KASTURBA GANDHI DEGREE & P.

G COLLEGE
FOR WOMEN

DEPARTMENT OF BUSINESS MANAGEMENT

PROJECT SYNOPSIS

“A STUDY ON FUNDS FLOW

STATEMENT”
AT
TELANGANA STATE DAIRY
DEVELOPMENT CO-OPERATIVE
FEDERATION LIMITED,
HYDERABAD
BY MANNAM PRASANNA KUMARI
1111-18-672-002
MENTOR:- DR.NOUSHEEN SULTANA
 INTRODUCTION
 According to Fouke, Funds flow statement is defined
as, "A statement of sources and application of funds is a
technical device designed to analyze the changes in the
financial condition of a business enterprise between two
dates".
 The technique of funds flow analysis is widely used
by the financial analyst credit granting institution and
financial managers in performance of their jobs.
 It mainly focuses on maintaining the financial
soundness and solvency of the company by studying and
controlling the funds.

NEED OF THE STUDY

 Funds flow statement shows the relationship of net
income to the changes in funds from business operations.
 Funds flow statement reports about past funds flow as an
aid to predict the future funds flow.
 It shows the firm's ability to generate long term financing
to satisfy the investment in long term assets.
SCOPE OF THE STUDY
 Financial analysis consists of funds flow analysis.
 The study is to know working capital increase or
decrease funds from operation, source and application of
funds.
 The scope is limited to the operations of TSDDCF
ltd.
 The information is obtained from the primary and
secondary sources.
 The key performance indicators were taken from
2013-2018.
 The operating results, the balance sheet buzz of last
five years
OBJECTIVE OF THE STUDY
 To study the liquidity of the TSDDCF Ltd.
 To know the efficiency of TSDDCF Ltd.
 To analyze the movement of funds between the
dates of two balance sheets in period of study.
 To understand the change in the assets.
DATA COLLECTION
 Data is collected from annual reports of
TSDDCF Ltd.
 Reference from text books relating to financial
management.
SAMPLE SIZE
Data of 5 years (2013-2018) were taken into
consideration for doing the data sampling.
LIMITATIONS OF THE STUDY
 The major limitations of the project under my

study was time. Since it was to be completed within a

short period of time, which is not sufficient to
undertake a comprehensive study.
 The organization did not provide any printed

information, like Annual reports, Auditor reports etc.,

 The organization did not provide information

regarding government policies and procedures,

problems of the organization, no of employees
working etc.
 The study is only pertained to TSDDCF Ltd.

 While calculating statement of sources and

application of funds decimas have been ignored.

 The given specified data is based upon the

analyzed topic I,e., "sources and application of funds",

it may be possible for the outsiders to follow the entire
interpretation.
DATA ANALYSIS AND INTERPRETATION
 During the year 2013-14 funds generated from
operation was Rs. 1.43 lakhs, other items sold by TSDDCF
LTD towards purchase of fixed assets Rs. 1.4 lakhs payment
of taxes 66 lakhs were used. The firm has also used funds
towards the repayment of borrowings. The balance of 1.98
lakhs has been diverted to working capital.
 During the year 2014-15 funds operations was Rs.
7.47 cr, other items sold by TSDDCF LTD were Rs.4 lakhs
and grants were Rs. 4.3 lakhs the total funds available are
5 crs. The funds used by TSDDCF LTD towards purchase of
fixed assets Rs. 5 lakhs payment of taxes 69 lakhs were
used. The firm has also used funds towards the repayment
of borrowings. The balance of 4 crs has been diverted to
working capital
 During the year 2015-16 funds generated from
operation was Rs. 1 cr other items sold by TSDDCF LTD
were Rs. 3 lakhs and grants were 3.76 lakhs the total funds
available ae 1 cr. The funds used by TSDDCF LTD towards
purchase of fixed assets Rs.1 cr payment of taxes 9 lakhs
were used. The firms has also used funds towards the
repayment of borrowings. The balance of 3 lakhs has been
diverted to working capital
 During the year 2016-17 funds generated from
operation was Rs. 3.53 lakhs other items sold by TSDDCF
LTD were Rs. 2 lakhs the total funds available are 5 cr. The
funds used by TSDDCF LTD towards purchase the
repayment of borrowings. The balance of 5.16 lakhs were
used.
CONCLUSION
Financial position of the company is studied. The changes in
the elements of working capital in between the year identified
particulars. The movement of funds between the dates of two
balance sheets is mentioned. From the analysis it is clear
that share capital remained intact during the five years up
to 2017 and the reserve and surplus reached the good
condition. The inventories observed an increment. The
current assets were increased more when compared to
current liabilities. The sources also increased because
TSDDCF LTD is using funds to acquire additional assets