EXECUTIVE SUMMARY

The project report consists of the Study of Fund Flow Management at Endurance Technologies Limited (ETL) in Disc Brake Division Aurangabad. The study of fund flow refers to sources and application of the funds in the company. ETL is a manufacturing organization which supplies disk brake to Bajaj Automobile Limited. Therefore to know the various sources from where the company raise the funds and their uses in the organization in effective manner. During the project I study of financial statements with a view to know the strength or weaknesses of the firm and to make forecast about the future prospects of the firm. Endurance Technologies Limited is one of prestigious company in Aurangabad. It is the well known manufacturing company. I choose Fund Flow Management because I want to study the overall sources of fund and their effective utilization. The duration of the project from 25 May, 2011 to 25 July, 2011. CORPORATE OFFICE: Name ADDRESS URL : Endurance Technologies Limited. : E-94, MIDC Industrial Area, Waluj, Aurangabad-431136. : http://www.endurancegroup.com

The fund flow statement is a technique to evaluate the performance of the company. By using this technique company can measure their performance in long term as well as it also helps to concentrate working cycle for smooth production.

1.1 OBJECTIVES OF THE STUDY

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1. To study the existing Fund Flow Analysis at Endurance Technologies Limited, Aurangabad.
2. To determine the financial strengths and weakness of Endurance Technologies

Limited through Fund Flow Analysis. 3. To find out the uses of loans raised by the company. 4. To know the various sources from which the funds arise & the application of those funds in the company. 5. To know the operating efficiency & give the suggestion for improvement.

1.2 SCOPE OF THE PROJECT

Scope of the project is as follows. 1. Geographical Scope.
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2. Functional Scope. 3. Topical Scope. Geographical Scope: The study Fund Flow Statement (FFS) is limited to Endurance Technologies Limited (ETL) only. Functional Scope: The study of Fund Flow Statement is limited to finance department of Endurance Technologies Limited only for three financial years. Topical Scope:The study is limited to Fund Flow Statement analysis only in Endurance Technologies Limited (ETL).

2. COMPANY PROFILE
2.1 INTRODUCTION: ENDURANCE is established in 1985 and started its first enterprise as Anurang Engineering Co. Ltd. to manufacture Aluminum Die Casting products at Aurangabad, Maharashtra (India). The Endurance Group has a global force in Casting, Suspension, Transmission and Braking products with an annual Sale Turnover of 2200 Million for
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the year 2010-11. More than 3,700 employees work in 19 Plants at 5 Locations in India and about 625 employees in 5 Overseas Plants. ENDURANCE comprises of two main business divisions i.e. the Die Casting Division and the Proprietary Component Division. Under the Die Casting Division the main areas of operations are Casting, Painting & Machining which are supported by well-equipped Tool Room facilities. Under the Proprietary Component Division the main areas are Suspension, Transmission and Braking systems. On the strength of its experience and the depth of our Technological Expertise, it has now geared up to launch itself on the high growth global circuit.

2.2 MISSION: To achieve and maintain leadership with a focus on Technology, Product Reliability and Safety in an environment of Honesty, Transparency and Fairness and contribute towards betterment of society.

Endurance Organizational Goals & Focus Area

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It is endurance dream to become not only a globally competitive automotive components supplier, but also to make endurance known for supply of components of the Best Quality AT MOST COMPETIVE PRICES. But, every dream has no have an action plan to make it a success therefore; I feel that it is very important for every individual working in our group to know what Endurances ORGANISATIONAL GOALS are for the near future and what should be the FOCUS AREA to help achieve these Goals. Following are the 2 major Goals and the 5 Focus Areas, set out for Endurance.

2.3 GOALS: Achieve a sustained Zero Customer Complaint for Proprietary Group (Suspension, Transmission and Braking) and below 500 PPM Customer Complaint for Casting Group (High Pressure, Low Pressure, Gravity Die Casting and Aluminum Alloy Wheels) latest from March 2007 onwards.

Endurance to achieve Profitable Sales Growth of Rs. 3000 corers by the year 200910 with Export comprising 15 % of the same.

2.4 FOCUS AREAS: TPM Focus on PQCDSM, with full focus on Quality Customer Focus Organic and Inorganic growth Technology Strong in-house R & D and Foreign Collaboration. Strong Vendor Partnership
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Selection of best vendor in term of QCD with right attitude to support Endurance in this Competitive environment. People Organization and Individual success at Endurance will depend on the capability of its people and its ability to retain them. 2.5 ACHIEVEMENTS OF ENDURANCE: 200 4 The production of Disc Brake Assemblies and CVTs were started at Aurangabad, Maharashtra. The productions of Low Pressure/Gravity Die Castings were started at Aurangabad, Maharashtra. R&DCenter for Transmission was started at Aurangabad, Maharashtra.

2.6 MAJOR WORKING AREAS: Production Marketing Finance Stores R&D HR & Admin Maintenance
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 Purchases PPL/PPC Process 2.7 BANKERS:

Bank Of India Bank Of Maharashtra

Citibank N.A. Corporation Bank HDFC Bank Limited ICICI Bank Limited IDBI Bank Limited Indian Overseas Bank Standard Chartered Bank A total of 19 Plants at prominent location in India & 5 Overseas Plants.

India: 8 Plant at Aurangabad, Maharashtra 6 Plant at Pune, Maharashtra 1 Plant at Manesar, Haryana 1 Plant at Chennai, Tamilnadu 3 Plants at Pantnagar, Uttarkhand

Overseas: 1 Plant at Bolonga, Italy. 2 Plantsat Massenbachhausen, Germany. 2 Plants at Torino, Italy.

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2.8 CUSTOMERS / CLIENTS WORLD WIDE:

Competitors of Endurance Technologies Limited: The major Competitors are as following manner: Gabriella India Ltd. Ford Escort Suspension
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Bosch Suspension System Brahmos India Ltd.

2.9 PRODUCT INFORMATION: Name Established CorporateOffic e ENDURANCE TECHNOLOGIES LTD. August 1985 (As Anurang Engineering Co. Ltd.) E-92, MIDC Industrial Area, Waluj, Aurangabad 431136. Braking Hydraulic Disc Brakes Tandem Master Cylinders Hydraulic Drum Brakes Brake Shoes Caliper Components

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2.10 S W O T ANALYSIS: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment.

Strengths
a. Large Infrastructure at auto HUB

Weaknesses a. Limited customer base in auto sector. b. Limited customer. scope due to limited

in Aurangabad, Pune & Pantnagar. b. Large Suppliers of BAL c. Research & Development dept. at proprietor division. d. Varity of product in OEM. Opportunities a. Develop a new customer b. Cost reduction. c. Increase in SOB with existing customer.

Threats a. Improper manpower. b. Market demand varies seasonal. c. Possible negative publicity. d. Closing of geographic market.

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2.11 FINANCE DEPARTMENT:

Organization Structure of Finance

Strategic Business Unit (SUB) Finance

Head of Department (HOD) Finance

Financial Executive

Sr. Accountant Officer

Accountant Officer

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2.12 SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE ENDURANCE COMPANY: System of Accounting The company follows Mercantile System of accounting and generally recognizes Income & Expenditure on an accrual basis. Financial statements are based on historical cost. Basic for preparation of Accounts The accounts have been prepared to comply in all material aspect with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accounts of India and the relevant provision of the Companies Act, 1956. Fixed Assets and Depreciation Fixed assets are stated at cost of acquisition of constructive (except free hold land) less depreciation and amortization. All cost relating to acquisition including related expenditure incurred up to date, the asset is put use are capitalized. Investment Investments are stated at cost of acquisition. Borrowing Cost Borrowing cost attributable to acquisition and construction of assets are capitalized as a part of the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Profit & Loss Account. Accounting for CENVAT Credit Cenvat Credit available on materials is accounted by booking purchases net of excise duty. Unveiled Cenvat credit at the year end is included under Loans & Advances.

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Foreign Currency Transactions Foreign Currency Transactions are recorded at the rate prevailing at the time of transactions. Exchange differences on account of acquisitions of fixed assets are adjusted to carrying cost of fixed assets. Contingent Liabilities Contingent Liabilities are disclosed by way of a note to the Balance Sheet.

Finance Functions Budget preparation Budget administration Cost allocation Accounts payable Payroll Monitoring service providers Technical assistance to service providers Contract administration Billing Property inventory

General accounting records Fixed Assets records Custody of funds Distribution funds of pass-through

Cash flow Investments Debt administration Risk management Internal financial reports External financial reports Statutory reports Tax reports

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2.13 MAIN FUNCTIONS OF FINANCE DEPARTMENT:

Preparation of budget, appropriation of accounts, re-appropriations, surrender

and savings. Control of expenditure and ways & means position Audit Treasury administration Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc Service Conditions including Freedom Fighters Pensions Resource mobilizations through loans, Institutional Finance, Small Savings, Credit and Investment and public debt. Financial concurrence and advice. Safety and investment of funds from consolidated funds, contingency fund and public account Contract, recovery and refund of revenue etc.

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3. THEORETICAL BACKGROUND
3.1 MEANING & DEFINITION OF FUND FLOW: Fund Flow A statement that explains changes in Net Working Capital (NWC), due to changes to non-current assets and equities between two balance sheet dates. Fund flow analysis is the detailed analysis of the (NWC) position of the Organization. A statement that uses NWC as a measure of liquidity position is referred to as Fund Flow Statement and it analysis as fund flow analysis. In the simple word Funds refers to all the financial resources of the company. Whereas flow of funs refers to transfer of economic value from one assts equity to anothers. The definition of fund flow statement as, A statement of sources & application of funds is a technical device designed to analyze the changes in the financial condition of a business enterprise between two dates. It helps management to administer and control the amount of total working capital. It facilitates a critical review of liquidity position. It can motivate the management to identify the problem areas and initiate corrective steps.
The concept of Sources and Uses (Application) of funds. The effect of changes in various Balance Sheet items on

NWC position of the Company.

The first step to analysis the fund flow is to classify the business transaction into Sources and Uses of funds. Sources: - An increase in liabilities or a decrease in assets is a Source of fund. A decrease in NWC balance during the accounting period is considered a Source of fund. Uses: - An increase in assets or a decrease in liabilities is a uses of fund. An increase in NWC balance during the accounting period is considered a uses of fund.

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Items included into Fund flow i.e. Sources (cash inflow) & Uses (cash outflow) Opening Balance Sources Uses

Issue of Share Collection from debtors Borrowing from bank (Long-term loan) Sales of Long term Investment Sales of Machinery Fund from operation Decrease in NWC

Statutory payment Loan repayment & interest Creditor/ Hundi payment Purchase of machinery Purchase of buildings Payment of dividends
Others payments

Increase in NWC

The following analyses are done by using Fund Flow i.e. Changes in Net Working Capital Funds from operation Total funds available Utilization of funds in long-term assets in financial period Ratio of funds from operations to total funds in the business Ratio of short-term finance to long-term finance
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3.2 NET WORKING CAPITAL (NWC): NWC is defined using only current items as an excess of current assets over current liabilities. Working Capital is the amount of funds necessary to cover the cost of operating the organization. For the calculation of NWC we use the following formulae. NWC = Current Assets Current Liabilities

Current Assets: Cash/ bank A/c receivables Sundry Debtors Prepaid expenses Short-term investment Inventory/ stock

Current Liabilities: A/c payables Sundry Creditors Bank over draft provision Short-term Loans, etc. Whatever the result comes i.e. increase/decrease, it is transfer to fund flow. If NWC decrease it is transfer to Source side; and if increase it transfers to Application side of a fund flow Statement.

3.3 BENEFIT/USES OF FUND FLOW STATEMENT: The amount of NWC deployed in business. Changes in NWC from last year and current year.
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 Various sources of raising fund. Ratio between long-term & short-term sources. Fund for the business (Funds from operation) Utilization of funds. Comparative analysis of long-term sources Take a corrective action. Helps to management for making decision. 3.4 SIGNIFICANCE OF FUND FLOW STATEMENT: 1. It is helpful in estimating the budget or the amount of funds required in future for modernization & expansion programmers. 2. It provides the information how the funds have been obtain from different sources, i.e. External and Internal etc. & how they have been spent.
3. It helps to know where did the profits go.

4. It leads to improvement in the rate of project on assets by directing the flow of funds to those activities with high margins. 5. It helps the management for declaration of dividends, planning of a dividend police or issue of bonus share. 6. It helps in avoiding the situation of running out of funds by obtaining additional working capital, when required. 7. It helps in planning for retirement of long-term debts.
8. It helps in assessing the relative points of STRENGTH AND WEAKNESS OF

THE ETL 9. It helps the financial manager in financial planning decision making.

3.5 EFFECTIVE UTILIZATION OF FUNDS: The Finance Manager is responsible for effective utilization of funds. Manager has to point out situation where the funds are being kept idle or where proper use of funds is not being made. All the funds are procured at a certain cost & after entailing a certain amount of risk. If these funds are not utilized in the manner so that they generate an income highly than the cost of procuring them, there is no point in running the business. Hence, it is crucial to employer the funds properly & profitably. Some of the aspects of funds utilization.
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a. Utilization for Fixed Assets. b. Utilization for Working Capital.

a. Utilization for Fixed Assets. The funds are to be invested in the manner so that the company can produce at its optimum level without endangering its financial solvency. For this, the financial manager would be required to possess sound knowledge of techniques of capital budgeting. Capital Budgeting: (or investment appraisal) is the planning process used to determine whether a companys long term investment such as new machinery, replacement machinery, new plant, new product, & research development project would provide the desire return (profit) .

b. Utilization for Working Capital. The financial manager must also keep in view the need for adequate working capital & ensure that while the companys enjoys an optimum level of working capital they do not keep too much funds blocked in inventories, book debts, etc. 3.6 A SUMMARY OF MAIN POINTS OF DIFFERENCES BETWEEN BALANCE SHEET & FUNDS FLOW STATEMENT ARE GIVE BELOW:

No Fund flow statement

1 It is prepared to know the total sources & their uses in a year. 2 3 It is prepared with the help of balance sheet of two consecutive years. It reveals the changes in the value of

Balance Sheet
It is prepared to know the financial position of a company of a particular date It is prepared on the basis of different accounts in the ledger (trial balance) It shows the assets & liabilities as on a
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fixed assets & their effect on flow of funds. 4 It is useful for internal financial management.

particular date as such it is a static statement. It is useful not only for the management but also to the shareholders, creditors, outsiders, banks, & government agencies, etc.

In fund flow statement current assets & In the balance sheet; current assets & current liabilities are used to find out increased or decreased in working capital. current liabilities are shows item wise.

Its preparation is at the discretion of the management.

Its preparation is a statutory obligation & as per the format prescribed.

3.7 A SUMMARY OF MAIN POINTS OF DIFFERENCES BETWEEN FUNDS FLOW STATEMENT& CASH FLOW STATEMENT ARE GIVE BELOW:

No Funds Flow Statement

1 working capital. 2

Cash flow Statement

element of working capital.

It is based on the overall concepts of It is cash based which is just on a

It does not contain any opening & It contain opening & closing balance of closing balance. cash.

It indicate sources & application of It indicate only cash inflow & outflow funds of funds. It is mandatory in India.

4 5

It is not mandatory in India.

It is no set format to follow in It is set format to follow in preparation. preparation.

It is useful in planning intermediate & It is used by management for short term long term financing purpose. financial analysis & cash planning purpose.

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3.8 FORMAT OF FUND FLOW STATEMENT: Name:As per the Balance Sheet as on .. Sr. No. Particulars Last Actual per Audited BalanceSheet 1 Sources Of Fund I. Net Profit After Tax II. Deprecation III. Increase in Capital IV. Increase in term liability V. Decease in i. Fixed Assets ii. Others than nonYear Current As Year Following Year

Estimated Projection

current Assets I. Others II. Total 2 USES

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I. Net loss II. Decease in term liability III. Increase in i. Fixed Assets ii. Others than non-

current Assets I. Divided payment II. Others III. Total 3 Long Term Surplus (+) Deficit (-) 1+2 4 Increase/Decrease in current assets (As per details given below*) 5 Increase/Decrease in current Liabilities (Other than bank borrowings) 6 Increase/Decrease in Working Capital gap 7 Net surplus (+) deficit (-) Difference of 3 & 6 (3-6) 8 Increase/Decrease borrowings INCREASE/DECREASE IN NET SALES * Break-up of (4) (i) Increase/Decrease in Raw In Bank

materials
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ii) Increase/Decrease in S.I.P (iii) Increase/Decrease in Finish Goods (iv) Increase/Decrease in

receivables i. Domestic ii. Export (v) Increase/Decrease in Store & Spares (vi) Increase/Decrease in other current assets

4. RESEARCH METHODOLOGY

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Research in common parlance refers to a search for knowledge. Research can also be defined as a scientific and system search for pertinent information on specific topic. We can also say research as an art of scientific investigation. It is a systematized effort to gain new knowledge. In analytical research, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material. Descriptive research includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at present. A: Data sources Primary data:The primary data are those which are collected fresh and for the first time and thus happen to be original in character. Primary Data is collected through Discussion, interview, meetings, lectures and having a conversation with Financial Executive Mr. A.E. Raut in the ETL. Secondary data :The data has been collected from the Annual reports of company. Secondary data those data, which are already collected by someone else and made available in journals periodicals; website etc. meaning it already exit. Secondary Data: secondary data for this project is taken from the following sources:
Web site of ETL

Books Annual Report of ETL; etc.

5. DATA ANALYSIS
Once necessary data has been collected through surveys, observation or experiment, etc. it should be edited to ensure that only correct data is used. Next, it would be coded
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and categorized and entered in the computers. Following is the data collection i.e. Balance Sheet Statement & Fund Flow Statement of ETL &its interpretation. Balance Sheet provides static picture of the financial position. Whereas fund flow statement i.e. statement of changes in the funds position provides dynamic picture of the financial standing of the company

5.1 THE TABLE OF SOURCES AND USES OF FUNDS: (Amt in Millions) Sr. No. A 1 2 3 4 B 1 2 Particulars Sources Net Profit After Tax Increase in capital Increase in term liability Others sources Total Use Fixed assets Other than non-current assets Total 2008-09 69.44 2.96 986.17 294.69 1353.3 1681.8 0 2009-10 88.51 4.89 3701.3 2094.4 5889.1 6472 1680.6 8152.6 2010-11 104.59 6.28 4238.7 2786.9 7136.5 8867.5 724.06 9591.6

1681.8 Table No 1

DIAGRAMMATICAL REPRESENTATION OF SOURCES

Graph No.1 Interpretation: In the year 2008-09 the total sources were 1353.5 which includes Net Profit after Tax, Increase in capital, Increase in term liability and others sources. After
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observing above graph it defines most of sources from term liability. In the financial year 2009-10 and 2010-11 there is positive hike in term liability and other sources due to increased in fixed assets purchased during the year such as machinery for expansion in manufacturing program.

TOTAL SOURCES IN RELATION TO FIXED ASSETS AND OTHER THAN NON-CURRENT ASSETFOR THE YEAR

Graph No.2 Interpretation: Above bar diagram shows the total sources in relation to fixed assets. It shows how the company has utilized its financial assets in effective manner even though it has fewer sources available. It defines companys financial condition is strong in terms of assets. In the year 2009-10 the total sources in relation to fixed assets and other than non-current assets. There is addition in the fixed assets as well as in other than non-current assets. Though the company has fewer sources available but still it invested in fixed assets for the betterment of companies future prospective. In the year 2010-11 the total sources in relation to fixed assets and other than non-current assets. In this financial year the company has decrease other than non-current assets as compare to previous year. But the company still utilized maximum funds in fixed assets.

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5.2 THE TABLE OF WORKING CAPITAL (W.C.):

Year

2008-09

2009-10

2010-11

Particulars Increased in w.c. Decreased in w.c. 00 166.42 00 211.46 Table No.2 78.25 00

Graph No.3 Interpretation: The above diagram shows the working capital of the company for the year 2008-09, 2009-10 and 2010-11. From above diagram it has been observed that in the financial year 2010-11 the working capital of the company was increased by Rs. 78.25 as company enable to recover the debts. It also shows that there was decrease in working capital in the year 2008-09 and 2009-10. 5.3 RATIOS& INTERPRETATION:
I.

CURRENT RATIO:This ratio dividing current asset by the current liabilities, current ratio is also known as solvency ratio. Current Ratio = Current Asset/ Current Liabilities

(Rs. In Millions) Year Current Asset Current Liabilities 2008-09 791.58 958 2009-10 3154.62 3365.45 2010-11 4133.57 4055.32
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Current Ratio

0.82

0.93
Table No.3

1.01

Graph No.4 INTERPRETATION: - The level of current ratio should be at least 1.33 as per standard norms. However, 1.01 this ratio is below as compare to Standard ratio that shows the current liabilities are secured by sufficient current assets.
II. DEBT EQUITY RATIO:-

This ratio calculated to measure the comparative proportion of borrowed fund and shareholders fund invested in the firm. Debt- Equity ratio = Long term debt/ Share holders funds

Year Long term Debt Shareholders Fund Debt-Equity Ratio

2008-09 1024.02 804.96 1.27

2009-10 2010.37 1102.42 1.82

2010-11 5711.65 3201.75 1.78

Table No. 4

Graph No. 5 INTERPRETATION: -The above diagram shows that debt equity of the company. As per above table we can say that every year there is Hugh increase in sources of funds through secured loans. At a same time company rise their
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shares for capital purpose. The share capital fund is interest free funds available as a sources.
III. PROPRIETARY RATIO:-

Proprietary Ratio is also known as Worth Debt Ratio, Net worth to Total Assets Ratio, Equity Ratio. Proprietary Ratio is a test of the financial and credit strength of the business. It is ratio between the proprietors funds and total asset. Proprietary ratio = Proprietors Funds/ Total asset Where, proprietors funds = Share capital + Reserves and surplus Year Proprietors Funds Total asset Proprietary Ratio 2008-09 804.96 4074.14 0.19 Table No.5 2009-10 1102.42 6217.39 0.17 2010-11 3201.75 5786.83 0.55

Graph No.6 INTERPRETATION: -The above diagram shows the proprietary ratio of the company. The reason is behind that the assets increased as well as reserves & surplus is increased in highly manner. Due to highly increase in fixed assets the production capacity is also increase.

IV. CURRENT ASSET TO FIXED ASSET:-

This ratio shows the proportion of current asset to fixed asset to enhance the earning capacity of firm. Current asset to fixed asset = Fixed asset/ Current asset

Year Fixed Asset Current Asset

2008-09 1907.99 1542.03

2009-10 3053.18 2089.47

2010-11 8835.04 4963.6

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Current Asset to Fixed Asset

1.23 Table No.6

1.46

1.77

Graph No.7 INTERPRETATION: - As per above diagram the current asset to fixed asset ratio is more in the year 2010-11 i.e. 1.77. As compare for year 2008-09 & 2009-10. It also shows that the ratio is increasing every year. It is increasing because co. held maximum fixed assets with them. At the same time company also increase their current assets to overcome in working condition.

V. RETURN ON EQUITY RATIO: (ROE)

This ratio shows the productivity of owners capital employed in the organization. Return on Equity Ratio= Net income/ Equity Shareholders fund

Year Net income Equity Shareholders fund Return on Equity Ratio

2008-09 84.59 9.15 9.24 Table No.7

2009-10 154.03 12.11 12.71

2010-11 242.54 17 14.26

Graph No.8

INTERPRETATION: The above diagram shows that the Return on Equity (ROE). As per above diagram ROE is an indicator of company's profitability by measuring how much profit the company generates with the money invested by common stock owners. It is also known as Return on Net Worth. In year 2010-11 ROE is higher its better useful to shareholder & prospective buyer. 5.4 THE STRENGTHS AND WEAKNESS OF COMPANY:
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STRENGTHS Good in investment Increased in Fixed Assets Increased in Net profit Increased in Sales Increased/maintain good position of current assets Good in provision, Reserves & Surplus Less

WEAKNESS no. of shareholders

contribution as compared to term liabilities More liabilities in secured loan Highly capital flections in working

6.1 FINDINGS:

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1. It is found that the companys sources have been increased through term

liability and other sources. Due to this company has to pay high interest on liabilities. (Table No.1) 2. It has been found that with increase in sources of funds at the same time the company have utilized maximum funds in the fixed assets.
3. It has observed that the current ratio of company is 1.01:1. So company is in a

position to pay its current liabilities. (Table no.3)

4. It is found that the company issue share as a source of funds. It is interest free

funds available for rising funds. (Table no.4)

5. It is observed that company utilized funds in fixed assets for that the company

uses share capital and reserves which are interest free funds. (Table no.5)
6. Considering current assets to fixed assets ratio is has been observed that the

ratio increase in every year. As company invest in fixed assets as well as current assets also. (Table no.6) 7. It is found that there is high improvement in the Investment. At a same time the Secured & Unsecured loan increased. So we can easily conclude that for the investment purpose company obtain funds from loan.

6.2 SUGGESTIONS:
1. It is suggested that the company should focus on reduction in sources through term liability in order to avoid paying high interest on liabilities.
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2. It is suggested that the company should concentrated on working capital for

smooth flow of production.

3. It has been suggested that the company should not focus on fixed assets only.

There should be proper utilization of funds to yield more benefits.

4. The level of current ratio should be at least 1.33 as per Standard norms set by

the company; they should try to attain the above maintain norm.
5. Due to investment in fixed assets the company has acquired a good position of

profit, so company should retain its position in the market and expand more production for more profitability in the future as well.
6. The earning capacity for the company is good, so company should retain its

position in the market for more profitability in the future as well.

6.3 LIMITATIONS OF THE PROJECT:

Respond was busy. Time constraints: due to the time constraint and busy schedule of employee. It

was difficult to interact with them for collection data.

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 The project consist in financial department so, the company generally not

disclose their financial information to anyone so it is very hard to get proper financial condition of the company. It is argued that fund flow statement does not provide any new information but only rearranges the various facts which already appear in the financial statement. It does not consider non-fund transactions.

6.4 CONCLUSION:
1. It is concluded that company should concentrate on maintain standard norms. 2. It is concluded that the company should make analysis of various data available

through fund flow statement to manage the business effectively and to reduce probable losses in future.
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3.

It is concluded that company have surplus funds available with company they can take advantage of better fund management.

4. The profitability of company is constantly increased and they are maintaining

good position in the market.

5. It can be concluded that the company use more funds to invest to fixed assets. 6. It is concluded that company concentrated on working cycle for better

production program.

7. BIBLIOGRAPHY
Working Capital Management (July, 1994); Indira Gandhi National Open School of Management Studies. Cost accounting & financial management part-2 financial management; board of studies Institute of Charter Accountant of India. Principal of Financial Management by Satish M. Inamdar.
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Financial Management by Ravi M. Kishore. Advanced Financial Management, topic name-Financial Analysis; by Dr. N.M. Vechalkar.
Secondary data is the data was collected from already exist somewhere like Internet, Books, Business magazines, Exiting Project, Newspaper, etc.

www.endurancegroup.com www.google.com www.scribd.com

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