Samatha Project Final 130510

INTRODUCTION
MEANING OF FUNDS:
The term “funds” has a variety of meanings. There are people who take it
synonymous to cash and to them there is no difference between a funds flow statement
and cash flow statement while other include marketable securities besides cash in the
definition of the term “funds”. The International Accounting Standard No. 7 on
‘statement of changes in financial position’ also recognizes the absence of a single
generally accepted definition of the term According to the standard, the term fund
generally refers to cash, cash to cash equivalents, or to working capital. Of these, the
last definition of the term is by far the most common definition of fund.
There are also two concept gross working capital refers to the firm’s investment in
current assets while the term net working capital means excess of current assets over
current liabilities. It is in the latter sense in which the term funds is generally used.
The meaning of the two terms current assets and current liabilities have already
been explained. However, for the sake of ready reference, we are giving the below
meaning of these two terms current assets and current liabilities, besides explaining non-
current assets and non-current liabilities
CURRENT ASSETS:
The term current assets include assets, which are acquired with the intention of
converting them during the normal business operations of the company. However, the
best definition of the terms current assets has been given by Grady in the following
words for accounting purposes, the term current assets is used to designate cash and
other assets or resources commonly identified as those which are reasonable expected to
be realized in cash or sold or consumed during the normal operating cycle of the
business.
The broad categories of current assets, therefore, are
1) Cash including fixed deposits with banks
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2) Accounts receivable, i.e trade debtors and bills receivable
3) Inventory i.e., customs, port authorities, advance income tax, etc.,
4) Advances recoverable i.e., the advances given to supplier of goods and services or
deposit with government or other public authorities, e.g., customs, port authorities,
advance income tax etc.,
5) Pre-paid expenses i.e., cost of unexpired services, e.g., insurance premium paid in
advance, etc.,
According to the companies at regarding presentation of financial statement

where investments even though held temporarily are to be shown separately
from current assets.
CURRENT LIABILITIES:
The term current liabilities is used practically such obligation 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.
The more modern version designates current liabilities as all obligations that will require
within the coming year or the operating cycle whichever is longer
(1) The use of existing current assets or
(2) The creation of other current liabilities
In other words, the mere fact that an amount is due within a year does not make it
a current liability unless it is payable out of existing current assets or by creation of
current liabilities.
The term current liabilities also includes amounts set a part or provided for any
known liability of which the amount cannot be determined with sub-stantial accuracy e.g.,
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provision for taxation, pension etc., these liabilities are technically called provision rather
than liabilities. The broad categories of current liabilities are:
(1) Accounts payable e.g., bills payable and trade creditors.
(2) Outstanding expenses i.e., expenses for which services have been received by the
business but for which the payment has not been made.
(3) Short-term loans i.e., loans from banks, etc, which are payable within one year
from the date of balance sheet.
(4) Advance payments received by the business for the services to be rendered or goods to be
supplied in future.
Provisions against current assets. Provisions against current assets such as provision
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 include goodwill, land, building, balance of the profit and loss
account, discount on issue of share and debentures, preliminary expenses, etc.,
NON-CURRENT LIABILITIES:
All liabilities come within the category of non-current liabilities. They include
shares capital, long-term loans, debentures, share premium, credit balance in the
profit and loss account, revenue and capital reserves (e.g., general reserve, dividend
equalization fund, debentures sinking fund, capital redemption reserve) etc.
The basic financial statements i.e., the balance sheet and profit and loss
account or income statement of business, reveal the net effect of the various
transaction on the operational and financial position of the company. The balance
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sheet gives a summary of the assets and liabilities of an undertaking at a
particular point of time. The assets side of a balance sheet show the deployment.
The above analysis can be depicted with the help of the diagram as shown below:
CURRENT ASSETS
FIXED ASSETS
CASH IN HAND &
AT BANK GOODWILL LAND
MARKETABLE AND BUILDING
INVESTMENT PLANT AND
ACCOUNTS MACHINERY
RECEIVABLE FURNITURE AND
STOCKS PREPAID FIXTURES LONG
EXPENSES TERM
INVESTMENTS
CURRENT
LIABILITIES FIXED LIABILITIES
BANK OVERDRAFT SHARE CAPITAL

OUTSTANDING RESERVES AND
EXPENSES SURPLUS
ACCOUNTS DEBENTURES
PAYABLE LONG TERM
LOANS
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LIST OF CURRENT OR WORKING CAPITAL ACCOUNTS
Current Liabilities Current Assets
1. Bills Payable 1. Cash in hand

2. Sundry Creditors or Accounts Payable 2. Cash at bank
3. Accrued or Outstanding Expenses 3. Bills Receivable
4. Dividends Payable 4. Sundry Debtors or Accounts
receivable
5. Bank Overdraft 5. Short-term loans & advances
6. Short-term loans advances & deposits 6. Temporary or Marketable
Investments
7. Provision against Current Assets 7. Inventories or stocks
8. Provision for taxation, if it does not 8. Prepaid Expense
amount to appropriation of profits 9. Accrued Incomes
9. Proposed Dividend (May be a current
or a Non-current Liability)
LIST OF NON-CURRENT OR PERMANENT CAPITAL ACCOUNTS
Non-Current or Permanent Liabilities Non-current or Permanent Assets
1. Equity Share Capital 1 Goodwill

2. Preference Share Capital 2. Land
3. Redeemable Preference Share Capital 3. Building
4. Debentures 4. P lant and Machinery
5. Long-term Loans 5. Furniture and Fittings
6. Share Premium Account 6. Trade Marks
7. Share Forfeited Account 7. Patent Rights
8. Profit and Loss Account (Balance of 8. Long-Term investment
Profit, i.e., credit balance)
9. Capital Reserve 9. Debit balance of Profit and Loss
Account
10. Capital redemption Reserve 10. Discount on Issue of Shares
11. Provosion for depreciation against 11. Discount on Issue of Debentures
fixed assets
12. Appropriation of Profits: 12. Preliminary Expenses
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a) General Reserve 13. Other Deferred Expenses
b) Dividend Equalization Fund
c) Insurance Fund
d) Compensation Fund
e) Sinkingstmen Fund
f) Invet Fluctuation Fund
g) Provision for Taxation
h) Proposed Dividend
DIAGRAMS DEPICTING FLOW OF FUNDS
FLOW OF FUNDS
NO YES
WHEN ONE
WHEN
CURRENT
BOTH
AND
CURRENT
OTHER
OR NON-
NONCURRE
CURRENT
NT
ACCOUNTS
ACCOUNTS
ARE
ARE
INVOLVED
INVOLVED
FLOW OF FUNDS
NO
CURRENT ASSETS CURRENT LIABILITIES
YES YES
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YES YES
NON-CURRENT ASSETS NON-CURRENT

LIABILITIES
NO
IMPORTANCE OF FUNDS:
Funds flow statement helps the financial analyst in having a more detailed analysis
and understanding of changes in the distribution of resources between two balance sheet
dates. In case such study is required regarding the future working capital position of the
company, a projected funds flow statement can be prepared. The uses of a funds flow
statement can be put as follows.
1) It explains the financial consequences of business operations – Funds flow
statement provides a ready answer to so many conflicting situations, such as:
a. Why the liquid position of the business is becoming more and more
unbalanced in spite of business making more and more profits?
b. How was it possible to distribute dividends in excess of current earnings

or in the presence of a net loss for the period?
c. How the business could have good liquid position inspite of business
making losses or acquisition of fixed assets?
d. Where have the profits gone?
Definite answers to these questions will help the financial analyst in
advising his employer/client regarding directing of funds to those
channels which will be most profitable for the business.
2) It answers intricate queries – The financial analyst can find out answer to a
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a. What is the overall credit-worthiness of the enterprise?
b. What are the sources of repayments of the loans taken?

c. How much funds are generated through normal business operations?
d. In what way the management has utilized the funds in the past and
what are going to be likely used of funds?
3) It acts as an instrument for allocation of resources: A projected funds flow

statement will help the analyst in finding out how the management is going to
allocate the scarce resources for meeting the productive requirements of the
business. The use of funds should be phased in such a order that the available
resources are put to the best use of the enterprise.
The funds should be managed in such a way that the business is in a position to
make payment of interest and loan installments as per the agreed schedule.
Helps in
analysis of
financial
statements
Helps
knowing Throws
the light on
credit perplexin
worthine g
USES OF questions
ss
FUNDS FLOW
STATEMENT
8
Helps
Helps in the
appraisin
formulation of
g the use
dividend
of
policy
working
capital
Helps in
Acts as s the
future proper
guide allocation
of
resources
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SOURCES OF FUNDS:
The sources of funds can be both internal as well as external.
Internal sources: Funds from operations is 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:
1) Depreciation on fixed assets.
2) Preliminary expenses or goodwill etc. written off.
3) Contribution to debenture redemption fund, transfer to general reserve etc., if they

have been deducted before arriving at the figure of net profit.
4) Provision for taxation and proposed dividend are usually taken as appropriations
of profits only and not current liabilities for the purposes of Funds Flow
Statement. This is being discussed in detail later.
Non-operating incomes such as dividend received or accrued dividend, refund of

income tax, rent received or accrued rent. These items increase funds but they are non-
operating incomes. They will be shown under separate heads as “sources of funds” in the
Funds Flow Statement.
In case the Profit and Loss Account shows ‘Net Loss’ this should be taken as an
item which decreases the funds.
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External sources: These sources include
1) Funds from long-term loans. Long-term loans such as debentures, borrowings

from financial institutions will increase the working capital and, therefore, there
will be flow of funds. However, if the debentures have been issued in
consideration of some fixed assets, there will be no flow of funds.
2) Sale of fixed assets - Sale of Land, buildings, long-term investments will result
in generation of funds.
3) Funds from increase in share capital. Issue of shares for cash or for any other
current result in increase in working capital in working capital and hence there
will be a flow funds.
SOURCES AND APPLICATIONS OF FUNDS
SOURCES APPLICATIONS
Funds from Operations Funds Lost in Operations
Issue of Share Capital Redemption of Preference
Share Capital
Issue of Debentures and Repayment of Long-term
Raising of Long-term Loans and Redemption
Loans of Debentures
FUNDS
Sales of Non-Current Assets Purchase of Non-Current
Assets
Non-Trading Receipts Payment of Dividend and
Tax
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Decrease in Working Capital Non-Trading Payments
APPLICATION OF FUNDS:
The uses to which funds are put are called ‘application of funds’. Following are some
Purchase of assets: Purchase of fixed assets such as land,
i. of the purposes for which funds may be used: building, plant, machinery,
long-term investments etc., results in decrease of current assets without any
decrease in current liabilities. Hence, there will be a flow of funds. But in case
shares or debentures are issued for acquisition of fixed assets, there will be flow
of funds.
ii. Payment of dividends: Payment of dividends results in decrease of a fixed

liability and therefore, it affects funds. Generally recommendations of directions
regarding declaration of dividend (i.e., proposed dividends) is simply taken as an
appropriation of profits and not as an items affecting the working capital. This
has been explained in detail later.
Issue of Sale of Long Term Operational

Shares Fixed Borrowings Profit
Assets
FUNDS
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Redemption Purchase of Payment of Operational Payment of
of Pref. Fixed Long Term Loss Tax/Divide
Shares Assets Loans nd
iii. Payment of fixed liabilities: Payment of a long term liability, such as

redemption of debentures or redemption of redeemable preference shares
results in reduction of working capital and hence it is taken as an application of
funds.
iv. Payment of tax liability: Provision for taxation is generally taken as an

appropriation of profits and not as an application of funds.
While preparing a Funds Statement, current assets and current liabilities are to be ignored.
Attention is to be given to changes in Fixed Assets and Fixed Liabilities. The statement may
be prepared in the following form.
OBJECTIVE OF STUDY:
1) Helpful in planning
2) Helpful in organizing
3) Helpful in Interpreting financial information
4) Helpful in making decisions
5) Report to management
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RESEARCH METHODOLOGY
For the purpose of study 5 years data has been collected from 31-03-2004 to
31-03-2009
1) The data is collected through annual reports i.e the secondary data
2) The collected data has been tabulated and interpreted by using techniques
ration analysis
3) At end meaningful inferences are drawn to reflect the sources and
application of funds of APTDCL and suitable suggestions are offered for
improving the efficiency of working capital sources and application of
APTDCL.
PERIOD & SCOPE OF THE STUDY:
For purpose of study of 5 year data has been collected from 2004 to 2009.
As the data collected is secondary data the study is limited for sources and
application of funds.
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INTRODUCTION TO APTDC
Introduction:
Tourism was declared as an industry in the state as far back as 1986, duly extending
benefits and concessions to investors. In 1994, special tourist centers were notified and an
incentive subsidy, tax concessions and electricity rebates were offered. The state tourism policy
was document and released in 1994. Despite all this, not too much progress has been made in
attracting tourists and investors. This could be attributed mainly to low initial development,
failure of the state to address the critical areas of kick – starting the tourism development in the
state and poor marketing strategies to attract tourists and potential investors.
The travel and tourism industry is well on its way to becoming one of the most powerful
growth engines in the coming millennium. The govt of Andhra Pradesh is focusing on tourism
for generating greater employment and achieving higher economic growth.
Tourism has a vision of making Andhra Pradesh the destination state of India, given its
attractive diversity, natural endowments and friendly population. Andhra Pradesh has a rich
tourist potential, which is yet to be exploited. “Bring the world to Andhra Pradesh, take Andhra
Pradesh to the world” is the tourism of Andhra Pradesh guiding spirit.
Andhra Pradesh has great potential for tourism with its temple towns, beach resorts,
monuments and other tourist attractions.
About APTDC Ltd:
The Corporation was incorporated during the year 1976 as subsidiary to Andhra Pradesh
State Road Transport Corporation Limited in the name of Travel and Tourism Development
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Corporation PVT Ltd with an authorized and paid up share capital of Rs. 100 lakhs and 13 lakhs
respectively. The company became a wholly owned government company in March 1980. The
authorized and paid up share capital of the company is Rs. 750 lakhs and 376.12 lakhs
respectively. The name of the company has been changed to Andhra Pradesh Tourism
Development Corporation Limited during the month of October 2000. Now the authorized share
capital of company is Rs.1000 lakhs.
Over the past 4 years, APTDC has added an array of function to its lists of tasks, with a
determination to show commendable performance. From just providing information to tourists, it
has gone into serious business like accommodation, catering and such other services that have
become essential for ensuring tourist infrastructure and service.
The turnover of the corporation in 1998 – 99 was Rs. 328 lakhs and this went on to
become a whopping Rs. 2004 lakhs at the end of the financial year 2001 – 2002, a turn around
that no other tourism corporation in the country would have ever achieved in such a short time.
Keeping this performance in view, the corporation has reset its goal to maintain the tempo and
meet the ever–increasing challenges posed by such rapid development and resultant expectations.
Objective:
The main objective of the company is to develop tourism in the state providing adequate
infrastructure to maintain and sustain tourist interest. Its aim is to take over, develop and manage
the guesthouses, resorts and tourist interest sites for the benefit of the tourists. To run, establish
and manage transport unit and operate tourist buses, cars, coaches and other modes of transport.
Administrative set – up:
The entire administration of APTDC has been reorganized to give it a more effective and
efficient face, matching and expansion of activities. Training of the staff at all levels has been
made a continuous process. At the corporate office overall supervision of activities has been
entrusted to senior officials who report directly to Chairman and Managing Director.
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• Projects & Administration – headed by an Executive Director.
• Transport & Conducted tours wing – headed by General Manager (Tours).
• Finance wing - headed by a General Manager.
• Accommodation and catering wing - headed by two General Managers (Hotels).
• Water fleet and Sound & Light shows - headed by a Dy. General Manager.
• Legal wing - headed by a Legal Advisor.
• Public relations wing – headed by a Manager.
Board of Directors:
Board of Directors Designation
Sri. J. Raymond Peter, IAS Chairman & Managing Director
Sri. V. Venkata Rami Reddy Executive Director
Sri. V. Nagi Reddy, IAS Director

Secretary to govt. YAT
Sri. T.S. Appa Rao, IAS Director
Principle secretary (R&E),

Finance department, govt of A.P.
Sri. Y. V. Venkata Naidu Director
Sri. K. Venkateshwara Rao Director
Sri. Vijaya Bhaskar Reddy Director
Vijay Mohan Raj Director

Chairman, travel agents association
Of India Andhra Pradesh Chapter.
Rajiv Narain Director
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President, Hotel & Restaurant
Association of A.P.
Activities of Organization:
The main activities of the corporation are:
1. Conducted & Package Tours.

2. Accommodation and catering services.
3. Leisure Cruises and Pleasure Boating.
4. Water fleet operations.
5. Sound and Light shows.
6. Eco – Tourism.
7. Adventure Tourism.
8. New Projects Implementation.
1. Conducted and Packaged Tours:
APTDC has given high priority to the second most important

aspect in tourism development, providing
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convenient conducted tours. Major expansion and revamping of the transport wing of the
corporation over the past three years have given a major thrust in this area.
At present 63 hi – tech coaches, 29 world famous Volvo

coaches, 8 air conditioned hi – tech coaches, 4 semi –
sleepers, 11 mini vehicles, 1 vintage coach and 10 Qualis
are being operated for conducted & packaged tours from
8 centers of Andhra Pradesh. As many as 54 tour circuits
covered by the corporation encompass all major pilgrim
centers, nature spots, leisure places, hills & valleys in Andhra Pradesh.
a. Other State Package Tour:
The tour starting from other than Andhra Pradesh districts comes under other state
packaged tours. The visitors from other states come to different destinations in Andhra Pradesh.
Most of this tour is provided with accommodation.
b. Charted Services:
APTDC can plan & organize leisure time activities for groups, both corporate and
individual. For instance, employees from companies, institutions or those attending as delegates
(and their spouse) at various conferences, boat rides on the launches, and even exclusive dinner
parties on the boat can be arranged.
2. Accommodation and Catering Services:
An important ingredient for development of tourism is provision

of comfortable accommodation for all categories of tourists. With
this in view, the corporation has refurbished its existing
accommodation and have established new hotels/resorts/wayside
amenities at all tourist/pilgrim spots of the state.
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Facilities such as swimming pool, conference hall and fitness centre have been created at
many of its hotels and resorts. As of May 2004, there are APTDC’s Punnami
hotels and resorts at 27 locations with a total of 861 rooms and a bad strength of 1910. Revenue
from hotels and catering units has increased from Rs. 361 lakhs in 2000 – 01 to Rs. 1148 lakhs in
2004.
Facilities at Punnami Hotels:
• All the hotels/resorts have modern amenities.

• Most of the rooms are air – conditioned
• Television/telephone in all rooms.
• Restaurant, vegetarian in pilgrim centers and multicuisine in others.
• Bars in all except in pilgrim centers
• Many hotels and resorts have other facilities like fitness centre, swimming pool, souvenir
shop, children play area.
• Moderately priced.
• Professionally managed.
APTDC has its Punnami hotels/resorts at:
• Amaravati - Kuppam Resort

• Araku Valley resort - Kurnool
• Badrachalam - Mahanandi
• Basara - Nagarjuna Sagar
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• Belum Caves - Puttur
• Berm Park - Rushikonda
• Bhavani Island - Srisailam
• Dwaraka Tirumala - Dornala
• Ettipotala - Tyda
• Horsley Hills, hill resort - Vijayawada
• Hyderabad, taramati - Vishakapatnam
• Kailasanatha Resort - Warangal
• Kesaragutta - Yadagirigutta
3. Leisure Cruises and Pleasure Boating:
APTDC has made effective use of rivers and lakes at important places in the state by
strengthening its water fleet and providing pleasure boating and leisure cruise facilities. A
beginning was made with commissioning of two luxury cruises “Bhageerathi” and “Bhagmati”
in the Hussainsagar Lake in Hyderabad.
Apart from strengthening the water fleet at Hussainsagar, Mir Alam Tank and Durgam
Cheruvu in Hyderabad, the corporation has provided shantisri luxury cruiser at Nagarjunasagar
on Krishna River and other mechanized boats that are of great attractions among tourists such as
Agastya, Krishna and Vijayalakshmi. Zaria launch and Chitrangi boat are provided at
Rajahmundry, Vijayasiri twin-deck at Vijayawada.Other boating
units are located at - lower manair at Karimnagar, Nellore tank, Mylaravaram at Kadapa,
Rushikonda beach at Vishakapatnam.
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5. Adventure Tourism:
Adventure tourism is at Srisailam, Hyderabad and Vijayawada. Recognizing adventure

tourism as a part of eco-tourism promotion with immense but untapped potential, the corporation
has introduced Parasailing on the inland surface waters of Hussainsagar. To begin with,
consultants are commissioned to explore the possibilities of adventure activities like trekking and
rappelling in the forest tracks of Nallamala and Araku circuits and the scheme will be
commercially launched.
6. New Projects under Implementation:
Paryatak Bhavan:
The project work is under progress with the investment of Rs.22 crores, which has been
funded, by the Government of India (GOI) with Rs.500 lakhs, Government of Andhra Pradesh
(GOAP) with Rs.220 lakhs and APTDC/loan Rs.1480 lakhs.
Components of project are:
• Reservation counters
• Offices for tour operators, hoteliers, travel agents
• Central reservation office
• Banking
• Retail areas
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• Food courts
• Other state tourism offices
• Cellar parking for 150 vehicles
• Three star hotel
The total build-up area is planned at 1, 30,000 sq.ft. With parking facility for 150 vehicles.
National institute For Tourism & Hospitality Management:
Located in Hyderabad with built up area of 3,50,000 s.ft facilitated by administration

block, classroom, lecture hall, laboratories & faculty rooms, library, conference hall &
auditorium, snack bars, medical center, bank, post office, sports room kitchen, dinning rooms &
toilets, hostels & faculty housing. The cost of the project is 20
crores, which includes GOI –Rs. 220 lakhs, GOAP- Rs.228 lakhs, APTDC - Rs.1552 lakhs. The
work is in progress.
Bhavani Island River Resort:
A large island (133 acres) in the river Krishna at Vijayawada is under construction with
an investment of Rs. 220 lakhs and entrance plaza with an investment of Rs.100 lakh. This island
includes 24 cottages, restaurants and a conference hall.
Anantagiri Resorts:
A resort at 4000’ elevation at Anantagiri, Araku, with facilities of 18 cottages,

restaurants, entrance lobby, recreation center, lounge, bar, etc. cost of the project is Rs.200 lakhs.
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Konaseema River Project:
The backwaters of Vasista and Vynateya are being tapped for houseboat cruises and rural
tourism. Project cost is Rs.135 lakhs,
• K. Vijaya Bhaskar Reddy memorial park at Kurnool, project cost: Rs.260 lakhs.
• Para ballooning project, at Durgam Cheruvu.
• Oravakallu Rock Park situated 21 km from kurnool on NH 18. Project cost: Rs.54 lakhs.
• Tourist complex, Bhadrachalam, project cost: Rs.300 lakhs.
• Suryalanka beach resort, Bapatla, Guntur dist. Project cost: Rs.100 lakhs
• Infrastructure at Tirupati visitor’s zone, Tirupati.
• Bapu ghat, Hyderabad. Project cost: Rs.500 lakhs.
• Tourist facilities at Kuppam wildlife sanctuary. Project cost: Rs.20.5 lakhs.
Heritage Projects under Implementation:

Sriparvara arama - a Buddhist theme Park at Nagarjunasagar:
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A unique theme park on the “life and preachings of Gautama Buddha, life of Acharya
Nagarjuna and Ikshvaku Dynasty”. Components of the project are: entrance plaza, parking areas,
visitor’s amenities, entrance arches & lotus pond, replicas of stupas from different countries.
Project cost is Rs.875 lakhs.
Amaravati Interpretation Center:
The center display art and culture of Satavahana Dynasty. Project includes restaurants,
information center, and souvenir shop. Project cost is Rs.210 lakhs.
Proposed New Projects:
 Tourist complex, Nellore. Project cost: Rs.100 lakhs.
 Sound & light show at thousand-pillar temple, Warangal. Funds from ASI, New
Delhi.
 Sea cruise between Visakhapatnam, Port blair & Chennai. Project cost: Rs.2000
lakhs.
 Southern spiendour circular train, covering A.P, Tamil Nadu, Kerala, Karnataka,
Pondicherry, approximately 5000 km. Project cost: Rs.3600 lakhs.
 Deccan convention center, Hyderabad. Project cost: Rs.4000 lakhs.
 Punnami hill view resort, Araku. Project cost: Rs.350 lakhs.
Privatized BOT (Build-Operate-Transfer):
Project of APTDC: Estimated Cost (Rs.Lakh):
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1. Food Courts at Necklace 465
2. Highway Plazas at various AP Tourism sites 700
3. Resorts at Gandipet 600
4. Golf Course at Naya Quila 250
5. Snake park at Malkajgiri, Hyderabad 30
6. Family Entertainment Centre, Vijayawada 175
7. Family Entertainment Centre, Secundrebad 2700
Human Resource Development:
While the corporation has been paying great attention to building up its infrastructure at
the same time it has focused on augmenting its human resources. This has been done through
increased professionalism brought about by continuous training and development of its
personnel. The corporation has struck a fine balance between its permanent employees, experts
on contract and employees drawn from other relevant departments. This has prompted a creative
fusion of ideas resulting in the corporation’s spectacular performance with total employee
strength of 1548 as on May 2004. The corporation is highly streamlined with specialized cells
like legal, MIS, project material management, etc.
Accounting and Finance:
Revenues are generated at unit level and remitted into respective banks and transferred to
head office under intimation of controlling office [divisional management]. This is the setup
where operating funds are transferred to divisional office by corporate office on performance of
monthly revenue. In turn divisional office distributes operating funds to units for day-to-day
operation. All units’ officers also submit their expenditure particulars to controlling office and
proper accounts are build-up at divisional office. A monthly trial balance will be submitted to
head office for incorporation. In turn, corporation office consolidates profit & loss account and
balance sheet. Keeping in tune with the growth, several systems have been introduced in regard
to accounting and finance. A computerized accounting system was introduced in 1999. There are
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daily collections at large number of points such as accommodation units, catering, water fleet,
Authorized agents, etc. Hence greater control on finance becomes essential. A full proof
coordination and feedback mechanism between the head office and the various units has been
established. Internal audit system has been strengthened
Audit and Accounts:
The audit of accounts has been completed up to 31.03.2005 and the audit of accounts is in
progress for the year 2005-2006. The annual accounts up to the year 2003 -2004 duly audited
and approved by the C&AG were adopted in the Annual General Meeting.
ORGANIZATION STRUCTURE OF A.P.T.D.C.L
AN OVERVIEW OF APTDCL:
The Corporation was incorporated during the year 1976 as subsidiary to Andhra
Pradesh State Road Transport Corporation Limited in the name of Travel and Tourism
Development Corporation Pvt. Ltd. with an Authorized and paid up Share capital of
Rs.100 Lakhs and Rs.13 Lakhs respectively. The company became a wholly owned
Government company in March 1980. The authorized and paid up share capital of the
company is Rs.1000.00 Lakhs and Rs.376.23 Lakhs respectively. The name of the
company has been changed to Andhra Pradesh Tourism Development Corporation Limited
during the month of October 2000. The main objective of the company is to develop
Tourism in the state providing adequate infrastructure to maintain and sustain Tourist
interest simultaneously triggering the growth of the economic activity of the region.
The main objective of the company is to take over develop and manage the guesthouses
and tourist interest sites for the benefits of the tourists. To run, establish and manage
transport unit and operate tourist buses cars, coaches and other modes of transport.
Following are the main activities of the corporation.
1. Package Tours
27
2. Accommodation and Catering Services
3. Water fleet operations
4. Sound and Light shows
5. Eco-Tourism
6. Lease and Privatization of schemes
PREAMBLE:
The entire administration of APTDC has been reorganized to give it a more effective and
efficient face, along with expansion of activities. Training of the staff at all levels has
been made a continuous process. At the corporate office overall supervision of activities
has been entrusted to senior officials who report directly to the Managing Director.
1. Projects & Finance – headed by an Executive Director
2. Administration & Leasing headed by Officer on Special Duty
3. Transport & Conducted Tours Wing – headed by General Manager
4. Accommodation and Catering wing headed by 2 General Manager each
5. Water fleet & Sound & Light shows headed by a General Manager
6. Legal wing headed by a Legal Advisor
7. Public Relations headed by Joint Manager.
ACTIVITIES OF ORGANIZATION:
28
Activities of the organization are divided into 7 divisional officers under their control
units are working. So all units are operated by unit officers and report to respective
divisional managers.
TRANSPORT FLEET:
To make travel hazel free and more comfortable APTDC has designed a number of
Tourist Packages to various destinations covering Temples, Hill Resorts, Beach Resorts,
Heritage sites, Caves both in outside the State through its modern transport fleet of 130
buses. Tours connect major places in the south such as Chennai, Bangalore, Salem,
Coimbatore, Mangalore, Goa, Shirdi.
HOTELS:
Under this category the Corporation has built Hotels, Resorts, Wayside amenities,
Accommodation in Forests like Jungle Bells-Tyda, Talakona, Kailasanathkona, Hill resorts
like Horsely Hills and Ananthagiri near Vizag. Prestigious resorts in Hyderabad
TARAMATI BARADARI. Mostly all the resorts and Hotels are provided with BARS. In
all there are 54 hotels spread over the whole state with a room capacity of 1100 nos.
SOUND AND LIGHTING:

The sound and lighting show at the Golconda Fort, Hyderabad continues to draw large
groups of tourists every day and is rated one of the best son-et-lumieres in the country.
The sound and lighting show has been introduced at Chandragiri Fort, near Tirupathi, the
last capital of the mighty Vijayanagar kingdom.
WATER FLEET:
29
The Durgam Cheruvu, popularly know as the ‘Secret Lake’ located beyond Jubilee Hills
has been made into an attractive nature spot. The 63-acre lake and its surrounding land of 21
acres have been developed with wilderness landscaping, promenade for walkers, terraced
lawns for visitors and for parties. This lake has 60 feet water spot in the midst of the
lake and angling facilities are the other attractions. Large number of Water bodies in the
state have enabled APTDC to develop lake and river tourism in Andhra Pradesh. APTDC
has 118 boats of which 62 are mechanized and 46 are non-mechanized. Pleasure cruises
on Hussainsagar lake, River Godavari and Krishna are very popular.
FINANCIAL RESULTS:
Revenues are generated at unit levels and remitted into respective banks and transferred
to head office under intimation to controlling office [divisional management]. This is the
setup of operating funds transferred to divisional office by corporate office on generation
of monthly revenues, in turn divisional office distributes operating funds to units for day-
to-day operation. Keeping in tune with the growth, several systems have been introduced
in regard to accounting and finance. A computerized accounting system was introduced in
1999. There is a daily collection at large number of points such as accommodation units,
catering, water fleet, Authorized agents, etc. Hence greater control on finance becomes
essential.
AUDIT AND ACCOUNTS:

The Audit of Accounts has been completed up to 31.03.2008 and the Audit of Accounts
is in progress for the year 2008-2009.The Annual Accounts up to the year 2006-2007
duly audited and approved by the C&AG were adopted in the Annual General Meeting.
Audit of annual Accounts for the year 2006-07 has been completed and ready to be sent
to Accountant General.
ACCOUNTING:
30
All units’ officers submit their expenditure particulars to controlling office and proper
accounts are prepared at divisional office. A monthly trial balance will be submitted to
head office for incorporation. In turn, corporation office consolidates Profit and Loss
account and Balance Sheet. Keeping in tune with the growth, several systems have been
introduced in regard to accounting & finance.
A computerized accounting system was introduced in 1999. There is a daily collection at

large number of points such as accommodation units, catering, water fleet; CROs;
Authorized agents etc., Hence greater control on finances become essential.
A full-proof co-ordination & feedback mechanism between the head office & the various
units has been established. Internal audit system has been strengthened.
Audit & Accounts

The Audit of Accounts has been completed up to 31.03.2008 & the audit of Accounts is
in progress for the year 2008-2009
REVENUE PARTICULARS FOR THE YEAR 2004-05 TO 2008-09

(LAKH ) INR
PARTICULARS 2004-05 2005-06 2006-07 2007-08 2008-09
Transport 1700.21 2674.43 2930.00 3970.77 4578.02
Hotels 704.23 1020.74 1790.00 2101.29 2660.35
Water Fleet 275.54 332.44 476.22 599.43 742.45
Sound & Light Shows 99.21 47.75 20.07 290.59 334.38
Eco-Tourism --- --- 144.89 --- ---
Other Income 296.48 269 400.78 694.62 496.85
Total 3075.67 4344.36 5761.96 7656.72 8812.06
31
REVENUE PROJECTIONS (LAKH) INR
OPERATING /UNIT 2007-08 2008-09

Income 11396.00 13676.00
Other Income 1200.00 1300.00
Total 12596.00 14976.00
MIS REPORTS:
All unit officers prepare monthly information reports relating to monthly collections,
monthly expenditure, percentage of occupancy rooms, at hotels, guesthouses, package
tours, booting units for assigning the performance with targets.
32
ACHIEVEMENTS IN TENTH FIVE YEAR PLAN [2004-05 to 2008-09]
During the Tenth Five Year Plan the Corporation has grounded 62 Projects with the
support of Grants received from Government of Andhra Pradesh. The total outlay for the
Tenth Five Year Plan was [ 2004-2005 to 2008-2009 ] 10829.87 lakhs and same
was utilized for various constructed as below:
Development of Infrastructure facilities for Tourism Promotion [2004-05

to 2008-09]
1. Hotels were constructed and operational……………………23
2. Monuments………………………………………………………..3
3. Boating Units by purchasing
4. Boats…………………………………8
5. Ropeways………………………………………………………….1
33
BALANCE SHEET FOR THE YEAR 31-03-2004 & 31-03-2005
PARTICULARS SEC.NO. 31-03-2004 31-03-2005
Share capital I
Authorized share capital 100000000 100000000
Issued, Subscribed Paid up Capital
From Govt. of AP in Cash 33557000 33557000
From Govt. of AP in Kind 1911800 1911800
Share Application
From Govt. of AP in cash 200 200
From Govt. of India 2143802 2143802
TOTAL 37612802 37612802
Deferred Revenue II
Up Front fee 12007000 7638000
Grants III
Grants Received From Govt. of AP
Grants Received From Govt. of 214747555 339642741

India
244937897 336327258
34
IV
Secured Loans 2936232 25175545
Vysya Bank Banjara Hill 28839314 0
ING Vysya Himayanthnagar 433095 106557
ICICI Begumpet 49916431 37861373
SBH Himayanthnagar 50000000 41650000
SBH IFB 52327706 64903050
Canara Bank 12992561 53510865
SBI Secbad
197445339 223207392
TOTAL 9069050
V 1442970
Unsecured Loans 7020386
NITHIM 7339237
SBMS DEVASTHALAM- 3245000

SRISAILAM
3245000
Interest payable on loan from Govt
of AP
19334436 223207392
TOTAL
VI
FIXED ASSETS 824504567 993219092
Gross Block 234439525 355974432
Less Depreciation 590065042 637244660
155223789 398294668
35
Net Block
CWIP
VII 2523419 3090115
CURRENT ASSETS 38797183 48406912
Closing Stock 34839488 77625210
Sundry Debtors 10827156 14469733
Cash & Bank Balance 2471795 2330405
Deposits 590000 3080000
Prepaid Expenses
Grant Receivable
90049041 149002375
TOTAL (A)
LOANS & Advances 42083689 27153767
Work Advances others 5948363 5184366
Work Advances Staff 66244 1425778
TDS receivables 0 1126387
Recoverable from TR Agent 5108382 5220362
Advance to staff 91813 0
Other advances 753950 1137878
Other Advances for expenses
54052442 41251539
TOTAL (B)
144101483 190253915
36
TOTAL (A+B)
VIII
CURRENT LIABILITIES & 9388740 99668393

PROVISIONS
1520355 26311535
Statutory Dues
36930105 47941303
Other Liabilities
34991934 52805342
Creditors for expenses
108067709 141615648
Creditors for capital work
6058386 6704450
EMD provisions
10500227 11636299
Leave Salary
91813 0
Gratuity Liabilities
Cash Suspense
207578269 273301471
TOTAL
IX
MISCELLANEOUS EXPENSES
7138047 4839891
2298157 2803152
Differed Revenue Expenditure
Less: Written Off
TOTAL 4839890 2036739
37
PROFIT & LOSS A/C FOR THE YEAR ENDING 31-03-2005 & 31-03-2006
OPERATING INCOME X 293088217 397077598
TOUR OPERATING INCOME 47622997 59943459
Water Fleet Income 179039521 210129212
Accommodation 20070449 29059820
Lights show 45373901 58147406
Lease Rent
TOTAL 585195085 754357495
OTHER INCOME XI
Interest on FD 913454 1384644
Other income 1483434 2339278
Miscelleous operating income 4165446 7591198
TOTAL 6562334 11315120
OPERATING EXPENSES XII
38
Catering Expenses 89014438 102161948
Water Fleet 5164007 8219928
Sound & Light 149155 2267092
Tour Operating Expenses 166861606 247342154
TOTAL 261189206 359991122
PERSONAL EXPENSES XIII
Salaries 103964113 116257011
Other Allowances 9713430 116257011
Staff welfare Expenses 1791919 3494488
Gratuity 1792199 1731435
TOTAL 117261661 131662977
ADMINISTRATIVE EXPENSES XIV
Rent 13826003 12665694
Electricity Charges 22293407 23753046
Insurance 8460809 6797624
Traveling 14486793 16087790
Postage 5451530 5712112
Legal Expenses 2325023 1043809
39
Printing Expenses 6231775 6381907
Other Expenses 4334132 4037139
Audit fees 165300 183750
TOTAL 77574772 76662871
PUBLICITY & MARKETING XV
Advertisement 5069686 0
Publicity & Marketing 2855048 0
Inaugural expenses 717139 747197
Exhibition & Festivals 4148361 0
Entertainment 1077914 0
Fairs & Festivals Abroad 13156 0
Hospitality 1000583 0
TOTAL 14881887 747197
REPAIR & MAINTAINENCE
Rep & Maint. (General) 10630402 11042558
Rep & Maint. (Furniture 606792 172695
40
TOTAL 11237194 11215253
INTEREST & BANK CHARGES
Interest
Interest on Unsecured loans 8503594 12398223
Bank charges 0 523755
1189175 1527129
TOTAL 9692769 14449107
41
Share capital I
Share Application
TOTAL 37612802 37612802
Deferred Revenue II
Up Front fee 7638000 7638000
Grants III

India
336327258 330845258
Secured Loans
IV
Vysya Bank Banjara Hill
25175545 18575545
42
SBH IFB 41650000 57465000
Canara Bank 64903050 47256012
SBI Secbad 53510865 41719042
223207390 189980342
TOTAL
V 1442970 5517317
Unsecured Loans
NITHIM 7339237 7826006
SBMS DEVASTHALAM-
SRISAILAM
3245000 3250937
of AP
12027207 116594260
TOTAL
VI
FIXED ASSETS 993219090 120730418
Gross Block 355974432 466686967
Net Block 398294336 288704250
CWIP
43
VII 3090115 3980610
CURRENT ASSETS 48406912 36634739
Closing Stock 77625210 48315438
Deposits 3080000 28389695
Prepaid Expenses
Grant Receivable 1490002375 144270935
TOTAL (A)
27153767 42637708
LOANS & Advances 5184366 5788540
Other advances
Other Advances for expenses 41251539 58465827
TOTAL (B) 190253915 202736762
TOTAL (A+B)
VIII
44
CURRENT LIABILITIES & 99668393 6126470
PROVISIONS
26311535 3155050
Statutory Dues
47941303 39270811
Other Liabilities
52805342 29972506
141615648 147385982
6704450 6344168
EMD provisions
11636299 11609068
Leave Salary
0 0
0 5777478
Cash Suspense
Deferred Tax Liability

273301471 23832465
TOTAL
IX
MISCELLANEOUS EXPENSES
4839891 4839891
2803152 2803152
Less: Written Off
TOTAL 2036739 2036739
45
OPERATING INCOME X
Accommodation 210129212 265932949
Lights show 29059820 33438050
Lease Rent 58147406 42428873
TOTAL 754357495 873610182
OTHER INCOME XI
Other income 2339278 2027942
TOTAL 11315120 4531257
Water Fleet 8219928 4727756
46
Sound & Light 2267092 2034291
TOTAL 359991122 426170522
Salaries 116257011 11066202
Gratuity 1731435 388757
TOTAL 131662977 117317819
ADMINISTRATIVE XIV
EXPENSES
12665694 0
Rent
23753046 25521673
Electricity Charges
6797624 7052131
Insurance
16087790 17227632
Traveling
5712112 5161641
Postage
1043809 3215823
Legal Expenses
6381907 5519906
47
Audit fees 0 568869
Security services salaries
TOTAL 76662871 84270273
TOTAL 747197 10426019
11042558 14096849
Rep & Maint. (General)
172695 77638
Rep & Maint. (Furniture
0 2034291
Renovation expenses
0 20760973
Repair & maintenance vehicle
48
Repair & maint.water fleet 0 981680
TOTAL 11215253 37951431
INTEREST & BANK

CHARGES
12398223 12398223
Interest
523755 523755
Interest on Unsecured loans
1527129 1527129
Bank charges
TOTAL 14449107 14449107
49
Share capital I
Share Application
TOTAL 37612802 37612802
Deferred Revenue II
Up Front fee 12007000 7638000
Grants III

India
244937897 336327258
2936232 25175545
Secured Loans IV
28839314 0
Vysya Bank Banjara Hill
433095 106557
ING Vysya Himayanthnagar
49916431 37861373
50
SBH IFB 12992561 53510865
Canara Bank
SBI Secbad 197445339 223207392
TOTAL
9069050 1442970
Unsecured Loans V
NITHIM 7020386 7339237
SBMS DEVASTHALAM-
SRISAILAM
3245000 3245000
of AP
19334436 223207392
TOTAL
824504567 993219092
VI 234439525 355974432
FIXED ASSETS
Gross Block 590065042 637244660
Net Block CWIP
CURRENT ASSETS
VII
Closing Stock
2523419 3090115
51
Deposits 10827156 14469733
Prepaid Expenses 2471795 2330405
90049041 149002375
TOTAL (A)
LOANS & Advances
Other Advances for expenses 753950 1137878
54052442 41251539
TOTAL (B)
144101483 190253915
TOTAL (A+B)
CURRENT LIABILITIES & VIII 9388740 99668393

PROVISIONS
1520355 26311535
52
Statutory Dues 36930105 47941303
Other Liabilities 34991934 52805342
Creditors for expenses 108067709 141615648
Creditors for capital work 6058386 6704450
EMD provisions 10500227 11636299
Leave Salary 91813 0
Cash Suspense
207578269 273301471
TOTAL
IX
MISCELLANEOUS EXPENSES 7138047 4839891
2298157 2803152
Less: Written Off
TOTAL 4839890 2036739
53
OPERATING INCOME X
Accommodation 179039521 210129212
Lights show 20070449 29059820
Lease Rent 45373901 58147406
TOTAL 585195085 754357495
OTHER INCOME XI
Other income 1483434 2339278
TOTAL 6562334 11315120
OPERATING EXPENSES XII 89014438 102161948
Water Fleet 149155 2267092
54
Sound & Light 166861606 247342154
Tour Operating Expenses
TOTAL 261189206 359991122
Salaries 103964113 116257011
Gratuity 1792199 1731435
TOTAL 117261661 131662977
ADMINISTRATIVE EXPENSES XIV
Rent 13826003 12665694
Electricity Charges 22293407 23753046
Insurance 8460809 6797624
Traveling 14486793 16087790
Postage 5451530 5712112
Legal Expenses 2325023 1043809
Audit fees 165300 183750
55
TOTAL 77574772 76662871
TOTAL 14881887 747197
TOTAL 11237194 11215253
INTEREST & BANK CHARGES
56
Interest
Bank charges 0 523755
1189175 1527129
TOTAL 9692769 14449107
57
Share capital I
Share Application
TOTAL 37612802 37612802
Deferred Revenue II
Up Front fee 7638000 7638000
Grants III

India
336327258 330845258
58
Secured Loans IV 25175545 18575545
Vysya Bank Banjara Hill 0 38720
SBH IFB 64903050 47256012
Canara Bank 53510865 41719042
SBI Secbad
223207390 189980342
TOTAL
Unsecured Loans V 1442970 5517317
NITHIM 7339237 7826006
SBMS DEVASTHALAM- 3245000 3250937

SRISAILAM

of AP 12027207 116594260
TOTAL
FIXED ASSETS VI 993219090 120730418
Gross Block 355974432 466686967
Net Block 398294336 288704250
CWIP
59
3090115 3980610
CURRENT ASSETS VII 48406912 36634739
Closing Stock 77625210 48315438
Deposits 3080000 28389695
Prepaid Expenses
TOTAL (A)
LOANS & Advances 27153767 42637708
Other Advances for expenses
41251539 58465827
TOTAL (B)
190253915 202736762
TOTAL (A+B)
60
CURRENT LIABILITIES & VIII 99668393 6126470
PROVISIONS
26311535 3155050
Statutory Dues
47941303 39270811
Other Liabilities
52805342 29972506
141615648 147385982
6704450 6344168
EMD provisions
11636299 11609068
Leave Salary
0 0
0 5777478
Cash Suspense
Deferred Tax Liability

273301471 23832465
TOTAL
MISCELLANEOUS EXPENSES IX
4839891 4839891
2803152 2803152
Less: Written Off
TOTAL 2036739 2036739
61
OPERATING INCOME X
Accommodation 210129212 265932949
Lights show 29059820 33438050
Lease Rent 58147406 42428873
TOTAL 754357495 873610182
OTHER INCOME XI
Other income 2339278 2027942
TOTAL 11315120 4531257
62
Water Fleet 8219928 4727756
Sound & Light 2267092 2034291
TOTAL 359991122 426170522
Salaries 116257011 11066202
Gratuity 1731435 388757
TOTAL 131662977 117317819
XIV
ADMINISTRATIVE
EXPENSES
12665694 0
Rent
23753046 25521673
Electricity Charges
6797624 7052131
Insurance
16087790 17227632
Traveling
5712112 5161641
Postage
Legal Expenses
1043809 3215823
Printing Expenses
6381907 5519906
63
Audit fees 183750 196224
Security services salaries 0 14587769
TOTAL 76662871 84270273
TOTAL 747197 10426019
Renovation expenses 0 2034291
Repair & maintenance vehicle 0 20760973
Repair & maint.water fleet 0 981680
64
TOTAL 11215253 37951431
INTEREST & BANK

CHARGES
Interest 12398223 12398223
Bank charges 1527129 1527129
TOTAL 14449107 14449107
65
ANALYSIS OF SOURCE OF FUNDS OF APTDCL
Here, it is proposed to examine sources of fund of APTDCL by expressing each

sources as percentage of total sources of funds. The following table – I i.e., presents a
relevant data of sources of funds of APTDCL from 2004-2005 to 2008-2009.
TABLE – I : SOURCES OF FUNDS OF APTDCL
Sources of funds 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

37612802 37612802 37612802 37612802 37612802
Share Capital (5.18) (3.82) (5.18) (3.82) (4.21)
12007000 7638000 12007000 7638000 7638000
Deferred Revenue (1.65) (0.78) (1.65) (0.78) (0.86)
459685452 675969999 459685452 675969999 634082839
Grants (63.31) (68.59) (63.31) (68.59) (71.1)
197445338 223207392 197445338 223207392 189980342
Secured Loans (27.19) (22.65) (27.19) (22.65) (71.11)
19334436 12027208 19334436 12027208 16594260
Unsecured Loans (2.66) (1.22) (2.66) (1.22) (1.86)
- 28997310 - 28997310 5777478
Deferred Tax Liability (2.94) (2.94) (0.64)
726085028 985452711 726085028 985452711 891685721
TOTAL (100.00) (100.00) (100.00) (100.00)
66
THE ANALYSIS OF THE DATA OF THE TABLE BRINGS OUT
THE FOLLOWING
Government grants contributing major amount in every year. The amount of grants
moved between 56.18% to 68.59% during the period under review. This may be an
account of constant encouragement of government towards the tourism development in
the state. However the APTDCL also depending on external sources of fund such as
secured loan and unsecured loans.
With in this two secured loan contributing much more than the unsecured loan in
almost all the years of the Study. The percentage of secured loan varied from 27.19% in
the year 2004-05 to 71.11% in the year 2008-09. Where as unsecured loans moved from
2.66% to 1.86%. The unsecured loans contribution is less in the year 2006-07 and 2005-
06 than the remaining year of the study
The amount of share capital of APTDCL is constant. It indicates that, there is no
increase in the internal sources. Therefore it can be concluded that the APTDCL is
completely depends upon external sources that to only government grants. Thus the
development of APTDCL is completes in the hands of government only.
67
ANALYSIS OF APPLICATION OF FUNDS OF APTDCL
Now, it is proposed to examine application of funds of APTDCL by expressing each

application as percentage of total application of funds.
The following table -- III represents a relevant data of application of funds of

APTDCL from 2004-05 to 2008-09.
TABLE - III : APPLICATION OF FUNDS OF APTDCL
Application of 2004- 2005-2006 2006-2007 2007-2008 2008-

funds 2005 2009
Fixed assets 824504567 993219092 824504567 993219092 12073041

gross block 56
Less
Depreciatio 234439525 355974432 234439525 355974432 46668696
n 7
Net Block 590065042 637244660 590065042 637244660 74061718

9
Capital work
in progress 155223789 398294338 155223789 398294338 28870425
0
Current
assets loan 144101483 190253916 144101483 190253916 18210247
and advance 3
Less Current
liabilities
provisions 207578269 273301473 207578269 273301473 24387664
8
Net current
assets (63476786) (83047558) (63476786) (83047558) (61774175
)
68
Miscellaneo
us 4839890 2036739 4839890 2036739 243579
Expenditure
Profit & loss
account- 39433093 30924531 39433093 30924531 -
dr.balance
Total 72608502 98545271 726085028 98545271 96779084

8 1 1 3
THE ANALYSIS OF THE DATA OF THE TABLE BRINGS OUT THE
FOLLOWING INFORMATION
Total fixed assets is increasing APTDCL is progressive increases. The amount of fixed
assets move between 28.22% to 81.26%. It is an intimation A.P. Corporation is
purchasing. It has more invested in purchasing of fixed assets.
In current assets it show the lack of less balances of cash 35.28 to 18.43 it has
having less cash balance. Corporation is not able to get working capital with this two
financial & C.A. we can say that they have much more invested in fixed assets and
capital work in progress in almost all the years of the study. The percentage of fixed
assets varied from 28.22% in the year 2004-2005 to 81.26% in the year 2006-07 and is
a decrease of 64.66% in the year 2008-2009.
The statement of changes in working capital is 22.45% in the year 2004-05 to

40.42 in the year 2006-07. There is relatively decrease in the profit and loss A/c in the
2006-07 when compared with the year 2004-05 and in the current assets it is almost
declaiming from year to year. Miscellaneous expenditure is increasing from 2004-05
where 0.095% to 2006-07 it has 0.206%
69
0.095% in the year 2004-05 to 0.206% in the year 2008-09
CONCLUSIONS
 By analyzing the balance sheet of APTDCL it shows that the grants and
secured loans have been raised for acquiring more fixed assets for expanding
their operations in the Andhra Pradesh.
 The grants of APTDCL in the year 2004-05 was 459685452 and it increased
UPTO 634082839 in the year 2008-09.
 Fixed assets are increased by 824504567 in the year 2007-08 it has reached
to 1207304156. As compared to last year this has been possible by decreasing
in current assets and share capital.
 It is a step in the rigid direction because expenses of the business is possible
with increase in fixed assets. Unsecured loans is on lower side so there is a
still force for agreeing for loan for there future expenses for profit activities
can be carriable. It indicates that the amount of loans are not properly
utilized in the year 2004-05 to 2008-09 and current assets are becoming
70
negative balances from 2004- 05 to 2008-09.
 To conclusion corporation is expanding because investment in fixed assets has
increased 81.26% in the year 2006-07 and because of grants are increased it
has expanding their operations.
SUGGESTIONS
 Since, working capital has been utilized to buy fixed assets which
may lead to working capital shortage and difficulties in paying current
liabilities in the near future.
 The company has to control its expenses in the case of its petroleum and
lubricants.
 In order to attract he tourist make sure of the best and good advertisement.
 Being this corporation is a semi-govt, the government has to provide the

assistance in its development.
71
BIBLIOGRAPHY
Book Title Author Name Publishers
Accounting Theory and S.P. Jain & K.L. Kalyani Publishers
Management Accounting Narang
Financial Management Prasanna Chandra Tata MC Graw Hill
Theory and Practice
Accounting and Finance K. Rajeshwara & Jai Bharat
G. Prasad Publications
Financial Management IM Pandey VIKAS Publishing
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Samatha Project Final 130510

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Samatha Project Final 130510

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INTRODUCTION

The broad categories of current assets, therefore, are

1) Cash including fixed deposits with banks

3) Inventory i.e., customs, port authorities, advance income tax, etc.,

According to the companies at regarding presentation of financial statement

from current assets.

(1) The use of existing current assets or

(2) The creation of other current liabilities

(1) Accounts payable e.g., bills payable and trade creditors.

BANK OVERDRAFT SHARE CAPITAL

1. Bills Payable 1. Cash in hand

LIST OF NON-CURRENT OR PERMANENT CAPITAL ACCOUNTS

Non-Current or Permanent Liabilities Non-current or Permanent Assets

1. Equity Share Capital 1 Goodwill

DIAGRAMS DEPICTING FLOW OF FUNDS

NON-CURRENT ASSETS NON-CURRENT

1) It explains the financial consequences of business operations – Funds flow

statement provides a ready answer to so many conflicting situations, such as:

b. How was it possible to distribute dividends in excess of current earnings

d. Where have the profits gone?

Definite answers to these questions will help the financial analyst in

advising his employer/client regarding directing of funds to those

channels which will be most profitable for the business.

b. What are the sources of repayments of the loans taken?

what are going to be likely used of funds?

3) It acts as an instrument for allocation of resources: A projected funds flow

Add the following items as they do not result in outflow of funds:

1) Depreciation on fixed assets.

2) Preliminary expenses or goodwill etc. written off.

3) Contribution to debenture redemption fund, transfer to general reserve etc., if they

Non-operating incomes such as dividend received or accrued dividend, refund of

1) Funds from long-term loans. Long-term loans such as debentures, borrowings

SOURCES AND APPLICATIONS OF FUNDS

Funds from Operations Funds Lost in Operations

Issue of Share Capital Redemption of Preference

Issue of Debentures and Repayment of Long-term

Raising of Long-term Loans and Redemption

Sales of Non-Current Assets Purchase of Non-Current

Non-Trading Receipts Payment of Dividend and

ii. Payment of dividends: Payment of dividends results in decrease of a fixed

Issue of Sale of Long Term Operational

iii. Payment of fixed liabilities: Payment of a long term liability, such as

iv. Payment of tax liability: Provision for taxation is generally taken as an

3) Helpful in Interpreting financial information

4) Helpful in making decisions

3) At end meaningful inferences are drawn to reflect the sources and

application of funds of APTDCL and suitable suggestions are offered for

improving the efficiency of working capital sources and application of

PERIOD & SCOPE OF THE STUDY:

About APTDC Ltd:

Administrative set – up:

Sri. J. Raymond Peter, IAS Chairman & Managing Director

Sri. V. Venkata Rami Reddy Executive Director

Sri. V. Nagi Reddy, IAS Director

Principle secretary (R&E),

Sri. K. Venkateshwara Rao Director

Sri. Vijaya Bhaskar Reddy Director

Vijay Mohan Raj Director

The main activities of the corporation are:

1. Conducted & Package Tours.

1. Conducted and Packaged Tours:

APTDC has given high priority to the second most important

At present 63 hi – tech coaches, 29 world famous Volvo