FUNDS FLOW STATEMENT

INTRODUCTION One of the most important techniques of financial analysis is a preparation of funds flow statement. Funds flow statement is a technical device designed to highlight the changes in the financial condition of a business enterprise between the opening and closing balance sheet dates. It is this concept of funds, the flow which is to be examined in detail as to its sources and applications DEFINATIONS 1.Acc to R.N anthony funds flow statement prepared to indicate the increase in cash resources and the utilization of such resources of a business during the accounting period. 2.Acc to Smith Brown, funds flow is prepared in summary from to indicate changes occurring in items of financial conditions between two different balance sheet dates. INDUSTRY PROFILE PVC pipes polyvinyl chloride pipes have become synonymous with modern living.It is doubted a product which is deeply penetration into common mans life. no wonder the industry has achieved remarkable goal.
The government of India recognized the importance of plastics in agriculture appointed on march 7th on 1981. a national committee on the use of plastics in agriculture under chairmanship of Dr.G.V.K.Rao the committee has forecasts in treatment as bright of drip irrigation through as network of plastics cubs and pipes.

the committee has highlighted importance of PVC resin is the manufacturing of rigid pipes, flexible pipes and sheets which are being used for agricultural operations to carry water from on place to another place reservoir to reduce sweepers and most importance in drip irrigation system

COMPANY PROFILE
Sujala pipes pvt Ltd., nandyal was imported in the year 1979,in the industrial estate nandyal and this was promoted by MD.Mr.S.P.Y.REDDY.BE(Mechanical),who has decades of experience in manufacturing industry. The brand name is Nandi pipes. The name Nandi derives from the historical aspects of this town nandyal. The brand name as taken from the piligrimages place called Mahanandi which is 15 kilometers from Nandyal.

Nandi pipes are the largest PVC-manufacturing unit in Asia. Production capacity of this unit is 22,200 metric tunes for annum,sujala pipes pvt Ltd.,has an expensive network of more than 300 dealers in andra pradeh.who are directly serviced by company sales force and more than 500 dealers in south india

GROWTH AND DEVELOPMENT OF THE COMPANY

The Sujala Pipes Private Limited to record an excellent growth from 1977 onwards.

1977 1984 1985 1985 1987 1987 1988 1989 1990 1990 1992

Nandyal Region (Polythene Pipes) P.V.C. Pipes Rayalaseema Region. Rayalaseema, Telangana Region. Andre and Karnataka Region. Andre, Tamilnadu and Karnataka States. Andre, Kerala and Karnataka States.

PRODUCT PROFILE
They own their success to whole series of advantages, which they have over conventional materials such as Lightweight Excellent mould ability Attractive colours

 Less cost of manufacturing Low maintance

High strength of manufacturing. Compatibility with reinforcing materials CONCEPT OF THE UNDS Funds in the narrow sense of the term as be equated to cash. But in the broader sense and appropriate one here, it refers to working capital that is current assets less current liabilities. CONCEPT OF THE FLOW The dictionary meaning of the word flow is movement denoting change Therefore, whenever there is a change of funds that is either increase or decrease there is a flow of funds. There must be some cause of change- the CONCEPT F THE FUNDS FLOW The meaning of funds flow or flow of funds illumination the concept of funds flow statement clearly the statement which analysis the flow of funds that is the reasons for changes in working capital is a funds flow statement. It is also designated as where got and where (movements) of working capital, movements of flow statements etc IMPORTENCE OF FUNDS FLOW The information which is provided by funds flow statement is neither available in the balance sheet nor in the income statement and hence its important. The changes which have taken place in between two accounting dates are highlighted by funds flow statement . The projected funds flow statement can also be prepared and then budgetary control and capital expenditure control can be exercised to the benefit of the entire organization

USES OF F UNDS FLOW Informative value Forecasting value Testing value NEEDS OF THE STUDY Financial analysis is a scientific tool. It has assumed an increasingly importantly role as a tool for appraising the real worth of an enterprise.

The funds flow statements explains the various sources from which funds are a raised and uses to which funds are put. An analysis of the funds flow statement helps us in answering questions such as what is the amount of funds generated from operation? Whether the liquidity position of the organization increased etc., The funds flow statement is a useful tool in the kit of financial management and is a report of the financial operations of a company. SCOP OF THE STUDY Schedule of changes in working capital. Current assets Current liabilities Calculation of operating profits Calculation of sources and applications. Source of funds Application of funds OBJECTIVES OF THE STUDY It highlights the different sources and application or funds between the two accounting period. It acts as an effective tool a measure the causes of a changes in working capital. To study the financial strength of the company To evaluate the performance of the firm To study the changes the liquidity position of the firm. To quantity the internally generated funds.

LIMITATIONS Owing to financial and time constants the researcher has covered only one unit that is SUJALA PIPES (PRIVATE) LIMITED NANDYAL.

In order to facilitate uniformity in dates years have been readjusted and the data recast as on 31 march of each year.
The data is available only for seven years.

Funds flow statements calculated only to the information available in the financial statements. PLAN OF THE STUDY

The present study is an attempt to study the analysis of financial statements of SUJALA PIPES (PRIVATE) LIMITED NANDYAL, in financial aspects by financial funds flow analysis. PERIOD OF THE STUDY The period covered by the study extends over seven years from the period of 2004-05 to 2009-10. The consideration for restricting the study to this period is that the latest data for manageable investigation are available for this period. COLLECTION OF THE DATA 1.Primary data: Primary data has been collected through personal interviews with the financial departments and the executives. 2.Secondary data: Secondary data collected from the records like balance sheets, income statements and necessary records and website INTERPRITATION The above table observed that the working capital in year 2004-2005 will be increased i.e. 608276,in the year working capital has been increased 661506, 2005 06. 2006-07 will be increased i.e., 13643361. In year 200708 the working capital has been increased by Rs.62236924. In the year 2008-09 the working capital is Rs.9539687. & in the year 2009 10 working capital is Rs.8498970

INTERPRETATION

The above table explains that continuous fluctuations in flow of funds from operation. In the year 2004-05 the funds from operation is 3008320,it has increased to 3149042, 200506 . In the year 200607 the funds from operation is Rs;23371280, it has increased to Rs.34230556.in the year 2006-07. in the year 2007-2008 the funds from operation is Rs.27651462.The funds from operation in the year 2008-09 is in the year 2009 10 is Rs. 32542133. INTERPRETATION The above table explain the uses and application of funds It is necessary to the company about financial management. Here involved the only three things they are 1, increase in gross black 2. Secured loans and 3 unsecured loans. FINDINGS In During the period 2004-2005 to 2005-06more than 49.89% of the funds came from trading activities. the application of the funds around 71.64% of the funds are utilized for investing in fixed assets. In During the period 2005-2006 to 2006-07 more than 50.74% of the funds came from trading activities. the application of the funds around 71.64% of the funds are utilized for investing in fixed assets.

During the period 2006-2007 to 2007-2008 more than 51.56% of the funds came trading. In the application of the funds 71.64% of the funds are utilized for investing in fixed assets.

During the period 2007-2008 to 2008-2009 more than 54.25% of the funds came trading activities. In the application of the funds 71.64% of the funds are utilized for investing in fixed assets.

During the period 2008-2009 to 2009-2010 more than 61.75% of the funds came trading activities. In the application of the funds 71.64% of the funds are utilized for investing in fixed assets. SUGGESTIONS It is better the company less utilize sources of funds for getting returns. Through it is sources of funds, but it is advise to company as pay loans as early as possible. If not company will go into solvency position. A fresh look into the extension of product line. Efficient assets utilization for revenue generation is suggested. the liquidity of the company should be improved by maintaining the optimum current assets and liquid assets according to standard norms. CONCLUSION Finally I concluded has study helpful to the sujala pipes limited company the company performance have been effectively and efficient performance. financial strength has helped me a lot gain a more knowledge about funds flow statement need for the company performance of financial management.

It is capability of the financial management. And it is difficult to calculate the funds flow statement, by the by the funds flow statement explain the financial performance of company