MA 6.212345678920 Funds Flow 22.4.13.ppt

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1. 1Cash Flow- Dr. Varadraj Bapat
Fund Flow StatementFund Flow Statement

2. 2Cash Flow- Dr. Varadraj Bapat
Introduction
Meaning of fund-flow statement
Need for Fund-flow statement
Funds from OperationsFunds from Operations
Changes in Working Capital
Format of Fund-flow statement

3. 3Cash Flow- Dr. Varadraj Bapat
Meaning
The fund-flow statement is
defined as ‘a statement which
summarises, the sources from
which funds were obtained and
the specific uses to which the
funds were put.’

4. 4Cash Flow- Dr. Varadraj Bapat
•Fund from
Operation
•Sale of
Fixed Asset
•Issue of
Shares
•Purchase
of Fixed
Asset
•Purchase of
Investments
•Increase
in Working
Capital
F
U
N
D
S
ApplicationSources

5. 5Cash Flow- Dr. Varadraj Bapat
Need for the Fund Need for the Fund
Flow StatementFlow Statement
Profit and Loss A/c shows book profits for Profit and Loss A/c shows book profits for
specific period of time and Balance sheet specific period of time and Balance sheet
shows the financial position of the concern shows the financial position of the concern
at particular point of time. It does not at particular point of time. It does not
show the flow of funds (increase / show the flow of funds (increase /
decrease in funds) of concern during year. decrease in funds) of concern during year.
Hence separate fund flow statement need Hence separate fund flow statement need
to be preparedto be prepared..

6. 6Cash Flow- Dr. Varadraj Bapat
Preparation of Preparation of
Fund Flow Fund Flow
StatementStatement
Analysis of balance sheet enables to Analysis of balance sheet enables to
ascertain the changes in working ascertain the changes in working
capital and other major sources of capital and other major sources of
finance and where these funds are finance and where these funds are
employed. Profit and loss A/c is employed. Profit and loss A/c is
analysed to ascertain the funds from analysed to ascertain the funds from
operating activities.operating activities.

7. 7Cash Flow- Dr. Varadraj Bapat
Funds from OperationsFunds from Operations
Net Profit (After Tax)Net Profit (After Tax) XXXX
Adjust: Non-Cash ExpensesAdjust: Non-Cash Expenses
Depreciation/ AmortisationDepreciation/ Amortisation XXXX
Adjust: Non-operating ItemsAdjust: Non-operating Items
Interest or DividendInterest or Dividend
Loss/Profit on sale of fixed asset Loss/Profit on sale of fixed asset

XXXX
Funds from OperationFunds from Operation XXXX

8. 8Cash Flow- Dr. Varadraj Bapat
Statement of Statement of
Changes in Changes in
Working CapitalWorking Capital
ParticularsParticulars Current Current
YearYear
Previous Previous
YearYear
Increase / Increase /
Dec in W.C.Dec in W.C.
A. Current A. Current
AssetsAssets
StockStock
DebtorsDebtors
BankBank
Total CAsTotal CAs

9. 9Cash Flow- Dr. Varadraj Bapat
ParticularsParticulars Curnt Curnt
YearYear
Prev Prev
YearYear
Increase / Increase /
Dec in W.C.Dec in W.C.
B. Current LiabilitiesB. Current Liabilities
CreditorsCreditors
O/S ExpensesO/S Expenses
Total CLsTotal CLs
Working Capital (A-B)Working Capital (A-B)

10. 10Cash Flow- Dr. Varadraj Bapat
Fund Flow StatementFund Flow Statement
InflowsInflows Rs.Rs.Rs.Rs.
Funds from OperationFunds from Operation XXXX
Decrease in Working CapitalDecrease in Working Capital XXXX
Sale of Fixed AssetsSale of Fixed Assets XXXX
Sale of InvestmentSale of Investment XXXX
Issue of Shares/ DebenturesIssue of Shares/ Debentures XXXX
Non-Operating incomeNon-Operating income XXXX
Loan TakenLoan Taken XXXX
Total InflowsTotal Inflows XXXX

11. 11Cash Flow- Dr. Varadraj Bapat
OutflowsOutflows Rs.Rs.Rs.Rs.
Loss from OperationsLoss from Operations XXXX
Increase in Working CapitalIncrease in Working Capital XXXX
Purchase of Fixed AssetsPurchase of Fixed Assets XXXX
Purchase of InvestmentPurchase of Investment XXXX
Redemption of Shares/DebenturesRedemption of Shares/Debentures XXXX
Non-Operating ExpensesNon-Operating Expenses XXXX
Dividend PaidDividend Paid XXXX
Total OutflowsTotal Outflows XXXX
Fund Flow StatementFund Flow Statement