Raju Main

TABLE OF CONTENTS
Chapter No Contents Page No

1 Introduction to Cash Budget
Introduction
Definition
Meaning
2 Research Problem
Objectives of the Study
Scope of the Study
Limitations of the Study
3 Research Design
Research Methodology
Hypothesis
Sources of Investigation
Tools and Techniques
4 Review of Literature
5 Introducion to Company
Corporate History
Corporate Philosophy
Vision and Mission
Products Profile
6 Data Analysis and Interpretation
7 Conclusions and Recommendations

Conclusion
Recommendations
INTRODUCTION TO FINANCIAL MANAGEMENT
Finance is regarded as the life blood of a business enterprise. This is because in the modern
money-oriented economy, finance is one of the basic foundations of all kinds of economic
activities. It is the master key which provides access to all the sources for being employed in
Manufacturing and Merchandising activities.
Meaning of Finance
Finance may be defined as the provision of money at the time it is wanted. Finance function
may be defined as the procurement of funds and their effective utilization.
Business Finance can broadly be defined as the activity concerned with planning, raising,
controlling and administering of the funds used in the business.
Meaning of Financial Management
Financial management is concerned with the efficient use of an important economic resource,
namely, Capital Funds”
Thus financial management mainly concerned with the proper management of funds. The
financial manager must see that the funds are procured in a manner that the risk, cost and
control considerations are properly balanced in a given situation and there is optimum
utilization of funds.
Financial Planning
Financial planning results in the formulation of the financial plan. It is primarily a statement
estimating the amount of capital and determines its composition.
It states:
1. The quantum of finance (The amount needed for implementing business plans)
2. The patterns of financing (The form and proportion of various corporate securities to
be issued to raise the required amount)
3. The policies to be pursued for the floatation of various corporate securities.

Particularly regarding the time of their flotation.
Estimating capital requirements
The capital requirements of a business enterprise can be broadly classified into two main
categories. They are
1. Fixed Capital Requirements
2. Working Capital Requirements

Objectives of Financial Management
The basic objective of Financial Management is the maintenance of liquid assets and
maximization of the profitability of the firm.
Maintenance of liquid assets means that the firm has adequate cash in hand to meet its
obligations at all times.
A business firm is a profit seeking organization. Hence, profit maximization is all well
considered to be an important objective of financial management. However, the concept of
profit maximization has come under severe criticism in recent times on account of the
following reasons:
It is Vague: It does not clarify what exactly does it mean. For Example: Which profits are to
be maximised, in short-run or Long-run, rate of Profit or the amount of Profit.
It Ignores timings: The concept of Profit Maximization does not help in making a choice
between projects giving different benefits spread over a period of time. The fact that a rupee
received today is more valuable than a rupee received later, is ignored.
Other Objectives of Financial Management
Beside the above basic objectives, the following are the other objectives of Financial
Management:
1) Ensuring a fair return to shareholders.
2) Building up reserves for growth and expansion.
3) Ensuring maximum operational efficiency by efficient and effective utilization of

finances.
4) Ensuring financial discipline in the organisation.

Importance of Financial Management
The importance of financial management cannot be over emphasised. In every organisation,

where funds are involved, sound financial management is necessary. As Collins Brooks has
remarked, “Bad production management and bad sales management have slain in hundreds,
but faculty financial management has slain in thousands.” Finance Manager must realise that
when a firm makes a major decision, the effect of the action will be felt throughout the
enterprise. For Example, an increase in plant and equipment expenditure will affect the firms
cash position, its borrowings capability and its dividend distribution.
Sound financial management is essential in both profit and non-profit organisations. The
financial management helps in monitoring the effective deployment of funds in fixed assets
and in working capital. The finance manager estimates the total requirements of funds, bith in
the short period and long period. The finance manager assesses the financial position of the
company through the working out of the return on capital, debt-equity ratio, cost of capital
from each source, etc., and comparision of the capital structure with that of similar
companies.
Financial management also helps in ascertaining how the company would perform in future.
It helps in indicating weather the firm will generate enough funds to meet its vraious
obligations like repayment of various installments due on loans, redemption of other
liabilities, etc.
Sound financial management is indispensable for any organisation. It helps in profit planning,
capital spending, measuring costs, controlling inventories, accounts receivable, etc. Financial
management essentially helps in optimising the output from given input of funds.
Financial Management : Science or Art
Financial Management is both a science and an art. Of course, it is neither a pue science like
physics not a pure art like painting. It lies somewhere in between. It is a science because it
consists of certain basic principles and procedures based on various theories propounded by
financial experts. It also take sthe help of various statistical techniques, computer technology,
econometric models etc, for taking financial decisions like Budgeting decisions, investment
decisions, capital structure decisions, etc. as a result it will be appropriate to say that financial
management is an applied science.
Financial Management is also an art since the application of human judgement and skills is
also necessary for effective management of finances. Financial decisions cannot wholly be
derived on the basis of mathemetical or computer-based packages. A lot of discretion and
judgement has to be used by the finance manager. Experience and training acquired by the
finance manager are thus equally important. As such the application of human judgement in
decision making makes the financial management an art besides its having features of a
science.
INTRODUCTION TO BUDGETS
What is a budget? Simply put, a budget is a detailed financial plan that shows estimated
revenues and expenses for a given time period. Typically, a complete operating budget
consists of not only a projected profit and loss statement but also a supporting cash flow
statement, as well as a balance sheet. An operating budget usually covers a fiscal year, which
for many of us corresponds fairly closely with the academic year and our parent institution's
fiscal year. If it is to be meaningful, an operating budget will not stand alone, but will closely
relate to a press's other planning efforts. Long- and intermediate-term goals and objectives
should be consistent with those of the budget. Usually, the budget will be the same as the
first-year projection of a long-term plan. Careful thought must be given to the operating
budget to make sure that it is in step with assumptions concerning the nature, scope, and size
of future operations.
Budgeting and budgetary control are central to a press's planning and control process.
Participation in the budgeting process promotes a sense of cooperation and teamwork.
Participation also creates commitment and strengthens the individual's feeling of
responsibility for the performance of his or her area. As budget proposals for each activity are
completed, they are progressively reviewed, often revised, and finally approved by the chain
of subordinates and supervisors that reaches from lower to senior management and finally to
the press director, board, university administration, and, in some cases, state officials. All of
this takes months, and it is fair to say that in a sense, budgeting never stops. It is an ongoing
process. As soon as one operating budget is finally approved, we begin collecting data,
making comparisons and assumptions, and deciding upon goals and objectives that will be
used to prepare the next budget.
The operating budget must be reviewed, discussed, and coordinated by a press's director,
financial manager, and department managers. The director's involvement in the budgeting
process is extremely important. The director should provide subordinates with initial
guidelines, review all proposals as originally submitted, request revisions, resolve differences
between subordinate managers, and ensure balance and consistency in the final budget.
Budgeting should be essentially a line function carried out by line managers. The financial
manager and staff should provide information and other technical support, but budget
negotiation and decision making should involve only those managers who are in some way
responsible for a particular function.
Budgeting often takes place from both the top down and the bottom up; in other words, from
the sales forecast down and from net income or loss up. The sales forecast may be where the
budget starts, but an organization's bottom-line objectives will influence how it is modified. If
a press must break even, generate a certain level of profitability, or limit its loss to a certain
amount, revenues and expenses should be budgeted in a way that will permit the press to
achieve its financial objective.
Budgets as financial plans that’s get out anticipated revenues and estimated expenditures over
a period of time have long been in use. Since their inception in the 1920’s, every serious
company has made them the central part of their planning and control system. Their ability to
coordinate the allocation of resources through internal communicatiobn while at the same
time serving as a means of expenditure authorisation and evaluation base has made them the
most important tool that is at managers diaposal today when running a company. It is exactly
this importance that has contributed to budgets longevity and caused them to remain
relatively unchanged in their use since the first days of their existence. This doesnot ofcourse
mean that budgets re ideal managers tool – on contrary. Parallel to their entrance into the
business world, managers who used budgets also started to notice and complain about various
dysfunctional behaviors caused by budgets and the budgeting process. This observation
motivated numerous academicians to try to discover appropriate solutions for the things like
budget slacking, budget gaming, budgeting bias and other problems that managers had to deal
with. Several theories like RAPM and Contengency theories were developed, and direct and
indirect relationship between budgets and employee motivation, participation and business
environment were investigated. As a result of this, according to some, most extensively
researched topivc in management accounting, several basic rules and suggestions have
emerged on how to properly budget and deal with budgeting problems. These later became
accounting truths to be taught in all accounting cources. Theoretical findings contributed to
aslow but certain evolution of budgeting techniques into models that are more appropriate to
conditions of rapid environmental change, global competition and ever increasing customer
demand for better quality and lower prices. So today, companies are at a point where they can
choose to retain traditional budgeting system or to modify it. This modification can be
designed to overcome some specific weaknesses using one of the better budgeting techniques
or can be taken it to extreme to carry out a total overhaul of the budgeting system as the
beyond budgeting model suggests.
INTRODUCTION TO CASH BUDGET MANAGEMENT: OVERVIEW
The main task of Cash Budget Management is to identify control payment flows in light of
liquidity considerations. This means, for example, identifying impending illiquidity or
possible budget overshoots promptly.
While Cash Management takes a short term view, Cash Budget Management deals with
medium-term and long-term liquidity developments.
Before you can use Cash Budget Management, you must also have Financial Accounting.
The cash balances come from cash and bank accounts in Financial Accounting. Every posting
made in Financial Accounting affects the balances in Cash Budget Management.
Cash Budget Management includes the following functions:
Displaying business transactions having an effect on liquidity, by revenue and expenditure

item
Planning and displaying the payment flows and funds balances for any period you choose
The topics which follow will show you how to use Cash Budget Management to monitor and
plan liquidity developments in your organization.
Cash Budget
A cash budget is extremely important, especially for small businesses, because it allows a
company to determine how much credit it can extend to customers before it begins to have
liquidity problems.
For individuals, creating a cash budget is a good method for determining where their cash
is regularly being spent. This awareness can be beneficial because knowing the value of
certain expenditures can yield opportunities for additional savings by cutting unnecessary
costs.
For example, without setting a cash budget, spending a dollar a day on a cup of coffee seems
fairly unimpressive. However, upon setting a cash budget to account for regular annual cash
expenditures, this seemingly small daily expenditure comes out to an annual total of $365,
which may be better spent on other things. If you frequently visit specialty coffee shops, your
annual expenditure will be substantially more
DEFINITIONS AND MEANING OF CASH BUDGET
The budget that illustrates total cash to be received and spent and the balance left at the end
of each period.
A forecast of estimated cash receipts and disbursements for a specified period of time.
An estimate of the expected cash inflows and cash outflows for a company or individual for a
given period of time. A cash budget is vitally important because it measures the liquidity of a
company (or individual) and therefore how much one can spend before beginning to have
financial difficulties.
Financial plan that is a summary of estimated receipts (cash inflows) and payments (cash
outflows) over a statedperiod.
Meaning of Cash Budget
A cash budget is a technique for estimating the cash and borrowing needs of a business. As
the name implies, it measures cash flows and is not an accrual accounting statement. The
logic of the cash budget is straightforward. First estimate the cash coming in, then the cash
going out, and finally, determine whether there is excess or a shortage of cash. Each of these
three steps has a corresponding section in the cash budget.
There are many different formats for cash budgets. Regardless of the format, all cash budgets
determine the amount of excess cash or borrowing needed on a periodic basis. The periods
can be days, weeks, months, quarters, or anything else that meets the needs of the analyst. We
will generally construct monthly cash budgets.
When is a Cash budget useful?
Budget is useful when you are running out of money and have to cut spending
What is the purpose of preparing a cash budget?
So you make sure you don't spend all your money at once and not have any for later, just a
guide line for what you should spend.
Why Prepare A Cash Budget?
A cash budget is important for a variety of reasons. For one, it allows you to make
management decisions regarding your cash position (or cash reserve). Without the type of
monitoring imposed by the budgeting process, you may be unaware of the cycle of cash
through your business. At the end of a year or a business cycle, a series of monthly cash
budgets will show you just how much cash is coming into your company and the way it is
being used. Seasonal fluctuations will be made clear.
A cash budget also allows you to evaluate and plan for your capital needs. The cash budget
will help you assess whether there are periods during your operations cycle when you might
need short-term borrowing. It will also help you assess any long-term borrowing needs.
Basically, a cash budget is a planning tool for management decisions.
What You Should Know Before Getting Started
At its most basic level, a budget is a plan. It is a plan for owners and managers to achieve
their goals for the company during a specific time period.
The preparation of a cash budget is an important management task. While some small
businesses may be able to survive for a time without budgeting, savvy business owners will
realize its importance. A cash budget can protect a company from being unprepared for
seasonal fluctuations in cash flow or prepare a company to take advantage of unexpected
quantity discounts from suppliers.
While there are other types of budgets that can be prepared, such as projected or pro forma
financial statements, a cash budget is a management plan for the most important factor of a
company's viability its cash position. A company's cash position determines how suppliers
will be paid, how a banker will respond to a loan request, how fast a company can grow, as
well as directly influencing dividends, increases to owner's equity, and profitability.
Many Small Businesses Find It Helpful To Prepare Monthly Cash Budgets And To
Analyze Any Variances Between The Budgeted And Actual Amounts On A Monthly
Basis. This enables small business owners and managers to stay on top of any unexpected
cash uses.
Watch out for The creation of a cash budget requires you to make estimates (or best guesses)
about many different aspects of your company and the environment in which it operates.
Future sales will be contingent on many things, not the least of which is competition, the
local economic climate and your own internal operations and capacity. In addition, after sales
are estimated, potential costs must also be derived. The important thing to keep in mind while
arriving at these figures is that past experience is important, but so is intuition. The estimates
you will need to develop must be based in reality and yet contain a dose of creativity and, if
warranted, optimism.
There are budgets, other than the cash budget, that are important for your company. However,
the cash budget is a good first step if you are new to budgeting.
A cash Budget Cannot Be Created In A Vacuum. Before and during the budgeting
process, business owners must consult with line managers, suppliers, and key personnel to
make the best guess possible about the relationship between the goals for the period and their
effect on cash receipts and cash expenditures.
How To Create A Cash Budget
There are three main components necessary for creating a cash budget. They are:
• Time period
• Desired cash position
• Estimated sales and expenses
Time Period
The first decision to make when preparing a cash budget is to decide the period of time for
which your budget will apply. That is, are you preparing a budget for the next three months,
six months, twelve months or some other period? In this Business Builder, we will be
preparing a 3-month budget. However, the instructions given are applicable to any time
period you might select.
Cash Position
The amount of cash you wish to keep on hand will depend on the nature of your business, the
predictability of accounts receivable and the probability of fast-happening opportunities (or
unfortunate occurrences) that may require you to have a significant reserve of cash.
You may want to consider your cash reserve in terms of a certain number of days' sales. Your
budgeting process will help you to determine if, at the end of the period, you have an
adequate cash reserve.
Estimated Sales And Expenses
The fundamental concept of a cash budget is estimating all future cash receipts and cash
expenditures that will take place during the time period. The most important estimate you
will make, however, is an estimate of sales. Once this is decided, the rest of the cash budget
can fall into place.
If an increase in sales of, for example, 10 percent, is desired and expected, various other
accounts must be adjusted in your budget. Raw materials, inventory and the costs of goods
sold must be revised to reflect the increase in sales. In addition, you must ask yourself if any
additions need to be made to selling or general and administrative expenses, or can the
increased sales be handled by current excess capacity? Also, how will the increase in sales
affect payroll and overtime expenditures?
Instead of increasing every expense item by 10 percent, serious consideration needs to be

given to certain economies of scale that might develop. In other words, perhaps, a supplier
offers a discount if you increase the quantities in which you buy a certain item or, perhaps,
the increase in sales can be easily accommodated by the current sales force, all of these types
of considerations must be taken into account before you start budgeting. Each type of
expense (as shown on your income statement) must be evaluated for its potential to increase
or decrease. Your estimates should be based on our experience running your business and on
your goals for your business over the time frame for which the budget is being created. At a
minimum, the following categories of expected cash receipts and expected cash payments
should be considered:
• Cash balance
o Expected cash receipts:
o Cash sales
o Collections of accounts receivable
o Other income
• Expected cash expenses:
o Raw material (inventory)
o Payroll
• Other direct expenses:
o Advertising
o Selling expenses
o Administrative expense
o Plant and equipment expenditures
o Other payments
Expected Cash Expenses:
• Raw Materials (inventory).For small business retailers and manufacturers, the

largest cash expense is usually the amount spent for inventory or raw materials.
Again, past experience will be your best indicator of future cash outlays. But don't
forget to factor in any necessary increases to keep up with projected sales. You may
also want to consult with your suppliers as to whether any pricing changes are
expected.
• Payroll: Salaries are commonly the second largest expense item during an accounting
period. Don't forget to include estimates for all appropriate local, state, and federal
taxes.
• Other Direct Expenses: Use this line item for any additional expense that does not fit
conveniently under the other headings. If you are making payments on a loan, include
it here.
• Advertising: The role of advertising varies by type of business. If you are projecting
an increase in sales, is there an accompanying marketing or advertising campaign?
These costs must be budgeted. Include any expenses for print (brochures, mailers, and
newspaper ads), radio, or other advertising services.
• Selling Expenses: Typical selling expenses include salaries and commissions for
sales personnel and sales office expenses. However, this line item can also include
any traveling or other sales-related expense not covered elsewhere.
• Administrative Expenses: General office expenses are included here. This will
include your utilities, telephone, copying and day-to-day office expenses. Unless big
changes are underway, past experience will guide you in evaluating future
administrative expenses.
• Plant And Equipment: Cash payments for equipment loans, mortgages, repairs, or
other upkeep should be included here. Past experience will, again, be your guide.
• Other Payments: If there are any cash payments you expect to make that are not
covered in the above listing, include them here. (If they are repeatable, you may
consider adding a separate line item.) However, typically, interest payments and taxes
fall here.
IMPORTANCE OF CASH BUDGET
The importance of cash budget may be summarised as follow:-
(1) Helpful in Planning. Cash budget helps planning for the most efficient use of cash. It
points out cash surplus, or deficiency at selected point of time and enables the management to
arrange for the deficiency before time or to plan for investing the surplus money as profitable
as possible without any threat to the liquidity.
(2) Forecasting the Future needs. Cash budget forecasts the future needs of funds, its time
and the amount well in advance. It, thus, helps planning for raising the funds through the
most profitable sources at reasonable terms and costs.
(3) Maintenance of Ample cash Balance. Cash is the basis of liquidity of the enterprise.
Cash budget helps in maintaining the liquidity. It suggests adequate cash balance for expected
requirements and a fair margin for the contingencies.
(4) Controlling Cash Expenditure. Cash budget acts as a controlling device. The expenses
of various departments in the firm can best be controlled so as not to exceed the budgeted
limit.
(5) Evaluation of Performance. Cash budget acts as a standard for evaluating the financial
performance.
(6) Testing the Influence of proposed Expansion Programme. Cash budget forecasts the
inflows from a proposed expansion or investment programme and testify its impact on cash
position.
(7) Sound Dividend Policy. Cash budget plans for cash dividend to shareholders, consistent
with the liquid position of the firm. It helps in following a sound consistent dividend policy.
(8) Basis of Long-term Planning and Co-ordination. Cash budget helps in co-ordinating
the various finance functions, such as sales, credit, investment, working capital etc. it is an
important basis of long term financial planning and helpful in the study of long term
financing with respect to probable amount, timing, forms of security and methods of
repayment.
ADVANTAGES OF CASH BUDGETING
1) Planned use of cash: If the management has a clear idea about cash ‘ receipts and
payments, they can plan out the use of cash. If cash payments are planned to be made
when sufficient cash is available, it is possible to carry on business with the minimum
of working capital. The cost of holding cash at optimum level would be minimum.
2) Provision for Capital Expenditure: It is useful in two ways. It shows whether
capital expenditure projects can be financed internally. Secondly, it gives an idea
about the timings when sufficient cash is available for capital expenditure. This would
help in avoiding a situation when funds for capital expenditure may be required to be
borrowed at high rate of interest.
3) Investment of Surplus Funds: It reveals the availability of excess cash. This can be
invested in short term investments, if funds would be needed in near future in the
business. It may be considered even for long term investments in some cases. Thus, it
serves as a guideline for investment of surplus funds.
4) Dividend Policy: The cash budget may guide the management in deciding the
dividend policy for the year. If the cash budget shows that the liquid position will not
be comfortable, the management may decide to reduce the rate of dividend or skip
over dividend for the year.
5) Profitable Use of Cash: It guides the management when to get the benefit of cash
discount or quantity discount for bulk purchases. It also will help the finance manager
in making enough provision for cash requirements of seasonal purchases.
6) Timely Payment of Debts: Cash budget enables the finance manager to ascertain his
cash position so that he can make payment for debts on maturity dates. Thus provision
is made for enough cash for payment of debts as and when they fall due.
7) Arrangement for Obtaining Funds: It guides the management in making decisions
about whether funds for short term and long term purposes are to be borrowed or
arranged in some other manner, if they are to be borrowed, in what manner.
8) Useful for Control: If the estimates for cash receipts and payments are made in
advance, they can be compared with cash receipts and payments and the difference
can be investigated. Thus the management can control the use of cash resources.
9) Helps Co-ordination: In fact, cash budget serves as a co-ordinator of all remaining
budgets. For example, the revenue shown by sales budget determines the limits within
which production and other service departments can spend money. Thus cash budget
serves as a link between all budgets.
10) Easy to Obtain Funds: A concern preparing cash budget is able to meet its
obligations in time on maturity. This creates goodwill for the concern in the money
market. This helps the firm in raising funds whenever needed with ease from banks
and other financial institutions
LIMITATIONS OF CASH BUDGET
Cash budget, if properly framed and implemented, is immensely useful. But following
difficulties and limitations must also be taken into account.
(1) Estimates are difficult: There are many uncertainties in business. It is therefore,
difficult to have near accurate estimates of cash receipts and payments, particularly
for a longer period. It is of course not difficult to estimate them for next three to four
months period. But the long term estimates are likely to go astray in many cases.
(2) Carelessness in implementation: If proper care is not exercised in implementing the
cash budget, it will become only a mental exercise. The actual cash receipts and
payments would not conform to the estimates, leading to frequent changes in them.
(3) Rigidity: If the finance manager does not show flexibility in implementing the cash
budget, it will lead to undesirable situation. A manager strictly believing in his
estimates of cash inflow may resort to strict collection policy, which may result in
losing customers. Similarly strict adherence to payments schedule may lead to
difficult liquid position and reduced profitability.
(4) Expensive: Difficult mathematical models are used for long term estimates of
receipts and payments. It requires collection of data from various sources, employing
experts in operations research etc. This becomes expensive which small firms cannot
afford. Besides, such experts are not easily, available.
RESEARCH PROBLEM
OBJECTIVES OF THS STUDY

Study of working capital Management is important because unless the working capital is
managed effectively, monitored efficiently, planned properly and reviewed periodically at
regular intervals to remove bottlenecks if any, the company cannot earn profits and increase
their turnover. With this primary objective of study, the following further objectives are
framed for a depth analysis.
1) To study the Cash Management in Angel Broking
2) To study the optimum level of Cash of the company.
3) To study about the Cash Inflows and Cash Outflows in Angel broking.
4) To study the ways and means of cash Receipts and Cash Disbursements in the
company.
SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The study of
working capital is based on tools like Preparation of cash budget by different means. Further
the study is based on last Five years Annual Reports of Angel Broking.
LIMITATIONS OF THE STUDY

Following limitations were encountered while preparing this project
1) Limited Data: This project has completed with annual reports; it just constitutes one
part of data collection i.e., secondary. There were limitations for primary data
collection because of confidentiality.
2) Limited Period: This project is based on Five Year Annual Reports. Conclusions and
recommendations are based on such limited data. The trend of last five year may or
may not reflect the real working capital position of the company.
3) Limited area: Also it was difficult to collect the data regarding the competitors and
their financial information. Industry figures were also difficult to get.
RESEARCH METHODLOGY
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying now research is done systematically. In that various steps
are involved, those are generally adopted by a researcher in studying his problem along with
logic behind them.
It is important for researcher to know not only the research method but also know
methodology. The procedures by which researcher goes about their work of describing,
explaining and predicting phenomenon are called methodology. Methods comprise the
procedure used for generating, collecting and evaluating data. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem.
Data collection is important step in a any project and success of any project will be largely
depend upon how much accurate you will be able to collect and how much time, money and
effort will be required to collect that necessary data, this is also an important step.
Data collection plays an important role in research work. Without proper data available for
analysis you cannot do the research work accurately.
SOURCES OF INVESTIGATION
TYPES OF DATA COLLECTION
There are two main types of data collection methods available.

1) Primary Data Collection
2) Secondary Data Collection
Primary Data: The primary data is that data which is collected fresh or first hand and for the
first time which is original in nature. Primary data can be collect through Personal Interviews,
Questionnaire etc, to support secondary data.
Secondary Data: The secondary data are those which have already collected and stored. We
can easily get those secondary data from Records, Journals, Annual Reports of the company
etc. it will save the time, money and efforts to collect the data.
This project is based on primary data collected through personal interview of Head of
Finance Department and the concerned members of the finance department. But primary data
collection had limitations such as the matter of confidential information thus project is based
on secondary information collected through Five Year Annual Reports of the company,
supported by various books and internet sites. The data collection was aimed at studying the
Cash Budget of company.
Project is based on
1) Annual report of Angel Broking 2008-09
4) Annual Report of Angel Broking 2005-06

TOOLS AND TECHNIQUES
The Method to be used or preparing cash forecast depends upon the circumstances and needs
of the business.
Receipts and Payments Method (Receipts and Disbursements Method)
Receipts and Payments Method: This is the most widely-used and popular method of
preparing cash budget. The estimates under this method may be divided into weekly,
fortnightly or monthly basis. The method is of particular importance in business where sale is
unstable or seasonal or which suffers from shortage of liquid resources. Due to its flexibility,
this method is used in planning cash at various time periods and thus helps in controlling cash
disbursements.
Estimating cash Receipts: The sources of cash receipts and a business are generally sales,
non-operating incomes like interest and dividend as well as capital transactions like sale of
assets and issue of shares and debentures. The first step in preparing a cash budget under this
method is to estimate the sales; as sale is the most important source of cash receipts. Once the
total sales are estimated, it is easy to put down the figures of cash sales. From the past
experience, the proportion of cash sales can be determined. Any changes likely to occur in
the future budget period are taken into account. There is no time-lag between sales and
receipts in respect of cash sales.
Estimating Cash Payments: Cash payments generally consist of payment to creditors on
account of credit purchases, payments for wages, overhead expenses, dividends, capital
expenditure like purchase of assets, repayment of loans, etc. the estimates on various
accounts are based on various operating budgets, e.g. payments to creditors are estimated on
the basis of purchase budget, for wages and factory overhead, the basis will be production
budget etc. In estimating payments to creditors, the credit period allowed by suppliers, cash
discount etc. must be considered. The payment on account of capital expenditure can be
estimated on the basis of Capital Expenditure budget. Overheads can also be based on
overheads budget. Of course, adjustments like depreciation and accruals should not be taken
into account. Payment on account of dividend may be a difficult problem. But in case of
companies which adopt stable dividend policy, it is easy to estimate the total amount of
dividend payable.
Prepare a Cash Budget
Overview
Just as you would not purchase new furniture for your home without enough cash, or at least
a solid plan to cover a personal loan from your bank, your business needs the same careful
handling of its expenditures. All businesses, no matter what type or size, need to properly
develop a plan for their expected cash intake and spending. This plan is commonly known as
a cash budget, and it can be prepared quarterly or annually.
Outline:
I. Purposes of Cash Budgeting

II. Consistent Budgets
III. Checking the Reasonableness of the Budget
IV. Sales and Other Potential Cash Sources
V. Reserve
VI. Sample Cash Budget
Properly preparing your cash budget will show how cash flows in and out of your business.
Also, it may then be used in planning your short-term credit needs. In today's financial world,
you are required by most financial institutions to prepare cash budgets before making capital
expenditures for new assets as well as for expenditures associated with any planned
expansion. The cash budget determines your future ability to pay debts as well as expenses.
For example, preliminary budget estimates may reveal that your disbursements are lumped
together and that, with more careful planning, you can spread your payments to creditors
more evenly throughout the entire year. As a result, less bank credit will be needed and
interest costs will be lower. Banks and other credit-granting institutions are more inclined to
grant you loans under favorable terms if your loan request is supported by a methodical cash
plan. Similarly, businesses that operate on a casual day-to-day basis are more likely to borrow
funds at inopportune times and in excessive amounts. Without planning, there is no certainty
that you will be able to repay your loans on schedule. However, once you've carefully
mapped out a cash budget, you will be able to compare it to the actual cash inflows and
outflows of your business. You will find that this comparison will go a long way in assisting
you during future cash budget preparation. Also, a monthly cash budget helps pinpoint
estimated cash balances at the end of each month which may foresee short-term cash
shortfalls.
Cash budgeting is a continuous process that can be checked for consistency and accuracy by
comparing budgeted amounts with amounts that can be expected from using typical ratios or
financial statement relationships. For example, your treasurer will estimate the payments
made to your suppliers of merchandise or materials, the payments to employees for wages
and salaries, and the other payments that you are obligated to make. These payments can be
scheduled by dates so that all discounts will be taken, and so that no obligation will be
overlooked when it comes due. Cash collections from customers can also be estimated and
scheduled by dates along with other expected cash receipts. With careful cash planning, you
should be able to maintain a sufficient cash balance for your needs and not put yourself in the
position of holding excessive balances of nonproductive cash. In the normal course of
operations in a merchandising business, for example, merchandise is purchased and sold to
customers who eventually pay for the merchandise sold to them. Usually there is a time lag in
business operations. It may be necessary to pay the suppliers for merchandise before the
merchandise is sold to the customers. Before and during a busy selling season the demand for
cash may be higher than the inflow of cash from operations. In this case it may be necessary
to arrange short-term loans. When the selling season is over, cash collections from customers
will be relatively large and the loans can be paid off.
If it appears that the budgeted amounts will differ substantially from ratios and relationships
taken from past statements, then further attention should be given to the budget. For instance,
some factors may have been overlooked in budgeting, or past statement relationships may no
longer be applicable, due to unrecognized changes.
Normally, sales activity is expected to produce the bulk of the cash receipts. If sales are made
on a credit basis, accounts receivable will eventually be translated into cash as the customers
pay their accounts. The time required to collect outstanding accounts will have to be
estimated, and provisions must be made for discounts, returns, allowances granted, and
uncollectable accounts. In addition to sales, there are many other potential cash sources.
These sources must be examined for possible additions to cash when setting up a total cash
receipts budget for the year. Dividends and interest may be collected on investments or cash
may be received from an incidental operation (i.e., rent or sale of scrap material). Ordinarily,
cash will be realized from the sale of investments in stocks and bonds and from the sale of
machinery or other assets not incurred in the normal course of trade. As a result of cash flow,
stock may be issued or debt may be incurred with cash flowing. The various cost budgets,
plans for capital acquisitions, commitments for the discharge of debt, and plans for dividend
payments are brought together in a cash disbursements budget. If possible, payments will be
scheduled at convenient times, when cash balances are expected to be sufficiently high.
Frequently, the demand for cash is not spread evenly throughout the year. Several large
payments may become due in one particular month. If cash receipts in that month are not
expected to be sufficient, the company will either plan to hold back cash for these payments
or will borrow. It is unlikely that disbursements will be made in every instance when costs
are incurred or when materials and services are used. Advertising, insurance and rent, for
example, are often paid in advance with the cost being absorbed against future operations. A
debt of cash disbursements is made by scheduling payments required for materials, labor,
other operating costs, dividends, debt service, and so forth. Budgeted cash receipts and
disbursements are brought together to form a total cash budget. From this summary of
estimated cash flow, it is possible to anticipate future cash balances. In some months, receipts
may not be large enough to cover disbursements. If this happens, the cash balance will have
to be reduced. If the outflow of cash is too great, plans will have to be made to borrow funds.
In other months, when receipts are greater than disbursements, loans can be repaid and cash
balances can be built up.
V. Reserve
Financial plans are drawn up so that a minimum balance of cash will be available at all times.
The amount to be held will depend on estimated future cash flows and the financial policy
adopted. In general, the cash balance should be large enough to enable the company to meet
its payrolls and pay its operating costs for the next month, with some allowance made for
contingencies and miscalculations in planning. By holding adequate cash balances,
management can cope with small adversities and will not be forced to borrow under
unfavorable conditions. If trouble strikes, there will be a reserve to draw upon. While the
reserve is being used, management can make alternate plans and can secure additional cash
from other sources to meet future needs. Opinions differ as to what amount of cash should be
held in reserve. Some companies maintain fairly substantial cash balances as well as a
secondary reserve that consists of investments that can easily be converted into cash. Other
companies prefer to operate with small cash reserves and when cash is needed depend on a
line of credit which is established at a bank. Cash up to a certain limit may be borrowed when
needed and arrangements are made for eventual repayment.
PREPARE A CASH BUDGET
Overview
Just as you would not purchase new furniture for your home without enough cash, or at least
a solid plan to cover a personal loan from your bank, your business needs the same careful
handling of its expenditures. All businesses, no matter what type or size, need to properly
develop a plan for their expected cash intake and spending. This plan is commonly known as
a cash budget, and it can be prepared quarterly or annually.
Outline:

V. Reserve
VI. Sample Cash Budget
Properly preparing your cash budget will show how cash flows in and out of your business.
Also, it may then be used in planning your short-term credit needs. In today's financial world,
you are required by most financial institutions to prepare cash budgets before making capital
expenditures for new assets as well as for expenditures associated with any planned
expansion. The cash budget determines your future ability to pay debts as well as expenses.
For example, preliminary budget estimates may reveal that your disbursements are lumped
together and that, with more careful planning, you can spread your payments to creditors
more evenly throughout the entire year. As a result, less bank credit will be needed and
interest costs will be lower. Banks and other credit-granting institutions are more inclined to
grant you loans under favorable terms if your loan request is supported by a methodical cash
plan. Similarly, businesses that operate on a casual day-to-day basis are more likely to borrow
funds at inopportune times and in excessive amounts. Without planning, there is no certainty
that you will be able to repay your loans on schedule. However, once you've carefully
mapped out a cash budget, you will be able to compare it to the actual cash inflows and
outflows of your business. You will find that this comparison will go a long way in assisting
you during future cash budget preparation. Also, a monthly cash budget helps pinpoint
estimated cash balances at the end of each month which may foresee short-term cash
shortfalls.
Cash budgeting is a continuous process that can be checked for consistency and accuracy by
comparing budgeted amounts with amounts that can be expected from using typical ratios or
financial statement relationships. For example, your treasurer will estimate the payments
made to your suppliers of merchandise or materials, the payments to employees for wages
and salaries, and the other payments that you are obligated to make. These payments can be
scheduled by dates so that all discounts will be taken, and so that no obligation will be
overlooked when it comes due. Cash collections from customers can also be estimated and
scheduled by dates along with other expected cash receipts. With careful cash planning, you
should be able to maintain a sufficient cash balance for your needs and not put yourself in the
position of holding excessive balances of nonproductive cash. In the normal course of
operations in a merchandising business, for example, merchandise is purchased and sold to
customers who eventually pay for the merchandise sold to them. Usually there is a time lag in
business operations. It may be necessary to pay the suppliers for merchandise before the
merchandise is sold to the customers. Before and during a busy selling season the demand for
cash may be higher than the inflow of cash from operations. In this case it may be necessary
to arrange short-term loans. When the selling season is over, cash collections from customers
will be relatively large and the loans can be paid off.
Example of a Cash Budget
FORMAT FOR PREPARING CASH BUDGET

CASH BUDGET FOR A YEAR Amount Rs
Beginning cash balance 0
Add:
Estimated collections on accounts receivable 0
Estimated cash sales 0
0
Deduct:
Estimated payments on accounts payable 0
Estimated cash expenses 0
Contractual payments on long-term debt 0
Quarterly dividend 0
0
Estimated ending cash balance 0
If it appears that the budgeted amounts will differ substantially from ratios and relationships
taken from past statements, then further attention should be given to the budget. For instance,
some factors may have been overlooked in budgeting, or past statement relationships may no
longer be applicable, due to unrecognized changes.
Normally, sales activity is expected to produce the bulk of the cash receipts. If sales are made
on a credit basis, accounts receivable will eventually be translated into cash as the customers
pay their accounts. The time required to collect outstanding accounts will have to be
estimated, and provisions must be made for discounts, returns, allowances granted, and
uncollectable accounts. In addition to sales, there are many other potential cash sources.
These sources must be examined for possible additions to cash when setting up a total cash
receipts budget for the year. Dividends and interest may be collected on investments or cash
may be received from an incidental operation (i.e., rent or sale of scrap material). Ordinarily,
cash will be realized from the sale of investments in stocks and bonds and from the sale of
machinery or other assets not incurred in the normal course of trade. As a result of cash flow,
stock may be issued or debt may be incurred with cash flowing. The various cost budgets,
plans for capital acquisitions, commitments for the discharge of debt, and plans for dividend
payments are brought together in a cash disbursements budget. If possible, payments will be
scheduled at convenient times, when cash balances are expected to be sufficiently high.
Frequently, the demand for cash is not spread evenly throughout the year. Several large
payments may become due in one particular month. If cash receipts in that month are not
expected to be sufficient, the company will either plan to hold back cash for these payments
or will borrow. It is unlikely that disbursements will be made in every instance when costs
are incurred or when materials and services are used. Advertising, insurance and rent, for
example, are often paid in advance with the cost being absorbed against future operations. A
debt of cash disbursements is made by scheduling payments required for materials, labor,
other operating costs, dividends, debt service, and so forth. Budgeted cash receipts and
disbursements are brought together to form a total cash budget.
V. Reserve
Financial plans are drawn up so that a minimum balance of cash will be available at all times.
The amount to be held will depend on estimated future cash flows and the financial policy
adopted. In general, the cash balance should be large enough to enable the company to meet
its payrolls and pay its operating costs for the next month, with some allowance made for
contingencies and miscalculations in planning. By holding adequate cash balances,
management can cope with small adversities and will not be forced to borrow under
unfavorable conditions. If trouble strikes, there will be a reserve to draw upon. While the
reserve is being used, management can make alternate plans and can secure additional cash
from other sources to meet future needs. Opinions differ as to what amount of cash should be
held in reserve. Some companies maintain fairly substantial cash balances as well as a
secondary reserve that consists of investments that can easily be converted into cash. Other
companies prefer to operate with small cash reserves and when cash is needed depend on a
line of credit which is established at a bank. Cash up to a certain limit may be borrowed when
needed and arrangements are made for eventual repayment.
INDUSTRY OVERVIEW
A BRIEF HISTORY OF STOCK EXCHANGES
Do you know that the world’s foremost market place “New York Stock Exchange’(NYSE),
started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly,
India’s premier stock exchage Bombay Stock Exchage (BSE) can also trace back its origin to
as far as 125 yerars when it started as a voluntary non-profit making association.
You hear about it any time it reaches a new high or a new low, and you also hear about it
daily in statements like “The BSE Sensitive Index rose 5% today”. Obviously, stocks and
stock markets are important. Stocks of public limited companies are bought and sold at a
stock exchage. But what really are stock exchanges? Known also as News on the stock
market appears in different media every day. The stock market or bourse, a stock exchange is
an oranized market place for securities (like stocks, bonds,options) featured by the
centralization of supply and demand for the transaction of orders by member brokers, for
intitutional andindividual inverstors. The exchange makes buying and selling easy. For
example, you don’t have to actually go to a stock exchange, say, BSE-you cancontact a
broker, who does business with the BSE, and he or she will buy or sell your stock on your
behalf. All stock exchanges perform similar functions with respect to the listing, trading, and
clearing of securities, differing only in their administrative machinery for handling these
functions. Most stock exchages are auction markets, in which prices are dterrmined by
competitive bidding. Trading may occur on a continuous auction basis, may involve brokers
buying from and selling to dealers in certain types of stock, or it may be conducted through
specialists dealing in a particular stock.
But where did it all start? The need for stock exchanges developed out of early trading
activities in agricultural and other commodities. During the middle Ages, traders foung it
easier to use credit that required supporting documentation of drafts, notes and bills of
exchange. The history of the earliest stock exchange, the French stock exchange, may be
traced back to 12th century when transactions occurred in commercial bills of exchange.
The first stock exchage in India, Bombay Stock Exchange was established in 1875 as ‘The
Native Share and Stockbrokers Association’ and has evolved over the years into its present
status as the premier stock exchange in the country. It may be noted that BSE is the oldest
stock exchange in Asia, even older than the Tokyo Stock Exchange, which was founded in
1878. The country’s second stock exchange was established in Ahmedabad in 1894, followed
by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19 th century.
From a get together under a ‘Neem Tree’ way back in the 1830s, the CSE was formally
established in May 1908. India’s other major stock exchange National Stock Exchange
(NSE), promoted by leading financial instituions, was established in April 1993. Over the
years, several stock exchages have been established in the major cities of India. There are
now 23 recognized stock exchanges—Mumbai (BSE, NSE and OTC), Calcutta, Delhi,
Chennai, Ahmadabad, Bangalore, Bhubaneswar, Coimatore, Guwahati, Hyderabad, Jaipur,
Kochi, Kanpur, Ludhiana, Mangalorer, Patna, Pune, Rajkot, Vadodara, Indore and Meerut.
Today, most of the global stock exchanges have become highly efficient, computerized
organiztions. Computerized networks also made it possible to connect to each othe rand have
fostered the growth of an open, global securities market. Realizing there is untapped market
of investors who want to be able to execute their own trades when it suits them, brokers have
taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and
sell shares via Internet. Online Trading is a service offered on the Internet for purchase and
sale of shares. In the real world, you place orders on your stockbroker either verbally
(personally or telephonically) or in a written form (fax). In Online Trading, you will access a
stockbroker’s website through your internet-enabled PC and place orders through the
broker’s internet-base trading engine. These orders are routed to the Stock Exchange without
manual intervention and executed theron in a matter of a few seconds. There are 2 types of
online trading service: discount brokers and full service online broker. Discount online
brokers allow you to trade via Internet at reduced rates. Some provide quality research, other
don’t. Full service online brokerage is linked to existing brokerages. These brokers allow
their clients to place online orders with the option of talking/chatting to brokers if advice is
needed. Brokerage rates here are higher. Indiainfoline.com, ICICI Direct.Com,
IndiaBulls.Com, AngelBroking.com, Sharekhan.Com, HDFCSecurities.Com is some of
the online broking sites in India.
ONLINE TRADING PROCESS:-

The various transactions involved in online trading can be shown from the point of view of
the
o Client
o Broker
o Stock Exchange
HISTORY OF ANGEL BROKING
“Angel Broking” is the retail broking arm of SSKI, an organization with more than eight
decades of trust & credibility in the stock market. It is India's leading retail financial Services
Company with We have over 250 share shops across 115 cities in India. While our size and
strong balance sheet allow us to provide you with varied products and services at very
attractive prices, our over 750 Client Relationship Managers are dedicated to serving your
unique needs. Angel Broking is lead by a highly regarded management team that has invested
crores of rupees into a world class Infrastructure that provides our clients with real-time
service & 24/7 access to all information and products. Our flagship Angel Broking
Professional Network offers real-time prices, detailed data and news, intelligent analytics,
and electronic trading capabilities, right at your fingertips. This powerful technology
complemented by our knowledgeable and customer focused Relationship Managers. We are
creating a world of Smart Investor. Angel Broking offers a full range of financial services and
products ranging from Equities to Derivatives enhance your wealth and hence, achieve your
financial goals. Angel Broking' Client Relationship Managers are available to you to help
with your financial planning and investment needs. To provide the highest possible quality of
service, Angel Broking provides full access to all our products and services through multi-
channels.
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has
emerged as one of the most respected Stock-Broking and Wealth Management Companies in
India. With its unique retail-focused stock trading business model, Angel is committed to
providing ‘Real Value for Money’ to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX &
MCX. Angel is also registered as a Depository Participant with CDSL.
Profile of the Organization :
In a shot span of 18 years since inception, the Angel Group has emerged as one of the top
five retail stock broking houses in India, having membership of BSE,NSE and the two
leading Commodity Exchanges in the country i.e. NCDEX &MCX. Angel Broking is also
registered as a Depository Participant with CDSL.The group is promoted by Mr. Dinesh
Thakkar, who started this business as a sub-broker in 1987 with a team of 3. Today the angel
group is managed by a team of 1937 direct employees and has a nationwide network
comprising of 12Regional hubs, 64 branches and 2759 sub brokers & business associates.
Angelis 100% focused on retail stock broking business unlike any other larger national
broking house. The group currently services more than 226030 retail clients.
Angel habitually generates value added features without the cost burden being passed on to
the clients as they strongly believe that better understanding of client’s needs and wants is
their top priority. Their e-broking facility is one such effort, which gives the client a platform
to access state of the art trading facility at the click of a button.
Angel has always strived for delivering customer delight and developing strong long term
bonds with its clients as well as channel partners. Angel thrives on a vision to introduce new
and innovative products and services constantly. Moreover, Angel has been among the
pioneers to introduce the late technological innovations and integrate them efficiently within
its business.
The mainline Business Activities of Angel are:
1) Stock Broking
2) Derivatives Trading
3) Online Trading
4) Wholesale debt market operations
5) Depository services with CDSL
6) Fundamental Research Services
7) Technical Research Services
8) IPO Distribution and Advisory
9) Mutual Fund Distribution and Advisory
10) Commodities Trading
“Angel Broking” is the retail broking arm of SSKI, an organization with more than eight
decades of trust & credibility in the stock market. It is India's leading retail financial Services
Company with We have over 250 share shops across 115cities in India. While our size and
strong balance sheet allow us to provide you with varied products and services at very
attractive prices, our over 750 Client Relationship
Managers are dedicated to serving your unique needs. Angel Broking is lead by highly
regarded management team that has invested cores of rupees into a world-class Infrastructure
that provides our clients with real-time service & 24/7 access to all information and products.
Our flagship Angel Broking Professional Network offers real-time prices, detailed data and
news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This
powerful technology complemented by our knowledgeable and customer focused
Relationship Managers. We are creating world of Smart Investor. Angel Broking offers a full
range of financial services and products ranging from Equities to Derivatives enhance your
wealth and hence, achieve your financial goals. Angel Broking' Client Relationship Managers
are available to you to help with your financial planning and investment needs. To provide
the highest possible quality of service, Angel Broking provides full access to all our products
and services through multi-channels

Core Values
Our Vision
To provide best value for money to investors through innovative products, trading/investment
strategies, state of the art technology and personalized service.
Our Motto
To have complete harmony between quality-in-process and continuous improvement to

deliver exceptional service that will delight our Customers and Clients.
Our CRM Policy : Customer is King
“A Customer is the most Important Visitor on our premises. He is not dependent on us, but
we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is
not an outsider in our business. He is part of it. We are not doing him a favour by serving
him. He is doing us a favour by giving us an opportunity to do so.”
Business Philosophy
Ethical practices & transparency in all our dealings

Customers interest above our own
Always deliver what we promise
Effective cost management
Our Quality Assurance Policy
We are committed to providing world-class products and services which exceed

the expectations of our customers, achieved by teamwork and a process of
continuous improvement.
MANAGEMENT TEAM
Mr. Dinesh Thakkar : Founder Chairman & Managing Director
Mr. Lalit Thakkar : Director – Research
Mr. Amit Majumdar : Executive Director – Strategy and Finance
Mr. Rajiv Phadke : Executive Director – HR & Corp
Mr. Vinay Agrawal : Executive Director – Equity Broking
Mr. Nikhil Daxini : Executive Director - Sales and Marketing
Mr. Hitungshu Debnath : Executive Director-Distribution & Wealth Management
Mr. Mudit Kulshreshtha : Executive Director – Operation

MILESTONES:
Awarded with 'Broking House with Largest Distribution Network' and 'Best Retail
Broking House' at Dun & Bred street Equity Broking Awards 2009
1) August,2008 Crossed 500000 trading accounts
2) November,2007 ‘Major Volume Driver’ for 2007
3) October,2006 ‘Major Volume Driver’ award for 2006
4) September,2006 Launched Mutual Fund and IPO business
5) July,2006 Launched the PMS function
6) October,2005 ‘Major Volume Driver’ award for 2005
7) September,2004 Launched Online Trading Platform
8) April,2004 Initiated Commodities Broking division
9) April,2003 First published research report
10) November,2002 Angel’s first investor seminar
11) March,2002 Developed web-enabled back office software
12) November,1998 Angel Capital and Debt Market Ltd. Incorporated
13) December,1997 Angel Broking Ltd. Incorporated

SERVICES AND COMMODITIES:
Equity:
Investing in shares or stock market is inarguably the best route to long-term wealth
accumulation. However, it can also be a very risky proposition due to high risk-return trade-
off prevalent in the stock market. Hence, it is more appropriate to take help of an experienced
and trustworthy expert who will guide you as to when, where and how to invest.
Angel provides guidance in the exciting world of stock market with suitable trading solutions
and value-added tools and services to enhance your trading experience.
Online Trading
Three different online products tailored for traders & investors
1) Customized single screen Market Watch for multiple exchanges

2) Real-time rates
3) Flash news & intra-day calls
4) Intra-day & historical charts with technical tool
5) Online research
6) E-broking & back-office software training
Quality Research
Wide range of daily, weekly and special Research reports

Expert Sector Analysts with professional industry experience
Advisory
Real-time market information with News updates

Investment Advisory services
Dedicated Relationship Managers
Portfolio Management Services
Support
24x7 Web-enabled Back Office

Centralized Help Desk
Live Chat support system etc…
PRODUCTS OF ANGEL BROKING
E-Broking
Angel has 3 different products and voila trading on BSC, NSC,F&O, MCX & NCDEX. It
provides three software’s to customers for online trading.
1. Angel Diet
· Application based ideal for traders.
· User friendly & simple navigation
· Robust & speedier execution of trade
· BSC, NSC, F&O, MCX & NCDEX
2. Angel Trade
· Browser based for investor
· No installation required
· Advantage of mobility
3. Angel Anywhere
· Application based ideal for traders using technical tool
· Intra-day/historical charts with various indicators
· BSC, NSC, Cash & Derivatives
Investment and Advisory Services;
To derive optimum returns from equity as an asset class requires professional guidance and
advice. Professional assistance will always be beneficial in wealth creation. Investment
decisions Without expert advice would be like treating ailment without the help of a doctor.
· Expert Advice: Their expert investment advisors are based at various branches across India
to provide assistance in designing and monitoring portfolios.
· Timely Entry & Exit: Their advisors will regularly monitor customer’s investments and
guide customers to book timely profits. They will also guide them in adopting switching
Commodities
A commodity is a basic good representing a monetary value. Commodities are most often
used as a inputs in the production of other goods or services. With the advent of new online
exchange, commodities can now be traded in futures markets. When they are traded on an
exchange, Commodities must also meet specified minimum standards known as a basic
grade.
Depositary Participant Service;
Angel Broking Ltd. Is a DP services provider though CDSL.We offer depository services to
create a seamless transaction platform to execute trades through Angel group of companies
and
Settle these transactions through Angel Depository services.
· Wide branch coverage
· Personalized/attentive services of trained a dedicated staff
· Centralized billing & accounting
· Acceptance & execution of instruction on fax
· Daily statement of transaction & holdings statement on email
· No charges for extra transaction statement
Portfolio management Services:
Successful investing in Capital Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio Management Services (PMS) is one
such service that is fast gaining eminence as an investment avenue of choice for High Net
worth Investors (HNI). PMS is a sophisticated investment vehicle that offers a range of
specialized investment strategies to capitalize on opportunities in the market. The Portfolio
Management Service combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients .Angel PMS brings with it years of
experience, expertise, research and the backing of India's leading stock broking house. At
Angel, experienced portfolio management is the difference. It will advise you on a suitable
product based on factors such as your investment horizon, return expectations and risk
tolerance.
Mutual Funds:
To enable clients to diversify their investment in the right direction. Angel Broking has added
another product in its range with mutual funds.
· Access to in-depth research & proper selection from diversified funds based on your
preferred criteria
· Rating and rankings of all mutual funds from our in house expert analysts
· News and alert for your Mutual fund Portfolio and performance tracking with watch lists
· Current and historical performance of different funds enabling comparisons
Benefits
· No risk of loss, wrong transfer, mutilation or theft of share certificates.

· Hassle free automated pay-in of your sell obligations by your clearing members
· Reduced paper work.
· Speedier settlement process. Because of faster transfer and registration of securities in your
account, increased liquidity of your securities.
· Instant disbursement of non-cash benefits like bonus and rights into your account.
· Efficient pledge mechanism.
· Wide branch coverage. Personalized/attentive services of trained help desk. Zero’ upfront
payment. No charges for extra transaction statement & holding statement.
All in one combined Monthly ‘Bill-cum Transaction-cum-Holdingcum ledger’ statement.
FUNDAMENTAL SERVICES:
The Sunday Weekly Report
This weekly report is ace of all the reports. It offers comprehensive market overview and
likely trends in the weekahead.It also presents top picks based on an in-depth analysis of
technical and fundamental factors. It gives short term and long-term outlook on these scripts,
their price targets and advice trading strategies. Another unique feature of this report is that it
provides an Updated view of about 70 prominent stocks on an ongoing basis.
Stock Analysis
Angel’s stock research has performed very well over the past few years and angel model
portfolio has consistently outperformed the benchmark indices. The fundamentals of select
scripts are thoroughly analyzed and actionable advice is provided along with investment
rationale for each scrip
Flash News
Key developments and significant news announcement that are likely to have an impact on
market / scripts are flashed live on trading terminals. Flash news keeps the market men
updated on an online basis and helps them to reshuffle their holdings
TECHNICAL SERVICES:
Intra-Day Calls
For day traders angel provides intraday calls with entry, exit and stop loss levels during the
market hours and our calls areflashed on our terminals. Our analysts continuously track the
calls and provide the recommendations according to the market movements. Past
performance of these calls in terms of profit/losses also available to our associates to enable
them to judge the Success rate.
Posting Trading Calls
Angels “Position Trading Calls” are based on a thorough analysis of the price movements in
selected scripts and provides calls for taking positions with a 10 - 15 days time span with stop
losses and targets. These calls are also flashed on our terminals during market hour
Derivative Strategies
Our analyst take a view on the NIFTY and selected scripts based on derivatives and technical
tools and devise suitable “Derivative Strategies” , which are flashed on our terminals and
Published in our derivative reports.
SAMPLE CASH BUDGET
CASH BUDGET
XYZ COMPANY
ESTIMATED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
JAN FEB MAR APR
Estimated cash balance at the beginning of the period..
Estimated cash inflows:
Cash Sales..
Collections on credit sales...
Bank Loans..
Total Inflows
Estimated cash outflows:
Payments to suppliers..
Payments of operating and other expenses..
Payments on equipment loan and interest..
Payments on bank loans and interest..
Dividends..
Investment in short-term securities..
Total outflows
Estimated cash balance at the end of the period..
Analysis on the Expected Cash Receipts of Angel Broking
Expected Cash Receipts of Angel Broking

Expected Cash
Receipts 2005-06 2006-07 2007-08 2008-09
Online and Other 63,832,8 200,644,975 645,115,915 782,916,367.0
Media 65.00 .00 .00 0
511,056,8 1,427,055,456. 2,313,537,976. 5,896,589,460.0
Equity and Brokerage 50.00 00 00 0
Commodities 4,837,7 41,327,147 120,310,658 166,389,995.0
Brokerage 20.00 .00 .00 0
59,799,5 215,866,327 592,936,058 1,065,489,201.0
Mutual Funds 08.00 .00 .00 0
133,035,4 295,594,034 585,379,842 2,324,501,790.0
Other Income 49.00 .00 .00 0
772,562,392. 2,180,487,939. 4,257,280,449. 10,235,886,813.
Total cash Receipts 00 00 00 00
Interpretation
Here we are having different types of Cash Receipts like
Online and Other Media
Equity and Brokerage
commodities Brokerage
Mutual Funds
Other Income
Here we can see that equity and brokerage has a major stake in the incomes of the company.
If we see the pie diagram of the company 2008-09 is having major percentage of income i.e.,
59% next in the year 2007-08 it has a receipts of 24%. It follows with 13% and 4% in the
years 2006-07 and 2005-06 respectively.
Analysis on the Expected Cash Payments of Angel Broking

Expected Cash Payments of Angel Broking
Expected Cash
Payments 2005-06 2006-07 2007-08 2008-09
238,133,6 562,722,5 917,843,164 2,169,754,090.
Direct Cost 41.00 58.00 .00 00
103,170,7 366,041,3 1,063,100,922. 2,425,742,810.
Employee Cost 90.00 30.00 00 00
Administration 127,926,2 382,800,8 863,696,501 1,615,279,088.
Expenses 38.00 08.00 .00 00
20,158,8 65,098,3 117,120,194 912,581,498.
Interest 08.00 65.00 .00 00
25,130,4 85,595,8 149,202,302 282,036,977.
Depreciation 10.00 41.00 .00 00
366,8 166,2 303,50 2,960,767.
Preliminary Expenses 00.00 30.00 0.00 00
Interpretation
Here we are having different types of Cash Payments like
Direct Cost
Employee Cost
Administrative Cost
Interest
Depreciation
Preliminary Expenses.
Here we can see that Employee Cost has a major stake in the Expenses of the company. If we
see the pie diagram of the company 2008-09 is having major percentage of income i.e., 59%
next in the year 2007-08 it has a receipts of 25%. It follows with 12% and 4% in the years
2006-07 and 2005-06 respectively.
Cash and Bank Balances of Angel Broking

Cash an Bank Balances of Angel Broking Company
Particulars 2005 2006 2007 2008 2009
Cash and
Bank
Balances 81,080,405 173,010,33 804,052,316 1,266,759,432 3,564,754,503
Interpretation
Cash Balances of the company is in a increasing state.
Year 2009 has recorded highest amount of cash balance where as in the year 2005 it is
recorded as lowest.
Cash Budget of Angel Broking

Cash Budget of Angel Broking Company
2005-06 2006-07 2007-08 2008-09
74,503,117. 332,178,822. 1,050,241,629. 2,196,255,495.
Opening Cash balance 00 00 00 00
74,503,117. 332,178,822. 1,050,241,629. 2,196,255,495.
00 00 00 00
Expected Cash Receipts
Online and Other Media 63,832,865. 200,644,975. 645,115,915. 782,916,367.
Income 00 00 00 00
511,056,850. 1,427,055,456. 2,313,537,976. 5,896,589,460.
Equity and Brokerage 00 00 00 00
4,837,720 41,327,147. 120,310,658. 166,389,995.
Commodities Brokerage .00 00 00 00
59,799,508. 215,866,327. 592,936,058. 1,065,489,201.
Mutual Funds 00 00 00 00
133,035,449. 295,594,034. 585,379,842. 2,324,501,790.
Other Income 00 00 00 00
772,562,392. 2,180,487,939. 4,257,280,449. 10,235,886,813.
Total Cash Collected 00 00 00 00
Expected Cash Payments

238,133,641. 562,722,558. 917,843,164. 2,169,754,090.
Direct Cost 00 00 00 00
103,170,790. 366,041,330. 1,063,100,922. 2,425,742,810.
Employee Cost 00 00 00 00
127,926,238. 382,800,808. 863,696,501. 1,615,279,088.
Administration Expenses 00 00 00 00
20,158,808. 65,098,365. 117,120,194. 912,581,498.
Interest 00 00 00 00
25,130,410. 85,595,841. 149,202,302. 282,036,977.
Depreciation 00 00 00 00
366,800 166,230 303,500 2,960,767
Preliminary Expenses .00 .00 .00 .00
514,886,687. 1,462,425,132. 3,111,266,583. 7,408,355,230.
Total Cash Expenses 00 00 00 00
332,178,822. 1,050,241,629. 2,196,255,495. 5,023,787,078.

Cash Surplus or Deficit 00 00 00 00
CONCLUSIONS
Budgeting is an important aspect of financial management. The study of Cash Budgeting of
Angel Broking has revealed that the Cash reserves of the company are relatively good. The
porfits or income earned by the company are fairly good. The study has been conducted on
the financial statements of the company.
1. Cash Budget of the company is showing constant rise in the incomes of the company
which is a very good thing for company.
2. Expenses of the company also increasing constantly which shows slightly a negative
sign.
3. In the year 2008-09 Cash Receipts of the company has doubled from that of the last
year.
4. Cash receipts of the company for the year 2007-08 also increased.
5. Cash receipts of the company for the year 2005-06 is low compared to the other years.
6. When we see the cash payments of the company it isalso showing a consistant rise in
the company.
7. In the year 2005-06 cash payments recorded very low that is 514,886,687. Which is
lowest among all the other cash payments.
8. In the year 2008-09 payments have been recorded as the highest among the others
with Rs. 7,408,355,230.
9. When we see the cash and bank balances of the company it shows a constant increase
in the company.
10. The year 2005 has recorded the lowest cash and bank balance.
11. Where as in the year 2009 the cash and bank balances of the company is high.
12. We can see that in 2009 cash balance has rapidly increased to more than 100 percent
of the previous year.
SUGGESTIONS
Suggestions can be used by the firm for the betterment of the firm after the detailed study and
alanysis of project report on Study and analysis of Cash Budget.
1) Company should try to reduce its expenses so that it can achieve more income.
2) Company Should constantly check its cash balances because cash is a non-performing
asset..
3) As cash is a non-earning asset company has to make adjustments in investing the

excessive cash in some or the other avenues.
Overall the performance of the company is Satisfactory and it has a good liquidity position
and sufficient funds to pay its expenses. And Its Investment Avenues are good. Relatioons
with the customers and other parties is satisfactiory.
BIBLIOGRAPHY
Books Referred
1) I.M. Pandey – Financial Management – Vikas Publishing House Pvt. Ltd – Ninth
Edition 2006.
2) S.N. Maheswari, Financial Management – Sultan Chand and Sons
Website
1. http://www.investopedia.com/terms/c/cashbudget.asp
2. http://www.va-interactive.com/inbusiness/editorial/finance/ibt/cash_bud.html
3. http://www.wisegeek.com/what-is-a-cash-budget.html
4. http://www.angelbroking.com/
5. http://www.accountingformanagement.com/cash_budget.htm
6. http://billdef.dlinkddns.com/ifctwd.html
7. http://www.bizhelp24.com/money/cash-flow-control/management-accounts-cash-
flow-forecast.html
Balance Sheet of Angel Broking as on 2005-06
2005 2006
SOURCES OF FUNDS
Shareholders' funds
Share Capital 264218620 316218620
Reserves and Surplus 206255007 206255007
Equity Share Warrants 470473627 522473627
Loan Funds
Minority Interest
Secured Loan 29228837 506207158
Unsecured Loan 2932741 32161578 35339662 541546820
Total 502635205 1064020447
APPLICATION OF FUNDS
Goodwill (On Comsolidation)
Fixed Assets (Including Intangibles)
Gross Block 143127733 131457363
Less : Depreciation and Amortisation 92541474 70707537
Net Block 50586259 60750099
Capital work-in-progress 1417300 1317300
Invetstments
Deferred Tax Assets 2709099 2645483
Less : Deferred Tax Liabilities 1002242 1706857 629121 2016362
Current Assets, Loans and Advances
114927483
Sundry Debtors 387909823 2
Cash and Bank Balances 81080405 173010338
Stock on Hand
Loans and Advances 65497150 168751161
149103633
534487378 1
Less : Current Liabilities & Provisions
Current Liabilities 301889343 460232492
Provisions 16862665 47234406
318752008 507466898
Net Current Assets 215735370 983569433
Miscellaneous Expenditure 233189419 16367253
Total 502635205 1064020447

2006 2007
SOURCES OF FUNDS
Shareholders' funds
Share Capital 316218620 451008510
144737742
Equity Share Warrants 522473627 44200000 1942585934
Loan Funds
Minority Interest
100257251
Secured Loan 506207158 3
Unsecured Loan 35339662 541546820 833237490 1835810003
106402044
Total 7 3778395937
Goodwill (On Comsolidation) 1523608
Gross Block 131457363 370429500
Less : Depreciation and Amortisation 70707537 -156303379
Net Block 60750099 214126121
Invetstments
Less : Deferred Tax Liabilities 629121 2016362 10129969
114927483 357907610
Sundry Debtors 2 4
Stock on Hand
172212023
149103633 610524865
1 8
Less : Current Liabilities & Provisions
245596278
Provisions 47234406 336700747
279266352
507466898 7
Miscellaneous Expenditure 16367253
106402044
Total 7 3778395937

2007 2008
SOURCES OF FUNDS
Shareholders' funds
Share Capital 451008510 501671980
144737742 270502299
194258593
Equity Share Warrants 44200000 4 44200000 3250894975
Loan Funds
Minority Interest
100257251 145407788
Secured Loan 3 6
183581000
Unsecured Loan 833237490 3 362696475 1816774361
377839593
Total 7 5067669336
Goodwill (On Comsolidation) 1523608 1292501
Gross Block 370429500 918359961
Less : Depreciation and Amortisation -156303379 -301105702
Net Block 214126121 617254259
Invetstments 264485121
Less : Deferred Tax Liabilities 10129969 -2379725 6296466
357907610 184632060
Sundry Debtors 4 6
2
Stock on Hand
172212023 408978472
610524865 720286476
8 2
Less : Current Liabilities &
Provisions
245596278 234363375
Provisions 336700747 680890015
279266352 302452377
7 3
331258513
Miscellaneous Expenditure
377839593
Total 7 5067669336

2008 2009
SOURCES OF FUNDS
Shareholders' funds
Share Capital 501671980 571029330
270502299 1654028388
325089497
Equity Share Warrants 44200000 5 597700000 17709013215
Loan Funds
Minority Interest 115513129
145407788
Secured Loan 6 1000000000
181677436
Unsecured Loan 362696475 1 5650042970 6650042970
506766933
Total 6 24474569314
Goodwill (On Comsolidation) 1292501 1292501
Gross Block 918359961 1473588527
Less : Depreciation and Amortisation -301105702 -495663768
Net Block 617254259 977924759
Capital work-in-progress 617254259 1214123802 2192048561
Invetstments 264485121 9908520372
Less : Deferred Tax Liabilities -2379725 6296466 -347999 88606298
184632060
Sundry Debtors 6 3854751901
126675943
Stock on Hand 13085124
408978472 1271349121
720286476 2014608274
2 1
Less : Current Liabilities &
Provisions
234363375
Provisions 680890015 1919978011
302452377
3 7934261265
417834098
Miscellaneous Expenditure 72280106
506766933
Total 6 24474569314

Raju Main

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Raju Main

Uploaded by

Copyright:

Available Formats

TABLE OF CONTENTS

Chapter No Contents Page No

7 Conclusions and Recommendations

Meaning of Financial Management

3. The policies to be pursued for the floatation of various corporate securities.

Estimating capital requirements

1. Fixed Capital Requirements

2. Working Capital Requirements

Other Objectives of Financial Management

1) Ensuring a fair return to shareholders.

2) Building up reserves for growth and expansion.

3) Ensuring maximum operational efficiency by efficient and effective utilization of

4) Ensuring financial discipline in the organisation.

The importance of financial management cannot be over emphasised. In every organisation,

Financial Management : Science or Art

Cash Budget Management includes the following functions:

Displaying business transactions having an effect on liquidity, by revenue and expenditure

Meaning of Cash Budget

What is the purpose of preparing a cash budget?

Why Prepare A Cash Budget?

What You Should Know Before Getting Started

How To Create A Cash Budget

Estimated Sales And Expenses

Instead of increasing every expense item by 10 percent, serious consideration needs to be

• Raw Materials (inventory).For small business retailers and manufacturers, the

The importance of cash budget may be summarised as follow:-

LIMITATIONS OF CASH BUDGET

OBJECTIVES OF THS STUDY

2) To study the optimum level of Cash of the company.

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

TYPES OF DATA COLLECTION

There are two main types of data collection methods available.

2) Secondary Data Collection

2) Annual report of Angel Broking 2007-08

3) Annual report of Angel Broking 2006-07

4) Annual Report of Angel Broking 2005-06

Prepare a Cash Budget

I. Purposes of Cash Budgeting

I. Purposes of Cash Budgeting

II. Consistent Budgets

III. Checking the Reasonableness of the Budget

IV. Sales and Other Potential Cash Sources

I. Purposes of Cash Budgeting

I. Purposes of Cash Budgeting

II. Consistent Budgets

Example of a Cash Budget

FORMAT FOR PREPARING CASH BUDGET

III. Checking the Reasonableness of the Budget

IV. Sales and Other Potential Cash Sources

A BRIEF HISTORY OF STOCK EXCHANGES

ONLINE TRADING PROCESS:-

The mainline Business Activities of Angel are:

attractive prices, our over 750 Client Relationship

powerful technology complemented by our knowledgeable and customer focused

and services through multi-channels

To have complete harmony between quality-in-process and continuous improvement to

Our CRM Policy : Customer is King

Ethical practices & transparency in all our dealings

Our Quality Assurance Policy

We are committed to providing world-class products and services which exceed

Mr. Dinesh Thakkar : Founder Chairman & Managing Director

Mr. Lalit Thakkar : Director – Research