COMPANY PROFILE ABOUT COMPANY

The Escorts Group, is among India's leading engineering conglomerates operating in the high growth sectors of agri-machinery, construction & material handling equipment, railway equipment and auto components. Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the agricultural growth of India for over five decades. One of the leading tractor manufacturers of the country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of tractors from the house of Escorts. A leading material handling and construction equipment manufacturer, we manufacture and market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer. Escorts has been a major player in the railway equipment business in India for nearly five decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite brake blocks and vulcanized rubber parts. In the auto components segment, Escorts is a leading manufacturer of auto suspension products including shock absorbers and telescopic front forks. Over the years, with continuous development and improvement in manufacturing technology and design, new reliable products have been introduced.

The Escort Group has also been operating in the ITES and financial services sectors. Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In the over six decades of our inception, Escorts has been much more than just being one of India's largest engineering companies. It has been a harbinger of new technology, a prime mover on the industrial front, at every stage introducing products and technologies that helped take the country forward in key growth areas. Over a million tractors and over 16,000 construction and material handling equipment that have rolled out from the facilities of Escorts, complemented by a highly satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the globally accepted best manufacturing practices with relentless focus on research and development, Escorts is today in the league of premier corporate entities in India. Technological and business collaboration with world leaders over the years, Globally competitive indigenous engineering capabilities, over 1600 sales and service outlets and footprints in over 40 countries have been instrumental in making Escorts the Indian multinational. At a time when the world is looking at India as an outsourcing destination, Escorts is rightly placed to be the dependable outsourcing partner of world's leading engineering corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics, implements and attachments to tractors, and shock absorbers for heavy trailers and armored tanks. In today's Global Market Place, Escorts is fast on the path of an internal transformation, which will help it to be a key driver of manufacturing excellence in the global arena. For this we are going beyond just adhering to prevailing norms, we are setting our own standards and relentlessly pursuing them to achieve our desired benchmarks of excellence.

INDIAN TRACTOR INDUSTRY INTRODUCTION

India is predominantly an agricultural country.70% of the population lives in villages and villagers depends upon agriculture for their bread and butter. Since Indian valley civilization, agriculture is the main source of income but at that time the agriculture was manual work. Before independence Indian agriculture was in very bad situation. But since 1947, when India became independent, the farmers also became independent. They had seen many ups and downs in their income. After independence in five-year plans, first priority was assigned to agriculture government tried best to improve the industry but a systematic planned approach for development started in 1950, since than irrigation was recognized as key factor for agriculture. Education and research were also taken as a major initiative. In over six decades of the inception, Escorts has been much more than just being one of India's largest engineering companies. It has been a prime mover on the industrial front introducing products and technologies and taking the country forward in key areas. All these developments made mechanization mandatory for agriculture and imports of tractors began. Acceptance of mechanization was slow, in fiftys the use of tractor was very low. Green Revolution was the result of tractor was barely 10000 in 1970. The industry was producing around 25000 to 30000 tractors. Today, India is the largest tractor market estimating 2185000 tractors per annum with the annual growth of 12.3. Today the tractor industry is of about 5000 crores. With the 12% of arable land, today India has 4.7% of the worlds tractor. India splits tractors largely into four categories i.e. 20-30hp, 31-40hp, 41-50hp, 51& above. 21-30hp and 31-40hp ranges into together are nearly 76%. SEGMENT OF TRACTORS ACCORDING TO HP WISE Tractor Range 20-30 HP 31-40 HP 41-50 HP 50&above 1965-97 24% 51% 19% 6% 1997-98 22% 50% 20% 8% 1998-99 17% 54% 22% 7% 1999-2000 10% 55% 25% 10%

Demand for big hp segment is increasing as per the table shown. In the budget of 199596, the central government has given subsidy of Rs. 30000 per tractor. The subsidy was for the user of low up segment tractors (for small farmers). The government wants to increase the usage of tractor for higher agriculture production. In the budget of year1998-99, the finance minister Mr. Yashwant Sinha has levied 8% excise duty on the imports. This was to save the Indian tractor industry form the slow down of economy and the East Asian Crises. According to economic survey of 1997-98 the production of agriculture has dropped by 205%. Until 1993-94 small tractor (below 25hp) were exempted fro the excise in bid to encourage small farmers. Because in India, almost 65% of farmers has less than 4 acres of arable land. According to business India, due to the Mahindra & Mahindra and Swaraj tractors would be benefited about Rs. 10000 to Rs.12000 per tractor as compared to others, which imports parts from abroad. The compound average growth rate during last six years has been around 15%. The level of tractorization is high in Punjab & Haryana at around 95&74 tractors per thousand hectares respectively. The tractor demand is driven by agriculture Products, Interest Rates, Total Agricultural Credit, Total Irrigation Facilities and Crop Pattern. Among them, credit is strongly correlated with the tractor sale. Nearly 80% of the tractors sale is through credit. Financial Pattern: As stated above that 80% of the tractor is financed through credit rates essentially through commercial banks, regional banks, rural banks and state level land development banks. The credit worthiness of the farmer is ascertained to have minimum holding of 6 areas of cultivated land to be eligible for loan. However bank can provide a loan on smaller landholding subject to farmer establishing his credit worthiness. The credit inflow since financial year 1996 is increasing support from NSBARD. This has already allocated 2000 crores from current year. HISTORICAL BACKGROUND: Indian agricultural in the fifties followed age bound tradition and was considered backward. The country did not produce enough food grain to feed its 36 crores population and famines were recurrent features. Import of food grains became necessary to meet the short fall in domestic production, there by causing a drain on scare foreign

exchange resources. It therefore became imperative to high priority to the development of agriculture.

First phase of development (1960-1967): Farm mechanism made a small beginning in the first five year PLAN. Tractors were imported for introduction is isolated pockets. However acceptance of mechanization was a slow process due to lack of awareness about its economic usefulness and versatility. The decade 1960 saw green revolution both increase in production and productivity with the parallel emphasis on industry. The birth of Indian tractor industry took place in 1959-60 when

import was restricted & five manufacturing units were set up in private sector all with collaboration. It was in this background that production of tractors in the country in 1960.

NAME

COLLABORATION

YEAR COMMENCEMENT 1959 1963 1963

OF

M/S EICHER TRACTORS WEST GERMANY LTD. M/S HINDUSTAN CZECHOSLOVAKIA & U.K.

TRACTORS LTD. M/S TRACTORS FARM,

EQUIPMENT 1964 1965

LTD.(TAFE) M/S ESCORTS LTD. POLAND M/S INTERNATIONAL U.K. TTACTORS INDIA LTS RENAMED MAHINDRA MAHINDRA CO. OF AS & LATER

The total indigenous production of tractors by 1965 was just 6000. The real spurt in mechanization of agriculture came in the introduction of high yielding variety (HYV) of seeds in 1966-67 and their enthusiastic adoption by farmers, particularly in the wheat growing northern region. With the successful introduction and acceptance these high quality seeds there was a upspring in the demand of tractors in 1967 and demand started multiplying at an annual rate of almost 50% (1967:1800-1970:33000).A natural consequent of sharp upsurge and consequent shortage was heavy price premium on tractors : Recognizing the situation , imports of tractors were liberalized and over and above the domestic production of 20000 in 1970 3000 tractors were imported.

Second phase of development (1968-1980):

Since the pace of indigenous five tractors manufacturing units already set up far below expectation, the Government decided to provide diligence to the tractor industry in 1968 and invites new entrepreneurs. Benefiting from this forward-loo king policy six more units came in during 1971-1974. These were: NAME M/S COLLABORTION ESCORTS U.K. YEAR OF COMMENCEMENT 1971 1971 1974 1974 1975

TRACTORS LTD. M/S HMT LTD. CZECHOSLIVAKIA M/S KIRLOSKAR WEST GERMANY TRACTORS LTD. M/S PUNJAB INDIGENOUS TRACTORS LTD. M/S HARSHA USSR TARCTORS LTD.

Not withstanding the above progress on the setting up to new units. Tractor industry ran into difficulties from 1969 onwards and by 1972 domestic tractor production stagnated at a level of 20000units primarily due to continuing of imports of tractors. Problem was

further compounded by the oil crisis in 1973-74 and the resultant economic crisis and inflationary pressures, which persisted till middle of 1975.

The tractor market started slowly pocking up from 1975 (31000tractors) because of relative price stability , govt. directives of the commercial banks increase rural lending expansion of rural branches of commercial banks good monsoons which resulted in bumper harvests and accelerated pace of extension of irrigation facilities . This trend continued throughout the late seventies and by 1979-80 yearly market off take had risen to a level of 62000tractors.

Third phase of development (1980-86):

The buoyancy in the tractor market experienced in the late seventies continued tell 198182 when 78000 tractors were sold. The encouraging trend led to the setting up of more for the manufacture of tractors during 1981-86. These units were: NAME COLLABORATION YEAR COMMENCEMENT 1981 1983 1986 OF

M/S AUTO TRACTORS U.K. LTD. M/S PRATAP STEEL INDIGENOUS

ROLLING MILL LTD. M/S VST TRACTORS JAPAN LTD.

However, the sale of tractors plummeted to a low level of 66000 tractors in the year 1982-83 in the wake of severe credit squeeze imposed by reserve bank of India. The demand for tractors again picked up when the credit squeeze was eased and a sale of 80000units was recorded in the year 1984-85 for next year. Tractor industry stagnated causing closure of five manufacturing units as detailed below NAME PINE TRACTORS LTD. HARSHA TRACTORS LTD. AUTO TRACTORS LTD. KISLOSKAR TRACTOR LTD. YEAR OF CLOSURE 1983 1987 1987 1991

PRALAP STEEL ROLLING MILLS (HARYANA TRACTORS LTD.)

1996

Fourth phase of development(1987 onwards):

In the year 1987-88 the country saw a severe drought situation. This was a difficult period and it widely anticipated that crop yield would be severely affected. Under such a situation it was necessary to have provisions for supply of power, to perform farm operation, at proper time in order to fully exploit the limited moisture content left in soil. The versatility in the tractor became evident as this vehicle was used for pumping out underground water in this background tractor industry showed a remarkable growth during this period and all time high sale of 90000 tractors was recorded in the drought year (1987-88).Fourth phase of development The growth trend appears to be continuing with relaxation of tractor financing norms, except for a 2 year slack period due to general economic slowdown and political turmoil. In fiscal 1997-98 tractors sales refaced an all time high record of 250000.This impressive growth has influenced 3 more players, as listed below, to enter the market

NAME INTERNATIONAL

COLLABORATION INDIGENOUS

YEAR COMMENCEMENT 1997 1997 1998

OF

TRACTORS LTD. BAJAJ TEMPO LTD. INDIGENOUS NEW HALLAND ITALY TRACTORS PVT. LTD. JOHN TRACTORLTD. (INDIA) DHEER POLAND

2000

HISTORICAL BACKGROUND OF ESCORTS GROUP

Escorts came into being a vision that led two brothers Yudi Nanda and Hari Nanda to branch out their familys prospering transport s business and institute ventures that were to become the foundations of escorts Ltd. Escorts Agents Limited was born at Lahore on 17th October 1944 with Yudi Nanda as Managing Director and Hari Nanda as Chairman. After the owing to opportunity lying in the Indian village, Escorts (Agricultural Machinery) Ltd. was launched in 1948 with Yudi Nanda as Director. Tragically Yudi Nanda died in an accident in 1952. Then Escorts agent Ltd. And Escorts (Agricultural Machine) Ltd. Was merged in 1953 to create single Escorts agents Pvt Ltd SOME MILESTONES

1948

Pioneered farm mechanization in the country by launching Escorts Agricultural Machines Ltd. With a franchise from a U.S. based MINNEAPOLIS MOLINE, WISCONCIN, for marketing tractors, implements, engines and other equipments.

1958 Started importing MF tractor from Yugoslavia for marketing the same in India.

1960 A manufacturing plant was set up at Faridabad

1965 Got 169

industrial

license

to

manufacture

URSUS/

ESCORT

tractors .

1969 Escorts signed a contract with FORD MOTOR COMPANY to manufacture Ford 3000 model tractors. Escorts Institute of Farm Mechanization (EIFM) was established at Bangalore. This training Institute is one of its kind. 1971 1st February, the first tractor FORD 3000 rolled out of the factory. The same year the turnover touched the Rs.53 million mark.

1973 Escorts Tractors Limited (ETL) declared a healthy Profit Before Tax of Rs.4.725 million.

1974 Export of 400 tractors to Afghanistan - perhaps the worlds largest ever airlift of such equipment.

1975 Turnover crossed the Rs. 200 million mark for ETL. Profit After Tax Rs. 8.7 million. Maiden

dividend of 10% declared. 1976 1976 FORD 3600, advancement in Farm Mechanization, was launched with fanfare to a tremendous reception. Trial production of in-plant manufacturing of engine parts (Block & Head). 1977 1977 Escorts Scientific Research Centre marked its beginning at Faridabad by developing its own Engines for E-27 and E-37. Due to constant technology absorption, indigenization level touched 72% for FORD tractors, which was a result of relentless effort in that direction. 1979 Turnover crossed the Rs. 50 crores mark. In plant facility for machining centre housing and case transmission, on built-in line concept, installed 1983 Escorts Tractors Limited (ETL) established a state-of-the-art research and development centre to spearhead newer breakthroughs in Farm Mechanization and to maintain industry leadership. Line concept introduced for engine block machining. 1984 75000th tractor rolled out. A great occasion for the large family that worked for ETL. Newer challenges and frontiers were set.

1985 In keeping with the stupendous financial success, Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1987 50hp FORD 3610 was launched, another leap for the Indian Farm Mechanization Industry, the farmers and the people of the land. 1988 1988 ETLs annualized turnover crossed Rs. 100 crores. Dividend: 45% for 15 months.

1989 A MOU with CLAAS was signed for manufacturing & 1990- First Public Issue (February91) over-subscribed four times. Shares listed on Delhi and Bombay 91 Stock Exchanges.

1991- The Crop Tiger range of Combine Harvesters was launched by Escorts Claas Ltd. 92 1993 FORD 3620 tractor launched

1996 Disengagement of joint venture collaboration with New Holland and launch of FARMTRAC Tractor. 1997 A Joint Venture with Italian company CARRARO was finalized to establish a company in India for manufacturing and marketing of transmission and axles.

COLLABORATIONS Collaboration with international Organization of technological excellence , constant research to adopt the emerging technology to specify requirement of the market and belief in the philosophy industrial interdependence have made Escorts today one of the leading trend steers in Indias New Industrial Culture. Escorts have merged as fraternity of above 50,000 shareholders, 22,000 employees 4,000 ancillary suppliers and 1, 6000 dealers and stockiest all engaged in a large scale investment and sustained efforts to meet the ever widening market horizons of technological competence appropriate to Indias unique changing needs. Escorts believe in incorporating the finest existing technology to meet Indian consumers demands by collaborating with the internationally renowned companies prominent among these are:

IN GERMANY GOETZE AG MAHLE CLASS OHG KNORR BREMSE AG AUGUST BILSTEIN Piston rings and cylinder liners. GmbH Piston Harvesters Combines Railway Brake System GmbH Absorbers, Hydraulic products, Pressure and temperature switches. IN JAPAN KAYABA INDUSTRY CO. LTD. MIKUNI SHOKO CO. IN U.K. J.C.BAMFORD EXCAVATORS Telescopic Front Forks Car Carburetors for BI-Wheelers JCB Excavators loaders Front end

Loaders, Telescopic handlers IN U.S.A HUGHESNETWORKS SYSTEMS AB Road Construction Machinery Vibratory Road Rollers

OFFICIAL ADDRESS OF ESCORTS

Registered Office Corporate Secretariat & Law

Escorts Ltd. 11, Scindia House, Connaught Circus, New Delhi-110 001. Tel. No. 011-23310145 Fax No. 011-23311715 Escorts Ltd. 15/5, Mathura Road, Faridabad - 121 003 Tel. No. ( 0129 ) 2250222 Fax: ( 0129 ) 2250060 Email Address: corpsect@ndb.vsnl.net.in Web Site : www.escortsgroup.com

LEADERSHIP TEAM

Mr. Rajan Nanda Chairman Mr. Nikhil Nanda Joint Managing Director Mr. Rohtash Mal Executive Director and Chief Executive Officer - Agri Machinery Group

Mr. Manoj Jha Executive Vice President of Engineering Division

Mr. Kamal Bali CEO Escorts Construction Equipment Limited (ECEL)

Mr. G.B. Mathur Vice President - Law & Company Secretary Mr. Rakesh Kumar Budhiraja Group Chief Financial Officer Mr. Partha Dasgupta Group Vice President Human Resources and Employee Relations

LEVELS OF MANAGEMENT

MANAGEMENT

TOP MANAGEMENT MANAGING DIRECTOR & CEO(G-11) VICE PRESIDENT (G-10) ASSOCIATE VICE PRESIDENT (G-9)

SENIOR MANAGEMENT CHIEF GENERAL MANGER(G-8) GENERAL MANAGER(G-7) DEPUTY GENERAL MANAGER(G-6)

MIDDLE

JUNIOR

MANAGEMENT MANAGEMENT CHIEF MANAGER (G-5) SENIOR MANAGER(G-4) MANAGER(G-3) ASSISTANT MANAGER(G-2) EXECUTIVE(G1)

MISSION

WE WILL ACHIEVE LEADERSHIP IN MARKET SHARE & PROFITABILITY IN THE DOMESTIC TRACTOR MARKET BY THE YEAR 2004-2006 AND SHALL BE THE WORLSS LARGEST SUPPLIER OF SUB 100 HP TRACTORS. WE SHALL PROACTIVELY CONTRIBUTE TO THE PROSPERITY OF THE RURAL ECONOMY BY DEFINING A LARGER ROLE FOR OURSELVES IN THE FOOD AND AGRICULTURE SECTOR.

THE VISION

WE SHALL STRIVE TO BE THE NUMERO UNO IN THE INDIAN TRACTOR INDUSTRY AND TOP FIVE TRACTOR MANUFACTURERS IN THE WORLD.

WE SHALL CONTINUOUSLY STRIVE TO MEET THE EVER RISING EXPECTATIONS OF OUR VALUED CUSTOMERS AT THE LOWEST INTERNAL COST. WE SHALL AIM TO OFFER THE FARMING COMMUNITY A RANGE OF INNOVATIVE PRODUCTS AND SERVICES, WHICH SHALL ENABLE THEM TO IMPROVE THEIR PRODUCTIVITY AND COMPETITIVNESS. WE SHALL ACHIEVE A TURNOVER OF RS. 2 BILLION BY THE YEAR 2006.TRANSCENDING NATIONAL BOUNDARIES, WE SHALL STRIVE TO ATTAIN EXPORTS OF ONE TENTH OF OUR TOTAL TRACTOR PRODUCTION BY THE YEAR 2

REVIEW OF LITERATURE

INTRODUCTION MEANING OF FINANCIAL STATEMENTS The financial statements are nothing but the financial information presented in concise and capsule form, and are the financial information is the information relating to the financial position of any firm. The firm prepares the financial statements. To communicate with different parties about the financial position of the firm (Shareholders, creditors, banks, financial institution, financial analysts, investors etc. And

To analyze the operations and performance of the firm for the further

planning. The basic source, which provides the financial information, is the Annual report of the

company, which is presented by the company to its shareholders at the Annual General Meeting. Though the presentation of annual report is a statutory requirement under the Companies Act 1956, however it is also a medium of communication with the present as well as prospective investors and creditors of the company. Clause 43 A of the Listing Agreement (with the stock exchange) requires every listed company to publish unaudited quarterly results. But it does not mean the non-corporate firms do not prepare the financial statements. Every firm big or small, prepare the following financial statements:

The Balance Sheet (BS).

1. The Income Statement (IS). Two other key financial statements, which are usually prepared by corporate firms, are:

1. Statement of appropriation of profit, and

2. Statement of Change in financial position.

ANALYSIS OF FINANCIAL STATEMENTS (AFS)

Analysis of financial statements refers to the process of the critical examination of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm. The AFS is basically a study of the relationship among various financial fact and figures as given in a set of financial statements. AFS is the process of establishment and identifying the financial weakness and strength of the firm. It is indicative of two aspects of a firm i.e. the profitability and the financial position.

OBJECTIVES OF AFS The objectives of the AFS is to understand the information contained in financial statements with a view to know the weakness and strength of the firm and to make a forecast about the future prospects of the firm and thereby enabling the financial analyst to take different decisions regarding the operation of the firm. The objectives are as follows: To assess the present profitability and operating efficiency of the fir

COMMON-SIZE STATEMENTS (CSS)

The CSS represents the relationship of different items of financial statements with some Common items by expressing each item as a percentage of the common item. In common size Balance Sheet, each item of the balance sheet is stated as a percentage of the total balance sheet. The percentages for different items are computed by dividing the absolute amount of that item by the Common Base and then multiply by 100. The percentage so calculated can be easily compared with the corresponding percentage in some other period. Thus, the CSS is useful not only in intra-firm comparison for the same year or free several years

TREND PERCENTAGE ANALYSYS(TPA)

The TPA is a technique of studying several financial statements over a series of years. In TPA, the trend percentages are calculated for each item by taking the figure of that item for some base year as 100. So, the trend percentage is the percentage relationship, which Each item of different years bears to the same item in the base year. Any year may be Taken as the base year, but generally the starting / initial year is taken as the base year. So, each item for base year is taken as 100 and then the same item for other years is Expressed as a percentage of the base year.

RATIO ANALYSIS (RA)

The RA has emerged as the principle technique of the AFS. A ratio is a relationship Expressed in mathematical terms between two individual or groups of figures connected with other in some logical manner. The RA is based in the premise that a single accounting figure by itself may not communicate any meaningful information but when expressed as a relative to some other figure, it may definitely give some significant information. The relationship between two or more accounting figures/groups is called a Financial Ratio A financial ratio helps to summarize a large mass of financial data into a concise form and to make meaningful interpretations and conclusions about the performance of a firm. For example, a firm has net sales Rs. 5, 00,000 Gross Profit Rs. 1,00,000 Ratio of Gross Profit to net sales is 20% i.e., (Rs.l, 00,000 /Rs.5, 00,000)

Forms of Ratios

Since a ratio is a mathematical relationship between two or more variables / accounting figures, such relationship can be expressed in different ways as follows: As a Pure Ratio. As a Rate of Times. As a Percentage.

Ratio can be classified into: The Liquidity Ratio The Activity Ratio The Leverage Ratio The Profitability Ratio

STATEMENT OF CHANGES IN FINANCIAL POSITION (SCFP) Since the BS & IS of a firm are two basic depicting the financial position of a firm at the end of the year. These two financial statements are called the traditional statements. Both these statements fail to throw light on changes in assets, liabilities and shareholders wealth during this year. BS deals with the financial position gives only the static view of the year- end financial position and fails to indicate the movement and causes in assets and liabilities during the year. Similarly, IS show the profit or loss resulting out of the operations of the firm during the year? This profit or loss in fact to ascertain the sufficiency of resources to declare the dividend etc. thus, there is a need to prepare another statement (together with the BS & IS) which may identify the changes in assets, liabilities and the shareholders funds over a given period. The SCFP is essentially an explanation of the changes in financial position of a Firm occasioned by the firm in between two successive BS's. The SCFP draws basic Information from the BS and IS helps in understanding the change in assets, liabilities and shareholders worth. The SCFP deals with the flow of funds during the year i.e. the funds coming in and going out of the firm. It summarizes the sources from where the funds might have been arranged / procured by the firm and the uses for which the funs might have been used by the firm during the year. The SCFP can be prepared as follows SCFP (Cash Basis) also known as a Cash Flow Statement SCFP (Net Working Capital Basis) Fund Flow Statement

SCFP (WORKING CAPITAL BASIS) FUND FLOW STATEMENT The FFS reports the flows of funds through the firm during the year i.e., it shows the Sources and uses of working capital between two balance sheet dates. The FFS attempts to explain the changes in financial position from one BS to the subsequent BS in terms of the change in the funds or the working capital position of the firm.

The term Working capital (WC) is generally defined as the excess of total current assets over the total current liabilities. The current Assets (CA) of a firm may include cash in hand and at bank, stock, debtors, bills, advances etc. and the Current Liabilities (CL) includes creditors, bills payable, outstanding expenses, provision for tax, short term liabilities etc. the term WC is a single figure representing the net effect of a transaction is to increase or decrease the Working Capital by affecting any of the elements of Current Assets or Current Liabilities. Therefore, the FFS in its standard form incorporates only those transactions, which affect the Working Capital i. e. those transactions where in only one of the affected accounted is a current account. Now a flow of working capital arises when one of the affected accounts is a current account. From the point of view of current account, the effected on working capital can examined in the light of the definitions of the term working capital i.e., the excess of current assets over current liabilities i.e.,

Impliedly change in any of the CA or CL will affect the WC. Simple observation equation tells that: Increase in any of the CA or decrease in any of the CLs will result in increase in the WC. Decrease in any of the CA or increase in any of the CLs will result in decrease in the WC.

To find out the relative importance of different components of the financial position of the firm. To identify the reasons for change in the profitability / financial position of the firm, and

firm.

To assess the short term as well as the long term liquidity position of the

TECHNIQUES /TOOLS OF THE AFS AFS can be undertaken by different persons and for different purposes, therefore the methodology adopted for the AFS may be carrying from one situation to another. However, the following are some of the common techniques of the AFS:

Comparative financial statements. Common-size financial statements. Trend percentage analysis , and Ratio Analysis.

COMPARATIVE FINANCIAL STATEMENTS In CFS , two or more BS and/or the IS of a firm are presented simultaneously in columnar form. The Financial data for two or more tears are placed and presented in adjacent columns and thereby the financial data is provided at times perspective in order to facilitate periodic comparison. In CFS , the BS and the IS for number of years are presented in condensed form for year to year comparison and to exhibit the magnitude and direction of changes.

The CFS helps a financial analyst of the firm and in establishing operating and positional trend of the firm. The CFS may be prepared to show

1. The absolute amount of different items in monetary terms, 2. The amount of periodic changes in monetary terms, 1. The percentages of periodic changes to reveal the proportionate changes. The CFS can be prepared for both the BS and the IS.

CORE COMPETENCE OF ESCORTS Customer # 1 We put customers first in everything we do. We take decisions keeping the customer in mind. Challenging Spirit We strive for excellence in everything we do and in the quality of goods & services we provide. We work hard to achieve what we commit & achieve results faster than our competitors and we never give up. Team-work We work cohesively with our colleagues as a multi-cultural team built on trust, respect, understanding & mutual co-operation. Everyone's contribution is equally important for our success. Frank & Fair Organization We are honest, sincere, open minded, fair & transparent in our dealings. We actively listen to others and participate in healthy & frank discussions to achieve the organization's

A firm undertakes numerous during a year and" most of these transactions during a year and most of these transactions may affect one or the other current account i.e. most of these transactions May results in the flow of the WC. Neither is it necessary nor practical to identify the effect of each and every transaction on the WC. These transactions, instead, are considered and analyzed in a collective form and then their effect on the WC is identified.

SCFP (CASH BASIS) OR THE CASH FLOW STATEMENT

The CFS attempts to analyze the transactions of the firm in terms of cash i.e., the transactions generating cash and using cash. The focus in the CFS is on cash rather than on WC. The sources of cash may be the cash profits earned by the firm, issue of capital for cash, issue of other securities for cash, borrowings, sale of assets, investment, redemption of debenture or preference share, repayment of loan, payment of tax, dividend distribution etc. Thus, the CFS summarizes the cash inflows and outflows. An analysis of cash flows is useful for short-run planning. A firm needs sufficient cash to debts maturing in the near future, to pay interest and other expenses and to pay dividends to shareholders. The firm can make projections of cash flows and outflows for the near future to determine the availability of cash. This cash balance can be matched with the firm's need for cash during the period, and accordingly, arrangements can be made the deficit or invest the surplus cash temporarily. A historical analysis of cash flows provides insight to prepare reliable cash flow projections for the immediate future. A statement of changes in financial position on cash basis, commonly known as cash flow statement, summarizes the causes of changes in cash position between dates of two balance sheets. It indicates the sources & uses of cash. The cash flow statement is similar to the fund flow statement except that it focuses attentions on cash instead of working capital (funds). Thus, this statement analyses change in non-current accounts as well as current accounts (other than cash) to determine the flow of cash. The CFS is based on the concept on the WC Where as the CFS is based in cash which is only the element of WC. Thus , the CFS provides details of cash movements whereas the FFS provides the details of funds movements. The CFS considers only the actual movement of cash whereas the FFS considers the movements of the funds as defined in terms of net working capital.

CASH-FLOW STATEMENT A cash-flow statement is a statement showing inflows (receipts) and outflows (payments) of cash during a particular period. In other words, it is a summary of sources and applications of Cash during a particular span of time. It analyses the reason for changes in balance of cash between the two balance sheet dates. The term "Cash" here stands for cash and cash equivalents. A cash-flow statement includes only those items, which affect cash. As such the cash-flow statement is called a "statement of changes in financial position - cash basis."

A cash - flow statement can be for the past or can be projected for a future period.

OBJECTS OR USES OF CASH-FLOW STATEMENT

The main objectives behind preparing a cash-flow statement can be laid down as under:-

USEFUL FOR SHORT-TERM FINANCIAL PLANNING:A cash-flow statement provides information for planning the short-term financial needs of the firm. Since it provides information regarding the sources and utilization of cash during a period, it become easier for the management to assess whether it will have. Adequate cash to meet dayto-day expenses and pay the long - term loans and interest .Thereon and whether it has enough cash to pay for the purchase of fixed assets or not. USEFUL FOR PREARING THE CASH BUDGET:-

A cash-flow statement prepared for the future period is helpful in preparing a cash budget. It informs the management about the future period is helpful in preparing a cash budget. It informs the management about the surplus or deficit periods of cash, i.e., in which months the payments will be in excess of receipts. It helps in planning the investment of surplus cash in short-term investment and to plan short-term credit in advance of deficit periods.

 COMPARISON WITH CASH BUDGET:A cash budget is prepared at the commencement of the year, whereas a cash flow Statement is prepared at the end of the year. A comparison between the two helps in ascertaining the extent to which the financial resources of the firm have been generated and used according to the plan. Causes of variances between the figures of two statements can be analyzed and proper corrective measures may be takes.

STUDY OF THE TREND OF CASH RECEIPTS AND PAYMENTS:A cash-flow statement reveals the speed at which the cash is being generated from debtors, stock and other current assets the speed at which the current liabilities are being paid. It enables the management to assess the true position of the cash in future.

IT EXPLAINS THE DEVIATIONS OF CASH FROM EARNINGS:-

A firm may earn huge profits yet it may have paucity of cash or when it suffered a loss it may still have plenty of cash . A cash flow statement explains the reasons for it. HELPFUL IN ASCERTAINING CASH-FLOW FROM VARIOUS ACTIBITIES SEPARATELY:-

A cash-flow statement aims at highlighting the cash flow from operating, investing and financing activities separately. It includes how much cash has been generated or used in these activities.

HELPFUL IN MAKING .DIVIDEND DECISIONS:Dividend must be paid within 42 days of its declaration. Hence the management takes the help of

cash-flow statement to ascertain the position of cash generated from operating activities, which can be used for payment of dividend.

IMPORTANCE AND RELEVANCE OF CFS

The CFS has gained importance in view of the fact that there are many managerial Decisions, which are taken in the light of the cash availability or cash position of the firm. For example, declaration of dividend by the company requires cash disbursement and Therefore, the Board of Directors must consider the cash position before proposing a dividend. The CFS also provides information for the short term financial planning and in particular the short term cash needs of the firm. In view of increasing importance and relevance of the CFS, the clause 32 of the Listing agreement (between a Company and the Stock Exchange where the shares proposed to be listed) has been amended by the SEBI. As a result, the listed companies in India are now required to supply a copy of the CFS to each shareholder as a part of Annual Report. As a result, the listed companies have started a practice of sending a CFS for which the BS has been prepared as apart of the Annual Report of the company.

DIFFRENCE BETWEEN CASH - FLOW STATEMENT AND CASH BUDGET There is not much difference between cash flow statement and a cash budget. The only difference is that a cash flow statement is prepared for a past period where as cash budget is prepared for a future period. Hence, it is of limited use as far as the future periods are concerned. A cash budget is therefore prepared showing how much cash is likely to be received and what will be the disbursements during a future period of time. Thus, a cash budget indicates in which months there will be surplus cash and in which moths there will be deficiency of cash resources. The management can then take suitable decision to invest the surplus cash or make arrangement for the deficiency of cash at the required time.

LIQUIDITY It does not present true picture of the liquidity of the firm the liquidity does not depend upon cash alone. Liquidity also depends upon those assets, which can be converted into cash easily. Exclusion of these assets obstructs the true reporting of the ability of the firm to meet its liabilities when they become due for payment. The possibilities of window - dressing is higher in case of cash position in comparison to the working capital position of the firm. The cash balance can be easily maneuvered by postponing purchases and other payments and by rapidly collecting cash from debtors before the balance sheet date. Hence, a fund - flow statement presents a more realistic picture than a cash flow statement. Cash flow statement ignores non- cash charges. Hence the true position of the enterprise cannot be judged by cash flow statement.

It is prepared on cash basis and hence ignores one of the basic concept of accounting, namely accrual concept. PROCEDURE OF PREPARING CASH FLOW STATEMENT:-

The institute of charted accountants of India has issued accounting standards (as)-3 revised, for preparing a cash flow statement. This accounting standard has been made mandatory in respect of accounting periods commencing on or after 1st April 2001, for certain enterprises. These enterprises are:-

Enterprises whose equity or debt securities are listed on a recognized stock exchange in

India. And enterprise that are in the process of issuing equity or debt securities that will be listed on a recognized stock exchange in India. All other commercial, industrial and business enterprises, whose turnover for accounting period Rs 50 crores.

As such, the cash flow statement has been prepared according to as -3 revised in this project. According to as-3 revised, the cash flow statement summarizes the cash inflows and cash outflows and the net changes (increase or decrease) in cash and cash equipment resulting from operating, investing and financing activities of a firm during a period. The following terms are used for preparing a cash flow statement:

CASH:It compares cash in hand and demands with banks.

CASH EQUIVALENTS:There are short - term, highly liquid investments that are readily into known amounts of cash and which present insignificant risk of changes in their values. Normally, an investment will be termed as cash equivalent only if it has a short maturity period, say three months or less, from the date of its acquisition. Examples of cash equivalent are treasury bills, commercial papers etc. Which are purchased with cash that is in excess of immediate needs investment in shares are excluded from cash equivalents unless they are cash equivalent in reality. For example, the preference shares of the company, which are purchased shortly before their redemption date will be included in cash equivalents, provided there is only an insignificant risk of failure of the company in repaying the amount at the date of the maturity.

CLASSIFICATION OF CASH FLOW:-

According to as -3 (revised), cash flow statement should be presented in a manner that it reports inflows of cash by classifying them into three categories, namely: operating, investing and financing activities. Classification of all activities into these activities on the cash and cash equivalents of the enterprise such information will be helpful in evaluating the relationships among these three activities are explained as below:

CASH FLOW FROM OPERATING ACTIVITIES:-

Operating activities are the main revenue generating activities of an enterprise. As such they include cash flows from those transactions and events, which enter into the ascertainment of net profit or loss of the enterprise. Examples of cash flows arising operating activities are: Cash receipts from the sale of goods and rendering of services; Cash receipts from royalties, fees, commissions and other revenue; Cash payments to suppliers for goods and services; Cash payments to and on behalf of employees; Cash receipts and cash payments of an insurance enterprise for premiums and claims, annuities and other policy benefits; Cash receipts and payments relating to future contracts, forward contracts, option contracts and swap contracts when the contracts are held for dealing or trade purpose and Cash payments of refunds of income taxes unless they can be specifically identified with . financing and investing activities

 CASH FLOW FROM INVESTING ACTIVITIES:Investing activities include the purchase and sale of long term assets such as land, building, plant and machinery etc not held for resale. These activities also include the purchase and sale of such investment, which are, not including in cash equipments. Cash flow from investing activities discloses the expenditures incurred for resources intended to generate future income and cash flows. Examples cash flow arising from investing activities are; Cash payments to acquire fixed assets (including intangible); Cash receipts from sale of fixed assets (including intangibles); Cash payments to acquire shares ,warrants or debt instruments of other enterprises

(other than receipts for those instruments considered to be cash equivalents); Cash receipts from sale of shares, warrants or debt instruments of other enterprises (other than receipts for those instruments considered to be cash equivalents). Cash advances and loans made to third parties. In case of financial enterprises these will be treated as cash flow from operating activities; Cash receipts from the repayment of advances and loans made to third parties. In case of financial enterprises these will be treated as cash flow from operating activities;

Cash receipts of insurance claim for property involved in accident; and Cash receipts of interest and dividend. In case of financial enterprise these will be treated cash flow from operating activities;

CASH FLOW FROM FIANCING ACTIVITIES:Financing activities are the activities that result in change in capital and borrowing of the enterprise.

Examples of cash flows arising from financing activities are: Cash receipts from issuing shares or other similar instruments; Cash receipts from issuing debentures, loans, bonds and other short term or long term borrowing; Cash repayment of amounts borrowed, buy back of equity shares, redemption of preference shares, debentures, loans, bonds etc;

Cash payment of interest and dividend;

IMPORTANT NOTE In case of financial enterprise such as bank or mutual fund company cash Outflow and cash inflow arising from the purchase and sale of securities will Be treated as flows from operating activities. This is, because, purchase and sale of securities is a part of operating activity in case of financial enterprise. In addition, interest paid and interest received as well as dividends received will also be treated as cash flow from operating activities in case of financial Enterprises.

CASH FLOW STATEMENT (DIRECT METHOD)

CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from costumers Cash paid to suppliers and employers Cash generated from operations Income tax paid Cash flows from extraordinary item Extra ordinary items Net cash from operating activities CASH FLOW FROM INVESTING ACTIVITIES:Purchase of fixed assets Proceed from sale equipment Interest received Dividend received Net cash from investing activities **** (****) **** (****) **** **** (****) **** (****) **** **** ****

CASH FLOW FROM. FINANCING ACTIVITIES; Proceeds from insurance of share capital Proceeds from long- term borrowings Repayment of from long-term borrowings Interest paid Dividend paid Net cash from financing activities Net increase in cash and cash equivalent Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period **** (****) **** **** (****) **** **** **** ***

SOME SPECIAL TERMS:-

i)

INTERSET AND DIVIDEND:-

Cash inflow from interest and dividends and cash outflow on account of interest and dividends should be disclosed separately. Cash inflow arising from interest and dividends received should be shown as cash flow from investing activities where as cash outflow disclosed outflow on account of interest and dividend paid should be shown as cash flow from financing activity. ii) TAXES ON INCOME:-

Tax paid on income is a part of cash flow from operating activity. Hence, taxes paid are shown as a deduction under 'cash flow from operating activity'

iii)

EXTRA ORDINARY ITEMS;-

Cash flow relating to extra ordinary items such as bad debts recovered. Claims received from insurance companies, winning of a lottery or a law etc. Should be disclosed separately as arising from operating, investing or financing activities. For example, the amount received for insurance company on account of loss of stock by fire. Earthquake and floods etc. Should be reported as cash flow from operating activities.

iv)

SIGNIFICANT NON - CASH TRANSACTION:-

There are some investing and financing activities, which do not require the use of cash or cash equivalents. Such non cash activities should be excluded from the cash flow statement. Examples are; the acquisition of assets by issue of debentures or shares, conversion of shares into debentures etc. Such significant on non cash transaction should be disclosed outside the cash flow statement.

CASH FLOW STATEMENT (INDIRECT METHOD)

CASH FLOW FROM' OPERARATTNG ACTIVITIES: Net profit before taxation, and extraordinary item Adjustment for: Depreciation Foreign exchange loss Interest income Dividend income Interest expense Operating profit before working capital changes Increase in sundry debtors Decrease in inventories Decrease in sundry creditors Cash generated from operations Income tax paid Cash flow before extraordinary item Extra - ordinary items Net cash from operating activities **** (****) **** **** **** **** **** **** **** **** **** **** **** **** ****

CASH FLOW FROM INVESTING ACTIVITIES: Purchase of fixed assets Proceeds from sale of equipment Interest received Dividend received Net cash from investing activities (****) **** ***** (****) ****

CASH FLOW FROM FINANCING ACTIVITIES:-.

Proceeds from insurance of share capital Proceeds from long - term borrowings Repayments of from long - term borrowings Interest paid Dividend paid Net cash from financing activities Net increase in cash and cash equivalent Cash and cash equivalents at beginning of period **** **** (****) (****) (****) **** **** ****

CHANGES IN CASH FLOWS

Changes in cash flows can be treated to the following; 1. Net profit will increase the cash flows; these cash flows will be increased further if there are any non-cash changes (such as depreciation and amortization) 2. Any payment of dividends will decrease the cash flows; as will the repayment of debt; an issue of share or debt will also increase the cash flows. 3. An increase in non-cash assets will decrease cash flows; increase in current assets and fixed assets will result in drain on cash flows. Thus, a statement of changes in cash flows i.e. the cash flow statement classifies all Changes into one of three categories - operating, investing, or financing activities, Therefore, the preparation of a statement of changes in cash flows requires classification of changes in liabilities, shareholders equity, and non-cash assets into one of these categories, although some items will not fit easily onto one other. h equivalent at end of period

STEP- BY-STEP PROCEDURE TO PREPARE CFS

1.

Calculate the net increase or decrease in cash and cash equivalents:-

For this purpose the opening balance of total cash and cash equivalents is compared with the closing balance of cash and equivalents.

Increase/decrease in cash and equivalents Opening balance Cash in hand Cash in bank Short-term Investment Total **** **** **** **** **** **** ****

Closing Balance

****

The difference between the total of opening and closing balance will be increased or Decreased in cash equivalents during the period. It may be noted that if there are only one or two of items of cash etc.

2.

Net Cash flaw from operating activities:-

The term operating refers to the normal purchase of goods and services. On the basis of the information contained in the comparative BS s and the IS and the additional Information, the net cash flow generated or use by the operating activities may be ascertained. The IS prepared by the firm gives the net profit figure earned by the firm,. On actual basis i.e., all items in the IS are incorporated on the basis of earned/accrued even.

3.

If not resulting in cash movements;-

So the profit or loss as by the IS may not result in increase or decrease in cash balance by the

SYNOPSIS
INTRODUCTION ESCORTS PVT. LTD. is a private limited company not listed in a stock exchange of India and employees 900 highly trained personnel. Its manufacturing plants are strategically located in close proximity to its customers at Faridabad (Haryana), Noida (U.P.)

OBJECTIVES OF THE STUDY

To find the movement of cash inflow and cash outflow.

To make the comparison between cash inflow and Cash outflow. To prepare the Cash Flow Statement. To analyze the Balance Sheet of the company in terms of Cash Flow Statement. To focus on various activities of the organization in terms of Operating, Financing, Investment.

SCOPE OF THE STUDY

Financial resources are the assets for the company and their productivity is key factor for profitability. It is necessary to know their problems, their knowledge, skills, abilities & the measures that can be taken to reduce them. By analyzing this top management can build good relations with the employees. The whole study is to determine the competencies of different employees who are working in ESCORTS PVT. LTD. By analyzing it, the top management can introduce the concept of competency mapping in the organization. Through this management can attempt to use more suitable strategies towards the human resource development. The research is confined to elicit the existing gap between the standard skill required to perform the job and the skill processed by the employees at ESCORTS PVT. LTD. And to provide them suitable training program to over come those gaps, for the better utilization of human resources. RELEVANCE The scope of the study was confined to the outside parties like creditors, shareholders, government, etc. Who want to invest their money in the company? The benefit of the report for the company is that through this report, they can come to know about the cash flow statements of the company.

This study also unable the company that their cash is not utilizing in unnecessary things. The benefit of the report for the researcher is that it has helped to get knowledge about the cash inflow and cash.

RESERRCH METHODOLOGY:RESEARCH DESIGN: The study was conducted under well- structured approach.

The project lasted for 4 weeks and the year 2009 i.e. from 08 July to 12 Aug.2009. The questionnaire method & personal interview method was used to collect the primary data for the study. The secondary data is collected from Internet & company training material and many other company materials

SAMPLE DESIGN: The process of extracting a sample from a population is called sampling procedure. The selection of sampling procedure to conduct the research depends upon the nature of the study and the objective to be accomplished. Judgment sampling technique is adopted to select the respondents in this study. The sample design included the various departments in the YAMAHA MOTORS PVT. LTD.

Methodology of date collection

Conducting personal interview. Data collection from primary and secondary sources. Designing questionnaire. Selecting sample size from the sample frame for the survey. Questionnaire distribution. Analysis of collected data with the help of statistical tools. Interpretation of collected data . Stating the conclusion based on the entire study.

Sampling Technique The sampling technique used for this research is of non-probability and convenience sampling.

Sample Unit Employees of the company

Sample Size For this research study the sample size is 25 respondents.

Sources of data
Primary data: Primary data is the data which is collected by the researcher for the first time and which was not there. The tools used to collect the data are:-

1)

Questionnaire method from the employers in different departments.

2)

Face to Face personal interactions.

Secondary Data The data already collected is called as secondary data. The relevant information for this study has been collected from secondary source such as Books Journal Reports Publication by the organizational circulation Company records Business bulletins Internet

Secondary data is also collected from various of the internet and intranet. Some of the website trough which information was gathered was through

HYPOTHESIS

The report is analyzed under the presumption that cash flow position of YAMAHA MOTORS PVT.LTD. It can be improved and made effective in terms of cash flows.

In testing the above hypothesis the following aspects will be considered

1. Balance sheet comparisons 2. Presentation of cash flow statement in terms of revised AS-3

LIMITATIONS

The study though conducted to the best of the ability suffers from some certain limitations. There are:

The data is secondary one and as such its reliability may be questioned upon.

The time availability for the study is less, and as such it hinders thee progress of the study.

Senior officials were rarely approachable.

Websites were not giving comprehensive data.

Not having face-to-face interaction information.

to get more relevant

Analysis and interpretation of data was done on the assumption that the respondents information was online

Information collected was totally subjective.

The interviews are done during office hours, but could not be done for the other employees of other .

DATA ANALYSIS ESCORTS PVT. LTD

CASH FLOW STRATEMENT

Year Ended 30.09.2009 Rs. Crores Crores A, Cash Flow from Operating Activities Net profit before tax Adjustment for: Loss on sale/ Provision for diminution in value of Long Term Investments & loans to Group Companies Gain on sale of Long Term Investments Gain on sale of Asset Depreciation Misc. Exp./ Assets Write off/ Provisions Interest Expense Dividend Income Interest Income Operating Profit before working capital changes Adjustments for: Trade and other Receivables Inventories Trade Payables Miscellaneous Expenditure (88.17) 13.79 67.05 (7.50) (14.83) 1.89 (1.22) (0.13) 44.97 8.08 72.22 (0.02) (20.82) 87.64 (17.33)

Year Ended 30.09.2008 Rs.

34.44

40.18 (94.92) 39.55 7.50 79.99 (0.01) 106.73 (120.35) (46.92) 190.46 (5.11) 18.08

Cash Generated from Operations Direct Taxes (Paid)/Refunds

72.81 (17.85)

124.81 31.66

Net Cash Flow from operating activities B, Cash Flow from Investing Activities Purchase of Fixed Assets Proceeds from sale of Fixed Assets Movement in Loans and Advances Sale of Investments Short Term Deposits with schedule Banks Interest Received Dividend Received (30.95) 0.86 (16.27) 32.33 (2.31) 20.70 0.02

54.96

156.47

(27.94) 1.77 (16.44) 114.52 (10.48) 0.01

Net Cash Flow from Investing activities

4.38

61.44

Proceeds from Share Capital & Securities Premium Proceeds from Long Term Borrowings Less : Repayment of Long Term Borrowings Proceeds/ (Repayment) from short term borrowings (net) Interest Paid

114.44 86.60 (0.54) (227.26) (77.40)

(78.96) (82.23)

Net Cash used in financing activities Net Increase/(Decrease) in Cash and Cash equivalents

(104.16) (44.82)

(161.19) 56.72

Cash and Cash equivalents as at 01.10.2008 Cash and Cash equivalents as at 30.09.2009 .

105.65 60.83

48.93 105.6

ANALYSIS OF CASH FLOW

From the cash flow statements of the ESCORT PVT.LTD.It can be analyzed from the two years that the net cash balance of the company has increased manifold in 30-09-2008 than the year 30-09-2009.

The net profit in 30-09-2008 is higher than the 30-09-2009, but due to certain changes there has been increase in the cash balance. The interest paid this year is ore of the last year, which implies that thee company has not repaid his borrowed capital, due to which the interest has got down.

The depreciation has increased but it does not affect cash to an extent, as it is a non-cash item. In the head of working capital there is drastic change in the cash balance in the form of Trade and other Receivables; which has affected the cash balance.

There is outflow of cash for receivables rather than the inflow in the last year. So, the net effect is that the cash from operating activities has been decreased two times from the last year.

The company has no accumulated losses as at the end of the financial year i.e. September 31, 2008. Provision for taxation has been made in accordance with the requirement of AS22 issued by Institute of Charted Accountants of India. Pursuant to that, current year deferred tax liability have been charged to profit & loss account In opinion of the board of directors of thee company, the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount stated in the balance sheet and provision for all liabilities have been made.

Balance of sundry debtors, creditors, loans and advances are subject to confirmation by the concerned parties.

METHOD OF ANALYSIS
1. Data analysis is done using the following statistical tools wherever required, in order to extract meaningful information from the collected data. o Simple percentage and averages o Bar diagram o Cone diagram o Pie diagram 2. The collected data from the questionnaire has been put together in the form of tables. 3. Percentage has been calculated wherever necessary for generalization of the data.

4. Data analysis and interpretation has been done on the basis of primary and secondary data. 5. The findings researches have been recorded based on the analysis.

6. The study conducted pertains only to YAMAHA MOTORS INDIA PVT.LTD. All bank balances (debit/credit) have been confirmed by the concerned bank.

Identified from the available information which has been relied upon by the auditors. The names of small-scale industrial units to whom outstanding for more than thirty days within agreed terms. The company has 99.96% of shareholders in its subsidiary company named as ESCORTS PVT. LTD. As at 31-03-2008. So the net effect is that the net cash from investing activities has many more times than the last year, which is negative. Now the company has repaid its long term borrowing more than the last year, which has decreased the cash balance by the little amount. Balance with the schedule banks under the head current & collection account amounting to represent funds in transit lying with schedule banks pending transfer against loan liabilities under the head cash credit & bill discounting.

LIQUIDITY RATIO 1. CURRENT RATIO (Amount in Rs.) Current Ratio

Year 2003 2004 2005 2006 2007 Current Assets 58,574,151 69,765,346 72,021,081 91,328,208 115,642,068 Current Liabilities 7,903,952 31,884,616 16,065,621 47,117,199 30,266,661 Ratio 7.41 2.19 4.48 1.94 3.82

Interpretation
As a rule, the current ratio with 2:1 (or) more is considered as satisfactory position of the firm. When compared with 2006, there is an increase in the provision for tax, because the debtors are raised and for that the provision is created. The current liabilities majorly included Lanco Group of company for consultancy additional services. The sundry debtors have increased due to the increase to corporate taxes. In the year 2006, the cash and bank balance is reduced because that is used for payment of dividends. In the year 2007, the loans and advances include majorly the advances to employees and deposits to government. The loans and advances reduced because the employees set off their claims. The other current assets include the interest attained from the deposits. The deposits reduced due to the declaration of dividends. So the other current assets decreased.

The huge increase in sundry debtors resulted an increase in the ratio, which is above the benchmark level of 2:1 which shows the comfortable position of the firm.

GRAPHICAL REPRESENTATION
CURRENT RATIO 8.00 7.00 6.00 5.00 Ratio 4.00 3.00 2.00 1.00 0.00 2003 2004 2005 Years 2006 2007 2.19 4.48 1.94 3.82 Ratio 7.41

2. QUICK RATIO (Amount in Rs.) Quick Ratio

Year 2003 2004 2005 2006 2007 Quick Assets 58,574,151 52,470,336 69,883,268 89,433,596 115,431,868 Current Liabilities 7,903,952 31,884,616 16,065,620 47,117,199 30,266,661 Ratio 7.41 1.65 4.35 1.9 3.81

Interpretation
Quick assets are those assets which can be converted into cash with in a short period of time, say to six months. So, here the sundry debtors which are with the long period does not include in the quick assets. Compare with 2006, the Quick ratio is increased because the sundry debtors are increased due to the increase in the corporate tax and for that the provision created is also increased. So, the ratio is also increased with the 2006.

 GRAPHICAL REPRESENTATION

QUICK RATIO
8.00 7.00 6.00 5.00 Ratio 4.00 3.00 2.00 1.00 0.00 2003 2004 2005 Years 2006 2007 1.65 1.90 Ratios 4.35 3.81 7.41

3. ABOSULTE LIQUIDITY RATIO in Rs.) Absolute Cash Ratio

Year 2003 2004 2005 2006 2007 Absolute Liquid Assets 31,004,027 10,859,778 39,466,542 53,850,852 35,649,070 Current Liabilities 7,903,952 31,884,616 16,065,620 47,117,199 30,266,661 Ratio 3.92 0.34 2.46 1.14 1.18

(Amount

Interpretation
The current assets which are ready in the form of cash are considered as absolute liquid assets. Here, the cash and bank balance and the interest on fixed assts are absolute liquid assets. In the year 2006, the cash and bank balance is decreased due to decrease in the deposits and the current liabilities are also reduced because of the payment of dividend. That causes a slight increase in the current years ratio.

GRAPHICAL REPRESENTATION

ABSOLUTE CASH RATIO

4 3.5 3 2.5 Ratios 2 1.5 1 0.5 0 2003 2004 2005 2006 2007 Years 0.34 1.14 1.18 Ratios 2.46 3.92

LEVERAGE RATIOS 4. PROPRIETORY RATIO (Amount in Rs.) Proprietory Ratio

Year 2003 2004 2005 2006 2007 Share Holders Funds 67,679,219 53,301,834 70,231,061 56,473,652 97,060,013 Total Assets 78,572,171 88,438,107 89,158,391 106,385,201 129,805,102 Ratio 0.86 0.6 0.79 0.53 0.75

Interpretation
The proprietary ratio establishes the relationship between shareholders funds to total assets. It determines the long-term solvency of the firm. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of the company. There is no increase in the capital from the year2004. The share holders funds include capital and reserves and surplus. The reserves and surplus is increased due to the increase in balance in profit and loss account, which is caused by the increase of income from services. Total assets, includes fixed and current assets. The fixed assets are reduced because of the depreciation and there are no major increments in the fixed assets. The current assets are increased compared with the year 2006. Total assets are also increased than precious year, which resulted an increase in the ratio than old

 GRAPHICAL REPRESENTATION

PROPRIETORY RATIO
0.90 0.80 0.70 0.60 0.50 Ratios 0.40 0.30 0.20 0.10 0.00 0.86 0.60 0.79 0.53 0.75

Ratios

2003

2004

2005 Years

2006

2007

ACTIVITY RATIOS 5. WORKING CAPITAL TURNOVER RATIO (Amount in Rs.) Working Capital Turnover Ratio
Year 2003 2004 2005 2006 2007 Income From Services 36,309,834 53,899,084 72,728,759 55,550,649 96,654,902 Working Capital 50,670,199 37,880,730 55,355,460 44,211,009 85,375,407 Ratio 0.72 1.42 1.31 1.26 1.13

Interpretation
Income from services is greatly increased due to the extra invoice for Operations & Maintenance fee and the working capital is also increased greater due to the increase in from services because the huge increase in current assets. The income from services is raised and the current assets are also raised together resulted in the decrease of the ratio of 2007 compared with 2006.

 GRAPHICAL REPRESENTATION

WORKING CAPITAL TURNOVER RATIO

1.60 1.40 1.20 1.00 Ratio 0.80 0.60 0.40 0.20 0.00

1.42

1.31

1.26

1.13

0.72 Ratio

2003

2004

2005 Years

2006

2007

6. FIXED ASSETS TURNOVER RATIO Fixed Assets Turnover Ratio

Year 2003 2004 2005 2006 2007 Income From Services 36,309,834 53,899,084 72,728,759 55,550,649 96,654,902 Net Fixed Assets 28,834,317 29,568,279 17,137,310 15,056,993 14,163,034 Ratio 1.26 1.82 4.24 3.69 6.82

(Amount in Rs.)

Interpretation
Fixed assets are used in the business for producing the goods to be sold. This ratio shows the firms ability in generating sales from all financial resources committed to total assets. The ratio indicates the account of one rupee investment in fixed assets. The income from services is greaterly increased in the current year due to the increase in the Operations & Maintenance fee due to the increase in extra invoice and the net fixed assets are reduced because of the increased charge of depreciation. Finally, that effected a huge increase in the ratio compared with the previous years ratio.

 GRAPHICAL REPRSENTATION

FIXED ASSETS TURNOVER RATIO

6.82 7.00 6.00 5.00 Ratios 4.00 3.00 2.00 1.00 0.00 2003 2004 2005 Years 2006 2007 1.26 1.82 Ratios 4.24 3.69

7. CAPITAL TURNOVER RATIO in Rs.) Capital Turnover Ratio

Year 2003 2004 2005 2006 2007 Income From Services 36,309,834 53,899,084 72,728,759 55,550,649 96,654,902 Capital Employed 37,175,892 53,301,834 70,231,061 56,473,652 97,060,013 Ratio 0.98 1.01 1.04 0.98 1.00

(Amount

Interpretation
This is another ratio to judge the efficiency and effectiveness of the company like profitability ratio. The income from services is greaterly increased compared with the previous year and the total capital employed includes capital and reserves & surplus. Due to huge increase in the net profit the capital employed is also increased along with income from services. Both are effected in the increment of the ratio of current year.

 GRAPHICAL REPRESENTATION

CAPITAL TURNOVER RATIO

1.04 1.03 1.02 1.01 1.00 Ratios 0.99 0.98 0.97 0.96 0.95 0.94 1.04 1.01 1.00 0.98 0.98 Ratios

2003

2004

2005 Years

2006

2007

8. CURRENT ASSETS TO FIXED ASSETS RATIO in Rs.) Current Assets To Fixed Assets Ratio
Year 2003 2004 2005 2006 2007 Current Assets 58,524,151 69,765,346 72,021,081 91,328,208 115,642,068 Fixed Assets 19,998,020 18,672,761 17,137,310 15,056,993 14,163,034 Ratio 2.93 3.74 4.20 6.07 8.17

(Amount

Interpretation
Current assets are increased due to the increase in the sundry debtors and the net fixed assets of the firm are decreased due to the charge of depreciation and there is no major increment in the fixed assets. The increment in current assets and the decrease in fixed assets resulted an increase in the ratio compared with the previous year

 GRAPHICAL REPRESENTATION
CURRENT ASSETS TO FIXED ASSETS RATIO

9.00 8.00 7.00 6.00 Ratios 5.00 4.00 3.00 2.00 1.00 0.00 2003 2004 2005 Years 2006 2.93 3.74 4.20 6.07

8.17

Ratios

2007

PROFITABILITY RATIOS GENERAL PROFITABILITY RATIOS

9. NET PROFIT RATIO in Rs.) Net Profit Ratio
Year 2003 2004 2005 2006 2007 Net Profit After Tax 21,123,474 16,125,942 16,929,227 18,259,580 40,586,359 Income from Services 36,039,834 53,899,084 72,728,759 55,550,649 96,654,902 Ratio 0.59 0.30 0.23 0.33 0.42

(Amount

Interpretation
The net profit ratio is the overall measure of the firms ability to turn each rupee of income from services in net profit. If the net margin is inadequate the firm will fail to achieve return on shareholders funds. High net profit ratio will help the firm service in the fall of income from services, rise in cost of production or declining demand. The net profit is increased because the income from services is increased. The increment resulted a slight increase in 2007 ratio compared with the year 2006.

 GRAPHICAL REPRESENTATION

NET PROFIT RATIO

0.59 0.60 0.50 0.40 Ratios 0.30 0.20 0.10 0.00 2003 2004 2005 Years 2006 2007 0.30 0.23 Ratios 0.33 0.42

 10. OPERATING PROFIT (Amount in Rs.) Operating Profit

Year 2003 2004 2005 2006 2007 Operating Profit 36,094,877 27,576,814 29,540,599 31,586,718 67,192,677 Income From Services 36,309,834 53,899,084 72,728,759 55,550,649 96,654,902 Ratio 0.99 0.51 0.41 0.57 0.70

Interpretation
The operating profit ratio is used to measure the relationship between net profits and sales of a firm. Depending on the concept, it will decide. The operating profit ratio is increased compared with the last year. The earnings are increased due to the increase in the income from services because of Operations & Maintenance fee. So, the ratio is increased slightly compared with the previous year.

 GRAPHICAL REPRESENTATION

OPERATING PROFIT RATIO

0.99 1.00 0.90 0.80 0.70 0.60 Ratios 0.50 0.40 0.30 0.20 0.10 0.00

0.70 0.51 0.41 Ratios 0.57

2003

2004

2005 Years

2006

2007

 11. RETURN ON TOTAL ASSETS RATIO (Amount in Rs.) Return on Total Assets Ratio
Year 2003 2004 2005 2006 2007 Net Profit After Tax 21,123,474 16,125,942 16,929,227 18,259,580 40,586,359 Total Assets 78,572,171 88,438,107 89,158,391 106,385,201 129,805,102 Ratio 0.27 0.18 0.19 0.17 0.31

Interpretation
This is the ratio between net profit and total assets. The ratio indicates the return on total assets in the form of profits. The net profit is increased in the current year because of the increment in the income from services due to the increase in Operations & Maintenance fee. The fixed assets are reduced due to the charge of depreciation and no major increments in fixed assets but the current assets are increased because of sundry debtors and that effects an increase in the ratio compared with the last year i.e. 2006.

 GRAPHICAL REPRESENTATION

RETURN ON TOTAL ASSETS

0.35 0.30 0.25 Ratios 0.20 0.15 0.10 0.05 0.00 2003 2004 2005 Years 2006 2007 0.18 0.27 0.19 0.31

0.17 Ratios

12. RESERVES & SURPLUS TO CAPITAL RATIO Reserves & Surplus To Capital Ratio
Year 2003 2004 2005 2006 2007 Reserves & Surplus 65,599,299 34,582,554 51,511,781 37,754,372 78,340,733 Capital 2,079,920 18,719,280 18,719,280 18,719,280 18,719,280 Ratio 31.54 1.85 2.75 2.02 4.19

(Amount in Rs.)

Interpretation
The ratio is used to reveal the policy pursued by the company a very high ratio indicates a conservative dividend policy and vice-versa. Higher the ratio better will be the position.

The reserves & surplus is decreased in the year 2006, due to the payment of dividends and in the year 2007 the profit is increased. But the capital is remaining constant from the year 2004. So the increase in the reserves & surplus caused a greater increase in the current years ratio compared with the older.

 GRAPHICAL REPRESENTATION
RESERVES & SRUPLUS TO CAPITAL RATIO

35.00 30.00 25.00 Ratios 20.00 15.00 10.00 5.00 -

31.54

Ratios 1.85 2003 2004 2.75 2.02 2006 4.19

2005 Years

2007

OVERALL PROFITABILITY RATIOS

13. EARNINGS PER SHARE (Amount in Rs.) Earnings Per Share

Year 2003 2004 2005 2006 2007 Net Profit After Tax 21,123,474 16,125,942 16,929,227 18,259,580 40,586,359 No of Equity Shares 207,992 1,871,928 1,871,928 1,871,928 1,871,928 Ratio 101.56 8.61 9.04 9.75 21.68

Interpretation
Earnings per share ratio are used to find out the return that the shareholders earn from their shares. After charging depreciation and after payment of tax, the remaining amount will be distributed by all the shareholders. Net profit after tax is increased due to the huge increase in the income from services. That is the amount which is available to the shareholders to take. There are 1,871,928 shares of Rs.10/- each. The share capital is constant from the year 2004. Due to the huge increase in net profit the earnings per share is greaterly increased in 2007.

 GRAPHICAL REPRESENTATION

EARNINGS PER SHARE

120.00 100.00 80.00 Ratios 60.00 40.00 20.00 0.00 2003 2004 8.61 21.68 9.04 9.75 Ratios

101.56

2005 Years

2006

2007

14. PRICE EARNINGS (P/E) RATIO in Rs.) Price Earning (P/E) Ratio
Year 2003 2004 2005 2006 2007 Market Price Per Share 32.54 28.47 37.52 30.17 51.85 Earnings Per Share 101.56 8.61 9.04 9.75 21.68 Ratio 0.32 3.30 4.15 3.09 2.39

(Amount

Interpretation
The ratio is calculated to make an estimate of application in the value of share of a company. The market price per share is increased due to the increase in the reserves & surplus. The earnings per share are also increased greaterly compared with the last year because of increase in the net profit. So, the ratio is decreased compared with the previous year.

 GRAPHICAL REPRESENTATION

P/E RATIO
4.50 4.00 3.50 3.00 Ratios 2.50 2.00 1.50 1.00 0.50 0.00 0.32 Ratios 3.30 4.15 3.09 2.39

2003

2004

2005 Years

2006

2007

 15. RETURN ON INVESTMENT (Amount in Rs.) Return on Investment

Year 2003 2004 2005 2006 2007 Net Profit After Tax 21,123,474 16,125,942 16,929,227 18,259,580 40,586,359 Share Holders Fund 67,679,219 53,301,834 70,231,061 56,473,652 97,060,013 Ratio 0.31 0.3 0.24 0.32 0.42

Interpretation
This is the ratio between net profits and shareholders funds. The ratio is generally calculated as percentage multiplying with 100. The net profit is increased due to the increase in the income from services ant the shareholders funds are increased because of reserve & surplus. So, the ratio is increased in the current year.

 GRAPHICAL REPRESENTATION

RETURN ON INVESTMENT RATIO

0.45 0.40 0.35 0.30 Ratios 0.25 0.20 0.15 0.10 0.05 0.00 2003 2004 2005 Years 2006 2007 RatioS 0.31 0.30 0.24 0.32 0.42

DATA COLLECTION

The data can be of two types: Primary Data Secondary Data

Primary Data

Primary data are those data, which is originally collected afresh.

Secondary Data

Secondary data are those data which are already collected and stored and which has been passed through statistical research.

In this project, Secondary data has been collected from following sources:-

Annual report Books M.I.S

Other material and report published by company There are two methods to prepare the Cash flow Statement. ndirect Method I The indirect method (or reconciliation method) starts with net income and converts it to net cash flow from operating activities. In other words, the indirect method adjusts net income for items that affected reported net income but did not affect cash. To compute net cash flow from operating activities, non-cash charges in the income statement are added ack to net income and non-cash credits are deducted. b Direct Method Under the direct method the statement of cash flows reports net cash flow from operating activities as major classes of operating cash receipts (e.g., cash collected from customers and cash received from interest and dividends) and cash disbursements (e.g., cash paid to suppliers for goods, to employees for services, to creditors for interest, and to government authorities for taxes). INDIRECT VERSUS DIRECT METHOD The most contentious decision that the FASB faced in issuing Statement No. 95 was choosing between the direct method and the indirect method of determining net cash flow from operating activities. Companies lobbied against the direct method, urging adoption of the indirect method. Commercial lending officers expressed a strong preference to the FASB hat the direct method be required. tCF-Page 3 of 5

In Favor of the Direct Method The principal advantage of the direct method is that it shows operating cash receipts and payments. That is, it is more consistent with the objective of a statement of cash flows to provide information about cash receipts and cash payments than the in-direct method, which does not report operating cash receipts and payments. Supporters of the direct method contend that knowledge of the specific sources of operating cash receipts and the purposes for which operating cash payments were made in past periods is useful in estimating future operating cash flows. Furthermore, information about amounts of major classes of operating cash receipts and payments is more useful than information only about their arithmetic sum (the net cash flow from operating activities). Such information is more revealing of an enterprise's ability (1) to generate sufficient cash from operating activities to pay its debts, (2) to reinvest in its operations, and (3) to make distributions to its owners. Many corporate providers of financial statements say that they do not currently collect information in a manner that allows them to determine amounts such as cash received from customers or cash paid to suppliers directly from their accounting systems. But supporters of the direct method contend that the incremental cost of assimilating such operating cash receipts and payments data is not significant. In Favor of the Indirect Method The principal advantage of the indirect method is that it focuses on the differences between net income and net cash flow from operating activities. That is, it provides a useful link between the statement of cash flows and the income statement and balance sheet. Many providers of financial statements contend that it is less costly to adjust net income to net cash flow from operating activities (indirect) than it is to report gross operating cash receipts and payments (direct). Supporters of the indirect method also state that the direct method, which effectively reports income statement information on a cash rather than an accrual basis, may erroneously suggest that net cash flow from operating activities is as good as, or better than, net income as a measure of performance. Special Rules Applying to Direct and Indirect Methods Companies that use the direct method are required, at a minimum, to report separately the following classes of operating cash receipts and payments:

Receipts Cash collected from customers (including lessees, licensees, etc.). Interest and dividends received. Other operating cash receipts, if any. Payments Cash paid to employees and suppliers of goods or services (including suppliers of insurance, advertising, etc.). Interest paid. Income taxes paid. Other operating cash payments, if any. Companies using the indirect method are required to disclose separately changes in inventory, receivables, and payables to reconcile net income to net cash flow from operating activities. In addition, interest paid (net of amount capitalized) and income taxes paid must be disclosed elsewhere in the financial statements or accompanying notes. The FASB requires these separate and additional disclosures so that users

may approximate the direct method. Also, an acceptable alternative presentation of the in-direct method is to report net cash flow from operating activities as a single line item in the statement of cash flows and to present the reconciliation details elsewhere in the financial statements

FINDING OF SUDY

According to cash flow statement of the company, The finding of the study are as follows: The company has not taken any loans, secured or unsecured from companies, firms or other parties. The company has not accepted any deposit from the public during the year.

The company is not a sick industrial company.

The company has not granted any loan, secured or unsecured to company, firms or other parties.

The company has paid the entire long term and short term borrowing during the year.

The company has buy back the companys own share this year .

The interest paid in 2008 is more than the

There has been a significant decline in volume over the years from 2001-02 to 2005-06 as can be seen in the graph below:

NET SALE IN (Cr)

CHANGES NET SALES VOLUME

5000 1588 0 2005- 2006- 200706 07 08 YEAR 1896 2300

Table 4.3 The Net sales of Tractor has increased considerably from 2004-05 to 2007-08, This can be mainly attributed to changes in Variable and material costs and in the price. The Net sale of Tractor has increased considerably from 2004-05 to 2007-08, that is an decrease of Rs.7216 per tractor. This can be mainly attributed to changes in Variable and material costs and in the prices.

RECOMMENDATIONS
According to cash flow statement of the company, The suggestions of the study are as follows: The time durations for training program have to increase.

Buy regular review and consultations develop a career progression, which is sensitive to performance and ability.

Create an environment where by people are trend developed to enable.

The to take advantages of opportunities that arise.

The jab can be redesigned where the work man stay in what is normally the same job but has elements of it changed.

The principle amount must be paid in time, which can be reducing the interest the out flow.

The purchase of the fixed asset must be made only when there is extreme requirement.

In order to avoid taxes the company should go for more investment.

The companys borrowings should go for more investment. o The company should try to reduce the depreciations as maximum as possible.

CONCLUSION
The study on competency level of employees at ESCORTS PVT.LTD. gave an insight about the acceptance of competency mapping by employees. The employees at Ymi welcome the introduction of competency mapping in their organization as they felt it was very much essential in enhancing their skills and organizational development. The organization has provided the recourses guidance and support to facilitate the introduction of competency level easily and develop the employees in such a way that they can face any kind of challenge. However the level of competency in employees is found to be satisfactory. Providing proper training, education and guidance to the employees can enhance the level. This study was mainly carried out to find out whether thee competency mapping being followed by the company is effective till date. If the competency mapping and fitment to the organization. By looking at the graphs and tables it is quite that the employees still are not up to the level of competent pool, they still have to be trained and made competent in order to fill the gap. As the organization has just applied the mapping, it has to see to that it meets all the requirements for competency mapping. Therefore the graphs make it quite clear that, the potential of the employees is not up to the mark, and i.e. they are not competent enough to meet the competencymapping requirement. Hence by further training and counseling this gap can be closed. This report includes the training requirements of employees and it highlights skills possessed by each employee and skill required. All employees get training so that skill can be improved and maintain balance between standard performance with their actual performance to avoid gap.

APPENDIX
QUESTIONNAIRE Consumer Survey: Name: Age: Sex: Male Female _____________________________ _____________________________

Occupation: Businessman Service man Professional Others

Monthly income brackets: Below 15000 15000- 20000 20000-30000 30000 and above _________

% of your savings Do you invest? Yes No

If yes, then where do you invest your money? Bank Insurance funds Others

Why do you made that statement? Return Risk hedging Tax benefits Other reasons (specify) _______

Who influence your cash decision? Relatives and friends Family members Advisors/ experts You yourself

If no then why? Do not know where to invest Satisfied with your current investment return Dont want take risk Other reasons __________________________________________________________________ ___________________

Do you know about CF statement? Yes No

If yes, then from where you have come to know about an cash statement? Advertisements on newspapers Friends and relative Agents/ experts Other source

What do you think about cash statement? It means investing only in share market Constant watch must be kept always Return is not satisfactory Other perception __________________________________________________ Can you recall any cash flow of company? ___________________________ Would you want to made CF of an org. ? Yes No

If yes, then why? _______________________________________________________

If no, then why? _______________________________________________________

BIBLIOGRAPHY
List of Books. 1. PANDEY I.M. - FINANCIAL MANAGEMANT

2. KHAN M.Y. AND JAIN P.K. -FINANCIAL MANAGEMANT

3. SMITH K.V. MANAGEMANT OF WORKING CAPITAL 3. COMPANY RECORDS 4. JOURNAL 5. REPORTS

WEBLIOGRAPHY www.escortspvtltd.com www.google.com

1.

2.