A

PROJECT REPORT
ON

“ANALYSIS OF CASH FLOW & FUND FLOW STATEMENT AT GALAXY SUPER

SPECIALITY HOSPITAL”

In partial Fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION
IN RANI DURGAVATI VISHWAVIDYALAYA JABLPUR

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mrs.KRATI JAIN HIMANSHU SHARMA

(Assistant professor) 3rd Semester
Enrol.No.R16006A0421126

SHRI RAM INSTITUTE OF TECHNOLOGY

NEAR ITI MADHOTAL,JABALPUR(M.P.)

2021-2023
1
STICK THE CERTIFICATE ON THIS PAGE
CERTIFICATE OF THE TRAINING BY COMPANY

2
 SHRI RAM INSTITUTE OF
TECHNOLOGY

CERTIFICATE

This is to certify that MR.HIMANSHU SHARMA,MBA 3 RD Semester student

of SHRI RAM INSTITUTE OF TECHNOLOGY entitled the project
of“ANALYSIS OF CASH FLOW&FUND FLOW STATEMENT AT GALAXY
SUPER SPECIALITY HOSPITAL”at GALAXY SUPER SPECIALITY HOSPITAL
which is being submitted herewith for the practice of Partial fulfillment of
Masters in Business Administration RDVV Jabalpur for the year 2021-2023
It has been duly completed as record of bonafide work in practice of
FINANCE,SHRI RAM INSTITUTE OF TECHNOLOGY Jabalpur,(M.P.)

Date Principal/Head

3
 SHRI RAM INSTITUTE OF
TECHNOLOGY

CERTIFICATE
This is to certify that the Project Report entitled“ANALYSIS OF CASH
FLOW&FUND FLOW STATEMENT AT GALAXY SUPER SPECIALITY
HOSPITAL”which is being submitted herewith for the award of the degree
of Masters in Business Administration,RDVV Jabalpur by SHRI RAM
INSTITUTE OF TECHNOLOGY JABALPUR (MBA 3RDSem) under my
supervision and guidance.

(Guide)

Date: MRS.KRATI JAIN

Place : JABALPUR (Assistant professor)

4
 SHRI RAM INSTITUTE OF
TECHNOLOGY

DECLARATION

I HIMANSHU SHARMA do hereby declare that the project

entitled“ANALYSIS OF CASH FLOW&FUND FLOW STATEMENT AT GALAXY
SUPER SPECIALITY HOSPITAL”Carried at“GALAXY SUPER SPECIALITY
HOSPITAL”is an original work carried out by me under the guidance of
MRS.KRATI JAIN (Assistant Professor) in partial fulfillment of Master Of
Business Administration during academic year,All the data represented in
this project is true and correct to the best of my knowledge and belief.

Place

Date: HIMANSHU SHARMA

5
 ACKNOWLEDGEMENT

It gives me pleasure in expressing my heartfelt gratitude and

indebtedness for the kind blessing showered upon me by honorable
Chairman Mr. R.KARSOLIYA Shriram Group of Institutions of Jabalpur
(M.P.)

I would like to express my gratitude towards Principal Dr. ATUL DUBEY

(SRIM), Jabalpur for their kind cooperation and encouragement which
help me to completing the project.

I am highly indebted to MRS.KRATI JAIN (Assistant Professor) for his/her

guidance and constant supervision as well as for providing necessary
information regarding the project and also for support in completing the
project.

I am thankful to all the faculty members of SHRI RAM INSTITUTE OF

TECHNOLOGY for their help and valuable suggestion.

Date. HIMANSHU SHARMA

Place. MBA 3RD semester

6
 TABLE OF CONTENTS

S.No. Topic Page No.

1 Executive Summary 9

2 Conceptual Background 13

3 Company Profile 17

4 Objectives of the study 20

5 Research Methodology 21

6 Data Analysis and Interpretation 24

7 Findings and Suggestions 49

8 Conclusion 50

9 Bibliography 51

10 Annexure 52

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A STUDY ON ANALYSIS OF CASH
FLOW&FUND FLOW STATEMENT AT GALAXY
SUPER SPECIALTY HOSPITAL.

8
 EXECUTIVE SUMMARY
A Cash Flow statement is a statement which explains the various sources from
which Cash were raised and the uses to which these Cash were put.A Cash Flow
shows the sources from which the Cash are received and the uses(or applications)
to which these have been put.In other words,a Cash Flow statement is used to
explain the movement of working capital.The statement of cash flows shows how
a company spends its money(cash outflows)and where the money comes from
(cash inflows).The cash flow statement includes all cash inflows a company
receives from its ongoing operations and external investment sources,as well as
all cash outflows that pay for business activities and investments during a given
quarter.In this article,we'll explain the cash flow statement and how it can help
you analyze a company for investing.

A Cash flow statement shows inflow and outflow of cash and cash equivalents
from various activities of a company during a specific period.The primary
objective of cash flow statement is to provide useful information about cash
flows(inflows and outflows)of an enterprise during a particular period under
various heads,i.e.,operating activities,investing activities and financing activities.

This information is useful in providing users of financial statements with a basis

to assess the ability of the enterprise to generate cash and cash equivalents and
9
the needs of the enterprise to utilize those cash flows.The economic decisions
that are taken by users require an evaluation of the ability of an enterprise to
generate cash and cash equivalents and the timing and certainty of their
generation.

Accrual accounting is used by most public companies and is the accounting

method where revenue is reported as income when it's earned rather than when
the organization organization receives payment.
Expenses are reported when incurred even though no cash payments have been
made,best example is if an organization records a sale,the revenue is recognized
on the income statement,but the organization may not receive cash until a later
date.From an accounting standpoint,the organization would be earning a profit
on the income statement and be paying income taxes on it.However,no cash
would have been exchanged.Also,the transaction would likely be an outflow of
cash initially,since it costs money for the organization to buy inventory and
manufacture the product to be sold.
It's common for businesses to extend terms of thirty,sixty,or even ninety days
for a customer to pay the invoice.The sale would be an accounts receivable with
no impact on cash until collected.
The funds flow statement reveals the sources from where the funds are

made available and the purpose for which funds are utilized in an organization.In

other words,a statement showing the sources and uses or applications of funds is

termed as funds flow statement.

It facilitates a comparison between the inflow and outflow of funds in two different

periods.In addition,it shows the changes in the financial position of an

organization by analyzing working capital,operating profit,and changes in long

term assets and liabilities.

In the words of Almond Coleman,“The funds flow statement summarizing the

1
significant financial changes which have occurred in the beginning and end of the

accounting period.”

Preparation of Funds Flow

Statement

Funds Flow Statement is a statement prepared to analyse the reasons for

changes in the Financial Position of a Company between 2 Balance Sheets.It

shows the inflow and outflow of funds i.e.Sources and Applications of funds

for a particular period.In other words,a Funds Flow Statement is prepared to

explain the changes in the Working Capital Position of a Company.There are 2

types of Inflows of Funds:-

1. Long Term Funds raised by Issue of Shares,Debentures or Sale of Fixed

Assets

2. Funds generated from Operations

If the Long Term Fund requirements of a company are met just out of the Long

Term Sources of Funds,then the whole fund generated from operations will be

represented by increase in Working Capital.

1
However,if the Funds generated

from Operations are not sufficient to bridge a gap of Long Term Fund

Requirements,then there will be a decline in Working Capital

An organization needs to follow some basic rules while preparing funds flow

statements.

The basic rules help to identify what is to be included in a funds flow

statement.It is essential to understand the causes of fund inflow or outflow while

preparing funds flow statements.

1
 Conceptual Background

A cash flow statement typically breaks out a company's cash sources and uses
for the period into three categories:cash flow from operating activities,cash
flow from investing activities,and cash flow from financing activities.It is
important to note that cash flow is not the same as net income,which includes
transactions that did not involve actual transfers of money(depreciation is
common example of a no cash non-cash expense that is included in net income
calculations but not in cash flow calculations).

Three Sections of the Cash Flow Statement-

Companies produce and consume cash in different ways,so the cash flow

statement is divided into three sections:cash flows from operations,

financingandinvesting.Basically,the sections on operations and financing

show how the company gets its cash,while the investing section shows how

the company spends its cash.(To continue learning about cash flow,seeThe

Essentials OfCash Flow,Operating Cash Flow:Better Than Net Income?and

What Is ACash Flow Statement?)

1
1 Cash Flows from Operating Activities–

The following rules can be followed to calculate Cash Flows from Operating
Activities when given only a two-year comparative balance sheet and the Net
Income figure.Cash Flows from Operating Activities can be found by adjusting
Net Income relative to the change in beginning and ending balances of Current
Assets,Current Liabilities,and sometimes Long Term Assets.When comparing
the change in long term assets over a year,the accountant must be certain that
these changes were caused entirely by their devaluation rather than purchases
1
or sales(i.e.they must be operating items not providing or using cash)or if they
are non-operating items.

 Decrease in non-cash current assets are added to net income

 Increase in non-cash current asset are subtracted from net income
 Increase in current liabilities are added to net income
 Decrease in current liabilities are subtracted from net income
 Expenses with no cash outflows are added back to net income(depreciation
and/or amortization expense are the only operating items that have no effect on
cash flows in the period)
 Revenues with no cash inflows are subtracted from net income
 Non-operating losses are added back to net income
 Non-operating gains are subtracted from net income
2. Cash Flows from Investing Activities-

This section largely reflects the amount of cash the company has spent
oncapital expenditures,such as new equipment or anything else that needed to
keep the business going.It also includes acquisitions of other businesses and
monetary investments such as money market Cash.You want to see a company
re-invest capital in its business by at least the rate ofdepreciationexpenses each
year.If it doesn't re-invest,it might show artificially high cash inflows in the
current year which may not be sustainable.

1
 3. Cash Flow From Financing Activities-
This section describes the goings-on of cash associated with outside financing
Finding the Cash Flows from Financing Activities is much more intuitive and needs
little explanation.Generally,the things to account for are financing activities:

 Include as outflows,reductions of long term notes payable(as would represent

the cash repayment of debt on the balance sheet)
 Or as inflows,the issuance of new notes payable
 Include as outflows,all dividends paid by the entity to outside parties
 Or as inflows,dividend payments received from outside parties
 Include as outflows,the purchase of notes stocks or bonds

Or as inflows,the receipt of payments on such financing vehicles

In the case of more advanced accounting situations,such as when dealing with

subsidiaries,the accountant must

 Exclude intra-company dividend payments.

 Exclude intra-company bond interest.

1.

LIMITATIONS OF THE RESEARCH:-

1. Single ratio cannot be used to interpret the change in the financial position of

the company in this search.

2. Personal bias of the people of finance department is also a drawback for our

research.

3. It is not sure that the figures provided to us in financial statements are right or

wrong.

4. The information provided to us was very limited.

5. The company was not ready to disclose their financial statements.

The time limit for the study and analysis of the company was not sufficient.
1
 Company Profile

GALAXY SUPER SPECIALTY

HOSPITAL

GALAXY HOSPITAL
Galaxy Hospital is a recognized name in patient care.It was incepted in
the year 2016 .They are one of the well-known Specialty Hospitals in
Jabalpur.This hospital in Jabalpur offers a lot of facilities for patient’s treatment
like ambulance,ICU/general beds,Pharmacy,Canteen,etc.Along with above
facilities,hospital is specialised for
Anesthesiology,Cardiology,Dermatology,Diabetes,Gynecology,Immunology,Nep
hrology,Neurology,Orthopaedic,Rheumatology,Urology Galaxy Hospital has
specialist doctors practicing under different specializations.
Hospital Name Galaxy Hospital
Type Of Hospital General Hospital
Address Ukhri Road,Vijay Nagar,Jabalpur.
1
Contact 0761-2401637
District Jabalpur
State Madhya Pradesh

Facilities
• Has Ambulance:Yes
• Lab Attached:Yes
• Pharmacy Attached:No
• Canteen:No
• Cashless medical claim:No
• Organ Transplants:No
• No.of Beds:104
• ICU Beds:0

For Treatment Information at Galaxy Hospital Jabalpur

• Transparency
• Affordability
• Trust
• Patient Care
• Commitment

1
Vision and Mission

Our Vision

Our vision is to achieve excellence in Healthcare services by offering unique

expertise,state of the art technology&patient care.Metro Group of Hospitals is
committed in providing world class health care at an affordable
cost,irrespective of the education background,caste,creed or social status of
the patient.

Our Mission

Our immediate agenda is to set up more such dedicated centres for providing
wholesome treatment to the patients from all over the country and abroad.We
are committed in continually serving the humanity at every needful hour with
our state of the art facilities and world's best professionals.We are motivated
by the immense faith that our patients have kept in us,we will stand by our
principles and policies and will pursue the same with full dedication in future as
well.

1
OBJECTIVES OF THE STUDY
• To study the financial soundness of The Galaxy Super Specialty Hospital.

• To observe the different sources from which cash been collected and various
purposes for which cash has been utilized during the year.

• To analyze the statement of projected cash flows including the relation among
cash flows from operating,investing and financing activities for business in
various stages of their growth.

• To observe the differences among net income,cash receipts and cash

payments.

• It evaluates the ability of the firm to meet obligation such as loan

repayment,dividend,taxes etc.

2
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
MEANING OF RESEARCH
Research methodology is a strategy that guides a researcher in providing
answers to the research questions and for this research,survey is done.A
research design is the specification of method and procedure for acquiring the
information needed it is the overall operational pattern framework of the
project the stipulates what information is to be collected from which sources by
what procedure.If it is a good design,it will ensure that the information
obtained is relevant to the research questions and that it was collected by
objective and economical procedure.

Research in common parlance refers to a search for knowledge.Research is an

academic activity and as such the term should be used in a technical sense.

According to Clifford Woody-“research comprises,defining and redefining

problem,formulating hypothesis”.The researcher has to determine whether they
fit the formulating hypothesis.The researcher has to decide.
2
 RESEARCH DESIGN-A research is the arrangement of the conditions for the
collections and analysis of the data in a manner that aims to combine
relevance to the research purpose with economy in procedure.

The method used for research is EXPLORATORY cum DESCRIPTIVE.

I. SECONDARY DATA:-

Secondary data means data that are already available i.e..,refer to the data
which have already been collected and analyzed by someone else.When the
researcher utilized secondary data,then he has to look into various sources
from where he can obtain them.In this case the certainly he is not conformed
with the problem that is usually associated with collection of original data

• Annual report:-The financial analysis of the company is done with the help
of the annual report published by the company during the period.

• Booklets,Catalogs and files and website-Various other information of the

company was taken by the various other manuals of the company.

This report is based on the primary and secondary data collected.Data has been
collected by the various documents available in the finance department.The theory
has been collected from the detail available on the net.This data consists of
Information that has been previously gathered.Therefore,data is collected from
published academics,journals,company report,newspaper relevant to the topic has
DATA COLLECTION METHODS AND TECHNIQUES
PRIMARY DATA.
SECONDARY DATA.
TOOLS & TECHNIQUES.
APPLIED PRINCIPALS & CONCEPT.
LIMITATIONS OF THE RESEARCH.

2
been considered to carryout research while selecting secondary data due care has
been taken for its reliability,relevancy&consistency in nature.

II. TOOLS AND TECHNIQUES:-

No study could be successfully completed without proper tools and

techniques,same with my project.For the better presentation and right
explanation I used tools of statistics and computer very frequently.

Statistical tools includes:-Bar charts,Tables and Percentages.

III. APPLIED PRINCIPALS AND CONCEPT:-

I have applied the concept and principles of Ratio analysis for the
accomplishment of the objectives of my project.

6. Sources of Data:The sources of data are from the annual reports of the company from
the year 20172018 to
20202021. RESEARCHPLAN
STUDY OF GALAXY SUPER SPECIALTY HOSPITAL

DETERMINATION OF OBJECTIVES

COLLECTION OF DATA (Balance sheet, Profit & loss a/c )

UNDERSTANDING CONCEPT OF CASH FLOW STATEMENT

ANALYSIS OF DATA AND INTERPRETATION

CONCLUSION AND FINDINGS

SUGGESTIONS AND RECOMMENDATIONS

2
RESEARCH AREA:

Galaxy Super Specialty Hospital,JABALPUR

TOOLS of Analysis

1. Data was collected from the different authentic sources like

websites,books&articles etc covering relevant information regarding the set
objective.
2. For analysis and interpretation of data various tools are used like MS

WORD,MS EXCEL chart and graph.

3. DATA ANALYSIS AND

INTERPRETATION

4.

2
Q1.What Is The Cash Flow Statement For The Year Ended 31st March 2017 Of
Galaxy Super Specialty

AS AT Hospital?
31-MAR-
PARTICULARS 2018 Cash Inflow For the Year
Increase in Share 2017-18
Capital 25,000,000
Proceeds from Long term
borrowings INTERPRETATION
Repayment of finance/lease During the year cash
liabilities (17,521,755)
Repayment of Unsecured inflows are operating
Loans (7,000,000) profit Rs.24,288,581/-

NET CASH USED IN FINANCING ,decrease in Trade

ACTIVITIES 478,245
OTHER RECEIVABLES
Net increase in cash and cash RS.12,45,509/-AND
equivalents (37,970,749) INCREASE IN SHARE
Cash and Cash equivalents as at 01-04- CAPITAL
2016 70,848,106 2,50,00,000/-.
Cash and Cash equivalents as at 01-04-
2017 33,355,602
(Closing
balance)

Cash Outflow For the Year 2017-18

Particulars Amount
Operating Profit 24,288,581
Trade&Other receivables 1,245,509
Other Income 630,412
Increase in share capital 25,000,000
Particulars Amount

Inventories 2,529,376
Trade Payables 54,287,819
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 purchase of fixed assets 7,584,548

purchase of investments 58,580

Repayment of Finance 17,521,755

Repayment of Unsecured
loans 7,000,000

DURING THE YEAR CASH OUTFLOWS ARE INCREASE IN INVENTORY RS.25,29,376/-,

Decrease in Trade Payables Rs.54,287,819/-,
• Purchase of Fixed assets Rs.75,84,548/-,repayment of finance Rs.1,75,21,755/-
,and repayment Unsecured Loans Rs.70,00,000/-.

Q2.What Is The Cash Flow Statement For The Year Ended 31st March 2018 Of
Galaxy Super Specialty Hospital?
AS AT
31-MAR-
PARTICULARS 2019

Increase in Share Capital 57,300,000

Proceeds from Long term borrowings 22,048,597

Repayment of finance/lease liabilities

(17,560,144)
NET CASH USED IN FINANCING
ACTIVITIES 61,788,453

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 7,180,286
Net increase in cash and cash equivalents

Cash and Cash equivalents as at 01-04-2017 32,877,357

Cash and Cash equivalents as at 0

04-2018 101846096
(Closing balance)

Cash Inflow For the Year 2018-19

Particulars Amount Percentage
Operating profit 45,329,042 186.62
7,318,835 587.61
Sale of Fixed Assets
profit on sale of 723,352 114.74
investments&Other Income
57,300,000 229.2
Increase in Share Capital
-

Secured loans 22,048,597

Cash Inflow For the Year 2018-19

6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0

OperatingSale of Fixed profit on sale Increase in Secured loans

profitAssets of Share Capital
investments & Other Income

2
 Cash Inflow For the Year 2018-19
6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0

OperatingSale of Fixed profit on sale Increase in Secured loans

profitAssets of Share Capital
investments & Other Income

• During the year cash inflows are operating profit Rs.4,53,29,042/-,sale of fixed
assets Rs.73,18,835/-,

• Increase in share capital Rs.5,73,00,000/-,and increase in long term

borrowings Rs.2,20,48,597/-.

• The percentage of operating profit is 186.62%

• The percentage of Sale of Fixed Assets is 587.61%
• The percentage of profit on sale of investments&Other Income is 114.74%

Cash Outflow For the Year 2018-19

Particulars Amount
Trade&Other Receivables 39,862,080
Inventories 6,763,000
Trade Payables&Provisions 7,093,419
Purchase of Fixed assets 31,260,897
Investment on subsidiaries 23,000,000
Repayment of Liabilities 17,560,144

2
 • During the year cash outflows are Increase in Trade&other receivables
Rs.3,98,62,080/-,

• Increase in Inventories Rs.67,63,000/-,decrease in Trade Payables

Rs.70,93,419/-,purchase of fixed assets 3,12,60,897/-,Investment in
Subsidiaries(Galaxy Super Specialty Hospital)Rs.2,30,00,000 and Repayment of
loans 1,75,60,144/-.

• During the year 2018-19 Major cash inflows are Operating profit,Increase in
share capital and Proceeds from Long term Loans.Major Cash outflows are
Increase in current assets,Purchase of fixed assets,Investments in Subsidiaries
and repayment of loans.

Q3.What Is The Cash Flow Statement For The Year Ended 31st March 2019 Of
Galaxy Super Specialty Hospital?

2
 AS AT
31-MAR-
PARTICULARS 2020
Increase in Share
Capital 69,293,720
Proceeds from Long term
borrowings 71,883,646
Repayment of finance/lease
liabilities (1,846,518)

NET CASH USED IN FINANCING

ACTIVITIES 139,330,848

Net increase in cash and cash

equivalents (27,861,369)
Cash and Cash equivalents as at 01-04-
2018 40,057,643
Cash and Cash equivalents as at 01-04-
2019 151527122
(Closing
balance)

Cash Inflow for the year 2019-20

Particulars Amount Percentage

operating profit 80,755,936 178.15
Sale of Fixed Assets 13,029,407 178.02
profit on sale of investments&other 1107.85
income 8,013,716
Increase in Share Capital 69,293,720 120.93
Long term borrowings 71,883,646 326.02

3
 Cash Inflow for the year 2019-20

9,00,00,000
8,00,00,000
7,00,00,000
6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0

operating Sale of Fixedprofit on saleIncrease in Long term

profit Assets of Share Capital borrowings
investments& other income

Cash Inflow for the year 2019-20

9,00,00,000
8,00,00,000
7,00,00,000
6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0

operating Sale of Fixedprofit on saleIncrease in Long term

profit Assets of Share Capital borrowings
investments& other income

• During the year Cash inflows are Operating Profit Rs.8,07,55,936/-,Sale of

Fixed assets Rs.1,30,29,407/-,

• Profit on Sale of Investments Rs.80,13,716/-,Increase in Share Capital

Rs.6,92,93,720/-and working Capital loans 7,18,83,646/-.

3
 • The percentage of operating profit is 178.15%
• The percentage of Sale of Fixed Assets is 178.02%
• The percentage of profit on sale of investments&Other Income is 1107.02%

Cash Outflow For the year 2019-20

Particulars Amount
Trade&Other receivables 60,665,419
Inventories 46,632,986
Trade payables&provisions 2,125,289
Purchase of fixed assets 79,567,583
Investments in Subsidiaries 80,000,000
Repayment of Finance 1,846,518

Cash Outflow For the year 2019-20

8,00,00,000

7,00,00,000

6,00,00,000

5,00,00,000

4,00,00,000

3,00,00,000

2,00,00,000

1,00,00,000
Trade &Inventories Trade Purchase of Investments Repayment
0 Other receivables payables & provisions
fixed assets in of Finance
Subsidiaries

Interpretation:

3
 Cash Outflow For the year 2019-20
8,00,00,000

7,00,00,000

6,00,00,000

5,00,00,000

4,00,00,000

3,00,00,000

2,00,00,000

1,00,00,000
Trade &Inventories Trade Purchase of Investments Repayment
0 Other receivables payables & provisions
fixed assets in of Finance
Subsidiaries

Interpretation:
• During the year Cash outflows are Increase in Trade receivables
Rs.6,06,65,419/-,Increase in Inventories Rs.4,66,32,986/-,Purchase of fixed
assets Rs.7,95,67,583/,Investments in subsidiaries(Galaxy Super Specialty
Hospital)Rs 8,00,00,000/-.

• During the year 2019-20 Major Cash inflows are Operating Profit,Sale of Fixed
assets,Profit on sale of Investments,Increase in Share Capital and working
capital loan.Major Cash outflows are Increase in Trade and other
receivables,increase in Inventories,purchase of fixed assets,Investments in
subsidiaries and Repayment Long-term loans.
Q4.What Is The Cash Flow Statement For The Year Ended 31st March 2020 Of
Galaxy Super Specialty Hospital?

3
 AS AT
31-MAR-
PARTICULARS 2021
Increase in Share
Capital -

Increased in Bank borrowing 2,379,276

Loan from Directors

(16,800,000)
NET CASH USED IN FINANCING
ACTIVITIES 8,736,849

Net increase in cash and cash

equivalents 1,812,184
Cash and Cash equivalents as at 01-04-
2019 12,496,274
Cash and Cash equivalents as at 01-04-
2020 14,308,458
(Closing
balance)
Cash Inflow for the year 2020-21
Particulars Amount Percentage
operating profit 90,338,501 111.92
Sale of Fixed Assets 12,119,688 93.01
profit on sale of investments&other 57.80
income 4,632,005
Bank borrowings 2,379,276 3.30

Cash Inflow for the year 202-201

10,00,00,000
9,00,00,000
8,00,00,000
7,00,00,000
6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0
operating profit Sale of profit on sale of Bank borrowings
Fixed investments&
Assets other income

3
 Cash Inflow for the year 2020-21

10,00,00,000
9,00,00,000
8,00,00,000
7,00,00,000
6,00,00,000
5,00,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0

operating profitSale of Fixedprofit on sale of Bank borrowings

Assetsinvestments& other income

During the year Cash inflows are Operating Profit Rs.90,338,501/-, Sale of
Fixed assets Rs.12,119,688/-,Profit on Sale of Investments Rs.
4,632,005/-,Decrease in Bank borrowings 2,379,276/-.

3
 • The percentage of operating profit is 111.92%
• The percentage of Sale of Fixed Assets is 93.01%
THE PERCENTAGE OF PROFIT ON SALE OF INVESTMENTS&OTHER INCOME IS
57.8%CASH OUTFLOW FOR THE YEAR 2020-21

Particulars Amount
Trade&Other receivables 29,788,823
Inventories 47,179,552
Trade payables&provisions 1,511,055
Purchase of fixed assets 68,052,947
Sale of fixed asset 12,119,688

3
 Cash Outflow For the year 2020-21

• During the year Cash outflows are Increase in Trade receivables

Rs.29,788,823/-,Increase in Inventories Rs.47,179,552/-,Purchase of fixed
assets Rs.68,052,947/,Sale of fixed asset Rs 12,119,688/-.

• During the year 2020-21 Major Cash inflows are Operating Profit,Sale of
Fixed assets,Profit on sale of Investments,Decrease in Bank
borrowings.Major Cash outflows are Increase in Trade and other
receivables,Increase in Inventories and purchase of fixed assets,Decrease
in Sale of fixed asset.

Comparative Percentage Analysis(2018-19 To 2020-21)

Particulars 2018-19 2019-20 2020-21
Operating Profit 186.62 178.15 111.92
Sale of Fixed Assets 587.61 178.02 93.01
Profit On Sale Of 114.74 1107.85 57.80
Investments&Other Income
Increase in Share Capital 229.2 120.93 3.30
Secured Loans 326.02
3
Investments&Other Income was 114.74,and in year 2019-20 Profit On Sale Of
Investments&Other Income increase to 1107.85.but Operating profit,Sales of
fixed Assets and Share capital decreasing continue from year 2018-19 to year
2020-21.

Q.5 What is the analysis of operating activity for the last 2 years in percentage?
ANALYSIS OF OPERATING ACTIVITY
Particulars 2018 2019 Changes Change
in percent
%

1.Net
profit
(loss)before 74531667 77563590 3031923 4.067%
tax and extra
ordinary items
2.Net cash
Flow from 74458827 28667758 45791069 61.49%
operating
activities
3
FORMULAS:
1. Net profit(loss)before tax and extra ordinary items=
Current year–
X
Previous 100

X
Previous 100

year
Previous
year

• 77563590–74531667 X
74531667 100
• 3031923 X
74531667 100
=4.067%
2. Net cash flow from operating activities=
• 74458827–28667758 X
74458827 100

=61.49%
Interpretation:
3
 • Figure denotes comparative weight of net profit(loss)before tax and
extra ordinary items from operating activity and net cash flow from
operating activity.
• Total cash operating expenses is total operating expenses net of
depreciation and amortization.Total cash operating expenses
Particulars 2018-19 2019-20 2020-21
Operating Profit 86.6% 78.15% 73.94%
Purchase of Fixed 534.45 354.5% 14.4%
Assets
Profit On sales of Fixed 212.9% 96.33%
Assets
Other Income 128.5
includes unpaid expenses.
• This figure reflects that total cash operating expenses is 4.067%and
61.49%times more than cash from operation during 2016-
17,201819,2018-2019,2020-2021 respectively.
• It is very large if compared with cash from operations.It denotes that
cash earning is not sufficient.

Comparative Percentage Analysis(2018-19 To 2020-21)

600

500

400
2017-18
300 2018-19
2019-20
200
100

0
Operating ProfitPurchase of Fixed Profit on sales of FixedOther Income AssetsAssets

4
 600
500
400
300
200
2017-18
2018-19
2019-20

100
0
Operating ProfitPurchase of Fixed Profit on sales of Fixed Other Income AssetsAssets

Interpretation:

According to analysis in year 2018-19 Profit on sales of fixed assets

was 212.90 and in year 2019-20 Profit on sale of fixed assets
decreases to 96.33.Because of the less depreciation fixed assets was
less purchase on year 2019-
20.

700

600

500

400 2017-18
2018-19
300 2019-20
200

100

0
Extra Ordinary ItemInterest Received onDepreciationExtra Ordinary Item Fixed Assets(PF)

4
 Interpretation:According to analysis in year 2018-19 there is no changes on interest
on fixed assets.And in year 2018-19 Extra Ordinary item was 608.5 and in year 2020-
21 it decreases to 146.12.Because of lack of sale,demand of extra ordinary item was
decreases in year 2019-20.

Comparative Percentage Analysis(2018-19 To 2020-21)

INTERPRETATION–According to analysis in year 2018-19 trade and other receivable
was 330.4 and in year 2019-20 trade and other receivable were decreasing to
52.188.In year 2018-19 inventories was 167.37 and in year 201920 inventories was
increasing to 589.5.Because of the lack of demand in the market inventories
increases in year 2019-20.

Particulars 2018-19 2019-20 2020-21

Cash generated from operations 73.18% 241.71% 34.06%
Extra ordinary item before tax 608.5% 146.12% 40.6%
Investment in subsidiaries 391.63% 247.83%

Particulars 2018-19 2019-20 2020-21

Extra ordinary item 608.50% 4.0675% 146.12%
Interest received on
fixed assets
Depreciation 35.83% 7.97% 21.69%
Extra ordinary item 73.31% 241.715% 159.73%

4
 700

600

500

400
Series 1
Series 2
300
Series 3
200

100

0
cash generated fromextra ordinary iteminvestment in
operationssubsidiaries

70
60
50
40
30
Series
Series Series

20
10
0

cash generatedextra ordinary operation

investment subsidiarie

Interpretation–According to the analysis of year 2018-19 cash generated from operations was
73.18 and in year 2019-20 it is
Particulars 2018-19 2019- 2020- increases by 241.72.And in year
20 21 2018-19 to 2018-2019 extra
Purchase of fixed assets 534.45% 354.5% 14.9% ordinary item and investment to
Sales of fixed assets - 78% 6.98% subsidiaries were decreasing.’
Misc.expenditure written - - -
off|- Interpretation-According to
analysis in year 2018-19 to 2020-21 there is no changes in misc.expenses.And in year 2018-19
purchase of fixed assets was 534.4 and in year 2020-21 it was decreases to 354.5.Because of
less depreciation fixed assets was purchase on year 2019-20.

4
 Particulars 2018-19 2019-20 2020-21
Inventories 167.37% 589.5% 117.2%
Trade payable and 86.93% 70% 28.90%
provisions
Profit on sale of 26.49% 107.8% 42.19%
investments and other
Incomes

700
600
500
400
2017-18
300 2018-19
200 2019-20

100
0
Inventories Trade payables Profit on sale of
and investment and
provisons other income

700
600
500
400
300
200 2017-18
100 2018-19
0 2019-20

Inventories Trade payables and Profit on sale of

provisonsinvestment and other income

Interpretation:According to Analysis in year 2018-19.Inventories was 167.37 and in year 2019-

20 it increases to 589.5.Profit on sale of investment and other incomes was 26.49 and in year
2019-20 it increases to 107.8.Because of the increase in the demand inventories increases in
year 2019-20.

4
 450
400
350
300
250
200
150 2017-18
100 2018-19
50 2019-20
0

Other IncomeInvestment and Purchase of fixedCategory 4 subsidiariesAssets

Interpretation:According to year Analysis in year 2018-19 Other income was

14.74 and in year 2019-20 it increases to 107.8.Investment and subsidiaries
decreases 247.82 in year 2019-20.Because of the depreciation the fixed assets
was less purchase on year 2019-20.

Comparative Percentage Analysis(2018-19 To 2020-21)

Particulars 2018-19 2019-20 2020-21

Operating Activities 608.5% 146.1% 40.6%

Profit on sale of 220.95% 96.33% -
Fixed Assets
Extra ordinary Item 73.31% 241.71% 159.7%

4
 700

600

500

400
2017-18
300 2018-19
2019-20

200

100

0
Operating ActivitiesProfit on sale of Extra ordinary Item
Fixed Assets

700

600

500

400 2017-18
2018-19
300 2019-20
200

100

0 Operating Activities Profit on sale ofExtra ordinary Item Fixed Assets

Particulars 2018-19 2019-20 2020-21

Operating Activities 608.5% 146.1% 40.6%

Profit on sale of Fixed 220.95% 96.33% -
Assets
Extra ordinary Item 73.31% 241.71% 159.7%

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 700
600
500
400
300
2017-18
2018-19
2019-20
200
100
0

Operating Activities Profit on sale of Extra ordinary Item Fixed Assets

Interpretation:According to analysis 2018-19 operating activities was 608.5

and it decreases to 146.1 in year 2019-20.In 2018-19 extra ordinary item was
73.31 and it increases to 241.7 in year 2019-20.Because of the increase in the
demand in the market extra ordinary item was increases in year 2019-20.

Particulars 2017-19 2019-20 2020-21

Interest received on - - -
fixed assets
Trade and 86.93% 70% 28.95
payable
provision
Depreciation 35.8% 7.97% 21.69%

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 100
90
80
70
60
50 2017-18
40 2018-19
30 2019-20
20
10
0
Interset received inTrade payable and Depreciation Category 4
fixed assets provision

600
500
400
300
200 2017-18
100 2018-19
2019-20

0
Operating Profit Purchase of Fixed Profit on sales of Other Income
AssetsFixed Assets

Interpretation:According to analysis of year 2018-19 trade payables and

provision was 86.93 and it decreases to 70 in year 2019-20.There is no interest
received on fixed assets.Because of less use of fixed assets depreciation
decreases in year 2019-20.

600

500
400

300 2017-18
2018-19
200 2019-20

100
0
Operating ProfitPurchase of Fixed Profit on sales of Fixed Other
AssetsIncome
Assets

4
 FINDING AND SUGGESTION
FINDINGS

 Major Cash outflows are relating to acquisition of Fixed Assets.

 The company is having sustainable growth in Operating profit.
 Major cash outflows are purchase of fixed assets.
 Major Cash inflows are operating profit and increase in trade and other
receivables.
 During the four years non cash expenditure is Depreciation and
Miscellaneous Expenses.
 During the period the company has increased its share capital to
Rs.11993720/-
 During the period the company has positive cash flows from operating
activities
 During the period the company has negative cash flows from investing
activities by Purchase of fixed assets and investments.
 During the period the company has Positive cash flows from Financing
activities by increase in Share capital and Working capital loans.

SUGGESTIONS
 The management has to prepare cash budget periodically to know the
requirement of the cash.
 The company can take working capital loans from banks.
 The company can take Term loans from banks to acquire fixed assets
and to expand the business.
 The company has to increase revenue by increasing in sales.
 The cash credit limit with Yes bank has to increase to expand the
operations of the company.
 Sometimes there are surplus funds.it is necessary to mobilize the funds
into investing activities.
 The management of the company has to prepare budgeted cash
statements.
 The company has to increase its cash flow from operating activities
instead of increase in share capital.
 The company has to prepare strategy for expanding the operations.

4
 CONCLUSION
 The cash position at the end of each year should be adequate to meet
the cash requirements for the following year.If too little cash,then
additional cash will have to be injected or cash paid out must be
reduced.If there is too much cash on hand,this money is not working for
your business.

 The cash balance as disclosed by the projected cash flow statement may
not represent the real liquid position of the company since it can be
easily influenced by postponing purchases and other payments.

 The projection becomes more useful when the estimated information

can be compared with actual information as it develops.It is important
to follow through and complete the actual columns as the information
becomes available.Utilize the cash flow projection to assist in setting
new goals and planning operations for more profit..

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 BIBLIOGRAPHY
BOOKS:

• SHASHI K.GUPTA,(5TH edition);FINANCIAL MANAGEMENT THEORY AND

PRACTICE,kalyani publishers.
• CR KOTHARI,(3rd edition 2016);RESEARCH METHODOLOGY,METHODS
ANDTECHNIQUES,New age international publishers.

• SHASHI K G.,SHARMA R.K.“Management Accounting”,Published by Kalyani

Publishers 11th edition.

• S.C.KUCHHAL“Finance Management”,Published by Chaitanya Publishers 6th edition.

• CHANDRA“Finance Management”,Published by Tata Mc-Graw-Hill Publishers 6 th

edition.

• M.Y.KHAN.,P.K.JAIN“Finance Management”,Published by Tata Mc-Graw-Hill

Publishers 4th edition.

Webliography
• www.galaxyhosital.com
• https://economictimes.indiatimes.com/topic/
• https://www.indeed.co.in/cmp/

5
ANNEXURE

5
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2020.

AS AT 31-MAR-2020
PARTICULARS
A.CASH FLOW FROM OPERATING ACTIVITIES
Net Profit(Loss)before tax and Extra 74,531,667
extraordinary items

Adjustments for:
Depreciation 14,302,432
Misc.Expenditure Written off 1,450
Profit on Sale of Fixed Assets (65,897)
Profit on Sale of Investment (7,625,356)
Interest Received (346,360)
Other income (42,000)
Operating Profit(Loss)before working capital changes

Adjustments for: 80,755,936

Trade and other receivables (60,665,419)

Inventories (46,632,986)
Trade Payables&Provisions Cash generated from operations (2,125,289)
(28,667,758)
CASH FLOW BEFORE EXTRAORDINARY

ITEMS (28,667,758)
Extraordinary items(Pro.Written back)Net Cash From
Operating Activities (28,667,758)

B CASH FROM INVESTING

ACTIVITIES
Purchase of Fixed Assets (79,567,583)
Sale of Fixed Assets 13,029,407
Investment in Subsidiaries (80,000,000)
Profit on Sale of Investments&Other Income 8,013,716
Net cash used in investing activities (109856702)

5
 CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2021.

AS AT 31-MAR-
PARTICULARS 2021
A.CASH FLOW FROM OPERATING ACTIVITIES
Net Profit(Loss)before tax and Extra extraordinary items 77,563,590

Adjustments for:
Depreciation 17,405,465
Misc.Expenditure Written off 1,450
-
Profit on Sale of Fixed Assets
-
Profit on Sale of Investment
-
Interest Received
Other income (4,632,,005)
Operating Profit(Loss)before working capital changes 90,338,501

Adjustments for:
29,788,823
Trade and other receivables
Inventories (47,179,552)
Trade Pay ables &Provisions 1,511,055
Cash generated from operations
(18,901,784)
74,458,827

-
CASH FLOW BEFORE EXTRAORDINARY ITEMS Extraordinary
items(Pro.Written back) Net Cash From Operating Activities 74,458,827

B.CASH FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (68,052,947)
Sale of Fixed Assets 12,119,688
-
Investment in Subsidiaries
Profit on Sale of Investments&Other Income 4,632,005
Net cash used in investing activities 23,157,573

THANK YOU 54
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