FUND FLOW ANALYSIS &DISTILIARIESK.B.D SUGARS INTRODUCTION Financial Management is that managerial activity which is concerned with the planning and controlling of the firm’s finance. Finance is the one of the foundations of all kinds of economic activities. Finance is the life-blood of a business. The financial management study deals with the process of procuring necessary financial resource and their judicious use with a view to maximizing the value of the firm and there by the value of the owners i.e. equity share holders in a company. Practicing managers are interest in this subject because among the most crucial decisions of the those which relate to finance, and an understanding of the theory of financial management provides hem with conceptual and analytical insights to make those decisions skillfully. FINANCIAL MANAGEMENT Finance management emerged as a distinct field of study at the turn of this century many eminent persons defined in the following ways DEFINITIONS According the BONNEVILE AND DEWEY “Finance consists in the rising providing and managing of all the money, capital or funds of any kind to be used in connection with the business”. According to Prof. EZRA SOLOMAN “Financial management is concerned with the efficient use of any important economic resource, namely capital funds”. FINANCE FUNCTIONS It may be difficult to separate the finance functions from production, marketing and other functions, but the functions themselves can be readily defined. The functions of raising funds investing them in assets and distributing returns earned from assets to shareholders are respectively known as. V.C.R INSTITUTE OF MANAGEMENT STUDIES Page 1 FUND FLOW ANALYSIS &DISTILIARIES Long –term assets mix (or) Investment Decision K.B.D SUGARS Capital – mix (or) Financing Decision Profit allocation (or) Dividend Decision Short – term asset mix (or) Liquidity Decisio GOALS OF FINANCIAL MANAGEMENT Maximize the value of the firm to its equity shareholders. Maximization of profit Maximization of earning per share. Maximization of return on equity Maintenance of liquid assets in the firm Ensuring maximum operational efficiency through planning directing and controlling of the utilization of the funds. Building up of adequate reserves for financing growth and expansion V.C.R INSTITUTE OF MANAGEMENT STUDIES Page 2 FUND FLOW ANALYSIS &DISTILIARIES K.B.D SUGARS INDUSTRY PROFILE Cultivation of sugar cane in India dates back to the vide 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 spontaneum. Tropical cane might have originated in some of the larger islands of Oceania, most probably 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 Alexander’s 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 European continent and it was imported from the East as it started giving competition to honey as a sweetening agent. Chiristopher 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 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. V.C.R INSTITUTE OF MANAGEMENT STUDIES Page 3 FUND FLOW ANALYSIS &DISTILIARIES K.B.D SUGARS Sugar cane needs a minimum of 8 months of high temperature as 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 world April and harvested during the months of October to March. The sugar beet, on the other hand, is crop, the roots of which are used to produce sugar. It is shown 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 S. • The important sugarcane producing countries in the world are India, Cuba, Brazil, Mexico, Pakistan, Chine, Philippines, and Thailand. • It 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 tons 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 while of India and also accounts for 40% of the total annual production. • India ranks first among sugar cane-growing countries of the world in both extent of area and production of cane. consumed in the country. V.C.R INSTITUTE OF MANAGEMENT STUDIES Along with white sugar, KHANDASARI (indigenous) sugar and GUR (JAGGERY) are also Page 4 FUND FLOW ANALYSIS &DISTILIARIES K.B.D SUGARS ABOUT SUGAR INDUSTRY IN INDIA Sugar consumption rate is highest in India as shown in the statistical received from USDA Foreign Agriculture Service. However, as per production is concerned, India has notched up 2nd position following Brazil, the largest sugar producer in the world. The Indian sugar industry uses sugarcane in the production oenion that f sugar and hence maximum number of the companies is likely to be found in the sugarcane growing states of India including Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh. Uttar Pradesh alone accounts for 24% of the overall sugar production in the nation and Maharashtra’s contribution can be totaled to 20%. There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills. SUGAR INDUSTRY SET UP ACROSS INDIA: • • • • • • • • • • • Andhra Pradesh Sugar Industry Bihar Sugar Industry Gujarat Sugar Industry Haryana Sugar Industry Himachal Pradesh Sugar Industry Karnataka Sugar Industry Madhya Pradesh Sugar Industry Maharastra Sugar Industry Chhattisgarh Sugar Industry Manipur Sugar Industry Orissa Sugar Industry Page 5 V.C.R INSTITUTE OF MANAGEMENT STUDIES D SUGARS BEGINNING OF SUGAR INDUSTRY IN INDIA Sugar is made from sugarcane.FUND FLOW ANALYSIS &DISTILIARIES • • • • Punjab Sugar Industry Tamilnadu Sugar Industry Uttaranchal Sugar Industry Uttar Pradesh Sugar Industry K. It was India which began producing sugar following the process of pressing sugarcane to It was in 1950-51 the government of India made serious industrial development plans and set the targets for production and consumption of sugar. MANUFACTURING PROCESS FOLLOWED IN SUGAR INDUSTRY IN INDIA: Several steps are usually followed to produce sugar. Sugar factories belong to the organized sector and those who product traditional sweeteners fall into unorganized sector.R INSTITUTE OF MANAGEMENT STUDIES Page 6 . It projected the license and installment capacity for the sugar industry in its Five Year plans. Gur and khandsari are the traditional forms of sweeteners.B. These steps can be mentioned as below: Extracting juice by pressing sugarcane Boiling the juice to obtain crystals Creating raw sugar by spinning crystals in extractors Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue Crystallizing and drying sugar Packaging the ready sugar V. the route was traced to India and Southeast Asia. From there.C. which was arguably discovered thousands of years ago in New Guinea. TYPES OF SUGAR INDUSTRY IN INDIA The sugar industry can be divided into two sectors including organized and unorganized sector. D SUGARS MACHINERY SUPLIERS FOR SUGAR INDUSTRY IN INDIA Some of the suppliers that offer cutting-edge machines to the companies involved in sugar industry of India are: • • • • • • • • • Sakthi sugar Ltd Sri Sujay Engineering Products Sri Vijayalakshmi Industries Murthy Industries Parveen Perforaters & Allied Industries Aeromen Engg Co Kamla Foundry & workshop Tinytech Plants Baba Vishwakarma Engineering Co(p) Limited ANDHRA PRADESH SUGAR INDUSTRY ABOUT ANDHRA PRADESH SUGAR INDUSTRY Andhra Pradesh (AP) abounds in maximum number of private sector sugar companies in India along with Tamil Nadu and Karnataka. a consideration change in the policy in the was noticed.FUND FLOW ANALYSIS &DISTILIARIES K. Today.B. Andhra Pradesh sugar industry rank 3rd in terms of recovery and 5th in terms of cane crushing.I) were given to the deserving entrepreneurs including 20LOIs to the private sector companies. Today the unprecedented growth V.R INSTITUTE OF MANAGEMENT STUDIES Page 7 . In the year 1933-34. vacuum process was adopted for sugar manufacturing in the state. Andhra Pradesh stands at the position 5 in India. the state government was planning to support Cooperative sector as against other sectors. Previously.C. However with passing time.O. The agriculture laborers who do sugarcane harvest n and cultivation are employed in the sugar i9ndustry in Andhra Pradesh. Letters of intent (L. This gradually resulted in major benefits for the state government as well as for India as a whole. As per production capacity is concerned. C. Ltd KBD Sugars & Distilleries Ltd Deccan Sugars Ltd TREND OF SUGAR INDUSTRY Trend of sugar industry. As is well documented the last two sugar years brought a windfall to the domestic sugar industry. TYPES OF SUGAR INDUSTRY IN ANDHRAPRADESH Andhra Pradesh sugar industry can be classified into two parts such as organized sector including sugar mills and unorganized sector including manufacturing of gur(jaggery)and khan sari. employment and transport system here. The unorganized sector is often referred to as the rural industry.R INSTITUTE OF MANAGEMENT STUDIES Page 8 . The department also takes care of the technological advancements of the industry.B. SUGAR MILLS IN ANDHRA PRADESH Some of the major players in the Andhra Pradesh sugar industry are listed below: Bhagwathi Khandasari Sugar mills N C S Sugar Ltd The Kirlampudi Sugar Mills Ltd Tirumala khandasari Udyog Sri Sarvaraya sugar Ltd The KCP Sugar & ?Industries corpn.FUND FLOW ANALYSIS &DISTILIARIES K. The rural industry plays major role the level of production. the Directorate of sugar and Commissioner ate of cane has been vested with the power to guide and deal with the sugar factories in Andhra Pradesh. DIRECTORATE OF SUGAR AND COMMISSIONER ATE OF CANE IS ANDHRA PRADESH: Belonging to Industries and Commerce Department. with prices V. It is the responsibility of the department to encourage sugarcane farmers and to help this developing industry contribute effectively towards Gross State Domestic product (GSDP).D SUGARS of this industry in the state has led to the consolidation of village resource and facilitated communication. with the country witnessing significant stock reduction aided the surge in domestic prices. which had been stable at US$200-250/MT till the early 2000’s shot up to around US$450 in calendar 2006. Domestic production of sugar cane has already shown an increase from around 130 lakh MT in SY 2004-2005 to around 190 lakh MT in SY 2005-2006. particularly in Uttar Pradesh (UP).ttar Pradesh (UP). However . sugars and jiggery are the main products that we get from sugarcane.shot Up to Rs 4000-4500/mt by SY2005-2006. the likely sustenances of firm global prices would permit exports of around 20 lakh MT of sugar per annum for the next two sugar seasons. Internationally sugar prices. there by easing the pressure on domestics stocks. The key driver for this upsufrge in prices has been lower supply . overall conversation margins to which had been at an average of around RS3200/mt during the previous 10 sugar years (SY1994-1995 to SY 20042005) and as low as RS2000/mt in SY2002-2003. considering the estimates provided by the Indian Sugar Mills Association (ISMA)and the Government Of India(GOI).R INSTITUTE OF MANAGEMENT STUDIES Page 9 during SY2003-2005 because of crop failures.C. 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. production is likely to out strip domestic demand again from SY 20062007 onwards. resulting in a bu With significant capacity expansion being in the pipeline . Sugar cane is one of the important crops for the Indian farmer . The raise in sugar prices internationally has also . As a result . resulting in a build-up of stocks .B. ICRA expects domestic sugar production to be at 220-230 lakh MT in SY 20072008. Other products such as bagasses for industrial use.D SUGARS surging by above 50% between SYI 2002-2003 and SY2005-2006. 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. Nevertheless the stock position would increase from SY 2007-2008 onwards.FUND FLOW ANALYSIS &DISTILIARIES K. Production is likely to strip domestic demand again from SY 2006-2007 onwards . molasses for distillery . because of its multi uses sugarcane has played crucial role in V. filter cake. Mud as by products . B. occupying the second position next tto textile industry. Sugarcane is grown in almost all part of india. actually the word sugar derived from a Sanskrit Word “SHAKRA”.C. later it was presented to Philippines . In A. In india.P. by products utilization . licensing system was introduced. excessive employment etc. Sugar Industry Nature The industry is seasonal .P . The annual cultivated area in about 1. sugarcane exited in india from 3000 B. The average yield being 56 tones. Licensing system To protect sugar-producing units and insure a sufficient quantity of raw material (sugarcane). with the season stating in November and continuing till April /May .45 lakes of tones during 96-97 at present . Himachal Pradesh.FUND FLOW ANALYSIS &DISTILIARIES K. India as the world’s largest producer of sugarcane occupies a very pride place in the world . Per acre of total cultivating land is occupies by sugarcane cultivation. The sugar industries which provides direct employment to about 3 lakes persons of sugarcane followed by Brazil and Cuba . Under this system each unit had a command area from where the sugarcane was produced. Area wise distribution of sugar industry in A. sugarcane is available during these 6-7 months and therefore crushing also takes place during these months. V.R INSTITUTE OF MANAGEMENT STUDIES Page 10 .C. working capital.D SUGARS india economy with RS 20000 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. there are 36 sugar factories in the states have been suffering due to lack of adequate cane irrigation facilities . expect in colder regions extreme north Jammu and Kashmir. the center place of origin of sugarcane regarded as northeastern india.99 lakh hectares with a yield of 149.C. from sugarcane seems to have been to china and other places by early travelers and no mans between 1800 and 1700 B. the cultivation of sugarcane is 10000 miles tones. jew and other places . sugar industry is an important agro base industry. total quality of sugarcane produce in the district was converted as jaggery by gangues (bullock crushers)and power crushers. The jaggery made in the district was brought to the chittoor and pakala which are the market places with railway transportation.C. A.D SUGARS COMPANY PROFILE The irrigation in chittoor district mostly depends on open wells. NAME LOCATION AND ADDRESS : K. The soils in district are almost suitable for sugarcane cultivation.P BRIEF HISTORY ABOUT THE COMPANY: V.D. The jaggery making was very difficult to the small farmers due to lack of crusher and unfavorable price. Recharge of water in the wells depends in ground water level and rainfall.R INSTITUTE OF MANAGEMENT STUDIES Page 11 . The farmers also having good knowledge of growing sugarcane.B. rainfall depends in monsoon which is uncertain. In good olden days.FUND FLOW ANALYSIS &DISTILIARIES K. There was list of exploitation of farmers by the jiggery mundi owners by advancing the money with high interest rates. but there was no other choice to the farmers. commission and also not properly weighment. The big farmers also faced difficulty to crush the cane for long period. However.SUGARS AND DISTILLERIES LTD : MUDIPANAPALLI (VILLAGE) SUGALIMITTA (POST) PUNGANUR-5117241 CHITTOOR (DT).B. The price fluctuation created by the traders was also a reason for poor realization. In these circumstances.C. The cost over run of the project and also provide for the short fall in the Margins for working capital. brewers. Subsequently the name of the company was changed to SHREE VANI SUGARS AND INDUSTRIES LIMITED on the 5th day of April.D SUGARS The company was originally incorporated on 16th day of October. suryachandra Rao. pharmaceutical and medicinal preparations. and traders of furfural bulk drugs. In the initial years it performance of the company was much below the break even levels. polymers. 1990. To carry on the business as manufacturers.B. ethyl alcohol. the promoters have inducted Sri D.K. Audikesavulu as a co-promoter in order to facilitate the company to meet. polyvinyl chloride.R INSTITUTE OF MANAGEMENT STUDIES Page 12 . MAIN OBJECTIVES OF THE COMPANY: To carry on the business as manufacture. distributors. molasses. liquors and all products made the from To carry on the business as manufactures. acetic acid. The company was initially promoted by Sri. Sri. plastics. distillers. stockiest and traders of rectified spirit. Managing director and Sri S. 1992. gasohol. producers. Again subsequently the name of the company was changed to KARNATAKA BREVARIES DISTILLLERIES SUGAR LIMITED ON THE 1ST MARCH. 1984 under the name of SREE TELUGU SUGARS LIMITED. vinyl acetate. sellers. stockiest. producers. stockiest an traders of sugar and its derivatives. producers packers. Gokul has since come out of the board and left the company. processors. made out of by products of sugar or either derivatives V. Due to poor performance the company accumulated substantial cash loses and also defaulted in meeting the terms loan comities to AIFIs. acetone anhydride. biases and all materials an substances arising as by products and waste products out of and in the course of manufacture of sugar. dealers. dealers. 2005. blenders. T.FUND FLOW ANALYSIS &DISTILIARIES K.Gokul Executive Director commence its Commercial production from 01st July. cultivators. growers. paper. newsprint. cartons corrugated containers.K. SRINIVAS SRI K. paper bags.FUND FLOW ANALYSIS &DISTILIARIES K. fibrils boxes. To carry on the business as planters. wrapping and packing materials.R INSTITUTE OF MANAGEMENT STUDIES Page 13 . SRINIVAS MURTHI SRI. INDRAPRAKASH JR.M. distributors stockiest and trades of business pulp. paper of all kinds.J. MANAGING DIRECTOR DIRECTOR VICE PRESIDENT V. mill boards. strew boards.D. paper boards. formers and producers of sugarcane sugar beet. PRESENT BOARD OF DIRECTORS NAME SRI D. paper bags fibrils boxes.A.B. AUDIKESAVULU DESTINATION CHAIRMAN AND MANAGING DIRECTOR SRI D.D SUGARS To carry on the business as manufacturers dealers. coated papers of all kinds. cartons. paper pulp and pulp made out agricultural residues or other fibrous materials.C. Again empty truck is weighted to assertion in the weight of cane unloaded.FUND FLOW ANALYSIS &DISTILIARIES K. Steam is used for driving the Fibrizer. Per hour steam at 300 p sig (21 Kgs).D SUGARS PRODUCT PROFILE Sugar cane Sugar cane cultivated by the growers or promising varieties in terms of sugar content and yield. Clarification V. 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.C. Boilers Provided with 2 nos. Trucks are weighted with cane on Weigh Bridge and unloaded on the moving cane carrier. To make this process more effective assured quantity of water is added to Mills. Surplus bagasse is sold to paper industries. by steam turbine alternator. After extraction of juices the waste materials is called bagasse. Millings Provided with a tandem of four mills land each mill is provided with three rollers. of boilers of each water evaporation capacity of 25 Mts. mills by turbines and generator power.R INSTITUTE OF MANAGEMENT STUDIES Page 14 .B. For boiler main fuel is bagasse. Cultivation techniques maturity of (decided by the cane personnel) harvested and supplied to the factory in trucks fresh less tops and roots. Mechanical un-loaders do unloading. Evaporation In graver juices will be well settled and will have a golden yellow color of 7. Vacuum is helping is drawing vapor from the preceding body and this boiling is called multi effect boiling and maximum fuel economy. 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. also called milk of lime. It is preheated in juice heater to 50 – 750. in ‘u’ tube principles.R INSTITUTE OF MANAGEMENT STUDIES Page 15 . by using addition of such alkaline medium is again brought down to natural pH medium by bubo ling of sculpture dioxide gas. In evaporators about 75% of water is removed and made syrup. Juices will be coagulated form and will not settle. such juices is sent and drawn from it with the detention time of juices of about 330 hours.D SUGARS Juice extracted form sugar cane in mills is weighted in automatic weighing scale. In the vapor cell alone exhaust steam is admitted into the calandria produced vapor to its subsequent body and soon. To induce settings cheaply and abundantly available positive is to be added i. Extracted juices is V. This clear juice will contain more than 85% of water and the remaining soiled (Sugar Maximum + a little sugar). This gas is produced in sculpture burners and bubbled in preheated juices.0 pH (Neutral). Graver is a big tank where settling is taking place. Boiling is done under vacuum using exhaust stream from turbines tubes emerging out through tube plates and above this calamari vapor space or shell.e.FUND FLOW ANALYSIS &DISTILIARIES K. losing about 75% of water.C. Continuously. Thus when a juice is emerges out from last body it will be a syrup. As such a juice is kept at slightly alkaline medium say 701 to 7. namely time in slurry form. This consists of one vapor cell and is followed by four bodies. Then it is limited and sulphieted simultaneously.B. Steam circulated through calandreia and heating the outer point of huices is brought well below its origin boiling point. By the aid of compressed air passing through sculpture burners. Then this treated juice is heated again in other row of juices heaters to 102 C and to send to graver.2. FUND FLOW ANALYSIS &DISTILIARIES K.R INSTITUTE OF MANAGEMENT STUDIES Page 16 . Pans are boiler on vapor produced form vapor cell. This process will help growth or crystal as desires by us. B. Molasses got from a massecuites. When the super saturation point reaches crystals come out its is again boiled up by addition kept in pan and the rest 2 portions sent to receivers. And sent to go down. sugar and molasses form B massescuties and sugar form c massecuites (final) are again boiled in pans in cyclic manner. All these mass cuties (sugar + molasses) are purged in centrifugals respectively sugar and molasses are separated. 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. Bags weighed on P. From crystallizes taken into centrifugal machines and sugar and molasses separator. 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. When the syrup is further boil in pans. Pans Pan bodies are similar to evaporators in construction with different design. Sulphitation and syrup The syrup from evaporator last body is again suspired to beach to get white sugar and sent to pan supply tanks.O scales of 100kgs.D SUGARS again mixed juices from mills after weighment tank and takes the path of process along with juices in acyclic form. Then again pan is boiled. Three boiling are bone A.B. Molasses got fro c massecuites V. Centrifugals Such made massecuties are dropped in crystallizers (a storage tank with stirring mechanism). Sugar remains in basket washed and dried by steam. C. When one machine changed with massecuities and spun at 150 RPM molasses gets out and collects in a tank. These are called massecuites.C. Materials are invidiously boiled in four numbers under vacuum. D SUGARS called final molasses is a waste and sent to storage tanks (Raw material for alcohol industries).R INSTITUTE OF MANAGEMENT STUDIES Page 17 .FUND FLOW ANALYSIS &DISTILIARIES K.C. To identify sources and applications of the funds. The specific objectives of the study are: To assess the financial position of the KBD limited.B. To analyze the funds flow operations. OBJECTIVES OF THE STUDY The major objective of the study is to assess the inflow and outflow of the fund in KBD Sugars and distillaries limited. V. To study and analyze the changes those have taken place in the financial position of the company. B.R INSTITUTE OF MANAGEMENT STUDIES Page 18 . To know about working capital position of the company.FUND FLOW ANALYSIS &DISTILIARIES K.C. The funds flow reveals clearly the causes for the financial difficulties of the company. With the help of fund flow statement we can estimate the cash balance of the company.D SUGARS NEED FOR THE STUDY The main need of the study the sources and applications of funds in the company and methods to evaluate financial performance of the company. To know about the need of the funds for the growth of the firm. To findout the outflow and inflow of the business. Fund flow statement to evaluate the pattern of the firm. V. An extensive study is done on the investment made by KBD sugars distillaries on its funds flow statements and its adequancy . V. The study concentrates on the liquidity position of the firm.FUND FLOW ANALYSIS &DISTILIARIES K.C.R INSTITUTE OF MANAGEMENT STUDIES Page 19 . The study is based on the annual reports of the company for a period of five years from 2006 to 2010.D SUGARS SCOPE OF THE STUDY The scope of the study covers the previous five years financial report of the company.B. and the factors determining that investment. V.2010 analysis of the financial statement.2008.R INSTITUTE OF MANAGEMENT STUDIES Page 20 . The time value of money is not being considered. These statement were over all reports 2006.C.D SUGARS 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 figure taken from the financial statement like profits and loss accounts and balance sheets were historical in nature.2009.FUND FLOW ANALYSIS &DISTILIARIES K.B. 2007. which are published annually company.D SUGARS METHODS OF DATA COLLECTION The data for the present study was collected through primary and secondary sources. PRIMARY DATA: The primary data was collected using the following methods.R INSTITUTE OF MANAGEMENT STUDIES Page 21 . METHODOLOGY The study was conducted based up on the financial statement of annual reports and accounts of the K B D Sugars & Distilleries Ltd. Direct personal interviews: In personals interviews. V.B. whicg was not available through the secondary sources. both structured pattern of interviews was undertaken to collect the needed data.FUND FLOW ANALYSIS &DISTILIARIES K. SECONDARY DATA: 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.C. FUND FLOW ANALYSIS &DISTILIARIES K. “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”. It indicates various means by which funds were obtained during a particular period and the ways in which these find were employed.C. it is a technical device designed to high light the change in the financial condition of a business enterprise between tow Balance Sheets. In simple.D SUGARS Under circumstances in addition to the collection from published annual reports and accounts. To access the accurate profit and excluding the expenses made various minor adjustments to estimate the expenses incurred. In short.B. According to Fouke. REVIEW OF LITERATURE MEANING: The funds flow statement is a statement. V.R INSTITUTE OF MANAGEMENT STUDIES Page 22 . a secondary data have been collected from the various departments in order to know the current trend in the business of the company. DEFINITION: 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. the funds flow statement is a statement of sources and application of funds. which shows the movement of funds and is a report to the financial operations of the business undertaking. is prepared in two parts – (a) Schedule of working capital changes and (b) Statement of sources and uses of fund or working capital.FUND FLOW ANALYSIS &DISTILIARIES K. It has become a useful tool in their analytical kit. i. The first part has been discussed in a separate question in this chapter.C. The second part.B.D SUGARS Fund flow statement is widely used by the financial analyst and credit granting institution and financial managers in performance of their jobs. This will help him in making a better estimate about the company’s financial position and policies. Issue of new shares 2. However financial analyst must know the purpose for which the loan was unitized and the sources from which it has rises.e.R INSTITUTE OF MANAGEMENT STUDIES Page 23 . Fund flow statement. Sale of fixed assets 5. Profit from operation. The balance sheet is merely a static statement’s these statements do not sharply focus those major financial transactions. fund flow statement shows the items of sources of Fund and its uses in various items. current liabilities. This is because the financial statement like income statement and balance sheet have limited role to perform. The sources and uses of fund have been described as below: Sources of fund: 1.. V. Creation of long – term liability 4. Funds means working capital this working capital represents the difference between current assets. This means that every transaction has an effect on the firm’s working capital position. All flows of funds pass through working capital. Issue of debentures 3. broadly speaking. which have behind the n\balance sheet changes. Income statement measures flows restricted to transaction that pertain to rendering of good and services to customers. Therefore the funds flow statement shows the movement of funds Into or out of the current assets account of the firm.C. This means that the amount of premium discount if any is taken into account for this purpose. V.R INSTITUTE OF MANAGEMENT STUDIES Page 24 . On the other hands.FUND FLOW ANALYSIS &DISTILIARIES 1.D SUGARS An increase in profits increases the cash balance and hence An increase in long term liability or any decrease in fixed working capital. FUNDS FROM OPERATIONS The most important sources of funds is profit from its operations. Sources of funds Applications of funds The former supply funds to the Working capital and enhances its position. The reason being that this would lied to double counting. Profit from operations means the net profit after taxes plus the non cash expenses. However loans in form of supplies or services of a non current nature do not constitute source of funds. the latter consume funds and erode the Working capital position. Such profits have been included in the sale value.B. The movement of funds has two aspects 1. LONG TERM BORROWINGS Long term including any premium or net of discount is considered as source of funds. K. 2. They are not included in the profit figures. 2. assets increase the cash balance and hence working capital. SOURCES OF FUNDS SALE OF FIXED ASSETS The sale value of fixed assets including if any is a one of the Sources of funds. SALE OF SHARES The full amount collected form the issue of shares is treated as source of funds. V. 4. SIGNIFICANCE OF FUNDS FLOW STATEMENT 1. 2. While beginning this effect to the funds flow statement doubts counting must be avoided. REPAYMENT OF CAPITAL A company redeems the redeemable preference shares. 1956. The balance sheet is merely a static statement’s these statements do not sharply focus those major financial transactions. Useful as control device 6. which have behind the balance sheet changes.D SUGARS USES OF FUNDS PURCHASES OF FIXED ASSETS Acquisition of fixed assets causes an outflow of funds from the working capital pool. 3. Decisions on capitalization. an outflow of funds will be there to the extent of net loss minus the non cash expenses like depreciation. Useful in decision making. Moreover equity shares can also be paid back as per the procedures laid down in the Indian companies Act.B. Useful to the external prices Income statement measures flows restricted to transaction that pertain to rendering of good and services to customers. The outflow of funds takes place on account of acquisition of long term investments and payment of cash dividend.R INSTITUTE OF MANAGEMENT STUDIES Page 25 . Reasons for financial difficulties 5. Decisions relating to financing.FUND FLOW ANALYSIS &DISTILIARIES K. Acquisition of investments and payments of dividend.C. MAKE UP OF SHARES If the firm is operating at a loss. GENERAL RULE: The flow of funds occurs when a transaction changes on the one hand a non – current account and vice versa. ♦ It indicates how funds are generated from the different financial resources of a corporation and how the reservoir of its assets is created. ♦ It throws light on many perplexing question of general interest. ♦ It helps in the proper allocation of resources. A fixed asset and a current liability. 3. It explains why in spite of making profits a corporation is illiquid position. This will help him in making a better estimate about the company’s financial position and policies .D SUGARS However financial analyst must know the purpose for which the loan was unitized and the sources from which it has rises.C. USES – OF FUNDS FLOW ANALYSIS: It helps in the analysis of financial operations. In other words it depicts changes in the financial structure of the corporation. 2.R INSTITUTE OF MANAGEMENT STUDIES Page 26 . ♦ It is supplementary to the conventional financial statements. 4.B. ♦ It is an important tools in the hands of the financial manager deter5mines the financial consequences of business operations. A fixed liability and a current liability. ADVANTAGES OF THE FUNDS FLOW STATEMENT ♦ It provides information about how funds are obtained and in the process of decision making. 1. A current asset and a fixed asset. ♦ It registers changes in the flow of funds during a given period of time. V.FUND FLOW ANALYSIS &DISTILIARIES K. A current asset and a fixed liability. ♦ It helps in the formation of a realistic dividend policy. In other words it depicts changes in the financial structure of the corporation. ♦ To inform on to how the loans to the business has been used.C. DIFFERENT NAME OF FUNDS FLOW STATEMENT: ♦ A statement of sources and Uses of funds. ♦ It is not an original statement but simply a re . ♦ A statement of Sources and Application of funds. It explains why in spite of making profits a corporation is illiquid position. V. ♦ It is closely related to the normal business decision making process accounting statements balance sheets and income statements and is related to a time span. ♦ Inflow and out flow of funds statement.organization. MAIN PURPOSE OF FUNDS FLOW STATEMENT: ♦ To help to understand the changes in assets and which are not evident ♦ Financial statement or I the income statement. ♦ Where got and where gone Statement.D SUGARS ♦ Indicates how funds are generated from the different financial resources of a corporation and how the reservoir of its assets is created. ♦ It determines the financial consequences of business operations. ♦ It may enable the financial manager to allocate resources to productive investments. ♦ It enables the financial manager to obtain answers to a number of questions regarding the amount of loan requirements the purpose for which it may be required the terms of repayment the source of repayment etc.R INSTITUTE OF MANAGEMENT STUDIES Page 27 .arrangement of data given in the financial statements. ♦ To point out the financial strengths and weakness of the business. ♦ It is an important tool in the hands of the financial manager in the process if decision making.FUND FLOW ANALYSIS &DISTILIARIES K. LIMITATIONS OF FUNDS FLOW ANALYSIS: ♦ It is essentially historic in nature and projected funds flow statement cannot be prepared with much accuracy. ♦ It any enable the management to take decision on planning a dividend policy on challenge out a programmed of the financial re. ♦ It cannot be reveal continues changes.B. FUND FLOW ANALYSIS &DISTILIARIES ♦ To help in planning sound dividend policy. Decrease in Current Liabilities. • • Statement or schedule of changes in working capital. STATEMENT OR SCHEDULE OF CHANGES IN WORKING CAPITAL: Working capital means the excess of current assets over current liabilities.B.. Increases the Working Capital.. This statement is prepared with the help of current assets and current liabilities derived from two balance sheets. Page 28 V. Decreases the working capital. Statement of changes in working capital is proposed to show the changes in the working capital between two balance sheets data.. it should be noted that Increase in Current Assets. …………… ……. Decrease in Current assets.D SUGARS PROCEDURE FOR PREPARING A FUNDS FLOW STATEMENT: The preparation of funds flow statement consists of 2 parts. K. …………… …… …………… …… …………… ……... …………… .R INSTITUTE OF MANAGEMENT STUDIES . Decrease the Working Capital. Statement of sources and Applications of funds. PROFORMA OF STATEMENT OF CHANGES IN WORKING CAPITAL Base Year Current Year Changes in working Capital Increas Decreasi ing ng Current assts (CA) Inventories: Raw material Consumable stores Finished goods Sundry debtors Cash in hand …………… … …………… . Increases the Working Capital. Working Capital = Current Assets – Current Liabilities While preparing a schedule of changes in working capital. …………… . …………… . …………… …….C. …………… ……. …………… . Increase in Current Liabilities. ... …………… . …………… .. …………… K. …………… ……. ******** STATEMENT OF SOURCES AND APPLICATION OF FUNDS: Funds flow statement is a statement.. …………… .R INSTITUTE OF MANAGEMENT STUDIES Page 29 . • • Sources of funds @ Application of Funds. …………… . STATEMENT OF SOURCES AND APPLICATIONS V. …………… ……..C. …………… .B.. Working Capital (Current assets ………… current liabilities) Net Increase/ capital decrease working *** ***** *** ****** ** ******** ………… …. ….FUND FLOW ANALYSIS &DISTILIARIES 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 …………… . ………. …………… . …………… …….. …………… . …………… .. …………… ……... …………… …….D SUGARS …………… ……. …………… .. …………… ……. …………… ……. which indicates various sources for which funds have been obtained during a chain period applications to which these funds have been put during that period. Increase capital in working ****** STATEMENT OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2007-2008 EFFECT PARTICULARS 2007 2008 OF WORKING CAPITAL INCREASE DECRE ASE CURRENT ASSETS V.R INSTITUTE OF MANAGEMENT STUDIES Page 30 .D SUGARS Amount(Rs) Application of funds Funds costs in ****** operations Repayment debentures ****** of ****** share ****** Interest and dividend paid [Payment of Long term loans.C.B.FUND FLOW ANALYSIS &DISTILIARIES Particulars Amount (Rs) Sources of funds Funds from trading ****** factitively or operating Profit Issue of shares ****** and debentures Receipts of dividend ****** and Interests Sales proceeds of Non – current asset long term Borrowings Decrease in working Capital ****** ****** Reduction Capital in Particulars K. R INSTITUTE OF MANAGEMENT STUDIES . 31230933.D SUGARS 72438781 160143 2159732 61379882 bank 2907579 8958462 1 current 4039869 30 CURRENT LIABILITIES Sundry creditors Bills payable Provision for tax Advances Total current 9100835 0 2655730 13 68042 4407965 3610573 11867365 4 34458284 4 85082 2623395 46596497 5 74160493 31230933 74160493 137923108 13792310 8 1784570 27665304 79009831 17040 liabilities(B) 70 Net working 4292956 capital(A-B) 0 Increased working 3123093 capital 2 7416049 3 INTERPRETATION: The above table shows statement of changes in working capital during the year 2007-2008 it as net increased in working capital Rs.FUND FLOW ANALYSIS &DISTILIARIES Inventories Sundry debtors Cash & balances Loans & advances Total assets(A) 3032381 11 8256619 37567689 2 8416762 5067311 15096450 3 54012546 8 K.B.C. FUNDS FLOW STATEMENT FOR THE YEAR 2007 SOURCE AMOUNT APPLICATIONS AMOUNT Page 31 V. D SUGARS Fixed assets Increase in working capital Funds los from operation 284024280 31230932 340613314 655868526 655868526 The Fixed assets are decreased during the year 2007 The working capital Incrased. Application of funds are increased.C. STATEMENT OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2008-2009 EFFECT V.FUND FLOW ANALYSIS &DISTILIARIES Secured loans Unsecured loans Work in progress 253408846 105914487 296545193 K.B.R INSTITUTE OF MANAGEMENT STUDIES OF WORKING Page 32 . C.7416049 B) Decreased capital 3 working INTERPRETATION The above table shows statement of changes in working capital during the year 2008-2009 it as net decreased in working capital Rs.R INSTITUTE OF MANAGEMENT STUDIES Page 33 .FUND FLOW ANALYSIS &DISTILIARIES PARTICULARS CURRENT ASSETS Inventories Sundry debtors Cash & bank balances Loans & advances Total assets(A) 3756768 92 8416762 5067311 1509645 15630624 6 7348982 8755709 14576651 8 31817745 5 K. 12777688 V.B.D SUGARS 2008 2009 CAPITAL INCREASE DECREASE 219370646 1067780 3688398 5197985 03 current 5401254 68 CURRENT LIABILITIES Sundry creditors Bills payable Provision for tax Advances Total current 1186736 54 3445828 44 85082 2623395 4659649 44215344 19599836 6 75897 16505043 25679465 0 61382805 12777688 7416049 3 74160493 12777688 239518059 239518059 74458310 148584478 9185 13881648 liabilities(B) 75 Net working capital(A. D SUGARS FUNDS FLOW STATEMENT FOR THE YEAR 2008 SOURCE Secured loans Unsecured loans Work in progress Decrease in working capital AMOUNT 365142945 68289487 4309183 12777688 APPLICATIONS Fixed assets Funds los from operation AMOUNT 277254924 173264379 450519303 450519303 During the 2008 and 2009 the working capital decreased.769356 due to increase in application of funds and work in progress.C. V.R INSTITUTE OF MANAGEMENT STUDIES Page 34 .FUND FLOW ANALYSIS &DISTILIARIES K. The fixed assets decreased 6.B. B.R INSTITUTE OF MANAGEMENT STUDIES Page 35 .C.D SUGARS STATEMENT OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2009-2010 EFFECT OF WORKING PARTICULARS CURRENT ASSETS Inventories Sundry debtors Cash & bank balances Loans & advances Total assets(A) CURRENT LIABILITIES Sundry creditors 4 Bills payable Provision for tax Advances 3 Total current 2567946 20133393 liabilities(B) 50 2 Net working capital(A6138280 92504690 B) Increased capital 92504690 92504690 56184590 56184590 5 working 31121885 31121885 1959983 16080019 66 75897 5 85877 10744468 35198171 9980 current 1563062 13642942 46 7348982 8755709 0 8062874 3903005 713892 4852704 323195 19876826 2009 2010 CAPITAL INCREASE DECREASE 1457665 14544332 18 3 3181774 29383862 55 2 4421534 34687285 9528059 1650504 5760575 INTERPRETATION: V.FUND FLOW ANALYSIS &DISTILIARIES K. V.D SUGARS The above table shows statement of changes in working capital during the year 2009-2010 it as net increased in working capital Rs. During the year 2010 the fixed assets are increased.R INSTITUTE OF MANAGEMENT STUDIES Page 36 .B.C. FUNDS FLOW STATEMENT FOR THE YEAR 2009 SOURCE Secured loans Unsecured loans Work in progress AMOUNT 292832366 110248323 5027507 APPLICATIONS Fixed assets Increase in working capital Funds loss from operation AMOUNT 286606280 31121885 90380031 408108196 408108196 During the year 2009 and 2010 the working capital increased.FUND FLOW ANALYSIS &DISTILIARIES K. 31121885. The applications of funds are increased in that year. C.B.FUND FLOW ANALYSIS &DISTILIARIES K.R INSTITUTE OF MANAGEMENT STUDIES .D SUGARS STATEMENT OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2010-2011 EFFECT OF WORKING CAPITAL PARTICUL ARS CURRENT ASSETS Inventories Sundry debtors 136429420 8062874 45690459 8 16803678 3470866 14428027 7 62145941 9 320475178 8740804 432139 1163046 2010 2011 INCREAS E DECREAS E Cash & bank 3903005 balances Loans & 145443323 Advances Total current 293838622 assets(A) CURRENT LIABILITIE S Sundry creditors Bills payable Provision tax Advances 34687285 160800195 for 85877 5760575 12353748 2 17436757 6 80999 67154404 36514046 1 Page 37 88850197 13567381 4878 61393829 Total current 201333932 liabilities (B) V. D SUGARS 163814268 25631895 8 32922086 329220860 INTERPRETATION: The above table shows statement of changes in working capital during the year 2010-2011 it as net increased in working capital Rs. V. 163814268 FUNDS FLOW STATEMENT FOR THE YEAR 2010 SOURCE Secured loans Unsecured loans Work in progress AMOUNT 311972374 144699180 4309183 APPLICATIONS Fixed assets Increase in working capital Funds loss from operation AMOUNT 262451689 158512366 40016682 460980737 460980737 Secured unsecured loans are highly increased.FUND FLOW ANALYSIS &DISTILIARIES Net working 92504690 capital(A-B) Increased 163814268 working capital 256318958 25631895 8 K. The fixed assets are decreased.R INSTITUTE OF MANAGEMENT STUDIES Page 38 .C.B. During the year 2010 & 2011 working capital increased. FUND FLOW ANALYSIS &DISTILIARIES K.B.C.D SUGARS THE STATEMENT SHOWING THE WORKING CAPITAL 2007-2011 Year 2007-2008 2008-2009 2009-2010 2010-2011 Increase 31230932 31121885 158512366 -------Decrease ---------------------12777688 V.R INSTITUTE OF MANAGEMENT STUDIES Page 39 . C.D SUGARS THE STATEMENT SHOWING FUNDS FROM OPERATION 2007-2010 Year 2007 2008 2009 2010 Funds from operation ---------------------------------------- Funds loss from operation 340613314 173264379 90380031 40016682 V.FUND FLOW ANALYSIS &DISTILIARIES K.R INSTITUTE OF MANAGEMENT STUDIES Page 40 .B. Indicates their operating profile increasing year after year except in period 2005-2007 where the profit declaims marginally. The sources of funds are least in the year 2008-2009. In the year 2007-2008 there is increase in working capital.C.FUND FLOW ANALYSIS &DISTILIARIES K.R INSTITUTE OF MANAGEMENT STUDIES Page 41 .B. Other income not only income from investment but also sales of weight wastage those arouse during the production. This indicates company is able to generate credit liberal terms and generate revenue yet other cost. Movement of account payable show an increasing tend. The sources of funds during the year 2006-2007 are high when compared to the other years.D SUGARS FINDINGS Operating of the KBD Sugars and industries ltd. V.. We many observes from the movement of account receivable that table share of debtors in total assets have decline since 2006-07 and 2007-08 this is also reviles that KBD sugars and industries ltd. as done will in the management of account receivables. During the years 2006-2007 and 2007-2008 there is decrease in net block. During the year 2008-2009 there is increase in net block. The year 2006-07 The current ratio represents a margin of safety for creditors the higher the current ratio the greater margin of safety. V. This led to borrowings of fund on very restrictive terms. as an effect the net working capital was decrease in 2006-07 and 2007-08. The practice of working capital management is some what satisfactory. PAT and PBT were declining.R INSTITUTE OF MANAGEMENT STUDIES Page 42 . KBD sugars and industries ltd current ratio’s shows a satisfactory level in order all the years. the standards is maintained that of 2:1.FUND FLOW ANALYSIS &DISTILIARIES K. This is due to high investment in inventories and finished goods and has been maintaining low cash balances.B. though not of up to the mark because there was decrease in working capital during the year 2005-06 and 2006-07 in the current financial year the investment in the current liabilities declaimed. The debit equity ratio of KBD sugars and industries ltd is high in the initial years. the more firm’s ability to meet its current obligations.D SUGARS Weighted operating cycle analysis helps in estimating the amount of funds that are required for the various stages of cycles it is a method of estimating working capital requirement working of capital for KBD sugars and industries ltd. The larger amount of current assets in relation to current liabilities.C. But over the course of time they paid back its debit to bring the ratio under favorable conditions. R INSTITUTE OF MANAGEMENT STUDIES Page 43 . Reserves and surplus should be maximum in orde to meet unexpected deficits.C.should develop an optimum credit policy. KBD Sugars and industries ltd . Increase the fixed assets in order to increase net block Miscellaneous expenditures should be reduces as extent as possible.D SUGARS SUGGESTIONS The company must try to maintain an optimum level of inventory and develop this strategy for investing excess cash balances. The company should improve the profits by reducing indirect expenses.B. V.FUND FLOW ANALYSIS &DISTILIARIES K. R INSTITUTE OF MANAGEMENT STUDIES Page 44 .C.D SUGARS CONCLUSION It can be concluded that in KBD Sugars and distillaries ltd. The main application of funds are purchases of fixed assets and capital work in progress.FUND FLOW ANALYSIS &DISTILIARIES K. The over all performance of KBD sugars and distillaries ltd is very good.B. secured and unsecured loans. V. The fund flow analysis is inceased year by year except last year. And its main sources of funds are deffered tax liability. Secured Loans 2. SHARE CAPITAL II. LOANS & ADVANCES 1.R INSTITUTE OF MANAGEMENT STUDIES D 444742528 118065951 562808479 SCHDULE A B C 170318211 98014487 0 261907384 83090635 7900000 0 76755974 253408846 105914487 0 338663359 SUGAR DIVISION 0 -6425313 POWER DIVISION 0 -14234661 TOTAL 0 -20659974 Page 45 .D SUGARS KBD SUGARS AND DISTILLERIES LIMITED-SUGAR DIVISION BALANCESHEET AS AT 31. Unsecured Loans 3.C.03. Deferred Tax Liability IV. FIXED ASSETS 1. Depreciation V. RESERVES AND SURPLUS III.B. Gross Block Less.2007 DESCRIPTION I.FUND FLOW ANALYSIS &DISTILIARIES K. 2008 DESCRIPTION I. Sundry debtors 3.D SUGARS 259907670 184834858 302113330 5247667 2858458 89518334 39973789 361221189 38516600 367278 232111721 18876529 99189422 1124781 3008952 49121 278784199 28402480 303238111 8256619 2907579 66287 89584621 4249141 403986930 1014854 362236043 3234287 41750887 0 367278 106551638 338663359 KBD SUGARS AND DISTILLERIES LIMITED-SUGAR DIVISION BALANCESHEET AS AT 31.R INSTITUTE OF MANAGEMENT STUDIES Page 46 . Cash and Bank Balances 4. Inventories 2. Unsecured Loans 3. Deferred Tax Liability SCHDULE A B C 290451741 60389487 0 74691204 7900000 0 365142945 68289487 0 SUGAR DIVISION 0 -71563643 POWER DIVISION 0 -7078007 TOTAL 0 -78641650 V. Block V.FUND FLOW ANALYSIS &DISTILIARIES Net.03. SHARE CAPITAL II. LOANS & ADVANCES 1. MISCELLANEOUS INCOME J E F G H I K. Secured Loans 2.C.B. Loans and Advances Less: Current Liabilities VI. RESERVES AND SURPLUS III. CURRENT ASSETS 1. Cash and Bank Balances 4.C. Block Capital work in progress D 462430669 279089573 183341096 4196167 187537262 E F G H I 534396349 466570599 67825751 244852 255607865 375140470 3534587 4788074 150933218 75513197 354790781 118065951 580496620 24152123 93313828 113017 9406845 536423 4882175 279237 31285 303241696 27254924 4309183 281564107 375676892 8416762 5067311 150964503 V.03.R INSTITUTE OF MANAGEMENT STUDIES Page 47 . MISCELLANEOUS INCOME J 5729120 573049 5156071 0 99182916 540125469 467143647 72981822 244852 354790781 KBD SUGARS AND DISTILLERIES LIMITED-SUGAR DIVISION BALANCESHEET AS AT 31. SHARE CAPITAL II. FIXED ASSETS 1.D SUGARS 279277584 IV.2009 DESCRIPTION I. Inventories 2. Depreciation Net.B.FUND FLOW ANALYSIS &DISTILIARIES K. Loans and Advances Less: Current Liabilities VI. CURRENT ASSETS 1. Sundry debtors 3. Gross Block Less. RESERVES AND SURPLUS SCHDULE A B SUGAR DIVISION 0 -44143754 POWER DIVISION 0 -6976589 TOTAL 0 -51120343 V. D SUGARS 22847433 102348323 0 64357833 7900000 0 253408846 105914487 0 286679102 IV. Loans and Advances Less: Current Liabilities E F G H I 315519877 257396433 58123444 122426 261086065 155302989 593127 8546034 145739026 D 497422330 299496627 197925703 4914492 202840195 65281244 351960346 118108912 615531243 29428336 88680576 113016 88793593 1003257 1417155 209675 27492 328924963 286606280 5027507. FIXED ASSETS 1. Depreciation Net.2010 DESCRIPTION I.B. Block Capital work in progress V. RESERVES AND SCHDULE A B SUGAR DIVISION 0 -24244211 POWER DIVISION 0 -10551568 TOTAL 0 -34795778 V.03. Inventories 2.FUND FLOW ANALYSIS &DISTILIARIES III. Deferred Tax Liability C K.90 291633788 156306246 7348982 8755709 145766518 VI.C. LOANS & ADVANCES 1. MISCELLANEOUS INCOME J 2657578 576890 2080688 0 90874281 318177455 257973323 60204132 122426 351860346 KBD SUGARS AND DISTILLERIES LIMITED-SUGAR DIVISION BALANCESHEET AS AT 31. CURRENT ASSETS 1. Gross Block Less.R INSTITUTE OF MANAGEMENT STUDIES Page 48 . SHARE CAPITAL II. Unsecured Loans 3. Sundry debtors 3. Secured Loans 2. Cash and Bank Balances 4. CURRENT ASSETS 1. Deferred Tax Liability C K. Loans and Advances Less: Current Liabilities E F G H I 135750568 4601803 3696880 145443323 D 498312592 319263909 179048683 21990549 201039232 56884998 375881270 118108912 616421505 3470590 353969816 83403005 262451689 113016 2210356504 83516022 284555254 678852 3461071 206125 0 13642920 8062874 3903005 145443323 VI. Unsecured Loans 3. FIXED ASSETS 1. Cash and Bank Balances 4. Inventories 2. SHARE CAPITAL SCHDULE A SUGAR DIVISION 0 POWER DIVISION 0 TOTAL 0 V.03. MISCELLANEOUS INCOME J 289492574 201954289 87538286 0 288577518 4346048 558317 3787730 0 87303752 293838622 202512606 91026016 0 375881270 KBD SUGARS AND DISTILLERIES LIMITED-SUGAR DIVISION BALANCESHEET AS AT 31. Depreciation Net.C. Sundry debtors 3.R INSTITUTE OF MANAGEMENT STUDIES Page 49 . LOANS & ADVANCES 1.FUND FLOW ANALYSIS &DISTILIARIES SURPLUS III.B. Block Capital work in progress V.D SUGARS 239892160 109948323 0 59536565 7900000 0 299428725 111248323 0 318996272 IV.2011 DESCRIPTION I. Secured Loans 2. Gross Block Less. Block Capital work in progress V. Sundry debtors 3. Cash and Bank Balances 4. Deferred Tax Liability B C K. MISCELLANEOUS INCOME J 8482375 563416 7918958 0 86157410 621459419 432756256 188703164 0 448518703 KBD SUGARS AND DISTILLERIES LIMITED – SUGAR DIVISION PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH. 2007 DESCRIPTION SCH FOR THE YEAR ENDED 31st March 2007 SUGAR POWER TOTAL Page 50 V. Gross Block Less. Secured Loans 2. Inventories 2.FUND FLOW ANALYSIS &DISTILIARIES II.C. LOANS & ADVANCES 1.B. CURRENT ASSETS 1. RESERVES AND SURPLUS III. Loans and Advances Less: Current Liabilities E F G H I 612977045 432192839 180784205 0 362361293 456225746 9271152 3199869 144280277 D 45956991 448518704 517739293 118108912 635848205 340358371 177380922 4196167 181577088 39983478 78125434 113017 78238451 678852 7532526 270997 0 380341849 255560356 430918340 259815589 456904598 16803678 3470866 1444280277 VI. FIXED ASSETS 1.D SUGARS -4063145 -4089706 -8152851 269825677 136799180 0 42146697 7900000 0 811972374 144699180 0 402561713 IV.R INSTITUTE OF MANAGEMENT STUDIES . Depreciation Net. Unsecured Loans 3. FUND FLOW ANALYSIS &DISTILIARIES INCOME SALES AND OTHER INCOME INCREASE/(DECREASE) IN STOCKS K L K.B.WAGAES& OTHER BENEFITS INTEREST AND FINANCIAL CHARGES DUTIES & TAXES ADMINSTRATIVE EXPENSES DEPRECIATION M N O P Q 42595 2699 30144854 5 40338565 23300302 PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET 9463676 29444670 9852517 18529737 432378 17039 012 759 (6425313) 0 (6425313) 0 0 449417 770 (206 (14234661 59974) ) 0 0 (14234661 (2065997 ) 4) 0 0 0 0 20659 974 642 513 14234 661 KBD SUGARS AND DISTILLERIES LIMITED – SUGAR DIVISION V.R INSTITUTE OF MANAGEMENT STUDIES Page 51 .C.D SUGARS DIVISION 3 18251683 10770106 16 DEVISION 2805097 0 10770101 6 2805 42875 097 7796 1716287 26021 75531 9862397 0 83991 5275531 3031 64832 40364585 23375833 19326073 29444670 9936508 23805268 32105678 0 EXPENDITURE CONSUMPTION OF RAW MATERIAL MANUFACTURING EXPENSES S SALARIES. FUND FLOW ANALYSIS &DISTILIARIES K.C. 2008 DESCRIPTION SCH FOR THE YEAR ENDED 31st March 2008 SUGAR POWER TOTAL DIVISION DEVISION 43899 7392 74 444167 513441 560 652 3913 34724 57600161 31543420 28185073 48400517 8759405 19181903 585005 203 (715 63643) 0 (71563643) 0 0 101786 224679 81853 8788747 0 0 5275594 14472 659 ( 7078007) 0 (7078007) 0 0 7394 7394652 0 446392044 74444167 520836 212 391436 510 57824840 31625273 36373820 48400517 8759405 24457497 599477 862 (78641 650) 0 (78641650) 0 0 INCOME SALES AND OTHER INCOME INCREASE/(DECREASE) IN STOCKS K L EXPENDITURE CONSUMPTION OF RAW MATERIAL MANUFACTURING EXPENSES SALARIES.B.D SUGARS PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH. WAGAES & OTHER BENEFITS INTEREST AND FINANCIAL CHARGES DUTIES & TAXES ADMINSTRATIVE EXPENSES DEPRECIATION M N O P Q PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET 71563 643 007 7078 650 78641 V.R INSTITUTE OF MANAGEMENT STUDIES Page 52 . R INSTITUTE OF MANAGEMENT STUDIES Page 53 .D SUGARS KBD SUGARS AND DISTILLERIES LIMITED – SUGAR DIVISION PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH. 2009 DESCRIPTION SCH FOR THE YEAR ENDED 31st March 2009 SUGAR POWER TOTAL DIVISION DEVISION 4019 03062 27168636 3747344 27 6086520 0 60865 20 26 118647 -2179142 13 182938 6086 861 520 0 0 40798958 2 27168636 3808209 47 26118647 21791421 3 1890253 81 INCOME SALES LESS: EXCISE DUTY OTHER INCOME INCREASE/(DECREASE) IN STOCKS L K EXPENDITURE CONSUMPTION OF RAW MATERIAL MANUFACTURING EXPENSES SALARIES.FUND FLOW ANALYSIS &DISTILIARIES K. WAGAES & OTHER BENEFITS INTEREST AND FINANCIAL CHARGES ADMINSTRATIVE EXPENSES DEPRECIATION M N O P Q 103 459245 36428063 30564298 27376162 8847793 20407054 227082 615 (44143754) 0 (44143754) 0 0 44143 754 0 23650 133901 7594511 34834 5276213 13063 109 (6976589) 0 (6976589) 0 0 6976 589 10345924 5 3645171 30698199 34970673 8882627 25683267 2401457 24 (51120 343) 0 (51120343 ) 0 0 511203 43 PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET V.C.B. C.D SUGARS KBD SUGARS AND DISTILLERIES LIMITED – SUGAR DIVISION PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH.FUND FLOW ANALYSIS &DISTILIARIES K. WAGAES & OTHER BENEFITS INTEREST AND FINANCIAL CHARGES DUTIES & TAXES ADMINSTRATIVE EXPENSES DEPRECIATION M N O P Q 210010065 20478478 31131574 19860121 9259666 21328994 312068 898 0 1273481 123325 6756687 27000 5277571 134580 64 V. 2010 DESCRIPTION SCH FOR THE YEAR ENDED 31st March 2010 SUGAR POWER TOTAL DIVISION DEVISION INCOME SALES LESS: EXCISE DUTY OTHER INCOME INCREASE/(DECREASE) IN STOCKS K 31535 7242 13435104 301922 138 38455 30 -179429 81 287824 687 0 2906496 8 0 4 L 2906 496 29 06496 0 3048286 34 3845 530 -179429 81 290731 183 210010 065 21751958 31254899 26616808 9286666 26606565 325526 961 1345510 31826373 EXPENDITURE CONSUMPTION OF RAW MATERIAL MANUFACTURING EXPENSES SALARIES.B.R INSTITUTE OF MANAGEMENT STUDIES Page 54 . B. 2011 DESCRIPTION INCOME SALES LESS: EXCISE DUTY SCH FOR THE YEAR ENDED 31st March 2011 SUGAR POWER TOTAL DIVISION DEVISION 2 210565058 117843 48 209271 710 5660974 0 5660 974 0 0 44639204 4 11784348 2149326 84 -112028 98 31624119 7 5199709 82 380905 340 44502841 38330031 30422 565 7091950 K OTHER INCOME INCREASE/(DECREASE) IN STOCKS L -11202 898 316241197 514310 008 3809 05340 44502841 38109855 261 84870 7076712 974 EXPENDITURE CONSUMPTION OF RAW MATERIAL MANUFACTURING EXPENSES SALARIES. WAGAES & OTHER BENEFITS INTEREST AND FINANCIAL CHARGES DUTIES & TAXES ADMINSTRATIVE EXPENSES M N O P Q 5660 0 0 220176 4237695 15238 V.D SUGARS PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET (2424 4211) 0 (24244211) 0 0 24244211 ( 10551568) 0 (10551568 ) 0 0 10551 568 (347957 78) 0 (34795778) 0 0 34795 778 KBD SUGARS AND DISTILLERIES LIMITED – SUGAR DIVISION PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH.R INSTITUTE OF MANAGEMENT STUDIES Page 55 .C.FUND FLOW ANALYSIS &DISTILIARIES K. P K JAIN 1. . Third edition • I M PANDEY 1.B. Financial management 2.FUND FLOW ANALYSIS &DISTILIARIES DEPRECIATION K.C.R INSTITUTE OF MANAGEMENT STUDIES . Tata McGraw-Hill Publishing Company Ltd(2001) • Dr. Financial management 2.D SUGARS 21593534 5277571 26871105 PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ITEMS NET PROFIT/LOSS FOR THE YEAR DEFERRED TAX ASSET LOSS BROUGHT FORWARD FROM PREVIOUS YEAR LOSS CARRIED TO BALANCE SHEET 518373 153 (406 3145) 0 (4063145) 0 0 -4063 145 706 680 9750 (40 89706) 0 (4089706) 0 0 5281238 33 (815285 1) 0 (815285 1) 0 0 -8152 851 -4089 BIBILOGRAPHY • M Y KHAN.PERIASAMY Page 56 V. Tata McGraw-Hill Publishing Company Ltd 3. Working Capital management theory and practice.co.C. 2.FUND FLOW ANALYSIS &DISTILIARIES K. Himalaya publishing house.R INSTITUTE OF MANAGEMENT STUDIES Page 57 .D SUGARS 1.google.B.in V. WEBSITE: www.