UNDER THE GUIDANCE OF SUBMITTED BY

Dr. T. NARAYANAREDDY
P. HARSHAVARDHAN REDDY
M.A.,M.B.A.,Ph.D.
170A1E0002
 INTRODUCTION

The fund flow statement is a report

on the movement of funds. It explains how
working capital raised and used during an
accounting period.

“A statement showing the sources

and application of the funds known as Funds
Flow statement .”
 INDUSTRY PROFILE

India is the second largest producer of cement in the

world. Cement was produced for the first time in India
in 1904 by south India Industries limited Madras.

Capacity may increase further to 421 MT by the end of

2017. India's cement demand is expected to reach 550-
600 Million Tonnes Per Annum (MTPA) by 2025.

Among in large cement plants 77 are located in the states

of Andhra Pradesh, Rajasthan and Tamil Nadu.
 COMPANY PROFILE
Ultratech Cement Limited is the largest cement company in India
and amongst the leading producers of cement globally.

Andhra Pradesh Cement Works was a subsidiary of Grasim

Industries Limited acquired by Aditya Birla Group from L&T
Group in 2004.

It is located on the hilly area near Tadipatri, on the border line

between Ananthapuramu and Kurnool Districts in
Rayalaseema. Ultratech Cement Limited started APCW project
with a prospecting license in March 1992 followed by a mining
lease in June 1993. APCW is producing 11 million tonnes per
annum.
 NEED OF THE STUDY
• The present study intends to analyse the
inflow and outflows of funds at ULTRATECH
CEMENTS LTD for a period of 5 years
i.e,2013-14 to 2017-18
 SCOPE OF THE STUDY
The study covers fund flow statement
analysis at ULTRATECH CEMENTS LTD. for
5 years.
 OBJECTIVES OF THE STUDY
1. To study the changes in working capital at
ULTRATECH CEMENTS LTD.
2. To analyze the Fund from operations in
ULTRATECH CEMENTS LTD.
3. To identify the sources and application of
funds in ULTRATECH CEMENTS LTD.
 RESEARCH METHODOLOGY
The study is based on the secondary data only
SECONDARY DATA:
It is collected from the annual reports of
ULTRATECH CEMENTS LTD.

WEBSITE: www.ultratechcement.com
 TOOLS AND TECHNIQUES

• Statement of changes in working capital

• Statement of Funds from operations.
• Statement showing Sources & application of
funds.
• Bar and pie charts
 LIMITATIONS OF THE STUDY

• The study is limited to ULTRATECH CEMENTS

LTD TADIPATRI only
• The study is confined to the period of 5 years
i.e., from 2013-14 to 2017-18.
 DATA ANALYSIS
AND
INTERPRETATION
Statement showing changes in working capital
As on 31st march 2014(in lacks)
Particulars 2013 2014 Increase Decrease
A)Current
Assets
Inventory 28791054.65 22831086.69 5959968
Sundry 1246056.1 1524204.06 278148.06
receivables
Sundry 18619802.50 20316109.62 1696307
Debtors
Cash and Bank 620205.27 168108.45 452097
balance
Other Current 1273906.87 972202.43 301704
Assets
Total current 49277118.5 45811711.25
assets
 Cont…
Particulars 2013 2014 Increased Decreased
Current liabilities:
Sundry creditors 8696508.65 4904605.67 3791903.65
Deposits and 1716305.62 1769102.49 52796.87
retentions
Provision for taxation 592054.31 650012.56 57958.25

Interest accrued 611206.18 828908.46 217702.28

Other current liabilities 2533708.85 4309702.96 1775994.11

Total current liabilities 14149783.6 12462332.14

Net working capital 35127334.9 33349379.11

Changes in working 1777955.79

capital
Total 35127334.9 35127334.9 3791903.65 2104451.26
 ADJUSTED PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED 2014

Particulars Rupees Particulars Rupees

To preliminary
expenses 11956.03 By Balance b/d 2554965.51

By Funds from
To Depreciation 775438.83 operation 7569052.78

To capital reserve 12658

To deferred tax 30747.72

To Balance c/d 9293217.71

Total 10124018.29 Total 10124018.29

 INTERPRETATION:
*The working capital of 2014 has also
decreased to the extent of Rs. 1777955.79
than in 2013.
*In the year 2012-2013 trading profit of Rs.
2554965.51
*The secured loans and unsecured loans are
decreasing comparing with the previous year.
STATEMENT OF SOURCES AND APPLICATION
OF FUNDS FOR THE PERIOD(2013-2014)
Source Amount (Rs) Application Amount
Sale of 307496.72
investment
Funds from 7569052.78 Fixed assets 6623455.28
operations purchased
Decrease in 11925.03 Capital work in 2107096.09
expenses progress
Differed tax asset 307458.72 Decreased in 1480532.08
unsecured loans
Sale of fixed 897267.89 Decreased in 98412.65
assets secured loans
Payments 516335.80
Decrease in 1777955.79 Decreased in 45325.03
working capital employee related
funds
Total 10871156.93 Total 10871156.93
 Sources of funds

4%
16%
sale of investment

10% funds from operations

decrease expenses
sale of fixed asset
decrease in working capital
70%
 Application of funds

1% Payments
6%
16%
Fixed assets purchased

23% 54% Capital work in

progress
Decreased in
unsecured loans
Decreased secured
loans
 INTERPRETATION:

• In the year 2013-2014 the flow of funds was

contributed by purchase of fixed assets , loan.
The total circulation of funds in Rs.
10871156.93
Statement showing changes in working capital
As on 31st march 2015(in lacks)
Particulars 2014 2015 Increase Decrease
A)Current
Assets
Inventory 2283156.69 2888556.48 605399.79
Sundry 10242565.06 2984623.01 7257942.05
receivables
Sundry 2031615.62 1979445.41 52170.21
Debtors
Cash and Bank 168125.45 207256.47 39131.02
balance
Other Current 972223.43 870323.41 101900.02
Assets
Total current 15697686.25 8930204.78
assets
 Cont…
Particulars 2014on 31st2015
As march 2014
Increased Decreased
Current liabilities:
Sundry creditors 4904689.67 3999423.47 905266.2
Deposits and 1769221.49 1986023.08 216801.59
retentions
Provision for taxation 65024.56 13113.16 51911.4.60

Interest accrued 82895.46 87248.02 4352.56

Other current liabilities 430974.96 458208.878 27233.918

Total current liabilities 7252806.14 6544016.608

Net working capital 8444880.11 2386188.172

Changes in working 6058691.938

capital
Total 8444880.11 8444880.11
 ADJUSTED PROFIT AND LOSS ACCOUNT FOR
THE YEAR ENDED 2015

Particulars Rupees Particulars Rupees

To preliminary
expenses 11978.02 By Balance b/d 2038578.71

By Funds from
To Depreciation 711278.93 operation 7060285.55

To deferred tax 56598.54

To Balance c/d 8319008.77

Total 9098864.26 Total 9098864.26

 INTERPRETATION:

* The overall performance of the company is

digressive in 2015 than in 2014.
*The working capital of 2015 has also
decreased to Rs. 6058691.938
*In the year 2014-2015 trading profit of Rs
2038578.71
STATEMENT OF SOURCES AND APPLICATION
OF FUNDS FOR THE PERIOD(2014-2015)
Source Amount (Rs) Application Amount
Sale of 395975.50
investment
Increase in 369025.05 Fixed assets 2979763.302
secured loans purchased
Increase in 1245.94 Capital work in 8619185.80
employee related progress
funds
Funds from 7060285.55 Decreased in 1892725.10
operations unsecured loans
Decrease in 11925.02 Payments 630386.94
expenses
Sale of fixed asset 565985.54
Decrease in 6058691.938
working capital
Total 14463134.538 Total 14463134.538
 Sources

8%
6%
1%
sale of fixed asset
41% sale of investment
increase in secured loans
funds from operations
decrease in working capital
44%
 Application of funds

13%

capital work in progress

21% 54%
Payments
Fixed assets purchased
12%
Decreasloansed in unsecured

INTERPRETATION:
In the year of 2014-2015 the flow of funds
was contributed by decrease in working capital, fixed
assets, loans.
The total circulation of funds in Rs 14463134.538
Statement showing changes in working capital
As on 31st march 2016
Particulars 2015 2016 Increase Decrease
A)Current
Assets
Inventory 2888585.48 2623952.45 264633.03
Sundry 2984685.01 4940052.60 1955367.59
receivables
Sundry 1979445.41 1656654.88 322790.53
Debtors
Cash and Bank 707254.47 370852.37 336402.1
balance
Other Current 870345.41 156555.14 713790.27
Assets
Total current 9430315.78 9748067.44
assets
 Cont….
Particulars 2015 2016 Increased Decreased
Current liabilities:
Sundry creditors 3999452.47 1268752.38 2730700.09
Deposits and 198608.08 255638.52 57030.44
retentions
Provision for taxation 11310.06 73850.47 62540.41

Interest accrued 87248.02 98535.22 11287.2

Other current liabilities 458208.78 446918.99 11289.79

Total current liabilities 4754827.41 9454892.11

Net working capital 4675488.37 293175.33

Changes in working 4382313.04

capital
Total 4675488.37 4675488.37 73888.50 73888.50
 ADJUSTED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 2016
Particulars Rupees Particulars Rupees

To preliminary
expenses 951985.03 By Balance b/d 1408178.77

By Funds from
To Depreciation 685758.53 operation 5838152.02

To capital reserve 901885.85

To deferred tax 97308.53

To Balance c/d 4609392.85

Total 7246330.79 Total 7246330.79
SOURCES OF FUNDS

Sale of investment
Funds from 6%
operations
30%

Increase in
secured loans
64%

Sale of investment
Increase in secured loans
Funds from operations
 APPLICATION OF FUNDS
Fixed assets purchased
Capital work in progress
Decreased unsecured loans
Increase working capital
Decreased in employee related funds
6% 5% 9%
10%

70%

INTERPRITATION:
In the year of 2015-2016 the funds were increased in
working capital ,Fixed assets . The total circulation of funds
in Rs.55263548.563
Statement showing changes in working
capital as on 31st march 2017
particulars 2016 2017 increase decrease

Current assets:

Inventories 2623952.45 2823063.21 199110.76

Sundry 4940052.60 5020163.12 80110.52

receivables
Sundry debtors 1656654.88 1400054.12 256600.76

Cash and bank 370852.37 350842.25 20010.12

balance
Other current 156555.14 256252.24 99697.1
assets
Total current 9748067.44 9850374.94
assets
particulars 2016 2017 increase decrease
Current liabilities:

Sundry creditors 1268752.38 1565825.62 297073.24

Deposits and retentions 255638.52 356289.12 100650.6

Provision for taxation 73850.47 62951.28 10899.19

Interest accrued 98535.22 62151.33 36383.89

Other current liabilities 446918.99 369258.78 77660.21

Total current liabilities 9454892.11 2416476.13

Net working capital 293175.33 7433898.81

Changes in working capital 7140723.48

Total 7433898.81
 Adjusted profit and loss account for
the year ended 2017
Amount Amount
Particulars Particulars
852147.12 1642586.63
To preliminary
expenses By Balance b/d
598426.23 6523158.89
By Funds from
To Depreciation operation
895621.36
To capital reserve
87509.21
To deferred tax
5732041.6
To Balance c/d
8165745.52 8165745.52
Total Total
 Fund flow statement
Source Amount (Rs) Application Amount
Sale of investment 301126.72 Increase in working 7013368.4
capital
Increase in secured 7589652.78 Fixed assets 1890960.54
loans purchased
Increase in 21925.03 Capital work in 217009.09
employee related progress
funds
Funds from 370458.72 Decreased in 189053.08
operations unsecured loans
Decrease in 827967.89 Payments 315003.48
expenses
Sale of fixed asset 514263.45

Total 9625394.59 Total 9625394.59

 sources

5%

4% 3%
9%
sale of investment
1% increase in secured loans
increase in employee related funds
funds from operations
decrease in expenses
sale of fixed asset
78%
 applications of funds

3%
2%

2%

increase in working capital

20%
fixed assets purchased
capital work in progress
decresed in unsecured loans
payments
73%
 Statement showing changes in working
capital as on 31st march 2018
particulars 2017 2018 increase decrease

Current assets:

Inventories 3952952.45 3053063.21 899889.24

Sundry 4900052.60 5102163.12 202110.52

receivables
Sundry debtors 1896654.88 1500054.12 396600.76

Cash and bank 370852.37 300842.25 70010.12

balance
Other current 100555.14 256252.24 155697.1
assets
Total current 11221067.44 10212374.94
assets
Particulars 2017 2018 increase decrease
Current liabilities:

Sundry creditors 1565825.62 1852562.21 286736.59

Deposits and retentions 356289.12 412896.32 56607.2
Provision for taxation 62951.28 52632.17 10319.11
Interest accrued 62151.33 63452.82 1301.49
Other current liabilities 369258.78 285125.52 84133.26
Total current liabilities 2416476.13 2666669.04
Net working capital 7433898.81 7545705.9
Changes in working 111807.09
capital
Total 7545705.9 7545705.9
 Adjusted profit and loss account for
the year ended 2018
Amount Amount
Particulars Particulars
To preliminary 752147.12 1992586.63
expenses By Balance b/d
498426.23 By Funds from 7023158.89
To Depreciation operation
805621.36
To capital reserve
80509.21
To deferred tax
6879041.6
To Balance c/d
9015745.52 9015745.52
Total Total
 Fund flow statement
Source Amount (Rs) Application Amount

Sale of investment 400026.72 Increase in working 111807.09

capital
Increase in secured 7529652.78 Fixed assets 5232986.61
loans purchased
Increase in 20005.03 Capital work in 1270096.09
employee related progress
funds
Funds from 470458.72 Decreased in 1770532.08
operations unsecured loans
Decrease in 727967.89 Payments 815003.48
expenses
Sale of fixed asset 52314.21

Total 9200425.35 Total 9200425.35

 sources

8% 1%4%
5% sale of investment
1%
increase in secured loans
increase in employee related funds
funds from operations
decrease in expenses
sale of fixed assets
81%
 applications of funds

9% 1%

increase in working capital

19%
fixed assets purchased
capital work in progress
57% decreased in unsecured loans

14% payments
 Statement showing changes in working capital:

Year Increase/decrease in Amount

WC

2013-2014 decrease 1777955.79

2014-2015 decrease 6058691.938

2015-2016 decrease 4382313.04

2016-2017 increase 7140723.48

2017-2018 increase 111807.09

 Amount
8000000
7000000
6000000
5000000
4000000
amount

3000000 Amount
2000000
1000000
0
decrease decrease decrease increase increase
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
years

INTERPRETATION:
In the 2013-2014, it is decrease in
Working capital then it increase the working
Capital in the year 2017-2018.
 FUNDS FROM OPERATION

YEAR AMOUNT(Rs)

2013-2014 7569052.78

2014-2015 7060285.55

2015-2016 5838152.02

2016-2017 370458.72

2017-2018 470458.72
 AMOUNT(Rs)
8000000
6000000
4000000
amount

2000000 AMOUNT(Rs)
0

years

INTERPRETATION:
This chart represents fund from operations, in the year
2013-2014 increasing the funds from operations then decreasing
and again increasing in the year 2016-2017.
 FINDINGS
• The working capital of 2014 has also decreased to
the extent of Rs. 1777955.79 than in 2013.
• In the year of 2014-2015 the flow of funds was
contributed by decrease in working capital, fixed
assets, loans.
• The operating expenses are increasing year to
year , it reflects profitability of the company .
• The investments are decreasing year to year .
• Purchase of fixed assets are in increasing mode .
 SUGGESTIONS
• Efficient assets utilization for revenue
generation is suggested.
• Steps should be initiated in order to cut down
the expenses of the company , which are
found to affect to the maximum in all the
years of study.
• Improving the sales performance is desirable .
 CONCLUSION
The following conclusions are arrived based on the
observations made on the present study :
• Funds were utilized for purchase of fixed assets
and financing the working capital requirement .
• The study revealed the trend of application and
sources of funds in respect of secured and
unsecured loans .
• It helps to management , investors , shareholders
and bankers .
THANK YOU