SYNOPSIS

NAME OF THE STUDENT : T. KALYAN KUMAR PROJECT GUIDE: Dr SUJA S NAIR

TITLE: A STUDY ON FUNDS FLOW STATEMENT IN HINDUSTAN COCA-COLA BEVERAGES PVT LTD

1.INTRODUCTION
Finance is the lifeblood of every business activity without which the wheels of modern
business organization system cannot be greased. Finance management is managerial activity,
which is concerned with planning and controlling of the firm's financial Resources. Finance
is a scarce resource and it has to be managed efficiency for the successful functioning of any
company. Several companies have come to grief mainly because of inefficient management
of finance, in spite of other favorable conditions

2.INDUSTRY PROFILE
The soft drink beverage market can be divided into fruit drinks & soft drinks. The soft drink
can be further divided into carbonated and non-carbonated drinks. Mango drinks come under non–
carbonated category and carbonated drinks comprises of different cola, lemon and orange flavor
drinks.

The soft drinks till early 1990s were in the hands of domestic players like Compaq, Thums-
up, Limca, etc. But with the opening up of economy & coming of MNC players Pepsi & coca-cola the
market has come totally under their control. Pepsi entered in Indian market in 1991. Coke re-entered
(after they were thrown out in 1977 by the then central govt.) in 1993.

3.COMPANY PROFILE

The Coca-Cola Company traces its beginning to 1886, when an Atlanta, Georgia
Pharmacist, Dr. John Pemberton, began to produce coca-Cola syrup for sale in the fountain
drink. However, with the exemption of an independent bottling operation established in 1894
in Viking, Mississippi, the history of large scale bottling did not begin until 1899 when two
Chattanooga businessmen, Joseph B. Whitehead and Benjamin F. Thomas, secured the
exclusive rights to bottle and sell Coca-Cola for most of the United States from the Coca-
Cola Company.
4.PRODUCT PROFILE

Classic: The Coca-Cola classic is the flagship of the company’s carbonated drinks. The product was
made public on May 8th 1886.

Diet Coke: was launched in 1982 to target the market of the light products.

Caffeine free Coca-Cola classic: Were launched 1983 which aims at customers who want to limit
their consumption of caffeine while still drinking coco cola and enjoying its taste.

Cherry Coke: The first cherry flavored cola were launched in 1985.

5.RESEARCH METHODOLOGY
I.OBJECTIVES OF THE STUDY
● To study and analyze the changes those have taken place in the financial position of
the company.
● To find analyze fund flow operation.
● To changes in the amount of working capital of the company.
● To identify sources and application of funds.
● To find out the operating efficiency of the organization.
● To measure the overall financial performance of Hindusthan Coca Cola Beverages
Pvt Ltd.
● To offer suitable suggestions for better performance of the Company.
II.SCOPE OF THE STUDY:
This study refers to only individual enterprise i.e., Hindusthan Coca Cola Beverages Pvt
Ltd. In fact, an examination of all components of Current Assets will enable to Asses the
efficiency of working capital management as all these components are interrelated.
This study is on Funds Flow position in the company. It is based on two statements
namely (1) Schedule of changes in Working capital and (2) Funds Flow statement. The
scope of two statements is given below
III.NEED FOR THE STUDY
Every company needs to know the flow of funds both inflow and outflow. So that
the efficiency in utilising the funds can be better understood. For this the present analysis
through funds flow statement will be helpful.
IV.LIMITATIONS OF THE STUDY
 ● Funds flow statement is not a substitute of income statement of balance sheet.It
furnishes only some additional information as regards changes in working capital.
● This statement lacks orginality,it is simply rearrangement of data appearing in account
books.
● It indicates only the past changes.It can’t reveal countinuous changes.
● When both the aspects of the transaction are current,they are not considerd.
● When both the aspects of the transaction are non-current, even then they are not
included in funds flow statement.
● Some management Accountants are of the opinion that this statement is not ideal tool
for analysis.
● Funds statement is historic in nature. Hence this projected funds flow statement be
prepared with much accuracy
V.DATA COLLECTIONS.
I.SECONDARY DATA:
Information is collected from company websites journals, news papers Hindusthan
Coca cola beverages pvt ltd
6.DATA ANALYSIS AND INTERPRETATION
I.ANALYSIS OF DATA: 
The data collected is subjected to the techniques of fund flow analysis and changes in
working capital.  This clearly brings out a clear picture of inflow and out flow of funds and
also analysis the movement and management of funds. 
7.FINDINGS
o The current liabilities are on increasing trend, so researchers suggested that it
does not increase in the same proportion in future.
o The company’s current ratio is above the standard it is suggested that the
company maintain its current ratio in the same way in future.
o Every year it is observed that the company has to repaying the loans. It is
suggested that the company should take risk.
o New shares may be issued instead of raising loans of high interest.
o The working capital employed by the company. The company recommended
not to increase the current liabilities and also to decrease the current assets in
future.
8.SUGGESTIONS
⮚ The firm should establish optimum capital structure.
⮚ The company has idle cash balance which may reduce the profitability
company may invest such idle cash in marketable securities.
⮚ Efficient of assets utilizations for revenue generation is suggested.
⮚ Efforts should be made to improve sales level so as to increase funds from
operation.
⮚ Better utilizations to sources of funds in suggested for getting maximum
benefits.
9.CONCLUSION
It is an enriching experience at Hindusthan Coca Cola Beverages Pvt Ltd during my
project study. There has been so much knowledge going out the extend for the last two
months about “A study on Funds flow statement”.