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Fund Flow Analysis

1. INDUSTRY PROFILE
Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and Low Cost Carriers (LCC). Private airlines account for around 75% share of the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people.

The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of LondonKarachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying both air cargo and passengers. These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted to Pakistan.

In early 1948, Government of India established a joint sector company, Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs.2,00,00,000/- and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for international air travel passengers. The assets of the existing airline companies were transferred to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian skies. A third government-owned airline, Vayudoot, which provided feeder services between smaller cities, was merged with IAC in 1994. These government-owned airlines dominated Indian aviation industry till the mid-1990s.

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In April 1990, the Government adopted open-sky policy,it means unrestricted access by any carrier into the sovereign territory of a country without any written agreement specifying capacity, ports of call or schedule of services. In other words an Open Skies policy would allow the foreign airline of any country or ownership to land at any port on any number of occasions and with unlimited seat capacity. There would be no restriction on the type of aircraft used, no demand for certification, no regularity of service and no need to specify at which airports they would land. Defined in this manner, it is not surprising that Open Skies policies are adopted only by a handful of countries, most commonly those that have no national carriers of their own and that have only one or two airports. No sovereign country of any eminence practices Open Skies least of all the European Union, UK, USA, Japan, Australia or countries in South East Asia.and allowed air taxi- operators to operate flights from any airport, both on a charter and a non-charter basis and to decide their own flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign direct investment (FDI) of up to 49% equity stake and NRI (Non Resident Indian) investment of up to 100% equity stake were permitted through the automatic FDI route in the domestic air transport services sector. However, no foreign airline could directly or indirectly hold equity in a domestic airline company.

By 1995, several private airlines had ventured into the aviation business and accounted for more than 10% of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation industry is dominated by private airlines and these include low cost carriers such as Deccan Airlines, GoAir and SpiceJetetc, who have made air travel affordable.

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Airline industry in India is plagued with several problems. These include high Aviation Turbine Fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue its success story. Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New Delhiwere privatized recently. Two Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright.

Airlines: Size:-Of a total number of 454 airports and airstrips in India, 16 are designated as
international airports. The Airports Authority of India (AAI) owns and operates 97 airports. A recent report by Centre for Asia Pacific Aviation (CAPA), Over the next 12 years, India's Civil Aviation Ministry aims at 500 operational airports. The Government aims to attract private investment in aviation infrastructure. India has been witnessing a very strong phase of development in the past few months. Many domestic as well as international players are showing interest in the growth and development of the aviation sector with immense focus on the development of the airports. Indian private airlines Jet, Sahara, Kingfisher, Deccan, Spicejet - account for around 60% of the domestic passenger traffic. Some have now started international flights. For the next years to come India is poised with strong focus on the development of its airport to meet the international standards. The government is planning modernization of the airports to establish a standard. The newly developed airports will help releasing pressure on the existing airport in the country Plans:-A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. Mumbai and Delhi airports have already been privatized. These two airport are being upgraded at an estimated investment of US$ 4 billion for the period 2006-16. Development of airport infrastructure is a focus area for the Government. There has been a significant uptrend in domestic and international air travel.
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AAI has planned a heavy investment of USD 3.07 billion over the next five years. Out of it 43 per cent will be for the three metro airports in Kolkata, Chennai and Trivandrum. The rest will be invested in upgrading other non-metro airports and in the modernization of the existing aeronautical facilities. Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years. It is estimated that the data will cross 100 million passengers per annum by 2010 Cargo traffic to grow at over 20% per annum. over the next five years, crossing 3.3 million tonnes by 2010 Major investments planned in new airports and up gradation of existing airports 100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%. 100% FDI under automatic route is permissible for greenfield airports. 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies. 100% equity ownership by Non Resident Indians (NRIs) is permitted. AAI Act amended to provide legal framework for airport privatization. 100% tax exemption for airport projects for a period of 10 years. Open Sky Policy of the Government and rapid air traffic growth have resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines.

Initiatives:-The Committee on Infrastructure has initiated several policy measures that


would ensure time-bound creation of world-class airports in India. A comprehensive civil aviation policy is on the anvil. An independent Airports Economic Regulatory Authority Bill for economic regulation is also under consideration. The policy of open skies introduced some time ago has already provided a powerful spurt in traffic growth that has exceeded 20% per annum during the past two years. Major airports such as Chennai and Kolkata are also proposed to be taken up for modernization through the PPP route.

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To ensure balanced airport development around the country, a comprehensive plan for the development of other 35 non-metro airports is also under preparation. These measures are expected to bring a total investment of Rs. 40,000 crore (USD 8.312 billion) for modernization of the airport infrastructure. A Model Concession Agreement is also being developed for standardizing and simplifying the PPP transactions for airports, on the analogy of the highways sector. This would include upgrading of the ATC services at the airports. Issues relating to customs, immigration and security are also being resolved in a manner that enhances the efficiency of airport usage. A greenfield airport is already operational at Bangalore and the one at Hyderabad, built by private consortia at a total investment of over USD 800 million, will be operational soon. A second greenfield airport being planned at Navi Mumbai is planned to be developed using public-private partnership (PPP) mode at an estimated cost of USD 2.5 billion. 35 other city airports are proposed to be upgraded through PPP mode where an investment of USD 357 million is being considered over the next three years.

Potential: High demand for investments in aviation infrastructure. Favorable demographics and rapid economic growth point to a continued boom in domestic passenger traffic and international outbound traffic. Greenfield airport projects planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur. International inbound traffic will also grow rapidly with increasing investment and trade activity and as Indias rich heritage and natural beauty are marketed to international leisure travelers. Modernization / up-gradation of metro airports induction of partners for Chennai, Kolkata expected subsequently SME lending, a largely untapped market, presents a significant opportunity. This accounts for 40% of the industrial output and 35% of direct exports.

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Airlines Market Share:Airlines Air India (Domestic) Jet Airways Jet Lite Kingfisher Spice Jet Paramount Go Air IndiGo Market Share (in lakhs) 7.62 7.66 3.18 8.98 5.27 0.13 2.46 6.58 Percentage share 18.2 18.3 7.6 21.4 12.6 0.3 5.9 15.7 Seat factor (in %) 72.9 74.2 78.1 75.8 81.0 85.0 78.0 82.4

Market Share (in lakhs)


Air India (Domestic) Jet Airways Jet Lite Kingfisher Spice Jet Paramount Go Air IndiGo

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2. COMPANY PROFILE
Air India is the national flag carrier of India with a worldwide network of passenger and cargo services and also having in-house maintenance, repair and overhaul capabilities to support its present fleet of owned and leased aircrafts. Air Indias Department of Engineering has obtained the coveted ISO-9002 Certification for its engineering facilities for maintenance of its fleet of Aircrafts and family of Engines and APUs - also included are such services provided at other operators and customers The crucial function of procurement of spares, components and related materials required for the maintenance of Air Indias entire fleet of aircrafts and Customer Engines is performed by the Aircraft Spares Procurement Group of Materials Management Department in close coordination with Materials Planning Division of Engineering Department, Regional Offices of MMD at New York and London, Cargo Offices and Freight Forwarders at various Online Stations, Finance Department and large spectrum of Vendors from all over the world.

a. Background and inception of the company:


The national flag carrier of India with a worldwide network of passenger and cargo services, Air India is the only government-owned airline in the country, having recently merged with Indian Airlines. With its main base at Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, Delhi, Air India connects 146 international and domestic destinations around the world, including 12 gateways in India with Air India Express, a fully-owned subsidiary of Air India. Air India plans to join Star Alliance and has ordered 27 Boeing 787 (+7 options), to be delivered after 2009.

In 1932, Air India began its journey under the aegis of Tata Airlines, a division of Tata Sons Ltd. (now Tata Group). Following World War II in 1946, regular commercial service was restored in India and Tata Airlines became a public limited company under the name of Air India. Under the Air Corporations Act of 1953, the Government nationalized the air transportation industry and Air India International Limited was born. In 1960, Air India flew

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its first international flight to New York via London. In 1962, Air India became the world's first all-jet airline and its name was officially truncated to Air India.

In 2007, the Government of India announced that Indian would be merged into Air India. As part of the merger process, a new company called the National Aviation Company of India Limited (now called Air India Limited) was established, into which both Air India (along with Air India Express) and Indian (along with Alliance Air) would be merged. Once the merger was completed, the airline - called Air India - would continue to be headquartered in Mumbai and would have a fleet of over 130 aircraft.

b. Nature of Business Carried:Air India Limited mainly concentrated on aviation sector and few other services which is separately maintained and managed by Air India Limited. It has its own subsidiaries. They are as follows: Air India Air Transport Services Limited (AIATSL) Air India Air Transport Services Limited (AIATSL) is a Public Sector Undertaking (PSU) of the Government of India. AIATSL is a subsidiary of Air India and is headquartered in Mumbai, India. The company provides ground handling services (cargo, passenger, baggage) at various airports in India. The Company has authorized Share Capital of Rs.500 crores divided into 42,56,36,820 Equity Shares of Rs.10/- and 74,36,318 Redeemable Preference Shares of Rs.100/- each and present paid-up capital comprises 15,38,36,427 fully paid equity shares of Rs.10/- each amounting to Rs.153.84 Crores Air India Charters Limited (AICL) Air India Charters Limited (AICL) is a Public Sector Undertaking (PSU) of the Government of India. Headquartered in Mumbai, India, this subsidiary of Air India operates low cost carrier Air India Express from India to the Gulf and Southeast Asia. AICL operates flights from airports in Kerala, Punjab and Mangalore to Dubai, Abu Dhabi, Al Ain, Muscat and Salalah in the Middle East and Singapore in the east. Air India Charters has charters flying throughout India. It works with other charter companies including Vibha Lifesavers for air ambulance and Hi Flying aviation for its general charters in India.

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Air India Engineering Services Limited: It is one of the subsidiaries which provides assistance to the Air India Limited., That is helps in ground handling services and other services Hotel Corporation of India Limited: The company has authorized Share Capital of Rs. 41 crores dividend into 41,00,000 Equity Shares of 100/- each and its present paid up capital comprises of 40,60,000 fully paid up equity shares of Rs.100/- amounting to Rs.40.60 crores. The entire share capital of the company is held by Air India Ltd and its Nomimees.

c. VISION, MISSION and QUALITY POLICY Companys Mission:


To be rated among the top five airlines in Asia Pacific by customers and distribution partner Effective and efficient services to passengers.

Companys Vision:
To rationalize all business processes around passenger and departure control applications using industry standards with a view to enhance revenues and reduce cost. Upgrade participation levels with various Global Distribution System (GDS) to the highest level. Provide for various modes of booking and check-in and thus extend the convenience to the customers. Timely and accurate revenue determination per flight departure due to uplift of eticket coupons and speedier interline settlements. Ensure that NACIL hosted system has incorporated latest Industry Standards (IS) changes relevant for all PSS applications as per requirements. Provide the customers using the airline IBE for passenger services an experience to cherish. Provide a world class Frequent Flyer system with comprehensive interface with other frequent flyer systems of Global Alliances partner airlines.
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Quality Policy:
ISO-9002 Certification for its engineering facilities for maintenance of its fleet Assist the Sectional heads in purchase of project related equipments, preparation of management reports and budgetary controls. Participation in review meetings and deliberations in appropriate forums. Interact with System Group in DIT regarding issues encountered in System and their timely resolution. Obtain price catalogues from various vendors and update the System. Assist Sectional and Divisional heads in administration and job allocation to staff. Interact with clearing agencies for sea shipments and bulk supplies such as tires, lubricants, oils, chemicals, etc. Assist Sectional and Divisional heads in vendor development, performance review, etc. Any additional job allotted from time to time.

d. Product and Services Profile: Product Profile:Air India mainly concentrated on these following products: Airline Ground Handling Services Hotels Services

Air India has had a number of aircraft in its fleet. Below is a list of current and former Air India, Tata Sons Aviation Department and Tata Airlines aircraft (includes leased-in aircraft):

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Fleet: Air India has had a number of aircraft in its fleet. Below is a list of current and former Air India, Tata Sons Aviation Department and Tata Airlines aircraft (includes leased-in aircraft): Air India fleet (excl. subsidiaries) as of November 2011:
Aircraft Airbus
A319

Airbus A320200

Airbus A321200

Airbus A330200

Boeing 747400

Boeing 777200LR

Boeing 777300ER

Boeing 787-8

Total

In Service

24

18

20

12

89

Fleet info:The Boeing customer code for Air India is 37, meaning a model name of, for example, a 747437 (an Air India 747-400). As of May 2010, the average age of the Air India fleet is 9.5 years. First Boeing 787 is to be delivered in March 2012. Air India's Boeing 787 will be powered by General Electric GEnx. New aircraft orders On 11 January 2006, Air India announced an order for fifty eight jets - eight Boeing 777200LR Worldliners, twenty-three Boeing 777-300ER and twenty seven Boeing 787-8 Dreamliners The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and Boeing 777300ER on 10 October 2007. In April 2010, the airline has orderd three Boeing 777-300ERs.

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Service Profile:Frequent flyer programme:Flying Returns is Air India's frequent flyer programme. The programme is also shared by all other Air India Limited carriers.

Premium lounges:The Maharaja Lounge (English: "Emperor's Lounge") is offered to First and Business class passengers. Air India shares lounges with other international airlines at international airports that do not have a Maharaja Lounge available. There are five Maharaja Lounges, one at each of the five major destinations of Air India, which are as following: International: India: Bengaluru International Airport (Bangalore) Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Rajiv Gandhi International Airport (Hyderabad) London Heathrow Airport John F. Kennedy International Airport (New York)

In-flight entertainment:Air India's Boeing 777-200LR/-300ER as well as some refurbished Boeing 747-400 aircraft use the Thales Top Series IFE systems for onboard in-flight entertainment. Airbus A310s do not have personal LCD screens. Airbus A330s have widescreen displays in Business and Economy classes but no personal IFEs.

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e. Area of Operation Global / National / Regional:
Domestic Stations
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 AGARTALA AGATTI AHMEDABAD ALLAHABAD AIZAWL AMRITSAR AURANGABAD BAGDOGRA BANGALORE BHOPAL BHUBANESHWAR CHANDIGARH CHENNAI COIMBATORE DELHI DIBRUGARH DIMAPUR GAYA GOA GUWAHATI GWAILOR HYDERABAD IMPHAL INDORE JABALPUR JAIPUR JAMMU JAMNAGAR JODHPUR JORHAT KANPUR 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 KHAJURAHO KOCHI KOLKATA KOZHIKODE KULLU LEH LILABARI LUCKNOW MADURAI MANGALORE MUMBAI NAGPUR PATNA PORT BLAIR PUNE PUTTAPARTHI RAIPUR RANCHI SHILLONG SILCHAR SRINAGAR SURAT TEZPUR THIRUVANANTHAPURAM TIRUCHIRAPALLI TIRUPATI UDAIPUR VADODARA VARANASI VISAKHAPATNAM

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International stations
1 2 3 4 5 6 7 8 9 BAHRAIN BANGKOK COLOMBO DHAKA DOHA DUBAI FUJAIRAH KABUL KATHMANDU 10 11 12 13 14 15 16 17 18 KUALA LUMPUR KUWAIT LAHORE MALE MUSCAT RAS-AL-KHAIMAH SHARJAH SINGAPORE YANGON

Stations operated by Code Share flights


1 2 3 CHITTAGONG DHAKA TASHKENT

Offline Stations
1 2 3 4 5 6 7 8 9 10 11 12 13 AGRA BHAVNAGAR BHILAI BHUJ DARJEELING DEHRADUN DHARAMSALA HUBLI JAISALMER MYSORE RAJKOT SHIMLA VIJAYAWADA

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f. Ownership Pattern: Authorised:-The company currently having 4,875,645,020 Equity shares of Rs.10 each
(Previous Year 1,375,645,020 Equity shares) & 12,440,498 Redeemable Preference Shares of Rs.100 each (Previous Year 12,440,498 Redeemable Preference shares)

Issued, Subscribed and Paid up:-945,000,000 Equity shares of Rs.10 each fully paid
up (Previous Year 145,000,000 Equity Shares) & (Of the above 144,950,000 Equity Shares were issued pursuant of Amalgamation)

g. Competitors Information:
Air India Limed having following competitors: Jet Airways British Airways King Fisher Emirates

Jet Airways
Logo Parent Company Sector Tagline/ Slogan USP STP Segment Target Group Positioning SWOT Analysis Strength 1. Has created a good image among the Indian fliers 2. Trusted Airline by the Corporates
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Tailwinds Limited Airlines The Joy of Flying Premium Airline, High Class

Passengers preferring comfort Corporate, Upper Middle Class Premium

Fund Flow Analysis


Weakness Opportunity 1. Competition from the LCCs 1. Strongly positioned in the International routes

2. Has presence in every segment Threats 1. LCCs eating up the market share 2. Rising Fuel Costs 3. Rising Labour Costs Competition Competitors
1.Kingfisher 2.Air India

British Airways
Logo Parent Company Sector Tagline/ Slogan International Airlines Group Airlines To fly. To serve. The world's favourite airline; Upgrade to British Airways USP STP Segment Target Group Positioning SWOT Analysis Strength 1. Strong Backing of UK Govt 2. Strong Hub in UK 3. Strong brand presence and excellent global presence Weakness 1. Severe Competition from Cash Rich Middle Eastern Airlines Opportunity 1. The Heathrow Terminal is a major hub across the world and it has a major presence here 2.Expanding its global operations Threats
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Premium Airline, Upper Middle Class, Middle Class

Passengers Preferring Comfort / reliability Corporates / Upper Middle Class / Middle Class Premium

1. Rising Fuel Costs


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2. Rising Labour Costs 3. Increasing Competition in European Market Competition Competitors
1.Virgin 2.British 3.Lufthansa 4.Emirates 5.Jet Airways Airlines Midland

Kingfisher Airlines
Logo Parent Company Sector Tagline/ Slogan USP STP Segment Target Group Positioning SWOT Analysis Strength 1. Has created a good image among Indian fliers 2. Strong backing from promoters Weakness 1. Heavy Debt 2. Poor On time Performance Opportunity Threats 1. Reputation of providing the best amenities in Indian skies 1. LCCs eating up the market share 2. Rising Fuel Costs 3. Rising Labour Costs Competition Competitors 1.Jet Airways 2.Air India Passengers preferring comfort Corporate, Upper Middle Class Premium United Breweries Group Airlines Fly The Good Times Premium Airline, High Class

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Emirates
Logo Parent Company Sector Tagline/ Slogan The Emirates Group Airlines Be good to yourself, Fly Emirates; Fly Emirates. Keep Discovering USP STP Segment Target Group Positioning SWOT Analysis Strength 1. Strong Backing of Dubai Govt 2. Advantage of Being Present in Oil Rich Emirate 3. Strong Hub in Dubai 4. Satisfied Customer and Preferred Airline of Customers Weakness Opportunity 1. Relying Heavily on International Onward Moving Traffic 1. Brand New Fleet. Leverage this and also improve the customer confidence in the airline Threats Competition Competitors 1.Etihad 2.Qatar Airways 3.Jet Airways 4.Air India Express 1. Increasing Competition in Middle East Market Passengers Preferring Comfort / reliability Corporates / Upper Middle Class / Middle Class Premium Premium Airline, Upper Middle Class, Middle Class

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h. Infrastructural Facilities:
Air India is the 16th largest airline in Asia. Its commitment to build Your Palace in the Sky i.e., Air Indias sincere slogan, virtually comes true. The national airline of India carries the day despite the financial crisis casted a long shadow. Flies from its main base Mumbai, Air India connects a worldwide network of passenger and carries out cargo services in over 100 cities around the globe. Air India is persistent on giving seamless flying service to wide network of passengers.

There are different approach are there to developing infrastructure. It is not enough to state what we want and allocate funds. For the Old Guard, who see an aspirational statement with budgetary allocations as the panacea, to comprehend this requires a true paradigm shift, as with Newton and the apple. A new social paradigm, as it were, so that we learn to set realistic goals, makes practicable work plans, and then executes them.

This applies to first-order infrastructure, such as energy, transport, and communications, as also to second-order infrastructure that we lack, or where processes need rationalization, as in selling agricultural produce across the country, or getting aviation fuel at the same price everywhere. These second-order elements are: i) Organized markets as integrated, end-to-end chains from input and production, to transportation and storage, to marketing and distribution, including all taxation, and finance, including insurance.

ii)

i. Awards and recognitions


Preferred International Airline award for travel and hospitality from Awaz Consumer Awards 2006 Best International West Bound Airline out of India for three successive years by Galileo Express Travel World Award Best Corporate Social Responsibility Initiative. by Galileo Express Travel World Award Best Short-Haul International Airline by Galileo Express Travel World Award 2008

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The Mercury Award for the years 1994 and 2003, from the International Flight Catering Association, for finest in-flight catering services. Amity Corporate Excellence Award instituted by the Amity International Business School, Noida, Uttar Pradesh to honour Corporates with distinct vision, innovation, competitiveness and sustenance. Readers Digest Trusted Brand Award Dun and Bradstreet Award (D&B)- first in terms of revenue out of the top airline companies out of India Best South Asian Airline award by readers of TTG Asia, TTG China, TTG Mice and TTG-BT Mice China, all renowned Mice and business travel publications. Cargo Airline of the Year at the 26th Cargo Airline of the Year Awards The airline entered the Guinness Book of World Records for the most people evacuated by a civil airliner. Over 111,000 people were evacuated from Amman to Mumbai a distance of 4,117 km, by operating 488 flights in association with Indian, from 13 August to 11 October 1990 lasting 59 days. The operation was carried out during Persian Gulf War in 1990 to evacuate Indian expatriates from Kuwait and Iraq. The Montreal Protocol Public Awareness Award was awarded to Air India by the United Nations for environmental protection, especially in the ozone layer. World's first all-jet airline- June 1962 World's largest operator of Airbus A310-300 Air India's security department became the first aviation security organization in the world to acquire ISO 9002 certification (31 January 2001). Air India's Department of Engineering has obtained the ISO 9002 for its Engineering facilities for meeting international standards.

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j. Work Flow Model (End to End):REQUEST FLIGHT

CHECK AVAILABILITY

PROVIDE FLIGHT DETAILS

PROVIDE FLIGHT CHOICES AND PRICES

SELECT FLIGHT REQUEST PAYMENT PAY FOR TICKET BOOK FLIGHT CONFIRM SEAT RESERVATION

ISSUE TICKET

CHECK IN DOCUMENTATION LUGGAGE VERIFICATION

JOURNEY

CHECK OUT DEPARTURE

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k. Future Growth and Prospects:
Air India flies out stranded passengers from Leh: Air India operated three special flights between Delhi and Leh on Sunday, 8th August 2010 to evacuate stranded tourists and passengers from Leh. Air India opens franchise for Pratt & Whitney Eco Power Engine washing: The National Aviation Company of India Ltd, operating under the brand name Air India, has signed an agreement with Pratt & Whitney to establish an Eco Power engine wash service at Mumbai International Airport. Air India - Melbournes newest international airline: Melbourne Airport welcomed Air Indias announcement that they will commence daily direct services from Melbourne to Delhi from November 1 this year. Air India & MADC sign Land Lease Agreement for aircraft maintenance base at Nagpur: Air India and Maharashtra Airport Development Company Ltd. (MADC), on 8th June 2010, has signed a Land Lease Agreement for 50 acres of land in the SEZ area near Nagpur Airport. Air India has resumed the normal schedule of operations: Air India has resumed the normal schedule of operations across the entire network from today; with the total passenger bookings on the IC coded flights crossing 32,000. Air India signs agreement to become GEnx service provider:GE Aviation and Indias national carrier Air India have signed a GE Branded Services Agreement (GBSA) under which GE Aviation will provide technical support as Air India offers maintenance, repair and overhaul (MRO) services for the GEnx-1B engine and further advances its plans to become a global MRO service provider.

Air India Airbus 320 lands at India Aviation: The first of the new generation Airbus A320 aircraft on order joined the Air India fleet today, with the arrival of a mint fresh aircraft at Begumpet Airport, Hyderabad, where India Aviation 2010, Indias first civilian air show is

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on. The aircraft also becomes the 74th own aircraft of the 111 on order, to join Air Indias fleet. Ex-Im Bank, Air India conclude $1 billion financing transaction: The Export-Import Bank of the United States (Ex-Im Bank) and the National Aviation Company of India Ltd. (NACIL, also known as Air India) today held a signing ceremony to celebrate the $1.1 billion Ex-Im Bank-supported financing of U.S.- manufactured aircraft sold by The Boeing Co. to NACIL. Air India registers all round Improvement in performance: An impressive increase of 24.8 per cent in passenger carriage and 14.4 per cent rise in load factor reflects a significant improvement in Air Indias operating performance in the quarter October-December 2009, as compared to the same period last year. Air India to remain merged entity: The merger of Air India (erstwhile) and Indian Airlines was approved by the Government on 1 March, 2007 and a new company vis. National Aviation Company of India Limited (NACIL) was incorporated on 30 March, 2007 with the brand name of Air India. The merger of two airlines was envisaged to provide following benefits. Air Indias Engineering achieves significant financial gains: Air India has assembled, tested and delivered CF6 80C2 Engine S/No: 695 296 belonging to a Customer routed through Aerostar, earning approx. USD 300,000 in December 2009. Air India had recently entered in to a strategic marketing alliance with Aerostar Asset Management, a Dubai based Company, to form The A Team for providing Engine repair management solutions to Operators in the Gulf and Middle East region to begin with. Air India: Deployment of new aircraft helps increase carriage in 2009: The Year 2009 will undoubtedly go down in the history of civil aviation in India, and globally, as one of the worst years. Air India to operate special flights to Port Blair, Goa for tourists: Air India will operate additional flights to augment capacity to popular holiday destinations - Port Blair and Goa, thus ensuring that tourists from various States of India and all over the world, are not disappointed for want of seats on a flight. With scheduled flights of all airlines being booked during this peak season, Air India has stepped in by deploying additional capacity.
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3. McKinsey 7S Model:
A model of organizational effectiveness that postulates that there are seven internal factors of an organization that needs to be aligned and reinforced in order for it to be successful. The 7S Model was developed at McKinsey & Co. consulting firm in the early 1980s by consultants Tom Peters and Robert Waterman, authors of the management bestseller "In Search of Excellence."

1. Strategy
The concept of strategy includes purposes, missions, objectives, goals and major actions plans and policies. They are as follows: Aggressive pricing: Air Indias economy-class passengers can upgrade to business class by paying Rs. 4,000 for distances up to 750km and Rs.6,000 for longer distances at the counters in 17 airports
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Fund Flow Analysis

Turnaround Strategy: The government will soon spell out a comprehensive turnaround plan for flag carrier Air India, which is burdened with a cumulative loss of Rs.22,165 crore and struggling to even pay wages to employees, parliament was informed Friday."There are two plans under consideration -- one is the turnaround plan and the other is a financial restructuring plan which is being considered by a group of ministers,"

Strategic Relationships: Strategic Alliance with Lufthansa (LH)MOU signed in August 2003 Joint capacity plan till 2007 Additional frequencies AI : 22 (18 via Frankfurt to USA) - LH: 15LH to provide AI commercially viable slots at Frankfurt19 slot pairs provided till winter 2004 (in exchange for 4 additionalfrequencies) Reciprocal World-wide Free Flow Code Share & FFP Cooperation under implementation Special Prorate Agreement implemented in November 2003 Cooperation in IT/MRO/Cargo being pursued Air India developing relationship with other Star Alliance partners United Airlines & Air Canada Joint Marketing Special Prorate Agreement Reciprocal code share FFP cooperation Will pursue FFP cooperation with other domestic airlines in India togenerate incremental revenue streams Will continue existing code shares with existing 14 airline partners & pursue such relationships with other airlines May also consider becoming a full-fledged member of a globalalliance in the future

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2. Structure:Air India Ltd., extended its operations all over the world and the quality services improves by dividing and sub allocation of duties and responsibilities to their each department heads and sub-ordinates. The Air India Ltd., functions are flow from superiors to sun-ordinates.

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Fund Flow Analysis

3. System:
Air India Ltd., providing quick response and fast services to their customers and to survive in aviation industry by competing with other Airlines. So they are using these technologies and set of procedures to handling the customers as well as their employees. Ground Handling Information Technology Security CargoTechnology Up gradation IT Projects Revenue Management PROS implemented Ticketing Time-Limit software implemented Direct connect with GDSs Integrated computerization system for MMD Disposal of surplus/redundant inventory Implementation of Unit Load Device management system Disaster recovery site at remote location Air India Express IT Infrastructure Data Mart for CRS sales data Ramp Assistance Billing System for GSD/Finance Online Financial Information System (FINESS)

4. Style:
This is one of the domestic airlines in India offering an extensive network of cargo and passenger services. This airline company was honored a 4 star rating for its safety and cabin procedures from Skytrax airline for its best basic and luxury comfort.Flights to Air India can be booked conveniently to various destinations. International tickets are also easily available, besides the air fares from the US to India is economical in comparison to other carriers. Air India is popular amidst NRIs traveling to India for holidays.
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Fund Flow Analysis


5. Staff:
Staff is one of the important asset for every company who having the innovative ideas in the operations of the company by their smart and skillful work and very difficult to retain them in the organizations.

Increased manpower productivity Comprehensive HR Policy with focus on Motivation, Training & Development, Multi-skilling, Scientific job description & objective performance appraisal Special dispensations obtained from DGCA Operating Crew Increased Flight Time Limits Settlement to be reached with pilots Cabin Crew - Executive crew to fly as per DGCA time-off RegulationsComputerization of Operating/Cabin crew scheduling Out-sourcing/Hiving-off Non-Core activities already out-sourced Printing Press Crew/Employee TransportPotential for out-sourcing Medical Services Payroll Revenue Accounting Canteen Civil WorksHiving off to subsidiaries

6. Skill:
The term skills include those characteristics, which are developed over a period of time, under result out of the interaction of number of factors, performing certain task successfully over a period of time, the kind of people in the organization, the top management style, the organization structure etc.,

Negotiation Skills: With the need to reduce costs and squeeze margins in a highly competitive market, its vital you equip your people with the most effective negotiation skills. Whether theyre managing complementary income streams or negotiating contracts with clients, travel agents and partners, this program will
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Fund Flow Analysis


transform their ability to achieve a profitable outcome with each and every deal thats made.

Creative Problem Solving: Airline industry professionals need to be able to generate novel solutions to manage such economic pressures. This program will dramatically shift the way your people think about problems, releasing the potential to develop innovative solutions that inspire business growth. Developing a unified vision for future success: with the pressures facing todays airline industry, its vital your executives can come together to agree on a strategic vision that will give your organization the competitive edge. Our Executive Development Program is proven to be highly successful at creating a unified executive team using tailor-made solutions for business success

7. Shared Values:
The idea of Shared Values is often confused with value sharing. The former a more universal presumption about a set of beliefs and the latter a calculated measure of utility. In a service industry, delivering value to customers demands a highly evolved understanding of meeting needs and desires. For example, how well does an airline deliver on an individuals hope to be with family on the holidays? Can that same airline deliver on another individuals hope to get to a distant meeting and back for another commitment? Calculating the costs of delivering value is trivial by comparison, in that the components are concrete, not fuzzy. Air India was able to gain market share over competitors focusing on being the low-cost airline provider and inspiring employees to deliver on that shared value. Every decision made at the corporate level hinges on that principle and the results are clear in their resilience in spite of the hostile economic climate and changing regulatory environment that daily challenges their operating costs.

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4. SWOT Analysis
Strengths of AIR INDIA: Air India has been the largest air carrier in India in terms of traffic volume and company assets. It owns the most updated fleet and competent repairs and maintenance expertise. Its information systems are advanced and compatible with its operation and service. It has a good reputation in both international and domestic markets, quality service and the age-old Goodwill that has still kept it alive in the interests of the rescue operators. Has financial backing of the Government Weaknesses of AIR INDIA: Air India is operating across broad international and domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets. Low profitability and utilization of capacity. Growing Competitor base and entry of Low-Cost Carriers (LCCs) The airlines high-cost structure and the compulsions of being a public sector unit are the reasons and it had been making a loss and shall continue to make losses for some more quarters. Opportunities of AIR INDIA: India airline industry is growing faster and will continue to grow as the GDP increases, and the trend is predicted to continue once the slowdown recedes. Worldwide deregulations make the skies more accessible; the route agreement is easier to be achieved. The number of foreign visitors and investors to India is increasing rapidly. Complementary industry like tourism will increase demand for airline service. The Civil Aviation Ministrys strong regulation and protection provides opportunities for consolidation and optimization.

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Customers are getting wealthier, tend to be less price-conscious and prefer to choose quality service over cost. Best time for introducing LCCs Threats for AIR INDIA: Air India faces imminent aggressive competition from world leading airlines and price wars triggered by domestic players. The Indian Railway Ministry has dramatically improved speed and services in their medium/long distant routes, attracting passengers away from air service, with prices almost at par with the low cost carriers

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5. Analysis of Financial Statement: PROFIT AND LOSS ACCOUNT FOR THE YEAR OF 2008-09 & 2009-10
(Rupees in Million)

PARICULARS I. 1. i. ii. 2. Revenue: Traffic Scheduled Services Others Handling, Servicing and Incidental

2007-08

2008-09

2009-10

107,612.60 100,515.40 100,146.40 15,365.40 13,405.50 19,281.60 12,448.20 17,227.80 13,662.00

Operating Revenue 3. Others

136,383.50 132,245.20 131,086.20 16,191.20 2,548.60 2,936.50

Total Revenue II. 1. Expenses: Payments to and Provisions for employees

152,574.70 134,793.80 134,022.70

including Crew Allowances 2. 3. 4. 5. 6. 7. 8. 9. Insurance Aircraft Fuel and Oil Navigation, Landing, Housing and Parking Aircraft Material Consumed Outside Repairs Aircraft Hire of Aircraft Handling Charges Passenger Amenities

32,245.00 851.3 62,525.10 9,698.40 9,583.70 7,196.00 13,777.00 5,460.90 5,929.30 6,150.00

33,388.50 861.8 70,606.40 9,290.90 5,560.50 5,533.60 15,225.00 5,290.60 4,865.60 4,360.50

33,567.20 914.70 50,150.20 10,604.40 4,262.70 8,031.50 11,774.90 6,045.50 4,838.10 4,083.70

10. Booking Agency Commission 11. Communication Charges: i. ii. Reservation Systems Others

2,466.90 1,534.10

2,456.80 1,667.50

3,246.20 1,652.10

12. Travelling Expenses: i. ii. Crew Others 2,422.40 953.00 8,954.60 -1,338.00 2,571.90 1,032.80 10,920.90 2,226.80 909.60 13,917.40 19.50

13. Depreciation Less: Transfer from Capital Reserve Add: Transfer to Capital Reserve related to Previous Period AMC Engineering College

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14. Other Expenses Total Operating Expenses III. Loss before Interest, Prior Period Adjustments and Taxation 10,132.90 13,993.20 9,583.20

178,542.60 188,964.50 165,806.70 -25,967.90 -54,170.70 31,784.00

Add: i. Interest and finance charges ii. Prior Period Adjustments (Net)
I. Loss before Extra-Ordinary Items and Taxation Less: Extra Ordinary Items (Net) II. Loss before Taxation

7,013.00 -

16,658.80 1,056.80

24,343.50 208.10

826.60 -32,980.90 -71,886.30 55,509.00

Add: Provision for current tax i. ii. Fringe Benefit Tax Wealth Tax 123.5 2.5 122 14.4 15.4

Add: Provision for previous year tax i. Wealth Tax Less/Add: Deferred Tax Benefit i. For Current Year ii. As per AS-11 Notification IV. Loss after Taxation Balance Brought Forward V. Loss Carried to Balance Sheet/General Reserve 22,261.60 22,261.60 10,845.30 15,930.80 621 55,482.60 22,261.60 77,744.20 55,524.40 55,524.40

BALANCE SHEET FOR THE YEAR OF 2008-09 & 2009-10


Particulars I. SOURCES OF FUNDS: Shareholders Funds: a. Capital 1,450.00 78,942.90 2007-08

(Rupees in Million)

2008-09

2009-10

14,500.00 633.5

9,450.00 624.8

b. Reserves and Surplus

Loan Funds: a. Secured Loans 28,917.50 23,659.50 65,907.10

b. Unsecured Loans AMC Engineering College

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Future Lease Obligations TOTAL II. APPLICATION OF FUNDS: 116,887.50 133,559.60 264,526.90 311,395.40 394,302.60

Fixed Assets: a. Gross Block 186,545.60 243,294.00 328,410.50 7,601.20 18,380.50 31,990.60

Less: Depreciation b. Net Block c. Capital Work-in-Progress

178,944.40 224,913.50 296,419.90 39,726.30 50,113.70 24,656.20

Investments: Deferred Tax Assets (Net): Foreign Currency, Monetary Items Translation Difference Account

901.2 11,873.40

1,231.80 28,424.20 1,528.00

1,219.30 28,425.20 99.50

Current Assets, Loans and Advances: a. Inventories 10,016.10 26,134.10 10,845.00 318.90 15,602.10 9,642.10 24,731.00 11,396.40 561.60 11,175.90 8,677.80 25,791.10 5,284.70 768.10 14,466.50

b. Sundry Debtors c. Cash and Bank Balances

d. Other Current Assets e. Loans and Advances

Less: Current Liabilities and Provisions a. Current Liabilities 42,861.80 9,234.30 42,282.90 10,040.90 55,466.70 10,929.90

b. Provisions

Net Current Assets Profit and Loss Account TOTAL

10,820.00 22,261.60

5,183.20

-11,408.40 54,890.90

264,526.90 311,395.40 394,302.60

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6. Learning Experience:
Air India Ltd., is one of the leading public sector aviation company which having the major share in the aviation industry. Its very difficult to maintain and manage the affairs of the company with the competition from many private sectors. Its having lot of transactions in each day and the records are maintained systematically and the officials of Air India Ltd., are well co-ordinated helps the smoothening in flow of work. This project helps to make a thorough study of the companys activities especially in the fund flow of the organization and to acquire practical knowledge in this filed. It also provided to understand the work force the strategy, the identification of the skills, the sharing of the work i.e. designation done in the public sector enterprise. It was a good learning experience in the analysis of the balance sheet got to know the application of the loans and applications and the tabulation. great benefit for the future career. Its an opportunity to know about the industrial world. Being within the company helped to learn how the Management theories and concept are applied in an organization. It helps to interact with the top level executives and to see how the managers deal with the figures and numbers and how the handle the work pressure. More over the project was a good exposure to learn about the working conditions of the organization. This study will be of

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PART B

A. GENERAL INTRODUCTION
Air India takes the fund flow statement to analyze the funds from the various resources, their application of the funds and the uses of the statement for their further verification. The company uses the statement of sources and application of funds to show the difference between the aggregate of sources and total application as either increase or decrease in working capital. This variation in working capital can be verified by preparing a unlike statement of sources and application, it is prepared with the help of current assets and current liabilities.

To certain extent it acts as a measuring tool of income and expenditure, fund flow are used as a base for the financial planning and budgeting and to the companys warning agent i.e., indicates the financial dangers a heading the company.

FUND FLOW STATEMENT {OR} FUNDS MANAGEMENT:


Balance sheet and profit and loss account two most important financial statements which are prepared at the end of the financial year. Balance sheet shows financial position of undertaking i.e. assets and liabilities, as on a particular data. The profit and loss account shows the results of operations i.e., profit or loss during the financial year. In the course of business operations, various assets, liabilities and capital undergo various changes during the financial year. The knowledge of such changes and reasons of these changes id extremely useful to management of the company. Therefore additional statements. Is known as statement of changes in financial position

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MEANING OF FUNDS:
The term funds has different meanings. However for the purpose of fund flow statement the term funds means Net working capital also known as Net current assets it is defined as the difference between current assets and current liabilities. FUNDS =Current assets- Current liabilities.

CURRENT ASSESTS:
The term assets means cash and such other assets which are reasonably expected to be realized in cash or sold or consumable during the normal operating cycle of the business. Thus the term current assets including the following:

1. 2. 3. 4. 5. 6.

Cash and bank balance Accounts receivable i.e., debtor and bills receivable Stocks of raw materials [ work in progress and finished goods ] Temporary or short term Investment Prepayment. Accrued income.

CURRENT LIABILITY:
The term current liabilities includes all such obligations which are likely to mature within one year in the normal course of business operations and which are paid out of current assets or by creating current liabilities. The board categories of current liabilities are: 1. Accounts payable i.e., creditors and bills payables 2. Outstanding expenses [E.g.: wages, rent, commission...] 3. Bank overdrafts. 4. Income receivable in advance 5. Dividends payable. 6. Provision for taxation may be current or non current 7. Provision for doubtful debts. 8. Proposed dividends may be current or non current.

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Flow of fund arises when the net effect of a transaction is to increase or decrease the amount of working capital. When a transaction results in increase of fund, such a transaction is said to be a source of fund. On the other hand, if a transaction results in the decrease of fund. Such a transaction is said to be an application of fund.

STATEMENT OF PROBLEM:
As a statutory obligation, every organization has to prepare financial statements at end of each financial year to know the exact financial position or the profit position and the capital growth of the organization. The financial statement like P&L account and Balance sheet gives a summary of companys resources, profits or losses at a particular period of time. These statements exhibit the financial events occurred in a given period of time. From this point of view the financial statements fulfills the objective of organization very well.

But there are certain important financial matters, which can be known only through analysis of these financial statements. Thus, it is important to know what funds are available during the period. This underlines the importance of statement prepared to report movement of funds. Thus the problem taken for study FUND FLOW ANALYSIS.

OBJECTIVES OF THE STUDY


Funds Flow Statement is an analytical tool in the hands of financial manager. The basic purpose of this statement is to indicate on historical basis the changes in the working capital i.e., where funds came from and were there are used during a given period.

The utility of this statement can be measured on the basis of its contributions to the financial management. It generally serves the following purposes:-

1. Analysis of Financial Position: The basic purpose of preparing the statement is to have a rich into the financial operations of the concern. It analyses how the funds were obtained and
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used in the past. In this sense, it is a valuable tool for the finance manager for analyzing the past and future plans of the firm and their impact on the liquidity. He can deduce the reasons for the imbalances in uses of funds in the past an take necessary corrective actions. In analyzing the financial position of the firm, the Funds Flow Statement answers to such questions as-

a. Why were the net current assets of the firm down, though the net income was up or vice versa? b. How was it possible to distribute dividends in absence of or in excess of current income for the period ? c. How was the sale proceeds of plant and machinery used ? d. How was the sale proceeds of plant and machinery used ? e. How were the debts retired ? f. What became to the proceeds of share issue or debenture issue ? g. How was the increase in working capital financed ? h. Where did the profits go? Though it is not an easy job to find the definite answerers to such questions because funds derived from a particular source re rarely used for a particular purpose. However, certain useful assumptions can often be made and reasonable conclusions are usually not difficult to arrive at.

2. Evaluation of the Firm's Financing: One important use of the statement is that it evaluates the firm' financing capacity. The analysis of sources of funds reveals how the firm's financed its development projects in the past i.e., from internal sources or from external sources. It also reveals the rate of growth of the firm.

3. An Instrument for Allocation of Resources: In modern large scale business, available funds are always short for expansion programmes and there is always a problem of allocation of resources. It is, therefore, a need of evolving an order of priorities for putting through their expansion programmes which are phased accordingly, and funds have to be arranged as different phases of programmes get into their stride. The amount of funds to be available for these projects shall be estimated by the finance with the help of Funds Flow Statement. This prevents the business from becoming a helpless victim of unplanned action.
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4. A Tool of Communication to Outside World: Funds Flow Statement helps in gathering the financial states of Business. It gives an insight into the evolution of the present financial position and gives answer to the problem 'where have our resources been moving? In the present world of credit financing, it provides a useful information to bankers, creditors, financial, it provides a useful informations and government etc. regarding amount of loan required, its proposes, the terms of repayment an sources for repayment of loan etc. the financial manager gains a confidence born out of a study of Funds Flow Statement. In fact, it carries information regarding firm's financial policies to the outside world.

5. Future Guide: An analysis of Funds Flow Statements of several years reveals certain valuable information for the financial manager for planning the future financial requirements of the firm and their nature too i.e. Short term, long-term or midterm. The management can formulate its financial policies based on information gathered from the analysis of such statements. Financial manager can rearrange the firm's financing more effectively on the basis of such information along with the expected changes in trade p payables and the various accruals. In this way, it guides the management in arranging its financing more effectively.

SCOPE OF THE STUDY


The project contains the profile of the company i.e. Air India Limited where the project work was undertaken. It contains details regarding how Fund is managed at Air India Limited and also where fund comes & gone statements at Air India Limited.

This study gives the information about financial aspects of Air India Limited from to 2007 to 2010. This study was done in the time duration of 9 weeks from the information provided by concerned officials of Air India Limited. The study of various financial statements through techniques of fund flow analysis is confined to Air India Limited.

Fund flow analyses of financial performance from financial statement May guides propose use of available funds, and it gives early warnings of coming financial dangers. The purpose
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of funds flow analysis is to calculate net increase or decrease in working capital of business during a period.

The study has employed three important aspects in order to analyze the utilization and application of funds, with the help of various graphs.

Funds flow statement Working capital statement Ratio analysis Current ratio Liquid ratio

RESEARCH METHODOLOGY
The chief criteria for the validity of any research study lies in its methodology. An enquiry would prove a failure if it is not done along certain methodical lines.

The method of study adapted to carry out the project work is mainly through personal enquiry with the Accounts Manager. The study comprises of the companys operations and the techniques followed by them.

The data extracted from the annual reports of the company was analyzed and further reduced to tables. To make it pictorial and easier to grasp and understand the data was represented in graphical forms.

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SOURCES OF THE STUDY:
This is the study entirely based on: Personal discussion. Annual reports Published sources. Simple statistical analyses. There are mainly two types of data sources they are as follows:

PRIMARY DATA:
The data are originally collected by an investigator or agency for the first time for a statistical investigation and used by them in the statistical investigation and used by them in the statistical analysis and termed as primary data this data are collected directly from the source for first time.

SECONDARY DATA:
The data published or unpublished which have already been collected and processed by some agency or person and take over from there and used by any other agency for their statistical work and termed as secondary data as for as second agency is concerned. The second agency if and when it possible and files one who late uses this data.

Both primary and secondary data have collected for the study purpose primary interviewing certain executive who were and work experience in the nature in order to gain as such as information as possible.

Most of the data collected is secondary in nature and include: Annual report of the company. Other books and accounts maintained by the company. Internet Text books relating to financial management, management accounting

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LIMITATIONS OF THE STUDY:
The fund flow statement has a number of uses; however, it has certain limitations also, which are listed below: It provides only some additional information as regards changes in working capital. It should be remembered that a funds flow statements is not a substitute of an income statement or a balance sheet. One has to concentrate on the cash management rather the than financial management. It is essentially historic in nature and projected funds flow statement cannot be prepared with much accuracy. One has to concentrate on the cash management rather than the financial management.

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B. ANALYSIS & INTERPRETATION

FUND FLOW STATEMENT


In every concern, the funds flow in from different sources and similarly funds are invested in various sources of investment. It is continuous process. The study and control of this funds-flow process (i.e., the uses and sources of funds) is the main objective of financial management to assess the soundness and the solvency of the enterprise. The funds-flow-statement is a report on financial operations changes, flow or movements during the period. It is a statement which shows the sources an application of funds or it shows how the activities of a business are financed in a particulate period. In other words, such a statement shows how the financial resources have been used during a particular period of time. It is, thus, a historical statement showing sources and application of funds between the two dates designed especially to analyze the changes in the financial conditions of an enterprise. Various titles are used for this statement such as 'Statement of sources and Application of Funds', 'Summary of Financial operations,' 'Changes in Financial Position', 'Fund received and Disbursed', 'Funds Generated and Expended', Changes in Working Capital, Statement of Fund' etc. Title of Funds Flow Statement has been modified from time to time. Really it is very difficult to find a short time for such statement which carries much to the readers regarding its contents and functions.

STATEMENT OF CHANGES IN WORKING CAPITAL


The statement of sources and application of funds shows the difference between the aggregate of sources and total application as either increase or decrease in working capital. This variation in working capital can be verified by preparing a unlike statement of sources and application, is prepared with the help of only current assets and current liabilities.

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SOURCES OF FUNDS:
Transactions that increase working capital are sources of funds. Some of them are: Funds from Operations. Funds from issue of Share Capital. Funds from Issue of Debentures and Acceptance of Public Deposits Sale of Fixed Assets.

APPLICATION OF FUNDS:
The following are application of funds

Loss from operations. Purchase of fixed assets. Repayment of loans. Payment of dividend. Increase in working capital. Other applications such as embezzlement, compensation, donations etc. Involving cash is an application of fund.

FUNDS FROM OPERATIONS:

Sales are the major sources of cash-inflow an at the same time cost of goods sold and expenses are the main sources of cash-outflow.

The difference of these two [i.e., Sales-(cost of goods sold + expenses)] is net profits or net income from operations. Such income from operation differs from the net profits shown by the profit and loss account because profit and loss account incorporates certain items which do not affect the flow (inflow or outflow) of funds. Profit and loss account is, therefore, adjusted accordingly in order to calculate the profits from operations.

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Table 1: SHARE CAPITAL OF Air India Ltd.,


Particulars Equity Shares 2007-08 2008-09 2009-10 1450 1450 9450

Graph:-

Equity Shares
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2007-08 2008-09 2009-10

Equity Shares

Analysis & Interpretation:


In 2008 the company having 1450 million worth of share capital and this is continued till 2010 and there is no changes were made in 2009 but in 2010 the company issued 8000 million worth of equity shares to raise the fund and it is a sources of funds so it should be appear as source in fund flow statement

Source: Annual Report of the Company

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Table 2: SECURED LOANS OF Air India Ltd.,


Years 2008 2009 2010 Secured Loans 28917.5 23659.5 65907.1 Percentage 100 81.8172387 278.5650584

Graph:

Secured Loans
70000 60000 50000 40000 30000 20000 10000 0 2008 2009 2010 Secured Loans

Analysis & Interpretation: It is inferred from the chart that the company had a
maximum of secuerd loan in the year 2010 Rs. 65907.1 million i.e., 197% when compared to the years of 2008 and when analysed with the percentage 2009 has a decrease of 18.18% .

Source: Annual Report of the Company.

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Table 3: UNSECURED LOANS OF AIR INDIA LTD.,


Years 2008 2009 2010 Unsecured Loans 155216.5 168764.9 184761.1 Percentage 100 108.7287112 109.4783927

Graph:

Unsecured Loans
185000 180000 175000 170000 165000 160000 155000 150000 145000 140000 2008 2009 2010

Secured Loans

Interpretation & Analysis: Company having unsecured loans in its business. In 2008 the company has 155216.5 million of unsecured loans, in 2009 it increases to 168764.9 million which increases the liability of the firm and it leads to increase in liability is sources of fund which increases its debt balance, 2010 the company loans increases to 184761.1 million which shows the company having lots of borrowing which increases the liability leads to sources of funds

Source: Annual Report of the Company

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Table 4: INCOME OF AIR INDIA LTD.,

PARICULARS Scheduled Services Others Handling, Servicing and Incidental Others Total Revenue Percentage

2007-08 15,365.40 13,405.50 16,191.20

2008-09 19,281.60 12,448.20 2,548.60

2009-10 17,227.80 13,662.00 2,936.50

107,612.60 100,515.40 100,146.40

152,574.70 134,793.80 133,972.70 100 88.346102 99.390847

Graph:

180,000.00 160,000.00 140,000.00 120,000.00 100,000.00 80,000.00 60,000.00 40,000.00 20,000.00 0.00 Scheduled Services Others Handling, Servicing and Incidental Others Total Revenue 2007-08 2008-09 2009-10

Analysis & Interpretation: The company is getting huge revenue in 2008, 2009 and
2010 in scheduled services provided to the customers but comparing to 2008 in 2009 it decreases to 88.34% & 2010 99.39% but comparing to 2009 its increasing.

Source: Annual Report of the Company

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Table 5: EXPENDITURE OF AIR INDIA LTD.,

Expenses: Payments to and Provisions for employees including Crew Allowances Insurance Aircraft Fuel and Oil Navigation, Landing, Housing and Parking Aircraft Material Consumed Outside Repairs Aircraft Hire of Aircraft Handling Charges Passenger Amenities Booking Agency Commission Communication Charges: Travelling Expenses: Depreciation Other Expenses Total Operating Expenses Percentage

2008 32,245.00 851.3 62,525.10 9,698.40 9,583.70 7,196.00 13,777.00 5,460.90 5,929.30 6,150.00 4001 3,375.40 7616.6 10,132.90 178,542.60 100

2009 33,388.50 861.8 70,606.40 9,290.90 5,560.50 5,533.60 15,225.00 5,290.60 4,865.60 4,360.50 4124.3 3,604.70 12258.9 13,993.20 188,964.50 105.51527

2010 33,567.20 914.70 50,150.20 10,604.40 4,262.70 8,031.50 11,774.90 6,045.50 4,838.10 4,083.70 4898.3 3,136.40 13,897.90 9,583.20 165,788.70 86.020881

Graph:
200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2008 2009 2010 Navigation, Landing, Housing and Parking Aircraft Fuel and Oil Payments to and Provisions for employees including Crew Allowances Insurance Expenses:

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Analysis & Interpretation: The companys expenses are 178,542.60 million,
188,964.50 million and 165,788.70 million in the year of 2008, 2009 and 2010 respectively. In all the 3 years companys major expenses from Aircraft fuel and oil and the payment of salary and other allowances which makes the company having deficit in their a/c. These expenses not compensated with the revenue generation where the scheduled service is a major share of revenue.

Source: Annual Report of the Company

Table 6: CASH AT BANK OF AIR INDIA LTD.,

Particulars Cash and Cheque on Hand Remittances in Transit Balance in Current A/c Deposits in Banks Total Percentages

Cash and Bank Balances 2008 2009 89.7 209 489.4 19.3 5763.9 2419.8 4502 8748.3 10845 11396.4 100 105.0843707

2010 65.4 0.8 1531.1 3687.4 5284.7 48.72936837

Graph:
9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2008 2009 2010 Cash and Cheque on Hand Remittances in Transit Balance in Current A/c Deposits in Banks

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Analysis & Interpretation:


In all the years cash and Cheque and remittances are low but current balances are in decreasing order from the subsequent year. In 2008 and 2010 the company maintaining approximately same level of deposits in its bank but in 2009 the bank balance increased by the more deposits received which enables the firms liquidity positions. Source: Annual Report of the Company

Table 7: LOANS AND ADVANCE OF AIR INDIA LTD.,


Year 2008 2009 2010 Loans & Advances 15602.1 11175.9 14466.5 Percentage 100 71.630742 92.7214926

Graph:

Loans & Advances


16000 14000 12000 10000 8000 6000 4000 2000 0 2008 2009 2010 Loans & Advances

Interpretation & Analysis:


In 2008 the loans and advances was Rs. 15602.1 million and in 2009 its decreases to 71% comparing to 2008, and it increases to Rs. 14466.5 million in 2010 but decreases comparing to 2008. Source: Annual Report of the Company
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Table 8: NET CURRENT INCOME OF AIR INDIA LTD.,

Years
2008 2009 2010

Net Current Assets


20054.3 54161.9 9701.2

Percentage
100 270.076243 48.37466279

Graph:

Net Current Assets


60000 50000 40000 30000 20000 10000 0 2008 2009 2010 Net Current Assets

Analysis & Interpretation: It is inferred from the chart that the company had taken the
higest income in the year 2009 Rs.54161.90 million as compared to the other previous year and has the lowest income amount taken in the year 2010 Rs.9701.2 million The percentage of the year 2009 has been 170% in 2010 it decreases to 48%.

Source: Annual Report of the Company

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Table 9: Investments of AIR INDIA LTD.,

LONG TERM INVESTMENTS PARTICULARS 2007-08 2008-09 2009-10 Shares in Subsidiary Com 707.5 707.5 707.5 Trade Investments 161.4 504.5 504.2 Other Investment (Non-Trade) 24.7 12.2 0 QUOTED (Trade) 7.6 7.6 7.6 Total Investments 901.2 1231.8 1219.3 Percentage 100 136.6844208 135.2973813

Graph:
1400 1200 1000 800 600 400 200 0 2007-08 2008-09 2009-10 Total Investments Other Investment (NonTrade) QUOTED (Trade) Shares in Subsidiary Com Trade Investments

Interpretation & Analysis:


Company also made some investments. In 2008 the companys investment was 901.2 million, and in 2009 it increases to 1231.8 million it means that the company uses its funds in purchasing the investments. In 2010 the company having 1219.30 million of investment and it decreases by comparing to previous years and it means sale of investments during the year and it appears in the sources of funds and appears in fund flow statements sources side.

Source: Annual Report of the Company


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Calculation Of Working capital for the Year 2010

Table No: 10
Changes in Working Capital (Rs in Million) Changes in WC Particulars CURRENT ASSETS Inventory Sundry Debtors Cash and Bank Balances Other Current Assets Total Current Assets CURRENT LIABILITIES Sundry Creditors Amount due to wholly subsidiary com Interest accrued but not due Advances from customer Other Liabilities Other Provisions Total Current Liabilities Total Working Capital Decrease in Working Capital 2009 9642.1 24731 11396.4 561.6 46,331.10 24750.7 36 71.2 7795.8 9629.2 10929.9 53212.8 -6,881.70 2010 8677.8 25791.1 5284.7 768.1 40521.7 38189.4 27.2 218 8652.6 8379.5 10040.9 65507.6 -24,985.90 3414.1 21518.5 3414.1 18104.4 13438.7 8.8 146.8 857 1249.7 889 Increase Decrease 964.3 1060.1 6111.7 206.5

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Calculation of Funds from operation for the Year 2010

Table No: 11
Particulars Net Profit Brought to Balance Sheet Add: Non Fund items charged to the Debit Side of P&L A/c Provision for Bad & Doubtful & Advances Provisions for Obsolescence Loss on Sale of Fixed Assets Depreciation Transfer to Capital Reserves 16295.3 71186.2 Less: Non Fund items charged to the Credit Side of P&L a/c Profit on Sale of Fixed Assets Dividend from Long Term Investments Provisions Transfer from Capital Reserves Transfer from General Reserves P&L a/c Opening Balance in Balance sheet 44.6 795.7 19.5 633.5 77744.2 79237.5 Funds Lost From Operations -8051.3 1688.1 282.1 408.1 13917 2009-10 54890.9

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Funds Flow Statement for the year 2010:

Table No:12
2009-10 SOURCES Issue of Shares Loans Borrowed: Secured Loans Unsecured Loans Decrease in Working Capital Sale of Investments Future Lease Obligations Total Applications/Uses Loans Repaid: Secured Loans Purchase of Fixed Assets Purchase of Investments Funds Lost From Operations Payment made towards other Liabilities Total 8000 42247.6 15996.2 18104.4 12.5 16672.1 101032.8

60067.1 8051.3 32914.4 101032.8

Analysis & Interpretation: In 2010 the companys working capital has decreased to
18104.4 million comparing to 2009 and it mainly because of current assets are less comparing to current liabilities which is appeared in the sources side in fund flow statement. The company also purchased fixed assets during this year. In this year company issued 8000 excess shares to raise the fund and also they sold some part of investments too.

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Fund Flow Analysis


Calculation Of Working capital for the Year 2009

Table No:13
Changes in WC Particulars CURRENT ASSETS Inventory Sundry Debtors Cash and Bank Balances Other Current Assets Total Current Assets CURRENT LIABILITIES Sundry Creditors Amount due to wholly subsidiary com Interest accrued but not due Advances from customer Other Liabilities Other Provisions Total Current Liabilities Total Working Capital Decrease in Working Capital 2008 2009 Increase Decrease 374 1403.1 551.4 240.4

10,016.10 9642.1 26,134.10 24731 10845 11396.4 321.2 561.6 47,316.40 46,331.10 27485.4 184 38.1 7705.6 7448.7 9234.5 52096.3 -4,779.90 24750.7 36 71.2 7795.8 9629.2 8932.5 51215.4 -4,884.30

2734.7 148 33.1 90.6 2180.5 302 3976.5 4081.3 3976.5 104.8

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Fund Flow Analysis


Calculation of Funds from operation for the Year 2009

Table No:14
Particulars Net Profit Brought to Balance Sheet Add: Non Fund items charged to the Debit Side of P&L A/c Provision for Bad & Doubtful & Advances Provisions for Obsolescence Loss on Sale of Fixed Assets Depreciation Transfer to Capital Reserves 18380.5 1338.9 20857.5 20857.5 Less: Non Fund items charged to the Credit Side of P&L a/c Profit on Sale of Fixed Assets Dividend from Long Term Investments Provisions Transfer from Capital Reserves Transfer from General Reserves P&L a/c Opening Balance in Balance sheet 77744.2 22261.6 102123.5 Funds Lost From Operations -81266 1046.2 72.1 999.4 332.9 805.2 2008-09

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Fund Flow Analysis

Funds Flow Statement for the year 2009

Table No: 15
2008-09 SOURCES Issue of Shares Loans Borrowed: Secured Loans Unsecured Loans Decrease in Working Capital Sale of Investments Future Lease Obligations Total Applications/Uses Loans Repaid: Secured Loans Purchase of Fixed Assets Purchase of Investments Funds Lost From Operations Payment made towards other Liabilities Total 5258 55312.6 330.6 81266 4493.1 146660.3

92558.1 104.8 53997.4 146660.3

Analysis & Interpretation: Comparing with 2008, in 2009 the company working
capital has decreased to 104.8 million and the companys funds lost from operations is 81266 million which is appeared in application side in balance sheet. In this year the company borrowed the secured loans and repaid some portion of unsecured loans and also they purchased some investment as well as some fixed assets.

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Fund Flow Analysis


Calculation Of Working capital for the Year 2008

Table No: 16
Changes in Working Capital (Rs in Million) Changes in WC Particulars CURRENT ASSETS Inventory Sundry Debtors Cash and Bank Balances Other Current Assets Total Current Assets CURRENT LIABILITIES Sundry Creditors Amount due to wholly subsidiary com Interest accrued but not due Advances from customer Advances from Staff-Nerul Complex Other Liabilities Other Provisions Total Current Liabilities Total Working Capital Decrease in Working Capital 2007 7351.3 14406 3053.6 248.6 2008 10016.1 26134.1 10845 318.9 Increase Decrease 2664.8 11728.1 7791.4 70.3 22254.6 19244.1 216 108.2 2971.4 49.1 5635.5 5557.5 33408.5 33408.5 22627.9 10780.6

25,059.50 47,314.10 8241.3 27485.5 400 184 146.3 38.1 4734.2 7705.6 49.1 1813.2 3676.8 19060.9 35413.2 5,998.60 11,900.90

373.3 22627.9

Calculation of Funds from operation for the Year 2008

Table No: 17
Statement Showing Funds from Operations (Rs in Million) Particulars Net Profit Brought to Balance Sheet Add: Non Fund items charged to the Debit Side of P&L A/c Provision for Bad & Doughtfull & Advances Provisions for Obsolescence Depreciation Transfer to Capital Reserves 2007-08 22261.6 238 3089 7601.2 78942.9 89871.1 112132.7 AMC Engineering College Page 61

Fund Flow Analysis


Less: Non Fund items charged to the Credit Side of P&L a/c Profit on Sale of Fixed Assets Dividend from Long Term Investments P&L a/c Opening Balance in Balance sheet Funds Lost From Operations

4698.2 1010.8 2673.3

8382.3 103750.4

Funds Flow Statement for the year 2008

Table No: 18
FUND FLOW STATEMENT 2007-08 2007-08 SOURCES Issue of Shares Loans Borrowed: Funds from Operations Decrease in Working Capital Sale of Investments Total Applications/Uses Redemption of shares Purchase of Fixed Assets Payment made towards other Liabilities Total 10780.6 108424.7 103750.4 5.8 222961.5 88.4 179978.4 42894.7 222961.5

Analysis & Interpretation: In 2008, the companys working capital has been decreases
to Rs. 10780.6 millions but they have Rs. 103750.4 million as funds from operations. During this year they decreased the number of shares to 1450 and also they taken loans both secured and unsecured for expansion and sold some portions of investments too.

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Conclusion: Summary of Funds from Operation for various Years:

Table No: 19
Years 2009-10 2008-09 2007-08 Funds From Operations -8051.3 -81266 108424.7

Funds From Operations


150000 100000 50000 Funds From Operations 0 2009-10 -50000 -100000 2008-09 2007-08

According to the above calculated funds flow statement, the funds from operation of the company has declined over the. This is due to the fluctuation of the companys profits over the years. These shows that the company is not able to achieve its targets in concern to the projects undertaken.

These suggest that the company need to assess its resources and try to generate more profits out of the projects undertaken by them.

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FINDINGS:

Companys current asset was 47,316.40 million, 46,331.10 million and 40521.7 million in 2008, 2009, 2010 respectively over the current liabilities of 52096.3 million, 51215.4 million, 65507.6 million which is over the current ratio which decreases the companys flow of funds during the past 3 years.

In 2008 and 2009 its share capital was 1450 million but later on in 2010 they increased it to 9450 million which helps the company to survive even in loss.

In 2008 because of amalgamation the company having capital reserve in its account and later on in 2009 the general reserve and surplus was 633.5 million, 2010 its 624.8 million which is mainly because of the company undergoing loss of 77,744.2 million in 2009.

The secured loans in 2008 was 17966.3 million, in 2009 it was increases to 23659.5 million and again its increases to 65907.1 million in 2010. It increased because of payment of insured value of aircraft and some hypothecations.

Unsecured loans were155216.5 million, 168764.9 million, 184761.1 million in 2008, 2009 and 2010 respectively. It includes 7000 million worth of debentures during the year of 2010.

Future lease obligation was not held in 2008 but in 2009 it is 116887.5 million and it increases to 133599.6 million. It represents that Govt. of India given guarantee up to the extent.

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The fixed assets was 218670.7 million, 275027.2 million and 321076.1 million in 2008, 2009 and 2010 respectively which is in increasing order. They purchased huge assets in subsequent years. Fixed assets also include some work-in-progress/process.

Investment was 901.2 million, 1231.8million and 1219.3 million in 2008, 2009 and 2010 respectively. These investment includes unquoted long term investments of subsidiary company, trade investments, other investments i.e., non-trade and quoted i.e., trade investments.

The company is getting huge revenue of 152574.7 million, 134793.8 million, and 134022.7 million in 2008, 2009 and 2010 respectively. In this main part of income came from passengers and cargo. It helps the companys total revenue to increase.

The company also bearing huge expenses of 178542.6 million, 188964.5 million, 165806.7 million in 2008, 2009 and 2010 respectively. In that payment made on fuel and oil and payments to the employees including crew allowances paying the main role in increasing the expenses.

Company also having some interest and financial charges, prior period adjustments and some tax payment including fringe benefit tax and wealth taxes.

OBSERVATIONS
Only Government organization that has been professionally managed. It has received numerous awards. Air India Limited is administered and controlled by the Government of India. It has got a neat segmentation of Departments. Air India Limited having the major share in Aviation Industry Schedules are maintained effectively for their passengers. Air India Limited having its own subsidiaries which helps them to better services to their passengers.
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C. CONCLUSIONS:
From the findings it is inferred that the company should concentrate on the capital so there could be expansion of the business activities. The funds from the operations have negative balance i.e. in the working capital the company needs to take steps to avoid the deficit of the business. The company is in the profitable condition is low as the expenses is consistently increasing over the income during subsequent years. The company must think over the strategy over the fuel and oil which makes the huge payment leads to reduce the income of the business.

It could be concluded that the funds from operation calculation is important as it shows the working capital of the company and the profit and loss apportion account and finally the funds from operation which in need sites the need for funds in the future and the sources that could be polled out from.

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C.RECOMMENDATIONS

The company should maintain proper liquidity position by increasing the liquid assets such as cash and bank balance, sundry debtors, and other current assets and decrease the current liabilities like sundry creditors, advances from customers and etc., which enables the companys working capital in favorable positions

The company should try to reduce the cost of fuel which is more expensive or try to avoid the frequent flying which is not profitable to them

Company should increase its scheduled services which fetch the companys revenue and helps them to reduce the other cost occurred during the travelling.

The payment and allowances are more which leads to reduce the profitability positions of the company and try to reduce unnecessary allowances provided to employees and also to the passengers.

Company should increase its share capital instead of raising funds from secured loans and unsecured loans help them to reduce the burden of payment of interest.

Company should have the control over its expenses over the income which helps the company to earn the profit.

Using open sky policy the company should extend its network and fetch more profit through services provided to customers like premium classes.

The flow of funds is inadequate so the company should invest and utilize the money in best way where the company can get more return.

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It is advisable to the company that to increase its maintenance cost charge for premium and other classes helps to earn the income from it

Company should maintain some reserve as general reserve which helps them to compensate in future uncertainties.

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D. ANNEXTURE Balance Sheet As at 31st March 2008 , 2009, 2010:
Particulars I. SOURCES OF FUNDS: Shareholders Funds: a. Capital b. Reserves and Surplus Loan Funds: a. Secured Loans b. Unsecured Loans Future Lease Obligations TOTAL II. APPLICATION OF FUNDS: Fixed Assets: a. Gross Block Less: Depreciation b. Net Block c. Capital Work-in-Progress Investments: Deferred Tax Assets (Net): Foreign Currency, Monetary Items Translation Difference Account Current Assets, Loans and Advances: a. Inventories b. Sundry Debtors c. Cash and Bank Balances d. Other Current Assets e. Loans and Advances Less: Current Liabilities and Provisions a. Current Liabilities b. Provisions Net Current Assets Profit and Loss Account TOTAL 2007-08 2008-09 2009-10

1,450.00 78,942.90

14,500.00 633.5

9,450.00 624.8

28,917.50 23,659.50 65,907.10 155,216.50 168,764.90 184,761.10 116,887.50 133,559.60 264,526.90 311,395.40 394,302.60

186,545.60 243,294.00 328,410.50 7,601.20 18,380.50 31,990.60 178,944.40 224,913.50 296,419.90 39,726.30 50,113.70 24,656.20 901.2 11,873.40 1,231.80 28,424.20 1,528.00 1,219.30 28,425.20 99.50

10,016.10 26,134.10 10,845.00 318.90 15,602.10

9,642.10 24,731.00 11,396.40 561.60 11,175.90

8,677.80 25,791.10 5,284.70 768.10 14,466.50

42,861.80 9,234.30 10,820.00 22,261.60

42,282.90 10,040.90 5,183.20

55,466.70 10,929.90 -11,408.40 54,890.90

264,526.90 311,395.40 394,302.60

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E.BIBILIOGRAPHY
1) M.N.ARORA (2006), Management Accounting 1st edition pg -2.1 to 2.20 Published by Mrs.Meena Pandey, Himalaya Publishing House. Mumbai-400004 2) Website www.himpub.com 3) Dr .JAWAHAR LAL (2008) reprint, Accounting for management 4th edition pg 174 to 192 Published by Mrs.Meena Pandey,Himalaya Publishing House.Mumbai400004 4) Website www.himpub.com 5) I.M.PANDEY(2009) reprint, Financial management 9th edition pg -583 to 591 Published by Vikas Publishing Pvt House Ltd Noida-201301 6) Website www.vikaspublising.com

7) Annual reports of Air India Ltd., 8) www.businesstoday.intoday.in 9) www.airindia.com 10) Management Accounting By, B.S Raman 11) WEBSITE: www.airindia.com

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