial position; sources and used of funds; summary of financial operations;
where came in and where gone out statement; where gone statement; movement of working
capital statement; movement of fund statement; funds received and disbursed statement; funds
generated and expended statement; sources of increase and application of decrease; funds
statement.

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2.2 CHARACTERISTICS OF FUND FLOW

1. The first and foremost feature of funds flow statement is that it does not reveal the asset
and liability position of the company during a financial year. Hence looking at funds flow
statement one cannot know the financial position of company but he or she can know the
working capital position of the company.
2. There are many Instance where the company is in the profit still it is not able to pay
dividends to shareholder and meet day to day operational expenses and that is where the
funds flow come into play as it shows the reason due to which liquidity position of the
company is poor despite good profit.
3. In the case of a company as far as short-term financing and working capital are concerned
it is the fund flow statement which is more relevance in comparison to other financial
statement like balance sheet or profit and loss account.
4. It helps the management in understanding about in financial position of the company in
more comprehensive way so if there is increase in cash in the balance sheet of the company
then it is fund flow statement which will reveal whether that cash increase was due to non
– business activity like sales of old asset or due to business activity like improvement in
the sales of the company or reduction in operational expenses.

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2.3 IMPORTANCE OF FUND FLOW STATEMENT:

1. Analysis financial statements: Balance sheet and profit and loss account do not reveal the
changes in the financial position of an enterprise. Fund flow analysis shows the changes in
the financial position between two balance sheet dates. It provides details of inflow and
outflow of funds i.e., sources and application of funds during a particular period.
2. Hence it is a significant tool in the hands of the management for analyzing the past, and for
planning the future. They can infer the reasons for imbalances in the uses of funds in the
past and take corrective measures for the future.
3. Rational dividend policy: Sometimes it may happen that a firm, instead of having
sufficient profit, cannot pay dividend due to inadequate working capital. In such
circumstances, fund flow statement shows the working capital position of a firm and helps
the management to take policy decisions on dividend etc.
4. Proper allocation of resources: Financial resources are always limited.so it is the duty of
the management to make its proper use. A projected fund flow statement enables the
management to take proper decision regarding allocation of limited financial resources
among different projects on priority basis.
5. Guide to future course of action: The future needs of the fund for various purposes can
be known well in advance from the projected fund flow statement. Accordingly, timely
action may be taken to explore various avenues of fund.
6. Proper managing of working capital: It helps the management to know whether working
capital has been effectively used to the maximum extent in business operations or not. It
depicts the surplus or deficit in working capital than required. This helps the management
to use the surplus working capital profitably or to locate the resources of additional working
capital in case of scarcity.
7. Guide to investors: It helps the investors to know whether the funds have been used
properly by the company. The lenders can make an idea regarding the credit worthiness of
the company and decide whether to lend money to the company or not.
8. Evaluation of performance: Fund flow statement helps the management in judging the
financial and operating performance of the company.

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 Evaluation of
performance

Proper
managing of Guide to
working investors
capital

Importance
of fund flow
Analysis statement Guide to
financial future course
statements of action

Rational Proper
dividend allocation of
policy resources

2.4LIMITATIONS:

1. Historical Nature: The information used for the preparation of the fund flow statement is
essentially historical in nature. It does not estimate the sources and application of funds for
the near future.
2. Structural changes not disclosed: The fund flow statement does not disclose the structural
changes in financial relationship in a firm. In other words, it does not reveal shifts among
items making up the current assets and current liabilities. It does not tell us whether any
loss of working capital has unduly weakened the financial position or not.
3. Not foolproof: The fund flow statement is prepared from the data provided in the balance
sheet and profit and loss account. Hence, the defects in financial statements will be carried
over to the fund flow statement also.
4. Ignores non-fund items: As fund flow statement ignores non-fund items, it becomes a
crude device compared to income statement and balance sheet.
5. Not relevant: A study of changes in cash (i.e., cash flow statement) is more relevant than
a study of changes in funds for the purpose of managerial decision-making.

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2.5 PROCEDURE FOR PREPARING A FUNDS FLOW STATEMENT

Funds flow statement is method by which we study changes in the position of business
enterprises between beginning and ending financial statement dates. Hence, the funds flow
statements are prepared by comparing two balance sheets and with help of such other
information derived from the accounts as may be needed. Broadly speaking, the preparation of
funds flow statement consists of two parts.

1. Statement or schedule of changes in working capital

2. Statement of sources and applications of funds.

Statement or schedule of changes in working capital

Working capital means the excess assets over current assets over current liabilities. Statement
of changes in working capital is prepared to show the change in the working capital between
the two balance sheet dates. This statement is prepared with the help of current assets and
current liabilities derived from the two balance sheets.

As, working capital =current assets –current liabilities.

So,

i. An increase in current assets increases working capital.

ii. A decrease in current assets decreased working capital.
iii. An increase in current liabilities decreased working capital.
iv. A decrease in current liabilities increases working capital.

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The change in the amounts of any current assets or current liability in the current balance sheet
as compared to that of the previous balance sheet either results in increase or decrease in
working capital. The difference is recorded for each individual current assets and current
liability. In case current assets in current period is more than in the previous period, the effect
is an increase in working capital and it is recorded in the increase column. But if a current
liability in the current period is more than in the previous period, the effect in decreases in
working capital and it is recorded in the decrease column or vice versa. The total increase and
the total decreases are compared and the deference show the net increase or not of any use
prepared only from current assets and current liabilities and the other information as not any
use preparing this statement. A typical form statement or schedule of change in working capital
is as follows:

FORMAT OF SCHEDULE OF CHANGES IN WORKING

CAPITAL-

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FUNDS FROM OPERATIONS OR TRADING PROFITS:
Trading profits or the profit from operations of the business are the most important and major
source of funds. Sales are the main source of inflow of funds into the business as they increase
current assets (cash, debtors or bills payable) but at the same time funds flow out of business
for expenses and cost of goods sold.

Thus, the net effect of operations will be a source of funds inflow from sales exceeds the
outflow for expenses and cost of goods sold and vice-versa. But it must be remembered that
funds from operations do not necessarily mean the profit as shows by the profit and loss account
of the firm, because there are many non-fund or non-operating items which may have been
either debited or credited to profit and loss account.

The examples of such items on the debit side of a profit and loss accounts are: amortization of
fictitious and intangible assets such as good will, preliminary expenses and discount on issue
of shares and debentures written off; appropriation of retained earnings, such as transfer to
reserves, etc., depreciation and depletion; loss on sale of fixed assets; payment of dividends,
etc.

The non-fund items are those which may be operational expenses but they do not affect funds
of the business, e.g., for depreciation charged to profit and loss account, funds really do not
move but are related to the trading operations of the business, such as loss on sale of machinery
or payment of dividends. The method of calculating funds from operations has been discussed
in the following pages.

Basically there are two methods of calculating funds from operations:

a) The first method is to prepare the profit and loss account afresh by taking into
consolidation only fund and operational items, which involve funds and related to the
normal operation of the business. The balancing figure I in this case will be either funds
generated from operation or funds lost in operation depending upon whether the income
or credit side of profit and loss account exceeds the expenses or debit side and loss
accounts or vice-versa.
b) The second method (which is generally used) is to proceed from the figure or net profit
or net loss as arrived at from the profit and loss account already prepared. Funds flow
operations by this method can be calculated as under:

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 A) SOURCES OF FUND

FUNDS FROM OPERATIONS OR TRADING PROFITS:

Sales are the main source of inflow of funds into the business. The effect of operations will be
a source of funds if inflow from sales exceeds the outflow for expenses and cost of goods sold.
Funds from operation include non-fund or non-operating items are either debited or credited to
P&L A/C.
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ISSUE OF SHARE CAPITAL: Issue of share of funds as it constitutes of funds. Share can
be issued at premium or discount or in cash. On comparing the balance sheet of two periods. If
current capital is more than the previous year, than it is a source of funds. But in case there is
no change in the equity share capital for the five years.

ISSUE OF DEBENTURES AND RISING OF LONES: issue of debenture or rising of loans.

Whether secured or unsecured result in the flow of funds into to the business. The inflow of
funds is the actual precede from the issue of rising loans i.e. secured loans. In SASCL the
secured loans are issued.

SALES OF FIXED ASSETS: when any fixed or non-current assets like land, building, plant
and machinery are sold it generates and become a source of funds, but in SASCL there is no
sale of fixed assets.

NON TRADING RECIEPTS: Any non-trading receipts like divided received, refund of tax,
rent received etc. also increase funds and is treated as sources such an income is not included
in the funds from operations.

B) APPLICATIONS OF USES OF FUNDS

FUNDS LOST IN OPERATION: sometimes the result of trading in certain year is a loss a
some funds are lost during that period in trading operations. Such loss of funds in trading
amounts to an outflow of funds and is an application of funds.

REDEMPTION OF PREFERANCE SHARE CAPITAL: if during the year any preference

share are redeemed, it will result in the outflow of funds and is taken as an application of funds.

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However it share is redeemed in exchange of some other type of shares or debenture it does
not constitute an outflow of funds and is taken as an application of funds. However it shares
are redeemed in exchange of some other type of share or debentures it does not constitute an
outflow of funds as involved in that case.

REPLAYMENT OF LOAN OR REDEMPTION OF DEBENTURES: The redemption of

preference share capital, redemption of debenture or repayment of loan also constitutes an
application of funds.

PURCHASE OF FIXED ASSETS: when any fixed assets like land, building, plant and
machinery, furniture are purchase, funds outflow from the business. If current year fixed assets
value is more than the previous year fixed assets value, then there is an application of fund.

PAYMENT OF DIVIDENDS AND TAXES: payment of dividends and tax are also
application of funds and not the mere declaration of dividend and at which should be taken as
an outflow of funds and not the mere declaration of divided or creating of a provision of
taxation.

INCREASE IN WORING CAPITAL: if the working capital increases during the current
period as compared to the previous period it constitutes a source of funds.

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2.6 ARTICLES:

(1). • Fund flow statement is a statement showing sources and application of funds for a period
of time. • Fund flow statement is one of the valuable tool in the hand of management to evaluate
the uses of funds by the Organisation and in determining as to how these uses are financed. •
Fund flow statement is statement which discloses the analytical information about the different
sources of fund and the application of the same in the specific accounting cycle. • In other
words, it incorporates those transactions which change either the amount of current assets or
current liabilities (in the form of increased or decreased working capital) or fixed assets, long-
term loans and equity capital. • Fund flow statement is also called the 'Statement of Sources
and Application of Fund 'Movement Funds Statement’. • Fund flow statement attempts at
providing a link in the completion of final statements. • Fund flow statement is a statement in
summary form that indicates the changes occurring in items of financial condition between two
different balance sheet dates.

SaoudChayedMashkoorAlamry (www.researchgate.net)

(2). Fund flow analysis is one of the simplest and the basic tools for stock analysis. Fund flow
analysis helps investors in identifying the key areas of utilization of funds for a company during
any period along with the key sources of those funds. Fund flow analysis provides a great help
to investors in finding companies, which are giving loans to promoters/related parties, doing
significant capital expenditure, investments in subsidiaries etc.
More importantly, fund flow analysis helps the investors in identifying from where the
company got this money, which it is now giving as loans to promoters/related
parties/subsidiaries etc. An investor can easily find out whether the company is giving away
the money, which it earned in profits or it is taking costly loans from banks and then forwarding
this money to promoters/related parties. If the company is taking loans from banks to give it to
promoters, then an investor would note that the company is doing so at the cost of public
shareholders. This is because, the benefits of the money are being enjoyed by the promoters,
whereas it will be the company (including public shareholders) who will have to repay the loan
& interest to the banks.

Therefore, we believe that the simple exercise of fund flow analysis can help an investor check
the shareholder friendliness, integrity and honesty of the promoters/management within a short
period of time. As is usually said, “To know the truth, follow the money“. Therefore, fund
flow analysis is the tool, which lets investors follow the money and bring to the light a lot of
hidden aspects of the promoter/management decisions. This in turn lets the investor know
whether her interests are being cared for by the company/management.
The current article provides introduction to fund flow analysis with a real life examples of a
companies as live demonstration of the concept.

Dr. Vijay Malik (https://www.drvijaymalik.co...)

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(3). The technique of funds flow analysis is widely used by the financial analyst, credit granting
institution, and financial managers in performance of their jobs. Funds flow statement is also
known as statement of sources and uses of funds.

As the name implies, it is a statement which depicts the sources from which funds are obtained
and the uses to which they are being put. It is essentially derived from the analysis, of changes
which have occurred in assets and equities between two balance sheets period.

ICWA in glossary of management accounting terms defines funds flow statement as “a

statement, either prospective and retrospective, setting out the sources and applications of the
funds of an enterprise. The purpose of the statement is to indicate clearly the requirement of
funds and how they are proposed to be raised and the efficient utilization and application of the
same.”

The term fund has been defined and understood by different experts in different ways.
Broadly, the term “fund” refers to all the financial resources of the company. On the other
extreme, “fund” refers to cash only. However, the most acceptable meaning of fund is
working capital. Working capital is the excess of current assets over current liabilities.
Therefore, flow statement funds are referred as working capital.
The flow of funds refers to transfer of economic values from one asset or equity to another.
When funds mean working capital, flow of funds refers to movement of funds which cause a
change in working capital of the organization. If any transaction results in the increase in
working capital, it is said to be source or inflow of funds; and if it results in the decrease of
working capital, it is said to be an application or out flow of funds.

Tanaya S (http://www.accountingnotes.net)

(4). If a company needs to report its changes in net working capital, the company prepares a
fund flow statement. Fund flow statement isn’t a financial statement; rather it typically
compares the sources of funds and the application of funds.

 Firstly, through fund flow statement a company can compare between two balance
sheets and can see the differences between them.
 Secondly, fund flow statement helps a company see through where their money has
been spent (i.e. application of funds) and from where they have received the money
(i.e. the sources).
 Thirdly, fund flow statement helps a company see how much money it has received
from long-term funds raised by issues of shares, debentures, and sale of non-current
assets and how much funds are generated only from operations.

https://www.wallstreetmojo.com

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(5).

3.1 Industry profile

The tyre industries in India come into existence with establishment of trading outlets by u.s
based fire stone tyre and company in 1922 and flowed by Dunlop rubber company in 1926.the
Indian tyre industry has witnessed a cumulative annual growth rate (CAGR) 7.7% over the last
decade. Economic expansion, investments and road developments have all contributed to this.

Increase in demand for vehicles. This has helped the growth in the tyre industry. The tyre
industry is a major consumer of the domestic rubber production. The tyre is mainly dominated
by the organized sector. The unorganized sector holds in bicycle tyres. The major players in
the organized sector consists of MRF, Apollo tyres, ceat and j k tyres industries. Which account
of the 63% of the organized tyre market.

3.2Company profile

3.2.1 History of company

M.S TYERS was incorporated in the year 1980.

Nature of business: wholesaler, retailer.

The CEO of the company: mr.charanjeet Singh

Total number of employees: up to 10 people

Legal status of firm: sole proprietorship (individual)

3.2.2 Vision and mission

Vision: To be amongst the most admired companies in India, committed to excellence.

Mission:

1. Be a Customer Obsessed Company - Customer First 24x7

2. No.1 Tyre Brand in India
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 3. Most profitable Tyre Company in India
4. Motivated and Committed team for excellence in performance
5. Be a Green Company

3.2.3 PRODUCTS AND SERVICES PROVIDED :

Products:

CEAT TYRES:

Mumbai head-quartered CEAT, the flagship company of the Rs 22,000-crore RPG Enterprises,
was established in 1958. Today, CEAT is one of India’s leading tyre manufacturers and has
strong presence in global markets. CEAT produces over 15 million tyres a year and offers the
widest range of tyres to all segments and manufactures world-class radials for: heavy-duty
trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars,
motorcycles and scooters as well as auto-rickshaws.

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MRF TYRES: MRF LTD was established in the year 1946.The company name is an acronym
for “Madras rubber factory”. It was started by KM MammenMappilai at Thiruvattiyur Chennai.
In the year 1951, the company took up the manufacture of trade rubber. MRF Ltd was
incorporated towards the end of 1960 and was converted into public limited company .since
then it has emerged as the largest tyre manufacturer in India and 12th largest in the world with
turnover of RS 10637cr. With capacity of 6 million tyres from 6 production units in India.

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APOLLO TYRES : Apollo Tyres Ltd is the world's 17th biggest tyre manufacturer, with
annual consolidated revenues of 146.74 billion (US$2.28 billion) in March 2018. It was
incorporated in 1972. Its first plant was commissioned in Perambra, Thrissur, Kerala, India.
The company now has four manufacturing units in India, 1 in Netherlands and 1 in Hungary.It
has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets.It
gets 69% of its revenues from India, 26% from Europe and 5% from other geographies

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JK TYRE & INDUSRTIES LTD. (JKTYRE): JK Tyre & Industries Ltd is one of the leading
automotive tyre manufacturers in India. The company is engaged in manufacturing of
automobile tyres, tubes and flaps. They manufactures Radial and Bias 4-wheeler tyres for
trucks, buses passenger cars, LCVs, tractors etc. They sell their products under the brand name
'JK Tyre'. They have four plants located in Rajasthan, Madhya Pradesh and Karnataka.

The company has 134 sales, service and stock points located throughout the country. They
have over 3,500 dealerships across India. The company's customer base covers virtually the
entire Original Equipment Manufacturers in India together with Replacement Market for four
wheeler vehicles, Defence and State Transport Units. Besides India, they have a worldwide
customer base in over 45 countries across all six continents.

JK Tyre & Industries Ltd was incorporated in the year 1951 as a private limited under the
name JK Industries Pvt Ltd. Until March 31, 1970, the company was engaged in the managing
agency business. Thereafter the company decided to undertake manufacturing activities and
obtained a letter of intent in February 1972 for the manufacture of automobile tyres and tubes.
The company name was changed into JK Industries LTD with effect from May 24, 1974
consequent upon conversion of the company into a public limited company.

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TVS TYRES: T V Sundram Iyengar & Sons Private Limited (TVS & Sons), established in
1911, is the parent company of the TVS group and is the largest automobile corporate dealer
and automobile parts distributor in India. The service focused company provides employment
to over 10,000 people with revenue of around INR 8,000 Crores. It operates through three
divisions, viz., TVS, Sundaram Motors and Madras Auto Service.

Being the trading and distribution arm of the group, the business activities of TVS & Sons
include dealerships for Automobile vehicles, sales & service of products for special
applications like Construction & Material handling.

The company manages Joint Ventures in Sri Lanka and Bangladesh for automobile distribution,
dealership business with presence through its subsidiary companies in South Africa, Saudi
Arabia, Thailand, UK, USA, Australia, Singapore and Europe for vehicle servicing, sourcing
and Supply chain related activities.

The Dealership Business focuses on sales and distribution of commercial vehicles, utility &
sports utility vehicles, passenger cars representing various automobile vehicle manufacturers
such as Ashok Leyland, General Motors, Honda, Mahindra & Mahindra, Mahindra Trucks &
Busses, Mercedes Benz, Renault, Volkswagen and off highway equipment manufactured by
Escorts, JLG, and Pal Finger. The company has more than 150 outlets and sells over 60,000
vehicles and service reporting exceeds 600,000 vehicles per annum.

TVS & Sons also has two subsidiary companies that include TVS Logistics Services Limited
– India’s leading third-party logistics service provider and TVS Automobile Solutions Private
Limited – India’s largest after-market service provider for passenger cars, which also operates
the brand MyTVS.

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Bridgestone: This is a Tokyo based multinational tyre manufacture company that is named
after its founder Shojiro Ishibani, a name that literally means bridge stone. Bridgestone is
arguably the number one tyre manufacturing company in the world. It manufactures different
types of automobile tyres for almost all the different types of vehicles around.

As its marketing strategy, Bridgestone sponsors an array of sporting activities and events such
as formula racing, sports car racing as well as motorcycling among others. Other than tyre
manufacturer, Bridgestone also deals in golf products, journalism, bicycle brands as well as
commercial services etc.

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GOODYEAR: In the world, it comes third, but in the North American continent, Goodyear is
the best seller. An Akron, Ohio based tyre manufacturer, the company has been in existence
since 1898, supplying the market with some original and superior replacement tyres for a wide
range of applications.

Goodyear owns 75% of Dunlop tires and 100% of Kelly-Springfield. For years, Goodyear and
its subsidiary Dunlop have often been pacesetters and leaders in the quality production of tyres
among their competitors. You will hardly go wrong with their much sought after tyres.

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MICHELIN: A French-based tyre manufacturing company, Michelin has over time been able
to cut a niche for itself on the market, not just through advertisement but also by the fact that
they offer exactly what they advertise. Michelin is a top tyre manufacturing company not only
for car tyres but also for bicycles among other commercial vehicles.

The company also manufactures tyres for heavy vehicles that include airplanes, space shuttles as well
as aircrafts etc. The company was the pioneer radial tire producer and other technologies. The
exceptional quality of tyres it produces has made it possible for the company to stand the test of times,
with formidable existence for about 130 years, and with revenue of about 20 billion Euros annually.

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PIRELLI: Headquartered in Milan, Italy, the company also has its manufacturing branches in
Rome and Georgia USA. The company targets the high-end market with its tyres commonly
being sought for by luxury and sports automobiles. In the company’s business solution are also
found real estate investments, broadband solutions together with environmental technologies.

The company’s products are designed to fit an array of light trucks and cars. The main selling
factor of Pirelli is its good name when it comes to handling wet and dry grips. You are not
going to be disappointed with Pirelli.

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CONTINENTAL TIRE: This is a Germany based tyre manufacturing company that’s
headquartered in Hanover. Continental is the fourth most popular tyre brand in North America
and around the seventh in the world. The company has been able to make a name for itself as
a leading producer of replacement and original tyres.

Together with tyres, Continental also produces and supplies various vehicle components such
as top quality brake systems etc. In the USA, Continental operations are headquartered in
Lancaster County, S.C. The company has a formidable name on the market for its high-quality
light-truck tyres.

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DUNLOP: Like mother, like daughter. Dunlop has gained considerable popularity on the
market, courtesy of the quality products manufactured, just as is the case with its parent
company: Goodyear Tyre and Rubber Company.

Dunlop manufactures tyres that are characterized by some top-notch features including the
Hydro-Paddle system, the Traction Web, the Dunlop self-supporting and the Silicarbon Matrix
TM technologies among others. These are technologies that enhance for great and durable
performances in all terrains. If you love fancy things, the Dunlop manufactures sporty tyres for
you to explore.

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YOKOMAHA: Yokohama is a Japanese company with its headquarters in Tokyo. The company has
a solid global presence, thanks to its goal of targeting performance enthusiasts in its design. Yokohama
places much emphasis on handling of wet as well as dry grips. If you do drive in areas where winter
driving isn’t a significant factor, then probably, the choice of Yokohama tyres would be a prudent
choice for you.

HANKOOK: As far as technological advancements are concerned, South Korea is not left
behind. Headquarters in Seoul, Hankook has a global presence, with the North American
headquarters having been established in Wayne, New Jersey. Many original types of equipment
land on the market equipped with Hankook tyres.

Hankook offers a complete line of tyres that fit a wide range of domestic automobiles and light
trucks. As far as price to good quality ratio is concerned, Hankook arguably scoops the top
position.

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BKT TYRE : Headquartered in Mumbai, India, Balkrishna Industries Limited (BKT) is a
leading manufacturer in the Off-Highway tire market.

Since its founding in 1987, BKT has successfully focused on specialist segments such as
agricultural, construction and industrial vehicles as well as earthmoving, port and mining,
ATV, and gardening applications. As a result, BKT has developed into a global player in the
Off-Highway tire industry with a 6% market share and a sales volume of 850 million US dollars
corresponding to a 30% increase over the last five years.

Presently, we have four subsidiaries in Europe and North America assisting our head office in
sales and marketing activities: BKT Europe S.r.l. in Seregno, Italy, BKT Tires USA Inc. in
Akron, Ohio, BKT Tires Canada Inc. in Toronto, and BKT Tires, Inc. in Brentwood,
Tennessee. We sell our products in 130 countries worldwide through a network of national
distributors. Our five state-of-the-art production sites in Aurangabad, Bhiwadi, Chopanki,
Dombivali and Bhuj employ more than 7,000 people.

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LINGLONG: Linglong Americas, Inc. is a subsidiary of Shandong Linglong Tire Co., Ltd., a
Top 20 global tire manufacturer with headquarters in Zhaoyuan City in the Shandong Province
of China. In addition, the company is among the Top 3 tire manufacturers based in China with
global sales of over $1.5 billion in 2016. Linglong employs over 12,000 people worldwide.
The company’s "3 + 3" manufacturing strategy includes three production facilities in China
and plans for three more plants in other countries. Linglong currently has production facilities
in Zhaoyuan City, Dezhou and Liuzhou, China. In 2013, Linglong opened its first international
tire production facility in Thailand for high performance radial passenger, light truck and truck-
bus tire production. This gave the company annual production capacity of 51 million units.
There are plans for future tire production facilities in Europe and the Americas. Linglong is
striving to become a Top 10 global tire manufacturer in sales and achieve an annual capacity
of 90 million units by 2020.

Linglong introduced the first indoor noise and rolling resistance laboratories in China for tire
testing. The company has achieved more than 60 national standards in China and obtained over
300 domestic and international patents. Linglong has twice been awarded the "National Prize
for Progress in Science and Technology" in China for innovative tire designs. The company
has acquired multiple domestic and international certificates including China 3C, European
ECE, Arab States GCC, Brazilian INMETRO, and American DOT and SmartWay certification.
Linglong is also an OE (Original Equipment) supplier for GM, Ford, Volkswagen,Tata,
Tenant-Nissan, Fiat, Hyundai, and more.

Linglong Americas was established in the U.S. near Akron, Ohio in 2009 as the company’s
first international design and technical center. In 2014, in conjunction with IDIADA
Automotive Technology S.A. of Spain, the company broke ground on a 365 acre tire proving
grounds near the headquarters in Zhaoyuan City. This will be one of the first and most complete
tire proving grounds established in China. The facility became operational near the end of 2016.
For American market tires, Linglong Americas conducts performance testing of products at
proving grounds in the U.S. on a contract basis.

In 2015, Linglong celebrated its 40th anniversary as a company. The name Linglong means
"exquisite" in Chinese and the company’s goal is for that to describe its products. To reach that
mark, the company is focused on developing a top-tier enterprise utilizing state-of-the-art
facilities, quality products, and a well-established management team.

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Services:

1. Free delivery (first 2)

2. Replacement
3. After-sales service of tyres

The main objective of the technical monitoring is to provide our clients with recommendations
on the best use and application of the tyres according to thorough inspections to the tires and
work places.

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 4. Inspection

Examination or observation to make any verification or control over the condition of tyres. The
following activities are performed:

 Measurement of pressures.
 Measurement of coconut candies.
 State of tires.

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 5. Monitoring and control

Examination or observation on a regular basis in order to obtain miles performance and learn
about the condition of tyres. This service will be given to companies which contract or that
purchased more than 50 tyres twice a year, in other cases, authorizes the respective
management.

 It consolidates and cross periodically information between new inspections and reports
that have been issued previously.
 Track tyres which have major damage or which have evolved by remarks neglected in
reports that have been made previously.
 State of tyres.

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3.2.4 Achievements & Awards

Sometimes being up on the victory stand is all that matters. Getting an award is the pat-on-the-
back that is also a slight push forward. It means 'hey you've done well!' But it also means 'watch
it now; you've expectations to live up to!'

We do not believe in blowing our own horn. But we do believe that understating our success
would mean undermining the efforts that went into achieving it.

• M.S TYRES wins Gold at the EFFIE Awards 2011 for Be Idiotsafe Campaign.

• M.S TYRES wins Cause Marketer of the year award at CNBC Awaaz Consumer Awards
2011

• M.S TYRES wins awards for Employer Branding and Best HR Practices for 2010

• M.S TYRES receives Reader's Digest Trusted Brand Gold Award for 2009

• The 2007-08 Raid de Himalayas 2 wheeler Rally was won on M.S TYRES

• M.S TYRES was the no 1 in exports amongst all tyre companies in India..... Source ATMA
Report 2007-08

• M.S TYRES Shoppe wins Best Innovation Award 2007-08 (* Franchisee Association of
India)

• From a 2 wheeler tyre to a Car tyre to a Giant OTR Tyre, M.S TYRES makes the entire Range
of tyres.

• M.S TYRES won the Employer Branding Award for "Excellence in Training 2007-08" ( *
Awards by the Asia Pacific HR congress)

• M.S TYRES has adopted a village "Tirad Seth", near Nasik as part of its CSR activities.

• ICQCC Distinguish award for Quality Circle in 2002 at Lucknow India

• NCQC Distinguish award for Quality circle in 2004 at Mumbai

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• NCQC Distinguish award for Quality circle in 2006 at Kanpur India

• CCQC Mumbai Chapter Distinguish Award for Quality Circle in 2007

• Best case study award from CII in 2005

• RPG Best TQ\M Team Award for CFT in 2005 and 2006

• Recognized with RPG BTT Six Sigma Team Award in 2005-06

• Winner of RPG Quality award in 2003, 2004 & 2006

• Certificate of merit in RPGOE in 2005

• 100 percent vendors are ISO certified

• Rated amongst top four auto ancillaries

• National Exports Award (CAPEXIL) - 13 times

• Best Exports certificate of merit - 7 times in the last 20 years

Achievements for us are like milestones. They don't tell us how far we have reached, they tell
us how much there is to go.

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Bibliography:

Reference books

 Dr. S.N MAHESHWARI ‘ Financial management’ sultan chand & sons educational
publishers, New Delhi
 P.V KULKARNI & B.G.SATYA PRASAD ‘Financial management’ Himalaya
publishing house Hyderabad
 JAI BHARTHI ‘ Financial management’ Himalaya publishing house Hyderabad

Websites

 http://www.accountingnotes.net/financial-statement/funds-flow-statement/funds-flow-
statement-concept-objectives-and-preparation/7369
 http://www.letslearnfinance.com/features-of-funds-flow-statement.html
 http://www.yourarticlelibrary.com/accounting/funds-flow-statement/fund-flow-
statement-meaning-objectives-and-preparation-with-specimen/65266
 https://www.jacr.org/article/S1546-1440(17)30033-9/fulltext

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