A

SYNOPSIS REPORT
ON
CASH FLOW STATEMENT
AT
RELIGARE SECURITIES LTD
Submitted
By
K.SRIKANTH
H.T.NO: 1304-20-672-032
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

(Affiliated to Osmania University)

2020-2022
 AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

Department of Management

SYNOPSIS

Title of the Project : CASH FLOW STATEMENT

Student Name : K.SRIKANTH

Hall Ticket Number : 1304-20-672-032

Signature of the Student :

Signature of the Guide :

 TABLE OF CONTENTS

S. No. CHAPTER Page No

1 INTRODUCTION 1

2 NEED FOR THE STUDY 2

3 OBJECTIVES OF THE STUDY 3

4 RESEARCH METHODOLOGY 4

5 LIMITATIONS OF THE STUDY 5

1.1 INTRODUCTION:

In financial accounting, a cash flow statement, also known as statement of cash flows or

funds flow statement, is a financial statement that shows how changes in balance sheet

accounts and income affect cash and cash equivalents, and breaks the analysis down to

operating, investing, and financing activities. Essentially, the cash flow statement is

concerned with the flow of cash in and cash out of the business.

The statement captures both the current operating results and the accompanying changes in

the sheets an analytical tool, the statement of cash flows is useful in determining the short-

term viability of a company, particularly its ability to pay bills. International Accounting

Standard 7 (IAS 7) is the International Accounting Standard that deals with cash flow

statements.

People and groups interested in cash flow statements include:

 Accounting personnel, who need to know whether the organization will be able to

cover payroll and other immediate expenses

 Potential lenders or creditors, who want a clear picture of a company's ability to repay

 Potential investors, who need to judge whether the company is financially sound

 Potential employees or contractors, who need to know whether the company will be

able to afford compensation

 Shareholders of the business.

PURPOS

The cash flow statement was previously known as the flow of funds statement. The cash flow

statement reflects a firm's liquidity.

The balance sheet is a snapshot of a firm's financial resources and obligations at a single

point in time, and the income statement summarizes a firm's financial transactions over an

interval of time. These two financial statements reflect the accrual basis accounting used by

firms to match revenues with the expenses associated with generating those revenues.

The cash flow statement includes only inflows and outflows of cash and cash equivalents; it

excludes transactions that do not directly affect cash receipts and payments. These noncash

transactions include depreciation or write-offs on bad debts or credit losses to name a few.

The cash flow statement is a cash basis report on three types of financial activities: operating

activities, investing activities, and financing activities. Noncash activities are usually reported

in footnotes.

The cash flow statement is intended to provide information on a firm's liquidity and solvency

and its ability to change cash flows in future circumstances

 Provide additional information for evaluating changes in assets, liabilities and equity

 Improve the comparability of different firms' operating performance by eliminating

the effects of different accounting methods

 Indicate the amount, timing and probability of future cash flow

1.2 NEED OF THE STUDY:

Many business owners disregard the importance of cash flow statements because they

unwittingly believe that their current financial standing can be construed from other financial

reports and projections. Unfortunately, however, a cash flow statement is necessary to

adequately assess the incoming and outgoing flow of cash and other resources in a business.

Not only will a business owner with a cash flow system be more aware of his or her financial

standing, but it will also help investors to make educated decisions on future investments. A

business with regular and reliable cash flow statements shows more economic solvency, and

is more attractive to investors.

A cash flow statement documents the incoming and outgoing cash in plain terms. Future sales

and sales made for credit (unless they have been paid off) are not included in the cash flow

statement, and most of the data will come from core operations. Payables and receivables

should be expressly defined, as should depreciation of product value and inventory that has

not yet been moved

1.3 OBJECTIVES OF THE STUDY:

 To know the flow of cash in the organization RELIGARE SECURITIES LTD

 To access the efficiency with sources and uses of cash were made by the co ordinance

from the year 2017-2021.

 To identify the changes in the elements of focus and uses of working capital in between

above mentioned years.

 To improve the financial performance of the company.

 The main objective of the cash flow statement is that the cash flows from operating

activities, investing activities and financing activities.

 It summarizes this statement in balance sheet and income affect cash and cash

equivalents.

 It shows the cash earning capacity of the firm.

 It indicates different sources from which cash been collected and various purposes for

which cash has been utilised during the year.

 It classifies cash flows during the period from operating, investing and financing

activities.
1.4 SCOPE OF THE STUDY:

Since the study of a micro level of all cement industries in Andhra Pradesh does not possible,

so the study is restricted to RELIGARE SECURITIES LTD. A study that involves an

examination of long term as well as short term sources that a company taps in order to meet

its requirements of finance .The scope of the study is confined to the sources that RELIGARE

SECURITIES LTD tapped over the years under study i.e. 2017-2021.
1.5 RESEARCH METHODOLOGY:

The following are the main sources of date used for this study which are Collected and

compiled from published and unpublished sources of the Company data. The published

sources are as follows.

 Management information system published by RELIGARE SECURITIES LTD

 Status Report on RELIGARE SECURITIES LTD.

 Journals, books and other published reports.

The present study is based on primary and secondary sources of data collection.

 Primary data:

The primary purpose of the statement of cash flows is to provide information about

cash receipts, cash payments, and the net change in cash resulting from the operating,

investing, and financing activities of a company during the period. It was directly

collected by observations, Interviews questionnaire.

 Secondary data:

The secondary data was collected from the literate available in libraries and

Research studies and annual reports are related to the present study. It includes

published and unpublished literature like books, reports and generally articles of

the RELIGARE SECURITIES LTD.

The study of Trading A/C, Profit and Loss A/C and Balance sheet of RELIGARE
SECURITIES LTD (2017-2021)
 LIMITATIONS

The limitations of present study are as follows:

 Cash Flow Statement actually fails to present the net income of a firm for a period since it

does not consider non-cash items which can easily be ascertained by an Income Statement.

 Cash flow statement does not help to assess liquidity or solvency position of a firm.

 Cash Flow Statement is neither a substitute of Funds Flow Statement nor a substitute of

income Statement.

 The provisions which are made by the Companies Act is in conformity with Profit and Loss

Account and Balance Sheet are not in conformity with Cash Flow Statement which is

prepared as per AS 3

 Does not Conform with the Companies Act

 Cash Flow Statement is prepared on the basis of historical cost and, as such, it does not help

to know the future/projected cash flows.Inter-Industry Comparison not Possible.

 CHAPTER PLAN

CHAPTER 1:

INTRODUCTION

• NEED OF THE STUDY

• OBJECTIVES OF THE STUDY

• SCOPE OF THE STUDY

• RESEARCH METHODOLOGY

• LIMITATIONS OF THE STUDY

CHAPTER 2: LITERATURE REVIEW

CHAPTER 3: COMPANY PROFILE

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

CHAPTER 5: FINDINGS, SUGGESTIONS AND OCCLUSIONS

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Websites :

 www.RELIGARE SECURITIES LTD.com

 www.hdfc.com
 www.nseindia.org
 www.nsdl.com.in
 www.cdslindia.com

Newspapers:

 The Economic Times

 Business Line
 Business Standards
 The Hindu Business Line
 Yahoo finance
 Financial Chronicle
 Financial Express
 The Indian Express