Bhagavan

FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTRODUCTION
Finance is the lifeblood of every business activity without which the wheels of modern business organization system cannot be greased. Finance management is managerial activity, which is concerned with planning and controlling of the firms financial resources. Finance is a scarce resource and it as to be managed effiency for the successful Functioning of any company. Several companies have come to brief mainly because of in efficient management of finance, in spit of other favorable conditions. Funds flow statement is an important tool and is widely used in the hands of financial analysts and managers for analyzing the financial management of a company. Funds keep on moving in a business, which itself based on going concern concept. In a narrow sense, it means inflow and outflow of cash only and a flow statement prepared on this basis is called as cash flow statement. Such a statement enumerates net effects of the various business transactions on cash and takes into account receipts and disbursement of cash. In a broader sense, the term fund refers to money values in what ever form it May exists. Here, funds mean. All financial resources. But in a popular sense, the term funds means working capital i.e., excess of current assets over current liabilities. The word fund here means net working capital.
Definition: A statement of sources and applications of funds is a technical device designed to analyze the changes in the financial condition of a business enterprise between two dates. -- R.A.Foulk
EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.
FUNDS FLOW ANALYSIS INDUSTRY PROFILE
KBD SUGARS PVT LTD
Cultivation of sugar cane in India dates back to the wide period. The earliest mention of sugar cane cultivation is found in Indian writings of the period 1400 to 1000 B.C. The sugar is derived from the Sanskrit word Sank Kara or Starker. Barber (1931) was of the opinion that the thin Indian canes probably originated in the moist parts of North Eastern Indian, from some plant closely related to Saccharin Spontaneous. Tropical cane might have originated in some of the larger islands of Oceania, most probably in New Guinea. Brands (1956) also concluded that it originated in New Guinea, where various forms of thick, tall, tropical cane have been grown from ancient times. HISTORY: Sugar cane, the main source of sugar, is said to have originated in New Guinea. This crop spread over rest of the world in the pre-historic times but initially it was consumed raw. The process of sugar production, i.e. by evaporating the cane juice, came from India in around 500 B.C. In Alexanders reign, the people from west termed this process as honey produced without bees. For a long time, the rest of the world did not know the process of cane sugar production because it was kept as a secret as it earned them a good amount of profits. Finally Arabs broke this secret and started growing sugar cane in Spain and other parts of Europe and Africa around 7th century A.D. It started gaining popularity in the European continent and it was considered a luxurious product at that time. A large amount of sugar was imported from the East as it started giving competition to honey as a sweetening agent. Christopher Columbus was the person who took sugar cane to the new world. This is how the concept of sugar production spread in Europe and with the European invasions in the rest of the world; sugar cane was especially cultivated to extract sugar from it. Cultivation pattern: SUGAR is mostly derived from sugar cane and sugar beet crops and the cultivation pattern of both these crops are quite distinguished from each other. While sugar cane is
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
generally grown in the tropical regions of the world that are featured with hot and humid climate, sugar beet is cultivated in the temperate areas featuring much cooler climate than tropical areas. Sugar cane needs a minimum of 8 months of high temperatures and frost-free weather conditions to prosper. Both heavier soil with adequate irrigation and lighter soils with heavy clays and proper drainage are suited for sugar cane cultivation. The level of production of this crop is dependent upon the extent of the rainfall received. It is an annual crop that is planted in the months of February to April and harvested during the months of October to March. The sugar beet, on the other hand, is a crop, the roots of which are used to produce sugar. It is sown in the months of March and April and harvested in the months of September to December. Distribution:
SUGAR CANE is grown over the land surface of the earth between latitudes 35 degrees N and 35 degrees S.
The important sugarcane producing countries in the world are India, Cuba, Brazil, Mexico, Pakistan, Chine, Philippines, and Thailand.
It is one of the important crops of the world cultivated over modern techniques of Raising Field Crops area of 13.46 million hectares with a total of 754.13 million tones of cane (1979).
In India area and production of sugar cane has been fluctuating from year to year depending upon pricing policy and climatic conditions.
It occupies about 3.1 million hectares. The total production of cane is 156.45 million tones.
Uttar Pradesh has the largest acreage under sugar cane, and accounts for about 52% of the area under this crop in whole of India and also accounts for 40% of the total annual production.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
India ranks first among sugar cane-growing countries of the world in both extent of area and production of cane. Along with white sugar, KHANDASARI (indigenous) sugar and GUR (JAGGERY) are also consumed in the country.
Indian sugar industry: Indian sugar industry is highly fragmented with organized and unorganized players. The unorganized players mainly produce GUR and KHANDSARI, the less refined forms of sugar. The government had a controlling grip over the industry, which has slowly yet steadily given way to liberalization. The report provides comprehensive analysis about the structure of Indian sugar industry by explaining the above facets. Besides the classification of sugar products and by-products like molasses, their uses too have extensively covered. The production of sugar cane is cyclic in nature. Hence the sugar production is also cyclical as it depends on the sugar cane production in the country. The report provides extensive information on the production of sugar cane, sugar and other sweeteners in the country in the recent years along with trends and analysis. This also includes a discussion about existing capabilities in the country, trends in capacity additions, imports and production of by-products of sugar (molasses and cogeneration of power). The report features a detailed demand analysis discussing the actual demand for sugar and other sweeteners, guar and khandsari and their per capita consumption in India. This includes a trend analysis in demand in various regions of the country. The role of exports in the sugar industry has also been discussed. The report gives an exhaustive cost analysis along with the pricing practices. Dual pricing system is adopted in the sugar industry, which includes sugar price in public distribution system and the free sale sugar price. An analysis has been provided on the relationship between Indian and international sugar prices. As the industry is a fragmented one, even leading players do not control more than 4% market in India. However, the situation is changing and players off late are striving to increase their market share either by acquiring smaller mills, or by going for green field
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
capacity additions. Another notable trend is the shift from GUR and KHANDSARI to sugar in the rural areas. This should further increase the per capita consumption of sugar in India (currently around 15.6 kg). Besides the Indian urban market is slowly moving towards branded sugar. The potential in this segment seems to be very high. These trends along with the other trends like increase in the production of by-products have been captured in detail. Sugar producing countries:
o o o o o o o o o o
Brazil* India* European Union China United states of America Thailand* Australia* Mexico* Cuba* Indonesia
In the above list, the countries marked with *sign produce sugar from sugar cane. The rest of the countries produce it from sugar beet except US as it is indulged in both cane sugar and beet sugar production. Worlds total production of sugar sums up to around 135145 million tons. The largest producer of sugar in the world is Brazil with an annual production of around 24 million tons, India being the second with about 22 million tons of sugar, European Union standing at the third place with approximately 18.5 million tons. Among other important contributing countries to the world production, China, Thailand and USA are the most important. The production of sugar is concentrated in the hands of these few producing countries that contribute to about 3/4ths of the production. The Asian continent followed by the South American continent dominates the area, which is cultivated for sugarcane production.
FUNDS FLOW ANALYSIS Production of sugar in India:
KBD SUGARS PVT LTD
India is the second largest producer of sugar in the world after Brazil and is indulged in the production of cane sugar and not beet sugar. It produces approximately 22million tons of sugar annually. The major states that are producing sugar cane in India are:

Maharashtra Uttar Pradesh Karnataka Tamil Naidu Andhra Pradesh Gujarat
These states contribute around 85% sugar cane production of the country. The other important producers of sugar in the country are Assam, Bihar, Gujarat, Haryana, Kerala, Madhya Pradesh, Orison, Punjab, Rajasthan, and West Bengal. The production of sugar in the country highly depends upon the availability of sugar cane. The leading producer of sugar is Maharashtra producing about 6 million tons of sugar followed by Uttar Pradesh and Karnataka. Uttar Pradesh constitutes the maximum area covered and the sugar cane production in the country. Two grades of sugar namely S-30 and M-30 are produced in India; grade S-30 dominating the share in total production. The production of sugar cane
in India has increased during the last ten years and is still on an increasing trend. The productivity of sugar cane in the northern areas of the country is lower than the productivity in southern areas. In India, sugar is grown over 4 million hectares of land. Sugar mills and molasses: There are 38 sugar mills, 16 in co-operative sector, 3 in public sector and 9 in private sector, which produce molasses as by-product, in the sugar manufacturing process. Molasses is the most common raw material used for distillation of rectified spirit. There is no price control over molasses. But the possession, sale, use, transport and export of molasses are controlled by issuing licenses and permits under The Tamil Nadu Molasses
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Control and Regulation Rules, 1958. An Administrative Service Fee of Rs. 300/- per metric tones on export of molasses is being levied from 03.08.2006. Indian sugar market: As history foretells, India had been connected to sugar for a long time. In fact, it is known as the place of origin of sugar. India maintains this reputation of sugar connection by producing the second largest quantity of sugar in the world and also being the largest consumer of sugar. Indian sugar industry is the largest processing industry for agricultural products constituting of both organized and unorganized sectors. India had been the largest producer of sugar in the world for 7 out of 10 years. But now Brazil has taken a lead from India. Indian production from both the sectors sums up to 22 million tons. Indian share in the worlds total production has shown as increasing trend in the past few years and currently India is contributing to around 16%. The country has been indulged in the production of cane sugar rather than beet sugar as Indias tropical weather conditions support sugar cane production. Maharashtra holds the lead in the production of cane and sugar in the country. The consumption level of sugar in India reaches up to 18.5 million tons annually making India the largest consumer of sugar in the world. This demand and consumption level is still showing a rising trend. The government largely controls the demand and supply of sugar in India and the prices fluctuate according to the government releases of sugar. India had been an exporter of sugar but the export-import policy depends on the production-demand mismatch in the country. The crushing period difference between India and other countries gives an advantageous edge to Indian exports. Exports from India show a rising trend as a result of the upcoming policies of free international trade. The trade figures of India correspond to the mark of 1.5 million tons. The Indian sugar industry has successfully satisfied the domestic demand till now. That is why India no imports of sugar were done during the past few years.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Market influencing factors: 1. Factors pertaining to the climatic conditions and rainfall. 2. Production of sugar cane in the country. 3. Sales of sweets including candies and confectionaries. 4. Political factors. . Trend of sugar industry As is well documented, the last two sugar years brought a windfall to the domestic sugar industry, with prices surging by above 50% between 2002-2003 and 2005-2006. As a result, overall conversation margins to which had been at an average of around Rs. 3,200/MT during the previous 10 sugar years ( 1994-1995 to 2004-2005) and as low as Rs. 2,000/MT in SY 2002-2003, shot up to Rs. 4,000-4500/MT by 2005-2006. The key driver for this upsurge in prices has been lower supply, with the country witnessing significant stock reduction during 2003-2005 because of crop failures. The raise in sugar prices internationally has also aided the surge in domestic prices. International sugar prices, which had been stable at US$ 200-250/MT till the early 2000s shot up to around US$ 450 in calendar 2006, following the spurt in crude prices (resulting in the diversion of cane to ethanol in several countries) and phase out of subsidies by the EU. The current situation of domestic sugar stocks being at low levels is unlikely to be sustained in the long term and will see a correction. Domestic production of sugar cane has already shown an increase from around 130 lake MT in SY 2004-2005 to around 190 lake MT in SY 2005-2006.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
With significant capacity expansion being in the pipeline, particularly in Uttar Pradesh (UP), production is likely to out strip domestic demand again from SY 2006-2007 onwards, resulting in a build-up of stocks. ICRA expects domestic sugar production to be at 220-230 Lake MT in SY 2006-2007 and at around 240 lake MT in SY 2007-2008, considering the estimates provided by the Indian Sugar Mills Association (ISMA) and the Government of India (GOI). However, the likely sustenance of firm global prices would permit exports of around 20 lake MT of sugar per annum for the next two sugar seasons, thereby easing the pressure on domestic stocks. Nevertheless the stock position would increase from 2007-2008 onwards. Sugarcane is one of the important crops for the Indian farmer. Sugars and Jiggery are the main products that we get from sugarcane. Other products such as biogases for industrial use, molasses for distillery, filter cake. Mud as an organic manure and green leaves with tops for cattle feed are also available as by products, because of its multi uses sugarcane has played crucial role in India economy with Rs.20,000 cores turnover and width 450 sugar mils providing assistance to 45 million sugarcane farmers and 2 million sugarcane and 2 million workmen directly and indirectly. In A.P. sugar industry is an important agro base industry, occupying the second position next to textile industry. The annual cultivated area in about 1.99 lake hectares with a yield of 149.45 lakes of tones during 96-97.At present, there are 36 sugar factories in the state and 50% of them are in cooperative sector. The co-operative sugar units in the states have been suffering due to lack of adequate cane irrigation facilities, working capital, byproducts utilization, excessive employment etc. The sugar industries which provide direct employment to about 3 lakes persons of sugarcane followed by Brazil & Cuba. Sugarcane exited in India from 3000 B.C. The center place of origin of sugarcane regarded as northeastern India, from sugarcane seems to have been to china and other places by early travelers and no mans between 1800 and 1700 B.C. Later. It was penetrated to Philippines. Jew and other places. Actually the word sugar derived from a Sanskrit word SHAKRA
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
India as the worlds largest producer of sugarcane occupies a very pride place in the world. In India, the cultivation of sugarcane is 10,000 miles tones. The average yield being 56 tones
Per acre of total cultivating land is occupies by sugarcane cultivation. Sugarcane is grown in almost all part of India; expect in colder regions extreme north Jammu & Kashmir, Himachal Pradesh. Area Wise distribution of sugar industry in A.P Sugar Industry Nature Seasonality The industry is seasonal, with the season stating in November and continuing till April / May, Sugarcane is available during these 6-7 months and therefore crushing also takes place during these months. Licensing system To protect sugar-producing units and insure a sufficient quantity of raw material (sugarcane), licensing system was introduced. Under this system each unit had a command area from where the sugarcane was produced. The licensing system presently in place is also tying to encourage the setting up of new units by providing them with sops and other benefits.
FUNDS FLOW ANALYSIS COMPANY PROFILE
KBD SUGARS PVT LTD
KARNATAKA BREAWARIES DISTILLERS SUGAR AND INDUSTRIES LIMITED Introduction:
The irrigation in chittoor district mostly depends on open wells. Recharge of water in the wells depends in ground water level and rainfall. However rainfall depends in monsoon which is uncertain. The soils in district are almost suitable for sugarcane. In olden days, total quantity of sugarcane produce in the district was converted as jiggery by gauges and power crusher and unfavorable prices. The big farmers also faced difficulty to crush the cane for long period. The jigger made in the district was brought to the chittoor and pakala which are the market places with railway transportation. There was lit of exploitation of farmers by the jigger monde owners by advancing the money with high interest rates, commission and also not properly weighment. The price fluctuation created by the traders was also a reason for poor realization, but there was no other choice to the formers.
Name DISTILLERIES LIMITED Location and Address
: K.B.D SUGARS &
: MUDIPAPNAPALLI (VILLAGE), SUGALIMITTA (POST), PUNGANUR-517241, CHITTOOR (DT), ANDHRA PRADESH.
FUNDS FLOW ANALYSIS BRIEF HISTORY OF THE COMPANY
KBD SUGARS PVT LTD
The company was originally incorporated on 16 day of October, 1984 under the name of SREE TELUGU LIMITED. Subsequently the name of the company was changed to SHREE VAANI SUGARS LIMITED on the 5 day of April, 1990. Again subsequently the name of the company was changed to KBD SUGARS LIMITED on the 1 March 2005. The company was initially promoted by Sri T. Suryachandra Rao, Managing Director and Sri S. Gokul; Executive Director commences its commercial production from 01 July, 1992. In the initial years if performance of the company was much below the break even levels. Due to poor performance, the company accumulated substantial cash loses and also defaulted in meeting terms loan comities ALFLs. In these circumstances, the promoters have inducted Sri D.K.Adikesavulu as a copromoter in order to facilitate the company to meet the cost overrun of the project and also for the short fall in the margins for working capital. Sri Gokul has since come out the board and left the company. Main objectives of the company To carry in the business as manufacturers, produces, processors, sellers, distributors, stock lists and traders of sugars and its derivatives, Molasses biases and all materials and substances arising as by products and waste products out of and in the course of manufacture of sugar. To carry in the business as manufacturers, brewers, blenders, dealers distillers, stock lists and traders of rectified spirit, ethyl alcohol, gasohol, acetic acid, Acetone anhydride, vinyl acetate, polymers, plastics, polyvinyl chloride, liquors and all products made there from. To carry on the business as manufacturers, producers, packers, dealers, stock lists and traders of furfural, bulk drugs, pharmaceutical and medical preparations, made out by products of sugar or their derivatives.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
To carry in the business as manufacturers, dealers, distributors, stock lists and traders of biogases pulp, paper pulp and pulp made out agricultural residues or other fibrous materials, paper, newsprint, paper boards, mill boards, stew boards, cites paper of all kinds, paper bags, febrile boxes, cartoons, Corrugate containers, wrapping and packing materials.
To carry on the business planters, growers, cultivators, framers and producers of sugarcane, sugar beet.
To generate electrical power by conventional, non-conventional Methods, including coal, gas lignite, Naphtha oil, bio-mass, biogases, waste thermal solar, Hyde, geo-Hyde minor tidal waves any to promote, own acquire erect, construct, establish, maintain, improve, manage, operate, alter carry on, control.
Take in hire/lease, power plants, cogeneration plants, energy conversion projects power houses, transmissions and distributions system for generation, transmission and supply of electrical energy to the state electricity board, state government, appropriate authorities, agricultural, household, industrial, commercial, and any other consumer for industrial purpose in Indian and else where specified by the state/central government, local authority in state electricity board and any other competent authorities by entering in to necessary agreements.
FUNDS FLOW ANALYSIS PRESENT BOARD OF DIRECTORS
KBD SUGARS PVT LTD
NAME SRI D.K AUDIKESAVULU
DESTINATION CHAIRMAN
SRI D.A SRINIVASAS
DIRECTOR
SRI SURYACHANDRA RAO SRI N.V VARADARAJULU
DIRECTOR
DIRECTOR
SRI RAMACHANDRAIAH
DIRECTOR
SRI M.G.G NAIDU
DIRECTOR
SRI P.L SANJEEVA REDDY
DIRECTOR
FUNDS FLOW ANALYSIS PRODUCT PROFILE Sugar Cane
KBD SUGARS PVT LTD
Sugar cane cultivated by the growers or promising varieties in terms of sugar content and yield. Cultivation techniques maturity of (decided by the cane personnel) harvested and supplied to the factory in trucks fresh less tops and roots. Trucks are weighed with cane on Weigh Bridge and unloaded on the moving cane carrier. Mechanical un-loaders do unloading. Again empty truck is weighed to assertion in the weight of cane unloaded.
Millings Provided with a tandem of four mills land each mill is provided with three rollers. On the cane carried for cane preparation cane knives driven by motor and followed by a Fibrizer driven steam turbine are provided to chop the cane into small pieces and fiber to make the milling move efficient and to extract maximum juice from the cane. To make this process more effective assured quantity of water is added to Mills. After extraction of juices the waste materials is called bagasse. Boilers Provided with 2 nos. of boilers of each water evaporation capacity of 25 Mts. Per hour steam at 300 p sig (21 Kgs). Steam is used for driving the Fibrizer, mills by turbines and generator power, by steam turbine alternator. For boilers main fuel is bagasse. Surplus bagasse is sold to paper industries. Clarification Juice extracted form sugar cane in mills is weighted in automatic weighing scale. It is preheated in juice heater to 50-750. Then it is limited and sulphieted simultaneously. Juices will be coagulated form and will not settle. To induce settings cheaply and abundantly available positive is to be added i.e. namely time in slurry form, also called
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
milk of lime, by using addition of such alkaline medium is again brought down to natural pH medium by bubo ling of sculpture dioxide gas. This gas is produced in sculpture burners and bubbled in preheated juices. By the aid of compressed air passing through sculpture burners. As such a juice is kept at slightly alkaline medium say 701 to 7.2. Then this treated juice is heated again in other row of juices heaters to 102 C and to send to graver. Graver is a big tank where settling is taking place. Continuously, such juices is sent and drawn from it with the detention time of juices of about 330 hours, in u tube principles.
Evaporation In graver juices will be well settled and will have a golden yellow color of 7.0pH (Neutral). This clear juice will contain more than 85% of water and the remaining soiled (Sugar Maximum + a little sugar). In evaporators about 75% of water is removed and made syrup. This consists of one vapor cell and is followed by four bodies. Boiling is done under vacuum using exhaust stream from turbines tubes emerging out through tube plates and above this calamari vapor space or shell. Steam circulated through calandreia and heating the outer point of hikes is brought well below its origin boiling point. In the vapor cell alone exhaust steam is admitted into the calandria produced vapor to its subsequent body and soon. Vacuum is helping is drawing vapor from the preceding body and this boiling is called multi effect boiling and maximum fuel economy. Thus when a juice is emerges out from last body it will be a syrup, losing about 75% of water. Vacuum filter Mud settled in graver is taken in rotary filters to extract juices from it and waste is called filter cake sent out and used as manure. Extracted juices is again mixed juices from mills after weighment tank and takes the path of process along with mills juices in acyclic form. Sulphitation and syrup
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
The syrup from evaporator last body is again suspired to beach to get white sugar and sent to pan supply tanks. Pan bodies are similar to evaporators in construction with different design. Materials are invidiously boiled in four numbers under vacuum. When the syrup is further boil in pans. When the super saturation point reaches crystals come out it is again boiled up by addition kept in pan and the rest 2 portions sent to receivers. Then again pan is boiled. This process will help growth or crystal as desired by us. Three boiling are bone A, B, C. These are called massecuites. All these mass cuties (sugar + molasses) are purged in centrifugals respectively sugar and molasses are separated. Pans are boiler on vapor produced form vapor cell. Centrifugals Such made massecuties are dropped in crystallizers (a storage tank with stirring mechanism). From crystallizes taken into centrifugal machines and sugar and molasses separator. Centrifugal machines contain a basket fitted with mesh and screen of small opening and will not allow sugar crystals to pass through but only molasses. When one machine changed with massecuities and spun at 150 RPM molasses gets out and collects in a tank. Sugar remains in basket washed and dried by steam. Then dropped on hopper (to and or) shaking medium sugar will get dry when flowing and galls on sugar grader (fitted with meshes) screened and bagged. Bags weighed on P.O scales of 100kgs. And sent to go down. Molasses got from a massecuites; sugar and molasses form B massescuties and sugar form c massecuites (final) are again boiled in pans in cyclic manner. Molasses got fro c massecuites called final molasses is a waste and sent to storage tanks (Raw material for alcohol industries).
FUNDS FLOW ANALYSIS REVIEW OF LITERATURE
KBD SUGARS PVT LTD
The funds flow statement is a statement, which shows the movement of funds and is a report to the financial operations of the business undertaking. It indicates various means by which funds were obtained during a particular period and the ways in which these find were employed. In simple, the funds flow statement is a statement of sources and application of funds. In short, it is a technical device designed to high light the change in the financial condition of a business enterprise between tow Balance Sheets. According to Robert Anthony" the funds flow analysis describes the sources fro which additional funds were derived and the uses to which these funds were put. According to Fouke, A Statement of sources and Applications of funds is a technical device designed to analyze the changes in the financial position of a business enterprise between two rates. Finds flow statement is widely used by the financial analyst and credit granting institution and financial managers in performance of their jobs. It has become a useful tool in their analytical kit. This is because the financial statement like income statement andbalance sheet have limited role to perform, Income statement measures flows restricted to transaction that pertain to rendering of good and services to customers. The balance sheet is merely a static statement's these statements do not sharply focus those major financial transactions, which have behind the n\balance sheet changes. However financial analyst must know the purpose for which the loan was unitized and the sources from which it has rises. This will help him in making a better estimate about the company's financial position and polices. Fund flow statement, broadly speaking, is prepared in two parts-
FUNDS FLOW ANALYSIS (a) Schedule of working capital changes and (b) Statement of sources and uses of fund or working capital.
KBD SUGARS PVT LTD
The first part has been discussed in a separate question in this chapter . The second part , i.e., fund flow statement shows the items of sources of fund And its uses in various items. The sources and uses of fund have been described as below: Sources of fund: 1. Issue of new shares 2. Issue of debentures 3. Creation of long-term liability 4. Sale of fixed assets 5. Profit from operation.
Funds means working capital this working capital represents the difference between current assets, current li abilities. pass through working capital. effect on the firms working capital position. 1. An example illustrates this as follows. 2. An increase in profits increases the cash balance and hence working capital. 3. An increase in long term liabilit y or any decrease in fixed assets increase the cash balance and hence working capital. All flows of funds
This means that every transaction has an
Therefore the funds flow statement shows the movement of funds into or out of the current assets account of the firm.
FUNDS FLOW ANALYSIS The movement of funds has two aspects 1. Sources of funds 2. Applications of funds
KBD SUGARS PVT LTD
The former suppl y funds to the Working capital and enhances its position. On the other hand, the latter consume funds and erode the Working capital position. SOURCES O F FUNDS
SALE OF FIXED ASSETS The sale value of fixed assets including if any is a one of the Sources of funds. Such profits have been included in the sale value. They are not included in the profit figures. this would lie to double counting. SALE OF SHARES The full amount collected form the issue of shares is treated as source of funds. This means that the amount of premium discount if any is taken into account for this purpose. The reason being that
LONG TERM BORROWINGS Longs raise including any premium or net of discount are considered as source of funds. However loans in form of supplies or services of a non current nature do not constitute source of funds.
FUNDS FROM OPERATIONS The most important sources of funds is profit from its operations. Profit from operations means the net profit after taxes
plus the non cash expenses.
FUNDS FLOW ANALYSIS USES OF FUNDS
KBD SUGARS PVT LTD
PURCHASES OF FIXED ASSETS Acquisition of fixed assets causes an outflow of funds from the working capital pool. While beginning this ef fect to the funds flow statement doubts counting must be avoided. REPAYMENT OF CAPITAL A company redeems the redeemable preference shares.
Moreover equit y shares can also be paid back as per the procedures laid down in the Indian companies Act, 1956 MAKE UP OF SHARES If the firm is operating at a loss, an outflow of funds will be there to the extent of net loss minus the non cash expenses like depreciation.Acquisition of investments and payment of dividend. The outflow of funds takes place on account of acquisition of long term investments and payment of cash dividend. Reasons for financial difficulties
SIGNIFICANCE OF FUNDS FLOW STATEMENT 1. Useful in decision making. 2. Decisions relating to financing. 3. Decisions on capitalization. 4. Reasons for financial difficulties 5. Useful as control device 6. Useful to the external prices
DEPRECIATION AS A SOURCE OF FUNDS
Depreciation refers to a decline in the va lue assets because of uses and or depreciation. Depreciation refers to the physical change as result of depreciation. Obsolescence is the decline in value owing to the actual
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
decreasing in the amount of asset, such as the reduction the qualit y of cost in a mine timber in the forest, etc, deterioration and obsolescence there fore any both occur even when an a sset is not used. The Depreciation is used in a limited sense to denote in loss in the value of an asset due to its use of enjoyment. Broadl y speaking, it a money cost or loss due to exhaustion or its usefulness. It is desirable to emphasize the money c ost or lost concept as the primary. If nor the sole accounting meaning of term. Business and
accountants are not in complete agreement about the proper objective of Depreciation accounting. themselves. In deed, accountant does not agree even among
All concede the purpose of depreciation is not protect the integrit y of capital, that is to prevent an over statement of income and consequent payment of income earned dividend which would deplete capital to the disadvantage of the creditors. In the commons ense view, depreciation is
accrual loss of value which begins with the purchase of new asset and ends with its scrape value at the end of its useful life.
Depreciation is the process of allocation of cost of an asset minus its estimated scrap value over the useful life of asset; and a valuation it is an expired capital outlay changeable against revenue. The international
accounting standard says that depreciation is the allocation the depreciable amount of an asset over its estimated useful life. For th e accounting period it is changed to income either directl y or indirectl y. The section of an
allocation method and the estimation of useful life of a depreciable asset or influenced by personal judgment. The charging of depreciation against
income satisfies the matching of service of an asset against income during the year. A depreciable asset is expected to be used in more than one
accounting period. It has limited useful like and is held by an enterprise

for production or supply of goods and ser vices, for retail to other by way of hire purchases, lease etc or administrative purpose. EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD

The use of funds
Depreciation neither a source nor a use of funds.
obviousl y began when the fixed asset was originall y bought. It would be double counting to regarding e ach year depreciation is a further use of funds it allows, there fore that the relevant fi gure for prof it from operation a source and this position statement is
Profit before changing depreciation but t he same arithmetical result can be obtained by addin g depreciation to profit after changing depreciation. ver y commonl y done and seems to the useful practice of fir ms. This is
However it
should not misled us i n to thinking that funds can be obtained by increasing the depreciation charging in the books of accounts.
Depreciation allowable for charge is another mater.
If more is
deducted, is the greater is the profit from operation, with regard to depreciation. Its plays as source may be logicall y explained an asset was purchased. There was, thee fore, an out flow or application of funds. The benefits of using is shown as a feed back, inflow or source the amount of the being measured by the annual depreciation figure. Depreciation is source of funds and, there fore it must be aimed in the profit and account to prevent outflow on account of taxation liability. the profit and equivalent cash thus saved can be utilized to deal with rapid technological change sophistication in productive asset in a period of rising prices in a urgency for preservation of in ternal liquid resources and also in a period of stringency of liquid funds for asset replacement it might be advocated to introduce double -declining rate of depreciation in place of sinking funds method. Also this useful is recognized by the principal of investment deposit accounts under sec 32 of the income tax Act, such a concept as not yet been articulated in the legal frame work in India through the concept attained popularit y in the US investment deposit account embodies certain incidental advantages. Retention of cash in respect of provision for depreciation with in the business wills strength the long term credit worthless of the company.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Depreciation accounting, as matter of fact, is process of converting the historical cost of the asset in to reve nue expenditure with in the estimated useful life of the asset. Thus it is process of conversion of an unexpired cost into an expense. Depreciation is a source of fund and, there fore, it must be claimed and shown in the profit & loss account.
Depreciation, again non cash expanses helps conserve cash with in the business. At the time of replacement of existing asset it become
cheaper to finance acquisition of asset out of international source. Depreciation provision makes care of another pertinent iss ues that, younger the asset, lesser the repair charges and greater the depreciation. Contrary to that older the assets the greater the repair charges and lesser the depreciation under Diminishing balance method.
Picks
defenses
depreciation
is
the
perman ent
and
continuing
diminution in qualit y, quantit y or value of an asset. The institute of charted accountant, of England Wales defines it has the part of the costs of a fixed asset to its owner which is not recoverable when the asset is finall y without if use by him. Provision against this loss pf capital integral cost of
conducting the business during the effective commercial life of the asset and is not dependent up on the amount of profit earned. Spicer and pegler define Depreciation as the measure of exhaustion of the effective life an asset from a cause during a period. The concept of Depreciation means different things to different people; but in accounting contest, normall y mens spreading the cost of fixed asset over its estimated useful economi c life. Dobrovoisky define gross internal financing as the sum of retained profit and Depreciation allowances. In principle, Depreciation allowances represents fund
available asset replacement, while retained profit represent funds available for asset expansion. Since for funds flow purpose it profit before charging Depreciation which is important, it has become common to add back
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Depreciation to profit and to call the result by the name of cash flow. A more accurate description would funds provided by operation. Some times the cash flow is define as retained profit plus Depreciation the cash flow is not the same as the change in the net cash and bank resources of a group.
RESEARCH DESIGN NEED FOR THE STUDY The two basic financial statements, as has been started earlier, are the balance sheets and profit and loss account. The balance sheet is a summary of the firm's resources and obligations. It reveals the firm's financial positions at specific points of time. The profit and loss account which summarizes the expenses and revenues operations during the period of finance the firm's operations. The balance sheet and profit and loss account failed to provide the information which is provided by funds flow statement i.e., changes in financial position of an enterprise. This statement indicates the changes which have taken place between the two accounting dates. This statement by giving details of sources and uses of funds during a given period is of great help to the users of financial information. It is also performance of the company. It also indicates the working capital position which helps the management in taking policy decisions regarding dividend etc. The projected funds flow statement can also be prepared and thus budgetary control and capital expenditure control can be exercise in the organization.
FUNDS FLOW ANALYSIS SCOPE OF THE STUDY
KBD SUGARS PVT LTD
There is more number of methodologies used in financial analysis present study scope extended to ratio analysis and funds flow analysis of the/ companies audited financial reports. The scope of the study is defined below in terms of concepts adopted and period under focus: First a study on management of working capital is confined only to the integrated thermoplastics limited, Chittoor Co- Operative Sugars Limited. Secondly, the two concepts ratio analysis and funds flow analysis have been used to arrive at various objectives of the study. Thirdly, the study is based on the annual reports of the company for a period of five years from 2006-07 to 2010-11. OBJECTIVES OF THE STUDY
To analyze the funds flow operations in The Chittoor Co-Operative Sugar Factory Limited
To study the changes in the amount of working capital of the company To identify sources and application of funds To offer suitable suggestions for better performance of the Company. METHODOLOGY
The study was conducted based up on the financial statement of annual reports and accounts of the KBD Sugars & Distilleries Ltd, which are published annually company. Under circumstances in addition to the collection from published annual reports and accounts, a secondary data have been collected from the various departments in order to know the current trend in the business of the
FUNDS FLOW ANALYSIS company.
KBD SUGARS PVT LTD
To access the accurate profit and excluding the expenses made various minor adjustments to estimate the expenses incurred. Reference period The period cover covered under this study is five financial years i.e. from 2006-2007 to 2010-2011.
Field work Several visits were made to collect the required data from K B D Sugars & Distilleries Ltd and they extended the full co- operation in getting information require Methods of data collection The data for the present study was collected through primary and secondary sources. The primary data was collected using the following methods. Direct personal interviews In personals interviews, both structured pattern of interviews was undertaken to collect the needed data, which was not available through the secondary sources. Secondary data were obtained from the annual reports of the K B D Sugars & Distilleries Ltd and from internal reports of the company from time to time.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
LIMITATIONS OF THE STUDY Thus the following are the main limitations of the study

Detail analysis could not be taken because of limited time span. The figures taken from the financial statement like profits and loss accounts and balance sheets were historical in nature.
Time value of money is not being considered.
THE ORITICAL BACKGROUND OF THE PROJECT
The funds flow statement is a statement, which shows the movement of funds and is a report to the financial operations of the business undertaking. It indicates various m eans by which funds were obtained during a particular period and the ways in which these find were employed.
In simple, the funds flow statement is a statement of sources and application of funds. In short, it is a technical device designed to high light the change in the financial condition of a business enterprise between tow Balance Sheets.
According to Robert Anthony" the funds flow anal ysis describes the sources fro which additional funds were derived and the uses to which these funds were put.
According to Fouke, "A Statement of sources and Applications of funds is a technical device designed to anal yze the changes in the financial position of a business enterprise between two rates".
Finds flow statement is widel y used by the financial anal yst and credit granting institution and financial managers in performance of their
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
jobs. It has become a useful tool in their anal ytical kit. This is because the financial statement like income statement and balance sheet have limited role to perform.
Income statement measures flows restricted to transaction that pertain to rendering of good and services to customers. The balance sheet is merel y a static statement's these statements do not sharply focus those major financial transactions, which have beh ind the balance sheet changes.
However financial anal yst must know the purpose for which the loan was unitized and the sources from which it has rises. This will help him in making a better estimate about the company's financial position and polices.
GENERAL RULE: The flow of funds occurs when a transaction changes on the one hand a non-current account and vice versa.
1. A current asset and a fixed asset. 2. A fixed asset and a current liabilit y. 3. A current asset and a fixed liability. 4. A fixed liabilit y and a current liabilit y.
USES-OF FUNDS FLOW ANALYSIS:
It helps in the anal ysis of financial operations. It throws light on many perplexing question of general interest. It helps in the formation of a realistic dividend policy. It helps in the proper allocation of resources.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
ADVANTAGES OF THE FUNDS FLOW STATEMENT
It provides information about how funds are obtained and in the process of decision making.
It registers changes in the flow of funds during a given period of time. It is supplementary to the conventional financial statements. It indicates how funds are generated from the different financial resources of a corporation and how the reservoir of its assets is created. In other words it depicts changes in the financial s tructure of the corporation. It is an important tool in the hands of the financial manger determines the financial consequences of business operations. It
explains why in spite of making profits a corporation is illiquid position. Indicates how funds are generated from the different financial resources of a corporation and how the reservoir of its assets is created. In other words it depicts changes in the financial structure of the corporation. It is an important tool in the hands of the financial manger in the process of decision making. It determines the financial consequences of business operations. It
explains why in spite of making profits a corporation is illiquid position. It enables the financial manager to obtain answers to a number of questions regarding the amount of loan requirements the purposes for which it may be required the terms of repayment the source of repayment etc. It may enable the financial manger to allocate resources to productive investments.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
It is closel y related to the normal business decision making process accounting statements balance sheets and income statements and is related to a time span. It any enable the management to take decisions on planning a dividend policy on challenge out a programmed of the financial re organization.
LIMITATIONS OF FUNDS FLOW ANALYSIS: It is essentiall y historic in nature and projected funds flow statement cannot be prepared with much accuracy. It cannot be reveal continues changes. It is not an original statement but simpl y a re - arrangement of data given in the financial statements.
DIFFERENT NAMES OF FUNDS FLOW STATEMENT: A statement of sources and Uses of funds. A statement of Sources and Application of funds. Where got and where gone Statement. Inflow and out flow of funds statement.
MAIN PURPOSE OF FUNDS FLOW STATEMENT: To help to understand the changes in assets and which are not evident Financial statements or I the income statement. To inform on to how the loans to the business has been used. To point out the financial strengths and weakness of the business. To help in planning sound dividend policy.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PROCEDURE FOR PREPARING A FUNDS FLOW STATEMENT:
The preparation of funds flow statement consists of 2 parts. Statement or schedule of changes in working capital. Statement of sources and Applications of funds.
STATEMENT OR SCHEDULE OF CHANGES IN WORKING CAPITAL: Working capital means the excess of current assets over current liabilities. Statement of changes in working capital is proposed to show the changes in the working capital between two balance sheets data. This statement is prepared with the help of current assets and current liabilities derived from two balance sheets. Working Capital = Current Assets Current Liabilities While preparing a schedule of changes in working capital, it should be note that Increase in Current Assets, Increases the Working Capital. Decrease in Current assets, Decreases the Working Capital. Increase in Current Liabilities, Decreases the working capital. Decrease in Current Liabilities, Increases the Working Capital.
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PROFORMA OF STATEMENT OF CHANGES IN WORKING CAPITAL
Base Year
Curre nt Year
Changes Capital Increasin g
in
Working
Decreasin g
Current assts (CA) Inventories : Raw material Consumable stores Finished goods Sundry debtors Cash in hand Balance with bank Other current assets: Deposits Income tax (advance tax) Sales tax Total Current assets Current liabilities Trade creditors Dealers deposits Expenses payable Total current liabilities
.. .. .. .. .. .. .. .. .. .. ..
.. .. .. .. .. .. .. .. .. .. ..
.. .. .. .. .. .. .. .. ..
Working Capital (current assets current liabilities) .. Net Increase / decrease working capital *** ***** ****** *** ** .. ******** ********
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
STATEMENT OF SOURCES AND APPLICATION OF FUNDS: Funds flow statement is a statement, which indicates various sources for which funds have been obtained during a chain period and the u3es nr applications to which these funds have been put during that period. Sources of funds @application of Funds.
STATEMENT OF SOURCES AND APPLICATIONS Amount (Rs)
Particulars Sources of funds Funds from trading factitivel y or Operating Profit Issue of shares and debentures Receipts of dividend and Interest Sales Proceeds of Non current asset long term Borrowings Decrease Capital in working
Particulars Application funds Funds costs operations Repayment debentures
Amount (Rs) of in
of
Reduction in share Capital Interest and dividend paid [Payment of Long term loans. Increase in working capital
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2006-2007
PARTICULARS
2006
2007
Effect of working capital Increase Decrease
CURRENT ASSETS:
1.inventories 2.sundry debtors 3.cash & bank balance 4.loan & advances Total current assets -A
88,53,098 1,00,25,086 1,34,12,486 7,32,22,912 18,51,91,471
17,54,47,569 80,68,939 22,14,356 7,45,38,394 26,02,69,258
8,69,16,585 19,56,147 1,11,98,130 13,15,478 7,50,77,787
CURRENT LIANILITIES-B Working Capital (A-B) INCREASE IN W-C TOTALS
6,80,61,237
11,35,84,355
4,55,23,118
11,71,30,234
14,66,84,903
2,95,54,669
2,95,54,669 14,66,84,903 14,66,84,903 7,50,77,787 7,50,77,787
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTERPRETATION: The net working capital of the company during the year 2006 has been increased in 2007, and the net working capital of the company was recorded RS. 11, 71, 30,234 and it was been increased to RS.14, 66, 84,903 in the year 2007.
PROFIT&LOSSS ACCOUNT
PARTICULARS To Dep on fixed assets To miscellaneous exp To funds loss from operation To balance c/d
AMOUNT 23693731 489704 138260173 217800007 380243615
PARTICULARS By Balance b/d By Reserve
AMOUNT 118920125 201323490
380243615
FUNDS FLOW STATEMENT
SOURCE SHARES ISSUED LOAN
AMOUNT 14891070 153168355
APPLICACTION PURCHASE OF FIXED ASSETS INCRESE IN WORKING CAPTIAL FUNDS LOSS FROM OPERATATION
AMOUNT 244583 29554669 138260173 168059425
168059425
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PARTICULARS
2007
2008
CURRENT ASSETS:
1.inventories
17,54,47,569
30,32,38,111
12,77,90,54 2
2.sundry debtors 3.cash & bank balance 4.loan & advances Total current assets -A
80,68,939 22,14,356 7,45,38,394 26,02,69,258
82,56,619 29,07,579 8,95,84,621 40,39,86,930
1,87,680 6,93,223 1,50,46,227 14,37,17,67 2
CURRENT LIANILITIES-B Working Capital (AB) DECREASE IN W-C TOTALS
11,35,84,355
36,22,36,043
24,86,51,688
14,66,84,903
4,17,50,887
10,49,34,01 6
10,49,34,016 14,66,84,903 14,66,84,903 24,86,51,68 8 24,86,51,688
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTERPRETATION: The net working capital of the company during the year 2007 has been decreased in 2008, and the net working capital of the company was recorded RS. 14, 66, 84,903 and it was been decreased to RS.4, 17, 50,887 in the year 2008
PROFIT&LOSSS ACCOUNT PARTICULARS To Dep on fixed assets To funds loss To miscellaneous exp To balance c/d AMOUNT 23805268 507853920 122426 20659974 552441528 PARTICULARS By balance b/d By Reserve AMOUNT 217800007 334641521
552441528
FUNDS FLOW STATEMENT SOURCE AMOUNT APPLICACTION AMOUNT
SHARES ISSUES DECRESE IN Working CAPTIAL loan
215495242 104934016 196019460
PURCHASES FIXED ASSETS FUNDS LOSS FROM OPERATATION
8595398 507853920 ____________
__________ 51644918 51644918
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PARTICULARS
2008
2009
CURRENT ASSETS:
1.inventories 2.sundry debtors 3.cash & bank balance 4.loan & advances Total current assets -A
30,32,38,111 82,56,619 29,07,579 8,95,84,621 40,39,86,930
37,56,76,892 84,16,762 50,67,311 15,09,64,503 54,01,25,469
7,24,38,781 1,60,143 21,59,732 6,13,79,882 13,61,38,59
CURRENT LIANILITIES-B Working Capital (A-B) INCREASE IN W-C TOTALS
36,22,36,043
46,71,43,647
10,49,07,604
4,17,50,887
7,29,81,822
3,12,30,935
3,12,30,935 7,29,81,822 7,29,81,822 13,61,38,59 13,61,38,539
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTERPRETATION: The net working capital of the company during the year 2008 has been increased in 2009, and the net working capital of the company was recorded RS. 4, 17, 50,887 and it was been increased to RS. 7, 29, 81,822 in the year 2009.
PROFIT&LOSSS ACCOUNT PARTICULARS To dep on fixed assets To Reserve To miscellaneous exp To balance c/d AMOUNT 24457494 16127425 122426 78641350 ________ 119348995 PARTICULARS By balance b/d By funds from operation AMOUNT 20659974 98689021
_________ 119348995
FUNDS FLOW STATEMENT
SOURCE FUNDS FROM OPERATATION
amount 98689021
APPLICACTION PURCHASE OF FIXED ASSETS DEVEDEND PAYABLE INCRESE IN WORKING CAPTIAL
amount 17688141 49769946 31230934 98689021
98689021
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PARTICULARS
2009
2010
CURRENT ASSETS:
1.inventories 2.sundry debtors 3.cash & bank balance 4.loan & advances Total current assets A
37,56,76,892 84,16,762 50,67,311 15,09,64,503 54,01,25,469
15,63,06,246 73,48,982 87,55,709 14,57,66,518 31,81,77,455 36,88,398
21,93,70,646 10,67,780
51,97,985 22,19,48,014
CURRENT LIANILITIES-B Working Capital (AB) DECREASE IN W-C TOTALS
46,71,43,647
25,79,73,323
20,91,70,324
7,29,81,822
6,02,04,132
1,27,77,690
1,27,77,690 7,29,81,822 7,29,81,822 22,19,48,014 22,19,48,014
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTERPRETATION: The net working capital requirement of the company during the year 2009 has been decreased in 2010, and the net working capital of the company was recorded RS. 7, 29, 81,822 and it was been decreased to RS.6, 02, 04,132 in the year 2010.
PROFIT&LOSSS ACCOUNT PARTICULARS To Dep on fixed assets To miscellaneous exp To funds loss from operation To balance c/d AMOUNT 25683267 122426 29236921 51120343 106162957 PARTICULARS By Balance b/d By Reserve AMOUNT 78641650 27521307
106162957
FUNDS FLOW STATEMENT SOURCE LOAN RECEIVE FROM BANK DECREASE IN WORKING CAPTIAL AMOUNT 25810588 12777689 APPLICACTION PURCHASE OF FIXED ASSETS FUNDS LOSS FROM OPERATATION AMOUNT 935156 29236921
38588277
38588277
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PARTICULARS
2010
2011
CURRENT ASSETS:
1.inventories 2.sundry debtors 3.cash & bank balance 4.loan & advances Total current assets A
15,63,06,246 73,48,982 87,55,709 14,57,66,518 31,81,77,455
13,34,29,420 80,62,874 39,03,005 14,54,43,323 29,38,38,622 7,13,892
2,28,76,826
48,52,704 3,23,195 2,43,38,833
CURRENT LIANILITIES-B Working Capital (AB) INCREASE IN W-C TOTALS
25,79,73,323
20,25,12,606
5,54,60,717
6,02,04,132
9,13,26,016
3,11,21,884
3,11,21,884 9,13,26,016 9,13,26,016 5,54,60,717 5,54,60,717
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
INTERPRETATION: The net working capital requirement of the company during the year 2010 has been increased in 2011, and the net working capital of the company was recorded RS. 6, 02, 04,132 and it was been decreased to RS. 9, 13, 26,016 in the year 2011.
PROFIT&LOSSS ACCOUNT
PARTICULARS To Dep on fixed assets To miscellaneous exp To funds loss from operation
AMOUNT 26606565 0 34795778 61402343
PARTICULARS By Balance C/d
AMOUNT 61402343
___________ 61402343
FUNDS FLOW STATEMENT SOURCE LOAN RECEIVE FROM BANK FUNDS LOSS FROM OPERATATION AMOUNT 67421410 34795778 APPLICACTION PURCHASE OF FIXED ASSETS INCRESE IN WORKING CAPITAL AMOUNT 71095304
31121884 102217188
102217188
FUNDS FLOW ANALYSIS CURRENT RATIO
KBD SUGARS PVT LTD
Current ratio is an acceptable measure of firms short-term solvency Current assets includes cash within a year, such as marketable securities, debtors and inventors. Prepaid expenses are also included in current assets as they represent the payments that will not made by the firm in future. All obligations maturing within a year are included in current liabilities. These include creditors, bills payable, accrued expenses, short-term bank loan, income-tax liability in the current year. The current ratio is a measure of the firm's short term solvency. It indicated the availability of current assets in rupees for every one rupee of current liability. A current ratio of 2:1 is considered satisfactory. The higher the current ratio, the greater the margin of safety; the larger the amount of current assets in relation to current liabilities, the more the firm's ability to meet its obligations. It is a cured -and -quick measure of the firm's liquidity. Current ratio is calculated by dividing current assets and current liabilities.
Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Current Assets 260269257 403986931 3440125468 318177455 293838622
Current Liabilities 113584355 362236043 467143647 257973323 202512606
Ratio 2.29 1.12 7.36 1.23 1.45
FUNDS FLOW ANALYSIS 8 7 6 5 4 3 2 1 0
KBD SUGARS PVT LTD
Ratio
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation: The current ratio measures the firms short term solvency. The standard norm for current rat io is 2:1. During the year 2006 -2007 the ratio is 2.72 and it has decreased to 2.29 during the year 2007 -2008. In the year 2008 2009 it decrease and 2009 -2010 increased 7.36 & 2.2010 -2011 was increased, How ever the ratio was satisfactory in the study period.
QUICK RATIO
Quick Ratio establishes a relationship between quick or liquid assets and current liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Cash is the most liquid asset, other assets that are considered to be relatively liquid asset and included in quick assets are debtors and bills receivables and marketable securities (temporary quoted investments).
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Inventories are converted to be liquid. Inventories normally require some time for realizing into cash; their value also has a tendency to fluctuate. The quick ratio is found out by dividing quick assets by current liabilities.
Generally, a quick ratio of 1:1 is considered to represent a satisfactory current financial condition. Quick ratio is a more penetrating test of liquidity than the current ratio, yet it should be used cautiously. A company with a high value of quick ratio can suffer from the shortage of funds if it has slow- paying, doubtful and long duration outstanding debtors. A low quick ratio may really be prospering and paying its current obligation in time.
Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Liquid Assets 96660487 84821688 100748819 164448576 20979782
Ratio 1.42 0.75 0.28 0.35 0.10
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2006-20072007-20082008-20092009-20102010-2011 Ratio
Interpretation: Quick ratio indicates the extent to which you could pay current liabilities without relying on the safe on inventory. The standard norm for the Quick Ratio is 1:1. The Quick Ratio is 1.42 in 2006 -2007 and
decreased to 0.75 in 2007 -2008 and again decreased to 0.28 in 2008 -2009. In next year it is increased to 0.35 during the year of 2009 -2010 and again increased to 0.63.during the year 2010 -2011 is decreed 0.10 However, the
ratio was below the standar d norm so the ratio was not satisfactory in the study period
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
CASH RATIO
Cash is the most liquid asset; a financial analyst may examine Cash Ratio and its equivalent current liabilities. Cash and Bank balances and short-term marketable securities are the most liquid assets of a firm, financial analyst stays look at cash ratio. Trade investment is marketable securities of equivalent of cash. If the company carries a small amount of cash, there is nothing to be worried about the lack of cash if the company has reserves borrowing power. Cash Ratio is perhaps the most stringent Measure of liquidity. Indeed, one can argue that it is overly stringent. Lack of immediate cash may not matter if the firm stretch its payments or borrow money at short notice.
Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Cash 13412486 2214356 2907579 5067311 1679532
Ratio 0.2 0.02 0.01 0.01 0.008
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0
Ratio
2006-20072007-20082008-20092009-20102010-2011
Interpretation: Cash ratio indicates the extent to which you could pay current liabilities without relying on the other current assets . The Cash Ratio is
0.2 in 2006-2007 and decreased to 0.02 in 2007 -2008 and again decreased to 0.01 in 2008-2009. However, the ratio was below the standard norm so the ratio was not satisfactory in the study period
FINDINGS: The current assets portion was continuously increasing over the study period i.e. from 2006 to 2011. In 2006-07 the company had generated loss of funds for operation amounted Rs311833860 The schedules of working capital sources increase of Rs. 104934016 then 2006-07. The schedules of working capital sources decrease of Rs. 31230934 in then 2007-08. In 2007-08 the company had generated loss of funds for operation amounted 98689021
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
In 2008-09 the company had generated loss of funds for operation amounted 29236921 , 2011 also loss of funds The company could not maintain standard current ration 2: 1 in the 2006-07, 200708, 2008-09, 2009-10 & 2010-2011 financial years. The quick ratio has been fluctuating over the years and in the year 2006- 11 not equal to the ideal ratio of 1: 1. Because of decrease in Bank balance, Cash in hand, Bills payable the current assets were decreased year to year. The payments for Sundry creditors were increased. By this reason the funds flow i.e., sources of funds fluctuating year by year ultimately it effects the application of funds. The company could not maintain proper net working capital
SUGGESTIONS:-
1. The company could not make funds from its operations because of its higher expenditure over income. Hence it was suggested that the company should reduce its revenue expenditure in order to make funds from operations. 2. The company has to develop its production system and process by adopting new technology in order to improve the output. 3. The company should make effort to utilize' the fixed assets in an effective manner. 4. The company should reduce its Borrowings In order to sustain in the market. Instead of Borrowings the company can get loans from Government. 5. To reducing expenditure, the company should diversify their operations to increasing the revenue of the company
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
BIBLIOGRAPHY
AUTHOR I. M. Pan day Publishing House
TITLE
Published place
financial
Vikas House, Chennai, 108-108 Management Pvt. Ltd.
Prasanna Delhi financial Himalaya 236-242 Chandra Management
S. P. JAIN, K. L. Narang, ADVANCED ACCOUNTANCY, 10TH Edition, 2003, Kalyani publisher, Ludhiana.
JOURNALS The ICFAI journal of Applied Finance. Finance India (Indian institute of finance).
52
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
Company Profile: The company was originally incorporated on 16th day of October, 1984 under the name of SREE TELUGU SUGARS LIMITED. Subsequently the name of the company was changed to SREE SUGARS AND INDUSTRES LIMITED on the 5 the day of April, 1990. Again subsequently the name of the company was changed to KARNATAKA BREWERIES DISTILLERIES SUGARS LIMITED on the 1st MARCH, 2005. The company was initially promoted by Sri T.Suryachandra Rao, Managing Director and Sri S. Gokul, Executive Director commence its commercial production from 1st July, 1992. In these circumstances, the promoter has inducted Sri D.K. Audikesavulu as a copromoter in order to facilitate the company to meet. The cost overrun of the project and also provide for the short fall in the margins for working capital. Sri, S. Gokul has since come out of the board and left. Need for the study: The two basic financial statements, as has been started earlier, are the balance sheets and profit and loss account.The balance sheet is a summary of the firms resources and obligations. It reveals the firms financial positions at a specific point of time. The profit and loss account which summarizes the expenses revenues operations during the period of finance the firms operations. The balance sheet and profit and loss account failed to provide the information which is provided by funds flow statement i.e., changes in financial position of an enterprise. This statement indicates the changes which have taken place between the two accounting dates. This statement by giving details of sources and uses of funds during a given period is of great help to the users of financial information. It is also performance of the company. It also indicates the working capital position which helps the management in taking policy decisions regarding dividend etc. The projected funds flow statement can also be prepared and thus budgetary control and capital expenditure control can be exercise in the organization.
53
FUNDS FLOW ANALYSIS SCOPE OF THE STUDY:
KBD SUGARS PVT LTD
There is more number of methodologies used in financial analysis present study scope extended to ratio analysis and funds flow analysis of the companies audited financial reports. The scope of the study is defined below in terms of concepts adopted and period under focus. First a study on management of working capital is confined only to the integrated thermoplastics KBD SUGARS. Secondly, the two concepts ratio analysis and funds flow analysis have been used to arrive at various objectives of the study. Thirdly, the study is based on the annual reports of the company for period of 5 years.
OBJECTIVES OF THE STUDY: To analyze the funds flow operations in the KBD sugar factory. To study the changes in the amount of working capital of the company. To identify the sources and applications of funds. To offer suitable suggestions for better performance of the company. RESEARCH METHODOLOGY: The study is based entirely on the data that has collected. This data for every study is of two types.1.primary data 2.secondary data. In carrying out study both primary and secondary data are collected in a phased manner as fallows. Some of the information gathered from the secondary data and some of finance books and ratios are calculated by studying balance sheet and the necessary information required for the study was being obtained from fruitful interaction of the researched with the employees( finance departments) of the organization. LIMITATIONS: 1. It is essentially historic in nature and projected funds flow statements cannot be prepared with much accuracy. 2. It cannot be reveal continues changes.
54
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
3. It is not an original statement but simply are- arrangement of data given in the financial statements FINDINGS: The current assets portion was continuously increasing over the study period i.e. from 2006 to 2011. The company could not maintain standard current ratio 2:1 in the, 2006-07, 200708, 2008-09, 2009-10, and 2010-2011. Financial years. The quick ratio has been fluctuating over the years and in the year 2006-2011 not equal to the ideal ratio of 1:1. Because of decreasing in band balance, cash in hand, bills payable the current assets were decreased year to year. The payments for sundry creditors were increased. By this reason funds flow i.e., sources of funds fluctuating year by year ultimately it effects the application of funds. SUGGESTIONS: The company could not make funds from its operations because of its higher expenditure over income. Hence it was suggested that company should reduce its revenue expenditure in order to make funds from operations. The company has to develop its production system and process by adopting new technology in order to improve the output. The company should make effort the utilize the fixed assets in an effective manner. The company should reduce its barrowings in order to sustain in the market. Instead of barrowings the company can get loans from government. To reducing expenditure the company should diversify their operations to increasing the revenue of the company.
CONCLUSION: To conclude, the organization should increase working capital to improve more in their operations, then organization gain more profit and may show better performance in the coming year.
55
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) BALANCE SHEET AS 31.03.2007 KBDSUGARS & DISTILLRIES LIMITED - SUGAR DIVISION 1.SOURCES OF FUNDS 1 SHARE HOLDERS FUNDS SHARE CAPITAL 2 RESERVES & SURPLUS 3 LOAN FUNDS SECURED LOANS UNSECURED LOANS B 244421413 88199664 608528777 2.APPLICATION OF FUNDS 1 FIXED ASSETS GROSS BLOCK LESS:DEPRECIATION C 553968498 231285200 _________ 322683298 NET BLOCK 8983008 _________ CAPITAL WORK IN-PROGRESS 331666305 A 274407700 1500000
2 CURRENT ASSETS,LOANS AND ADVANCES INVESTORS SUNDRY DEBTORS CASH AND BANK BALANCES LOANS AND ADVANCES D E F G H 88530984 10025086 13412486 73222916 _________ 185191471
56
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
LESS:CURRENT LIABILITIES
68061237 _________ I 1171302341 40812113
DEFERRED TAXC ASSET
3 MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) 608528777 PROFIT AND LOSS ACCOUNT 118920125 __________
57
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2007 DESCRIPTION INCOME SALES AND OTHER INCOME INCREASE/DECREASE IN STOCKS J K 315326882 -170752644 144574238 EXPENDITURE CONSUMPTION OF RAW METERIAL MANUFACTURIG EXPENCES SALARIES,WAGES & OTHER BENEFITS INTEREST AND FINANCIAL CHARGES DUTIES & TAXES ADMINISTRATION EXPENSES PRELIMINARY AND SHARE ISSUE EXP. WRITTEN OF DEPRECIATION P L M N O 61527193 19968870 19932171 42276656 5476000 8568795 332628 23584508 181666820 SCH TOTAL
LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR
37092582 426331 36666251
58
FUNDS FLOW ANALYSIS LESS: PROVISIONS FOR TAXATION FRINGE BENEFIT TAX DEFERRED TAX ASSET NET PROFIT/LOSS AFTER TAX LOSS BROUGHT FORWARD FROM PREVIOUS YEAR
KBD SUGARS PVT LTD 0 0 24074810
106328684
118920125 LOSS CRRIED TO BALANCE SHEET EARNING FOR SHARE-BASIC AND DILUTED -0.54
59
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) BALANCE SHEET AS ON 31.03.2008 DESCRIPTION 1 SOURCES OF FUNDS 1 SHARE HOLDERS FUNDS SHARE CAPITAL 2 RESERVES & SURPLUS 3 LOAN FUNDS SECURED LOANS UNSECURED LOANS DEFERRED TAX LIABILITY A B 13084210 262823490 SCH TOTAL
C 177589768 134789487 85017925 673304880
2 APPLICATION OF FUNDS 1 FIXED ASSETS GROSS BLOCK LESS: DEPRECIATION D 554213081 254978931
NET BLOCK CAPITAL WORK IN -PROGRESS
299234150 9096115 _______ 308330265
3.CURRENT ASSETS, LOANS AND ADVANCES
60
FUNDS FLOW ANALYSIS INVENTORIES SUNDRY DEBTORS CASH AND BANK BALANCES LOANS AND ADVANCES
KBD SUGARS PVT LTD 17547569 8068939 2214356 74538394 ________ 260269258 E F 113584355 ________ 146684904
LESS:CURRENT LIABILITIES
4. MISCELLANEOUS EXPENDITURE ( TO THE EXTENT NOT WRITTEN OFF OFR ADJUSTED) MERGER/DEMERGER EXPENCES PROFIT AND LOSS ACCOUNT
G H I J 489704 217800007 673304880
K INCOME SALES AND OTHER INCOME INCREASE /DECREASE IN STOCKS L 93221682 319454969 225910943 322344
M EXPENDITURE N CONSUMPTION OF RAW METERIAL O MANIFACTURING EXPENCES
254504145 19303448 22324127 5268419
61
FUNDS FLOW ANALYSIS SALARIES, WAGES & OTHER BENFITS INTEREST AND FINANCIAL CHARGES DUTIES AND TAXES ADMINISTRATION EXPENCES PRELIMINARY AND SHARE ISSSUE EXPENCES WRITTEN OFF DEPRECATION Q P
KBD SUGARS PVT LTD 0 8218789 0 0 23697999 333316927
-13861958 0 -13861958 0
LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR LESS:PROVISIONS FOR TAXATION
0 0 -13861958 203938049
203938049 FRINGE BENEFIT TAX DEFFERED TAX ASSET 0.58 NET FROFIT/LOSS AFTER TAX LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCESHEET
EARNING PER SHARE-BASIC &
62
FUNDS FLOW ANALYSIS DILUTED
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) BALANCE SHEET AS ON 31.03.2009 DESCRIPTION 1 SOURCES OF FUNDS 1 SHARE HOLDERS FUNDS SHARE CAPITAL 2 3 SERVES & SURPLUS LOAN FUNDS SECURED LOANS UNSECURED LOANS DEFERRED TAX LIABILITY C 253408846 105914487 0 338663359 A B 0 -20659974 SCH TOTAL
2 APPLICATION OF FUNDS 1 FIXED ASSETS GROSS BLICK LESS: DEPRECIATION D 562808479 278784199 __________ 284024280 NET BLOCK
63
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD 12520913
CAPITAL WORK IN PROGRESS
_________ 296545193
2 CURRENT ASSETS LOANS AND ADVANCES INVETORIES SNDRY DEBTORS CASH AND BANK BALANCES LOANS AND ADVANCES E F G H 303238111 8256619 2907579 89584621 _________ I LESS: CURRENT LIABILITIES 403986930 362236043 _________ 1 MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) MERGER/DEMERGER 367278 338663359 J 41750887
64
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009
DESCRIPTION INCOME SALES AND OTHER INCOME INCREASE /DECREASE IN STOCKS
SCH TOTAL
32059420 462360
107701016 428757796
EXPENDITURE CONSUMPTION OF RAW METERIAL MANIFACTURING EXPENCES SALARIES, WAGES & OTHER BENFITS INTEREST AND FINANCIAL CHARGES DUTIES AND TAXES ADMINISTRATION EXPENCES PRELIMINARY AND SHARE ISSSUE EXPENCES WRITTEN OFF DEPRECATION (20659974) 0 (20659974) Q P M N O 303164832 40364585 23375833 19326073 29444670 9936508 0 0 23805268 449417770
65
FUNDS FLOW ANALYSIS PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSSS CARRIED TO BALANCE SHEET
KBD SUGARS PVT LTD 0 0 0 20659974
66
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) BALANCE SHEET AS ON 31.03.2010 DESCRIPTION 1 1 SOURCES OF FUNDS SHARE HOLDERS FUNDS SHARE CAPITAL 2 3 SERVES & SURPLUS LOAN FUNDS SECURED LOANS UNSECURED LOANS DEFERRED TAX LIABILITY 2 APPLICATION OF FUNDS 1 FIXED ASSETS GROSS BLICK LESS: DEPRECIATION D 580496620 303241696 A B C 365142945 68289487 0 354790781 0 -78641650 SCH TOTAL
2777254924 4309183 281564107
NET BLOCK CAPITAL WORK IN PROGRESS 3 CURRENT ASSETS LOANS AND ADVANCES INVETORIES SNDRY DEBTORS E F
375676892 8416762
67
FUNDS FLOW ANALYSIS CASH AND BANK BALANCES LOANS AND ADVANCES G H
KBD SUGARS PVT LTD 5067311 150964503 _________ 540125469 467143647 _______ 72981822
LESS: CURRENT LIABILITIES 4 MISCELLANEOUS
I J
EXPENDITURE 244852 (TO THE EXTENT NOT WRITTEN 354790781 OFF OR ADJUSTED) MERGER/DEMERGER
68
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 DESCRIPTION INCOME SALES AND OTHER INCOME INCREASE /DECREASE IN STOCKS L 74444167 520836212 EXPENDITURE CONSUMPTION OF RAW METERIAL MANIFACTURING EXPENCES SALARIES, WAGES & OTHER BENFITS INTEREST AND FINANCIAL CHARGES Q DUTIES AND TAXES ADMINISTRATION EXPENCES PRELIMINARY AND SHARE ISSSUE EXPENCES WRITTEN OFF DEPRECATION -78641650 0 -78641650 0 24457497 599477862 P M N 0 391436510 57824840 31625273 48400517 8759405 0 K 446392044 SCH TOTAL
69
FUNDS FLOW ANALYSIS LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR LESS:PROVISIONS FOR TAXATION FRINGE BENEFIT TAX DEFFERED TAX ASSET NET FROFIT/LOSS AFTER TAX LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCESHEET
KBD SUGARS PVT LTD 0 0
-78641650
78641650
70
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) BALANCE SHEET AS ON 31.03.2011 DESCRIPTION 1 1 SOURCES OF FUNDS SHARE HOLDERS FUNDS SHARE CAPITAL 2 3 SERVES & SURPLUS LOAN FUNDS SECURED LOANS UNSECURED LOANS DEFERRED TAX LIABILITY A B C 292832366 110248323 0 351960346 2 APPLICATION OF FUNDS 1 FIXED ASSETS GROSS BLICK D 615531243 0 -51120343 SCH TOTAL
71
FUNDS FLOW ANALYSIS LESS: DEPRECIATION
KBD SUGARS PVT LTD 328924963 5027507.90
NET BLOCK CAPITAL WORK IN PROGRESS 291633788
3 CURRENT ASSETS LOANS AND ADVANCES
E F G H 156306246 7348982 8755709 145766518 _________ 318177455 257973323 _________ I 60204132
NVETORIES SNDRY DEBTORS CASH AND BANK BALANCES LOANS AND ADVANCES
LESS: CURRENT LIABILITIES 4 EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) MERGER/DEMERGER MISCELLANEOUS
122426 351960346
72
FUNDS FLOW ANALYSIS
KBD SUGARS PVT LTD
KBDSUGARS AND DISTILLRIES LIMITED (SUGAR DIVISION) PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011 DESCRIPTION INCOME SALES LESS: EXCISE DUTY AND OTHER INCOME INCREASE /DECREASE IN STOCKS L K 407989582 27168636 380820947 26118647 -217914213 189025381 SCH TOTAL
EXPENDITURE CONSUMPTION OF RAW METERIAL MANIFACTURING EXPENCES SALARIES, WAGES & OTHER
M N O
103459245 36451713 30698199
73
FUNDS FLOW ANALYSIS BENFITS INTEREST AND FINANCIAL CHARGES Q
KBD SUGARS PVT LTD 34970673 8882627 25683267
DUTIES AND TAXES ADMINISTRATION EXPENCES PRELIMINARY AND SHARE ISSSUE EXPENCES DEPRECATION 51120343 0 51120343 0 PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET NET FROFIT/LOSS AFTER TAX LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET 0 51120343 0 599477862
74

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FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS INDUSTRY PROFILE

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS Production of sugar in India:

KBD SUGARS PVT LTD

Maharashtra Uttar Pradesh Karnataka Tamil Naidu Andhra Pradesh Gujarat

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS COMPANY PROFILE

KBD SUGARS PVT LTD

KARNATAKA BREAWARIES DISTILLERS SUGAR AND INDUSTRIES LIMITED Introduction:

Name DISTILLERIES LIMITED Location and Address

: K.B.D SUGARS &

: MUDIPAPNAPALLI (VILLAGE), SUGALIMITTA (POST), PUNGANUR-517241, CHITTOOR (DT), ANDHRA PRADESH.

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS BRIEF HISTORY OF THE COMPANY

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS PRESENT BOARD OF DIRECTORS

KBD SUGARS PVT LTD

NAME SRI D.K AUDIKESAVULU

SRI D.A SRINIVASAS

SRI SURYACHANDRA RAO SRI N.V VARADARAJULU

SRI M.G.G NAIDU

SRI P.L SANJEEVA REDDY

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS PRODUCT PROFILE Sugar Cane

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS

KBD SUGARS PVT LTD

EMERALDS ADVANCED INSTITUTE OF MANAGEMENT STUDIES, Tirupati.

FUNDS FLOW ANALYSIS REVIEW OF LITERATURE