INDEX

CHAPTER PARTICULARS PAGE NO

Introduction 1-7

Need of the Study 8-9

Scope of the Study 9 - 10

I
Objectives of the Study 11-12

Methodology 12-13

Limitations 13

II Industry Profile 14-23

Company profile
III 24-34

IV Theoretical framework 35-43

V Data Analysis & Interpretation 44-60

VI Findings, suggestions & Conclusion 61-64

Bibliography
65-66
 CHAPTER-I

INTRODUCTION
NEED
SCOPE
OBJECTIVES
METHODOLOGY
LIMITATIONS

1
 CHAPTER-I

INTRODUCTION

Definition :

1. Robert N. Anthony- The fund flow statement describes the sources from which
additional funds were derived and the use to which these sources were put to use.

2. ICWA. It is a statement either prospective or retrospective, setting out the sources

and application of the funds of the enterprise. The purpose of the statement is to
indicate how funds are raised and how the same have been utilized.

3. Yorston, Smyth and Brown. “A fund flow statement is prepared in summary

form to indicate change (and trends) are prepared regularly.”

The Funds flow statement is a summary of capital inflows and cash outflows. There
are people who feel that the funds are cash or working capital, which is the excess of
current assets over current liabilities. The word flow means movement, for both inflows
and outflows of resources. Funds flow and statement is a shift in working capitals. It is
also recognized as the statements of sources and utilization of fund.

We all know that the purpose of preparing the financial statements with the help of the
Income Statement or the Profit and Loss Account and Balance Sheet is to provide
financial information to users of the financial statements as far as possible. There is no
doubt that, in order to serve these basic objectives, the Income Statement and the Balance
Sheet serve very well.

2
es Involved in Funds Flow Statement:

The following persons are interested in:

(a) Shareholders:

They want to know how much is accessible for the payment of the dividend and the status
of their interest in the business.

(b) Short-term creditors (including banks):

They are interested in getting an understanding of the danger that could be involved in
awarding credit to the product.

(c) Management:

Management is involved in thinking about the pattern and usage of various types of
finance in order to plan budgets and forecasts. They are always involved in understanding
if working capital has been adequately utilized.

(d) Investors:

They are interested in learning how some investment will be made in the business and, if
so, what the anticipated rate of return would be.

Fund flows can provide shareholders with a wealth of information about where capital is
being invested around the world. As regards the flow of funds, there is all possible
information on the financial resources that have become available during the accounting
period and the way in which these resources are used. The statement analyzes the
differences between the opening and closing balance sheet of the year. The movement of
funds through the business can be seen as a continuous operation. There must be an
offsetting source for every use of the funds. In general, the assets of the firm represent the
net use of the funds, the liabilities of the company and the net value of the funds represent
the net source.

3
MEANING AND CONCEPT OF FLOW OF FUNDS:

The term “flow” means movement, and includes both inflow and outflow, the term
flow of funds means the transfer of economic values from one asset to another flow of
funds is said to have taken place when a transaction is made. If the impact of the
exchange results in a rise of funds, it is referred to as a flow of funds and if it results in a
reduction of funds, it is known as the utilization of funds. Furthermore, in the event that
the exchange does not alter the money. It is said that it did not help in the influx of funds.
According to the concept of working capital of funds, the term flow of funds refers to the
movement of funds into working capital. If any transactions results in an increase in
working capital, it is said to be is said to be a source or inflow of fund and results in a
decrease in working capital, it is said to be a usage or outflow of funds.

There are other ways to find out about the financial status of the company, such as
Balance Sheet, Financial Reports, and Fund Flow Accounts. Fund flow Reports are
important for long-term research. Such analysis is of great help to managers,
shareholders, creditors, etc. There are some reasons that the corporation prepares the cash
flow statements, even when the firm has already issued several such financial statements to
show its financial status, which are as follows:

The Fund Flow Statements are used to show the liquidity and solvency of the business,
while the Balance Sheet does not reflect the true picture of the liquidity and solvency of
the company. Statements of income are prepared

· The Fund Flow Statements are used to show the liquidity and solvency of the business,
while the Balance Sheet does not reflect the true picture of the liquidity and solvency of
the company.

The income statements are drawn up on an accrual basis and may not have been obtained
and expenses recorded on the revenue statement may not have been charged in the same
way. This, however, is not the case with the statement from Fund Flow.
4
· The statement by Fund Flow reports cash inflow and cash outflow.

· The operating cash is contrasted with the net profit of the company. The net earnings of
the company are said to be of high quality when the cash from operations are greater than
their net earnings and when it is lower than operational activities, reasons are the same.

The credit interest of the organization can be calculated using the cash balance statements.

· It can also assist in choosing decisions about investment proposals.

· It also helps holders by analyzing Fund Flow Statements to buy stocks, decrease debt or
acquire another company.

· If cash is big, but the organization is still facing failure, it can be defined with the aid of
Fund Flow Statements. · ·

The information provided in this declaration is highly reliable, reliable and consistent, since
it is willing to include the operating funds and not net profit after depreciation.

In layman's terms funds move as transaction alters:

• Existing investments and capital or capital properties

• A duty set and present

• Net assets and liabilities

Fixed liability and current liability and the funds do not move when fixed assets and
liabilities or current assets and liabilities are affected by the transaction.

The Statement of Cash Flows is an accounting disclosure that was created after the
Balance Sheet and Income Statement is done that actually is essentially a mixture of the
origins of and the uses of cash over a period by classifying activities as carrying out the
operation, saving or managing the cash flows. When this is done, it is the first step of the
audit to check the accurate transition of balance sheet and sales figures to the cash flow
statement.
5
 REASONS FOR PREPARE FUND FLOW STATEMENT

Since typical accounts (i.e. income declaration / profit and loss account and balance
sheet) are not particularly detailed, any other information – Funds Flow Statements –
needs to be used by a financial analyst. In other words, along with conventional
information sources, certain other intelligence services are desperately required to tackle
the problem facing modern businesses.

No question, the Funds Flow Declaration answers the management needs. That is
because, not only do the Balance Sheet figures show in the Funds Flow Statement over
two straight years, they also reflect improvements in working capital — which is very
significant.

It exposes not just the source from which extra operating capital was provided, but also
the utilization of these funds at the same time. In fact, the management can quickly
determine whether a forecast fund flow statement is reasonable or insufficient, i.e. it
helps in a range of ways with decisions

 IMPORTANCE OF FUND FLOW STATEMENT

 It stresses the overall power of an organization and its weak points.

 Management encourages disciplinary steps in the case of discrepancies between

two matching figures.

 It also contains comprehensive information on a company's performance,

operating efficiency and financial problems.

 Explains the link between working capital changes and net profits. Statements of
flow of funding show the quantity of operations-generated funds.

6
  The potential of businesses to obtain long-term funding for long-term
acquisitions is illustrated.

 It serves as a management guide in the preparation, retainment and investment

policy of its dividends, etc. It helps to determine the financial impact of
operating financing and acquisition transactions.

 Helps management to anticipate additional capital requirements.

 The information found in this document is much more sensitive, more accurate
and consistent as it is prepared to cover operating assets, rather than net income
after depreciation.

 This helps to explore the capacity of businesses to pay interest and dividends
and to settle loans if necessary.

 NEED OF THE STUDY

` Fund flow statement is an essential accounting instrument that analyzes the

changes in the financial condition of a company demonstrating the sources and uses of its
finances. It provides useful information on firms operating, financing and investing
activities over a given period of time. The following points highlight the importance of
the statement of the flow of funds.

 When the organization files new annual statements to reflect its financial position,
it also has to review the results for the following:

 It helps recognize shifts in the present rates of savings in reserves and funding
of liabilities.

 It helps analyze the change at the level of a company's working capital.

 It shows the relationship between net revenue and the change in business funds.

7
 It reflects on historical flows of funds as guidance for predicting future flows of
funds.

 Which serves to assess the willingness of businesses to pay interest, dividend

and loans on schedule.

 It helps to define the reasons responsible for asset and liabilities transition
Funds flow statement helps in identifying the factor responsible for changes in
assets, liabilities and owners’ equity at two balance sheet date.

 The Funds Flow Statement helps to analyze the financial resources in detail and
to reveal the changes made between the two balance sheet dates.

 It highlights the financial implications of the operation of the product.

 It shows the extent to which the funds have been received, the means of use for
a specific period

 It indicates the probability of paying more dividends than existing profits or

paying regular dividends in the event of a net loss for a period of time.

 Responsibility is due to the lack of surplus cash status given the fact that
companies are making more and more money.

 It shows the use of profits earned in the current year.

 The general creditworthiness of the company can be calculated by analyzing the

Funds Flow Statement.

8
 SCOPE OF THE STUDY

 The present analysis is planned to cover a 5-year period from 2013 to 2018 for
the review of the cash management of the receivable control of the short-term
investment and the management of the investor for the benefit of the maintenance
of the working capital at the NFCL plant in Kakinada.

 Working capital management strategies have a significant effect on firms'

competitiveness, liquidity and financial stability. As a result, the financial manager
controls the appropriate working capital in order to ensure a higher profitability of
proper liquidity and a sound structural health of the organization. To order to
accomplish this goal, the financial officer has essentially two tasks to conduct.

 Estimate the sum of working capital.

 The origins from which these funds have to come.

 The research is based on a review of the allocation of working capital which

provides an estimate of the sum of work capital requirements as well as an
overview of the sources from which these have been raised.

 This research is important for understanding the management of working capital in

NFCL by presenting information on the basis of an overview of the percentage of
investment in each current asset that induces changes in working capital needed by
various sources of working capital.

9
 OBJECTIVES OF THE STUDY

 To analyze changes in assets and liabilities from the end of one period to the end
of another period in time.

 To know the different need for which the funds were received during a specific
period based on the use of these funds.

 To understand the flow of funds in current or non-current accounts.

 To find out which sources form additional funds have been made available and
how their sources have been used.

 Which reflect the connection between net profits, the allocation of dividends and
the rise in fresh capital or fixed-term loans.

 To point out the financial advantages and disadvantages of the business.

 To tell us how the loans to the business have been too used.

 This study seeks to examine the growth and performance of the industry.

10
  Research the effectiveness in which the organization uses its different properties to
produce revenue.

 Research the degree to which the company has used its long-term solvency
through investing money.

 METHODOLOGY

This study is done using through two sources of information.

METHODS

PRIMARY DATA SECONDARY DATA

 Primary data:

Primary source of data contains information gathered during consultations with

Heads of Divisions and during interactions with officials and employees.

11
  Secondary data:

Secondary source of data details is obtained from the information received by the
Organization by Financial Reports, News Records, Bulletins and other reference
materials.

In the present study analysis, 1/4th of the overall information is obtained from
primary data and the remainder is gathered from secondary data.

 LIMITATIONS

 The study must be ideally conditional, but each study has some limitations.

 The study is limited to the company of Nagarjuna Fertilizers and Chemicals Ltd
only.

 This research should not be generalized to all companies in the same sector.

 The time period of 6 weeks also is a limiting factor for an in-depth analysis.

 The study is done on the basis of business records, where certain information is
kept secret by the client and, as a result, the final study was not necessary.

 The averages are determined on the basis of previous five-year results and
cannot be viewed as potential benchmarks.

12
 CHAPTER-II
INDUSTRIAL PROFILE

13
 CHAPTER-II

INDUSTRY PROFILE

Paper is a commodity, which is important in everyday life. Paper has grown

immensely an importance in such a way that it has become an indicator for a country’s

civilization, since it is mostly depend upon its paper consumption first to understand

the establishment and growth of the paper industry. We had to know in brief about the

introduction and the establishment of paper in the world and it’s enhancing into the

Indian soil.

The word “paper” is derived from the water plant called “papyrus. That grows

around the “Nile River”, Egypt. The citizens of Egypt used the ark of “papyrusplant”

after cutting and dry it. It was said that “T Jariluru Chin” had prepared paper with the

bark of the mulberry tree in 105 A. D.

In 1336A the world's first paper mill was begun. D. Paper mills began in

1586in Switzerland and London, taking into account the enormous aspect of the paper

industry. It was later spread in no longtime to all the other countries of the world.

The technology used in paper making has made many modifications and was

entirely different from the technology used in the beginning. In the year 1927 chlorine

gas was used for bleaching of the pulp in 1979, “Robert Mochilas” the French scientist

has designed first paper machine in the world.

14
 now a day’s are quite different and very well advanced oath in capacity to produce

and the enormous speed with which they operated.

HISTORYOFINDIANPAPERINDUSTRY

UnlikeIron&steel,textileandsugarindustrythepapermakingindustrydidn’texist

in ancient India for writing purpose ancient Indian’s used Baoji parts (bark of tree)

and tall parts (bark of palm) were used some of the old man scripts and many grand

has preserve upto the present times were written on these materials which are not

prevalent nowadays.

The modern art of paper making came to India quite late theFoundations of latest papers
industry gained momentum from late 1870’s prior to the latest technology, people used
different techniques.
Old Egyptians (paper mailing to India) used sheets of papyrus made of plant

papyrus stem tissue. The earliest written boards, now a day, was usable up to five

thousand years ago. The Aryans used the Baoji parts for writing with derived and

processed palm leaves and thin bark leaves.

First successful paper mill in India “the Tata gear” paper mills as established

in the year 1891 in Bangalore, East India from this year onwards, the paper industry in

India has gained much movements and speed throughout the country and increased in

number.

15
 SIZEANDCAPACITYOFPAPERINDUSTRY

Availability of raw materials and market density depends on the availability of

power, transportation facilities, etc. At the start of the 1st V plan, only 19 paper and

paperboard mills with a total annual capacity of about1.39tons were produced, while

1.34lakhs tons were produced. Currently, the total annual capacity of 106 mills is

1394 lakhs and production is approximately 11, 12 tons, although several mills have

spread to large sizes. Some units are well organized and well-equipped, with over

50,000 tons of productive capacity and too small units of over 1,000tonscapacity.

The fact that of 17 major mills with a capacity of 1.37 tons per year is

a reflector of its production. At the end of the 7th 5-year plan in 1957, the industry

was increased to 319 mills with an annual output of 32, 31 tons.

And in 1994 the volume of paper and paperboards was 380 and the total

installed production capacity of 37, 09 lakhs was approximately 22 lakhs tons, except

newsprints. The lack of large-scale investments by the Indian paper company in the

public sector to make it important for the growth of the industry to meet its demands

in the near future in the wake of many 1987 anticipations of a paper industry scheme

the German paper company −MODVAT in recent years Efforts were made to reduce

the importance of the news point and forced some cultural varieties of papers

manufactured by Indian mills into use by newspapers and magazines.

TYPESOFPAPERPRODUCT

Paper industry supplies various types of paper board, special paper to a no. of

uses which include Government education, companies packing, newspaper

16
&magazine set.
 The Indian paper industry produces a number of varieties of papers &

paperboards. These include glassine paper, art paper, carbon papers, insulation papers,

and draft papers, quoted papers, quoted board, duplex boards, triplex boards,

strawboards, paper boards, lottery paper, and Xerox paper.

CONSUMPTIONOFPAPERININDIA

India is in poor condition per capital consumption of paper. It is currently

around 3 kg at a very low level. The lowest in Asia is 18 kg, since in the case of India

it is only 0166 that Indian consumption of capital paper is expected to increase by

12kgby 2010. D.

17
 PERCAPITAPAPERCONSUMPTION

S.NO COUNTRY Per Capital

paper
consumption
1 USA 289
2 Canada 251
3 Sweden 213
4 Germany 205
5 Switzerland 168
6 Japan 153
7 England 135
8 Israel 79
9 Singapore 60
10 U.S.S.R 32
11 Brazil 26
12 Egypt 10
13 China 5
14 Indonesia 3.5
15 India 3

PRESENTSTATUS

In 1974, the Indian Government adopted a paper inspections order controlling the

prices and quality of panels when paper inspections were removed. The industry has

earned some receipt and hope for greater productivity through the manufacture of these

paper and paperboard blends, which are driven by appalling demand.

A large number of units in the past two or three years have achieved a significant

term. However, many conflicting signals were given by the paper industryin1992.

18
 The following steps have been taken to encourage and improve paper and paper

board manufacturing in the country in which paper units have been exempt from

industrial permits subject to 10 cautionary angular using atleast 75% the pulp derived

from luggage ,agricultural and residues and other non-contravention raw materials.

The manufacture of printing paper and exposed hand paper, which are made from

a mixture of rice and wheat, straws, jute and luggage, not less than 75% by weight,

containing the pulp of more pulp containing the above materials excluded from service.

Importation of water paper at low customs duty rates (20 percent) was freely

allowed without the need for an import license. In recent years the government has

concessions to help industries improve their capacity utilization and financial

responsibility in other concessions. These include free imports of raw materials, the

sanding of different paper and paperboard vacancies and the de-licensing of certain paper

types.

19
PAPER INDUSTRY STATE-WISE DISTRIBUTION OF UNITS
&CAPACITY
(In lakhs tones)
NO. INSTAL
S. OF LED PRODU
No STATE MIL CAPACI -CTION
. LS TY

1. Andhra 18 4.106 2.173

Pradesh
2. Assam 4 2.208 1.084
3. Bihar 8 0.915 0.025
4. Gujarat 45 2.743 1.670
5. Haryana 17 1.496 1.110
6. Karnataka 15 1.933 1.770

7. Jammu& 1 0.033 0.009

Kashmir
8. Himachal 13 0.094 0.215
Pradesh
9. Kerala 3 0.393 -
10. Madhya 15 1.813 0.991
Pradesh
11. Maharashtra 52 4.697 3.555

12. Nagaland 1 0.030 0.218

13. Orissa 7 2.136 1.207
14. Punjab 17 1.378 0.820
15. Rajasthan 9 0.433 0.064
16. Tamil Nadu 21 2.051 1.616

17. Uttar 58 3.120 2.092

Pradesh
18. West 21 2.386 0.858
Bengal
19. Chandigarh 1 0.030 0.016

20
 CHAPTER-III
COMPANY PROFILE

21
 CHAPTER-III

COMPANY PROFILE

CO Ramada’s Group of Industries was established in the year 1974 with a modest

workshop, by name Sri Ramada’s Engineering Works. Sri Ramada’s Engineering Works

earned good name in the Paper Industry by virtue of quality of the equipment such as

Stock pumps, Vacuum pumps, Centrifugal Cleaners, Screens, Refiners, Head boxes etc.

supplied to the industry allover the country.

Soon, Sri Ramada’s Engineering Works started manufacturing Egg Tray

manufacturing machines. The demand for egg and egg export created boom for Egg Trays

and the machines (to manufacture trays). Besides supplying several machines, the group

has gone in for Egg Tray manufacturing also. It is no wonder the Trays manufactured are

selling product soon and till day enjoying name for their quality.

The first Paper machine – Sri Ramada’s Paper Boards Pvt. Ltd. was established in

the year 1994 with a capacity of 10 Tons per day. MG Plain & Ribbed Kraft Papers

from40 to 150 GSM are the products manufactured. The mill is now producing 15 TPD

after are build. The mill also manufactures special quality lower GSM Kraft Papers for

export purpose.

Sri Vinayaka Paper Boards Pvt. Ltd. emerged in the 1998 with a capacity of 15

Tons per day of Kraft Paper. The mill was producing 50 Tons per day after two rebuilds.

MF Kraft Paper from 90 to 180 GSM and Burst Factor 14 to 22 were the products made.

The MF Kraft Paper earned name for its quality and catered to several corrugators allover

South India. Motivated by the market response for Kraft Paper quality and the demand for

22
White

23
Newsprint, Writing & Printing Papers. The mill is presently producing Cream wove and

Deluxe Cream wove varieties with 72 to 76 percent brightness and Newsprint of 55

percent brightness. In view of vigorous expansions in Ramada’s Groups, Sri Vinayaka has

sold in March 2009.

Sri Ramada’s Paper Boards, expanded its production capacity (In addition to the

existing capacity of 15 Tons per day of Kraft paper), by installing a second machine in the

year 2002 with a capacity of 45 Tons per day. While Newsprint is the primary product,

Cream wove, Super Deluxe Cream wove, and Map Lithe and Map Lithe (Special) papers

are the other products. Ramada’s Newsprint Deluxe and Ramada’s (Prime Quality) are

two qualities manufactured with 55 and 60 percent brightness. Cream wove, Deluxe

Cream wove, and Map Lithe and Map Lithe (Special) paper are manufactured with 75 to

80 percent brightness.

Power without any interruptions and voltage fluctuations is very essential for

continuous process like paper manufacture. Sri Ramada’s Paper Boards has started a

4MWCo-generation Power Plant in the year 2005. This Power Plant supplies quality

Power and Steam to the paper units in Ramada’s, which helps in making better quality

paper cost effectively.

Ramada’s group uses recycled fiber i.e. waste paper as raw material for paper

manufacture. Also, the group employs total Chlorine Free (TCF) Bleaching to protect

ecology and environment. All the Writing & Printing grades at Ramada’s group are

manufactured in neutral/alkaline medium using special sizing chemicals. These papers are

multi-purpose papers, good for Ink Jet, Bubble

24
 Jet, Laser and Offset printing. Care is taken in the manufacture of paper to impart

the requisite characteristics to paper for high print quality. Paper manufactured in

neutral/alkaline medium using functional additives in the paper furnish are surface

toughened, stronger, brighter, permanent in nature.

The management of Ramada’s group never compromises with quality of product

despite higher input costs. The Ramada’s group have well established laboratory to

conduct stringent Quality Control and carry out Research & Development work as well.

Having understood the importance of endues requirement of Newsprint, Writing &

Printing papers and Kraft paper for corrugators, Ramada’s group carried R&D work to

strike the right raw material mix and process to get best out of recycled fiber.

The Market response for Newsprint, Writing & Printing papers at Ramada’s is

highly satisfying and motivating. Enthused by the success and market patronization,

Ramada’s group has expanded production by installing one more paper machine of 80 to

100 Tons per day capacity. This new machine was commissioned and started production

in March2009.

As on date Ramada’s group is producing about 150 Tons per day of various

grades of paper in its paper division.

The philosophy at Ramada’s Group is – “There is always a letter any of doing a

thin ” That is how there is continual development at Ramada’s Group.

25
MARKETINGCENTERSINANDHRAPRADESH

1) Hyderabad

2) Vizag

3) Vijayawada

4) Guntur

5) Tirupati

6) Warangal

OUTOFANDHRAPRADESH

1) Delhi

2) Kolkata

3) Mumbai

4) Pune

5) Nagpur

6) Chennai

7) Pond cherry

8) Bangalore

26
Proximity to Raw materials:
The raw materials in the process for the production Indigenous waste paper is

available in local mostly in Andhra Pradesh and Imported waste paper will be dumped

mainly from Europe and to some extent from US and other countries.

Labor Facilities:
The production plant of SRPB in Rajahmundry requires skilled and semi-skilled

works which draws from near by areas. The qualified persons who work in the

organization are having the best knowledge in both technical managerial skills. The labor

facility in SRPB very impressive.

Working hours & shifts:

It is implemented that the factory is working under 4shifts Viz A,B,C and General

shifts. The shifts are arranged in a way as to carry on the production continuously round

the clock. The following table exhibits the shifts and timings.

SHIFTS TIMINGS

A 6:00 AM to
2:00PM

B 2:00 PM to
10:00PM

C 10:00 PM to
6:00AM

The general shift is from 8.30amto6.00pm

27
ORGANISATIONCHART:

CHAIRMAN&MANAGINGDIRECTOR

DIRECTOR

GENERALMANAGER

DEPUTYGENERALMANAGER

Asst. GENERALMANAGER

MANAGER

DEPUTYMANAGER

Asst. MANAGER

JUNIORMANAGER

SUPERVISORS

SHOPFLOORWORKER

28
 PROCESSOFMANUFACTURE:

The process is basically divided into three sections.

1. Waste Paper Pulping

2. Paper Making

3. Finishing

1. WASTEPAPERPULPING:

Fiber Furnish:

(A) 60-70%IndigenouswastepaperlikeOldNewspapers;Old Text Books , Office record and

notebooks.

(B) 30-40% Imported waste paper like News &Palms; Magazine Trimmings ; Printer off Cuts

and Coated Book Stock.

 Indigenous wastepaper is available in local mostly in Andhra Pradesh.

 Imported wastepaper will be dumped mainly from Europe and to some extent from US

and other countries.

29
 The above said waste paper mix will be charged to high consistency pulper through belt

conveyor and 15-16% consistency will be maintained by adding water. The required

chemicals like

Caustic Soda Lye: 8kg/T for pH boosting

Sodium Silicate :16kg /T for Ink detachment De-inkingagent:70gm/T works assurfactant.

Are added into pulped during pulping. Time for pulping is 30 minutes and will be

transferred to the pulp retention tower through POIR@4% consistency. In pour all the

plastic materials and foreign contraries will be removed spontaneously

 From pulp retention tower the pulp passes into then passed away to separplast (light

materials like plastics polystyrene etc. are eliminated in separplast). The separplast

accepts comes into No.2 chest and rejects in the sense remained plastics and other

lightweight materials goes to Diablo screening. Some portion fiber might be in separplast

rejects. This fiber also will be separated and recollected into No.2 chest during Diablo

screening.

 From No.2 chest pulp passes to sand trap pump then forwarded to de-inking cell with

proper dilution. (the sand would settle in the bottom and can be removed periodically in

sand trap cleaner)

30
 InDe-inkingcellmajorityoftheinkwhichwasprintedonwastepaperwillcomeoutalongwith

the foam by flotation method. 0.8 to 1.1% consistency will be maintained in this

operation. The primary cell accepts (ink removed cleaned pulp)goes to three stage

centric leaning and slotted pressure screen where the rejects (ink along with fiber) goes

to secondary stage of de-inking cell.

Dust, shoves and sand particles will be eliminated during centric leaning with centrifugal

action and the fiber length is uniform is slotted screening.

 After getting screened the low consistency(1%) pulp processed to a flow box then

forwarded to thickness .The constancy of pulpis around 6% after thickening and

collected into a chest.

 From the thickener chest pulp is to be taken into Twin drum press and pulp is thickened

up to26-28%consistency.

Addition of chemicals areas follows:

1. Ca
6kg/T

Dosageattwindrumoutlet2.Sodium

Silicate: 12kg/peroxides

31
 The pulp will be diluted to 21-22% consistency from 26-28% .before going to hot

dispersion. During the hot dispersion the temperature for the pulpis about 85-90 C will

be maintained where un dissolved hot melts and some unbleached shoves /

contaminants will be dissolved completely with the temperature. From the hot disperser

the pulp will be sent to retention tower and retain at least for one hour for better

results.

 From retention tower again the pulp will be diluted into 4% consistency and forwarded

to mixing chest.

 InmixingchestallnecessarydyesandchemicalslikeTalcumpowderandotherwhiteningagents

will be added.

 After getting thoroughly mixed in mixing chest pulp is forwarded to Receiving chest and

then Machine chest to proceed for paper making.

2. PAPERMAKING:

Without the need for an Import License, importation of water paper at a low tariff

rate(20 percent). The government has concessions in recent years in support of industries

in further concessions to increase their utilization of capacity and their financial

responsibility. These include free imports of raw materials, the sanding and de-licensing

of certain paper types of different paper and carton vacancies.

32
3. FINISHING:

The cylinders wound on the paper machine are wound on a cylindrical reminder to

a desired cylindrical size and loaded on to a sheet cutter for commercial papers, in which

the cylinders are packed and sent to market.

WATER RECIRCULATION AND EFFLUENT WATER TREATMENT:

Now a day’s fresh water is very much costly and valuable also. Our fresh water

consumption is very less compared to other industries where as we have full-fledged

effluent treatment plant system.

All the waste water from different sources in the plant will be collected into an

equalization tank (the suspended solids of water is 3000 PPM) and pumped to Primary

clarifier. The primary clarifier overflow passes into Aeration tank and then forwarded to

secondary clarifier. Secondary clarifier overflow water suspended solids 100 to 150

PPM)will be reused in our process in place of fresh water.

Primary and secondary under flows are processed into sludge centrifuge .The

generated sludge from centrifuge will be sent for waste land filling.

The pulp so obtained is bleached in a number of stages. Bleaching removes the coloring

matter and imparts brightness to the pulp. Unbleached pulp as such is utilized in the

manufacture of various packing and wrapping papers.

Bleached pulp is utilized for the manufacture of various writing, printing and base

papers. During the first stage of the bleaching process, the pulpis directly chlorinated with

chlorine and allowed retention time of one hour. This pulp is extracted with solution of

33
Caustic, washed and again bleached in the subsequent stages with solution of either

calcium hypo chlorine dioxide with intermediate washing between the stages. The washed

pulp is stored in stock chests.

The pulp at very low consistencies is formed into a sheet on an endless screen

mesh made of phosphor bronze / plastic wire. The sheet is calendared to impart smooth

finish in the surface on both sides. A calendar consists of a number of chilled iron rolls

with good surface finish, through which the sheet is passed between the nips formed by

the rolls.

This paper is reeled or cut into sheets by the cutters depending on the requirement for the

customers. Steam is required for power generation and process requirement. Part of the

requirement is met with steam generated from the Recovery Boilers and the balance

steam is generated in Coal-Fired Boilers.

OPERATIONSDEPARTMENT:

The SRPB manufactures of writing & printing paper, poster paper, Kraft and

business papers like Copier, and multipart stationery. Using Waste Paper, Chemicals

Dyes ,oils, coal etc. ,are main raw materials.TheCompanyproduces120-150tons per day.

34
SRPBPAPERPRODUCTIONS

Year Ended Production(MT)

2006-07 2,050

2007-08 6,030

2008-09 21,046

2009-10 22,977

2010-11 23,920

2011-12 26,286

2012-13 33,697

2013-14 33,857

2014-15 35,156

2015-16 40,096

2016-17 55,416

2017-18 50,500

2018-19 61,500

2019-20 61,000
2020-21 62,000
2021-22 62,500

First installed capacity of SRPB is 10tone’s at present installed capacity is 150.

Licensed capacity is 180 tons.

35
EFFLUENT TREATMENT PLANT

PRIMARYTREATMENT:-

Raw Effluent from Unit-I&II passed through stationary screens and joins

Equalization tank. The purpose of stationary screens is to eliminate floating bodies from

Raw Effluent entering Effluent Treatment Plant. Raw Effluent along with sludge

thickener over flow and Sludge De watering Machine filtrate pumped from equalization

tank to Primary Clarifier. The Floating bodies like plastic pieces and plotline covers are to

be avoided as they are non –Biodegradable.

In the Primary Clarifier the suspended matter from Raw Effluent Settled at bottom

and from there the Primary Clarifier under flow (Consistency 1.5%) pumped to the sludge

thickener. The Primary Clarifier outer flow (Suspended solids less than 100ppm) sent to

Aeration tank. Removal of suspended matter from Effluent is an important and essential

aspect as it helps not only removal of suspended solids. But also reduces BOD (up to

40%)there by contributing in reducing load on biological treatment.

Impurities present in the Raw Effluent are floating bodies like plastic/plot line

pieces, pulp, starch, talcum powder, clay, and sand, organic and in organic waste

materials.

The Primary Clarifier under flow sludge with around 1.5% consistency pumped

36
 600 ppm sent to equalization tank. The under flow of the sludge thickener with around

5.0% consistency, pumped to sludge dewatering machine.

At sludge dewatering machine the sludge is pressed in between the wires for

removing the water and sludge coming out of the sludge dewatering machine as pressed

cake with a moisture of around 65%. The filtrate with around 800 ppm suspend solids is

being sent to equalization tank. The pressed cake is disposed of two egg tray

manufacturing units.

SECONDARYTREATMENT:-

The primary clarifier over flow with BOD of around 300 ppm is taken to aeration

tank for Biological Treatment (The Aerobic activated Biological Sludge Process). In the

aeration tank bacteria cultured the BOD(organic matter)present in the Effluent is food for

bacteria. In the process bacteria oxygen is given for strengthening the bacteria nutrients

like urea and DAP are added.

In the aeration tank MLSS (Mixed Liquor Suspended Solids) of around 3500 ppm

is to be maintained the high MLSS result in saturation deaths of bacteria. The dead

bacteria floats and causes problems in secondary clarifier.

The overflow with 3500 MLSS pumped to Secondary Clarifier from aeration tank.

90% of the settled sludge (Bio Mass)is to be re-circulated to aeration tank. This is

required to maintain MLSS in aeration tank for better biological treatment. 10% of the

sludge is to be diverted to sludge thickener This is required to arrest the abnormal growth
37
 Aeration tank .The secondary clarifier overflow (Treated Effluent)pumped to

the factory which drastically reduces fresh water consumption.

Characteristics of Effluent in various stages of Effluent Treatment:-

Total
Condu
S. Particulars pH - Suspended B.O.D Oxygen Ash
No. activit Solids
y T.S.S
1 Raw 7.0 - 2300 ppm 500 - -
Effluent /7.5 ppm
2 P.C.over - - >100ppm 300 - -
flow ppm
3 P.C.under - - 1.5 % - - -
flow
4 S.T.Over - - 600 ppm - - -
flow
5 S.T. - - 5.0 % - - -
Under
flow
S.D.
6 M/cpres - - 35% - - 40%
sed
cake
S.D.
7 - - 800 ppm - - -
M/cfiltra
te
Aeration MLSS 3.0
8 - - 3500 ppm - -
tank ppm
9 Treated - - >100ppm >30 - -
Effluent ppm

The values of different parameters of effluent samples in various stages

of effluent treatment are given only for guidance.

38
 CHAPTER-IV
THEORETICAL FRAMEWORK

39
 CHAPTER-IV

THEORETICAL FRAMEWORK

The standard financial statement, i.e. the balance sheet and the benefit and loss report
or the income statement of the company, shows the cumulative impact of the different
activities on the firm's operating and financial status. The balance sheet includes a
rundown of the assets and obligations of the organization at a given point in time. It
shows the financial position of the organization. The assets section of the balance sheet
demonstrates the production of an undertaking's capital while the liability section implies
its responsibilities, i.e. the way in which such resources were obtained. The income and
loss report shall represent the performance of the company transaction for a period of
time.

This includes a list of the costs generated and the income in a cycle of accounting. All
of these statements offer important factual facts regarding a business ' financial practices
but their utility is minimal for purposes of research and preparation.

The balance sheet gives a static view of a business' resources (liabilities) and the uses
(assets) to which those resources were put at some point in time. It does not divulge the
reasons within two separate periods in time for shifts in assets and liabilities. In general,
the income and loss report shows the support given by the activities, however often
transactions take place Place in an undertaking and do not operate through the account of
profit and loss. Therefore another declaration will be made to demonstrate the difference
of assets and liabilities from the close of one time span to the close of another. The
declaration is alluded to as a summary of adjustments in financial status, or a declaration
of distribution of funds.

The statement of funds flow is a document which shows the movement of funds and
is a summary of the company undertaking's financial operations. It shows various forms
in
40
which funds were raised within a specified time and how such funds were used. It is a
statement of funds sources and applications, in simple words.

In the examples below we explain the planning and application of the financial
condition transition document.

POSITION INVOLVING

 Changes in the firm’s working capital position.

 Changes in the firm’s cash position, and

 Changes in the firm’s total financial resources.

WORKING CAPITAL SOURCES:

The working capital sources are summarized below:

1. Operations Funds.

2. Sale of assets not currently in use. (Noncurrent assists)

• Long term investments sales.

• Selling of tangible fixed assets, such as land, buildings, plants or appliances.

• Selling of fixed intangible assets, such as patents on goodwill and copyrights.

• When a transaction involves a current account and a non-current account, net

working capital increases or decreases.

• Net working capital remains unaffected where only the current account is involved
in a transaction.

• Net working capital remains unaffected where only non-current assets are involved
in the transaction as bank loan.
41
SOURCES OF FUNDS

The typical working capital sources are summarized below:

1. Transactions Funds (adjusted net income)

2. Sale of assets not currently in use.

• Long-term investment sales (Shares, Bonds, Debentures, etc.)

• Sale of tangible fixed assets, such as land, buildings, plants or appliances.

• Sale of fixed intangible assets, such as patents on goodwill and copyrights.

3. Long-term funding

• Long term loans

• Equity issue, and preferential shares.

4. Short-term financing, for example bank borrowing

We explain the measurements of funds from operation in the following paragraphs, as

this usually involves a number of adjustments.

FUNDS FROM OPERATIONS:

The main source of working capital is net operating income for the company. A
company's overall success depends on its ability to make money. However, there are certain
items in the profit and loss account that don't affect working capital. Therefore the figure
of net profit, as shown in the profit and loss account, should be adjusted when
determining the amount of working capital from operations. The pieces of expenditures
which do not include working capital will be added to the net income. Let's take depreciation
for example to illustrate the point.

42
  List of current or working capital accounts:

Current liabilities Current assets

Bills payable Cash in hand

Sundry creditors Cash at bank

Outstanding expenses Bills receivable

Dividends payable Sundry debtors or accounts receivable

Bank overdraft Short term loans and advances

Short term loans advances and deposits Temporary or marketable investments

Provision against current assets Inventories or stocks such as

1. Raw materials
2. Work in progress
3. Stores and spares
4. Finished goods
Provision for taxation Prepaid expenses

Proposed dividends Accrued income

43
CONCEPT OF FUNDS AND MEANING:

The word funds is described in a number of ways.

In a limited way, it means cash only, and a cash balance statement prepared on that
basis is considered a cash flow statement prepared on that basis. Such a statement lists the
net effects on cash from the different business transactions and takes into account cash
receipts and disbursements. The word 'funds' in a common context means working
capital, i.e., the surplus of net assets over existing liabilities. The working capital concept
of funds arose because the total resources of a company are partly invested in fixed assets
in the firm of fixed liabilities and partly kept in the form as operating capital, in liquid or
near liquid.

The limited definition of funds i.e. cash on working capital framework does not disclose
improvements in an enterprise 's overall financial resources, some important things such
as buying buildings in exchange for shares that do not explicitly impact cash on working
capital are not disclosed by the study focused on such principles. Nevertheless the idea of
working capital funds is the most common one in this chapter and flow statements of
funds as a declaration of sources and allocation of funds.

The word "funds" in a wider context refers to other ideals in whatever form it can exist.
Funds here denote all the financial capital used in business, if whether in the form of
men, material, money, machinery and others.

RULE:

Funds flow happens when, on the one hand, a transaction shifts, and a non-current
account, and vice versa. If a change in a non-current account is accompanied by a change
in another non-current account, e.g. fixed assets, long-term liabilities balances and
surpluses, imaginary assets, etc., it does not amount to a transfer of funds. This is because
of the fact that job capital does not increase or decrease in these situations. Likewise, it
does not affect
44
funds if a change in one current account results in a change in another current account.
Funds switch from non-current to current or vice-versa transactions only. Through plain
language funds transfer as the results of transactions.

i) A current asset and a fixed asset or

ii) A fixed asset and a current liabilities

iii) A current asset and a fixed liability or,

iv) A fixed liability and a current liability and funds do not make when the
transaction effects fixed assets and fixed liability on current asset and
current liabilities.

USES, SIGNIFICANCE AND IMPORTANCE OF FUNDS STATEMENT:

A statement on the flow of funds is an important instrument for the financial analysis
and is of primary importance to financial management. Nowadays, financial research,
credit granting institutions and financial managers make extensive use of it, the basic
working capital on the capital was added. Such a statement is especially useful in
assessing the company's growth resulting in financial needs and in identifying the best
way of financing those needs. When using the flow statements of the expected assets, the
management capital can be used even in advance for the balance sheet dates. This also
defines the source from which additional working capital was provided and the sums to
which it relates working plan the intermediate and long-term financing of the firm
repayment of long-term debts, expansion of the business allocation of resources etc.,

A COMPANY TOOL TO OUTSIDE WORLD

Funds flow statement allows the company to collect financial status. It provides an
insight into the evaluation of the current financial situation and gives answers to the
question
45
where our resources were being provided here? It helps the reader to obtain required
details on the methods pursued using divided policies and the contribution of funds to the
company's development. It offers valuable information to banks, borrowers, financial
institutions and government etc. in the current world of credit financing, regarding the
amount of loan needed its intent the term of repayment and loan sources etc.

The financial manager gains trust from a review of flow statements of the funds flow
statements this also brings information to the outside world about the financial policies of
the company. In India, financial institutions such as IFCI, IDBI, ICICI etc. need to
submit to them funds flow statement along with loan application and other relevant
papers.

FUTURE GUIDE

The review of several-year annual report statements provides some useful details for the
financial planner to prepare the company's potential financial needs and their existence,
i.e. short-term, long-term or mid-term. Management can devise its financial policies, such
as dividend policies and the review of these statements. In the basis of this knowledge,
the finance manager will re-arrange the finances of the company more efficiently, along
with the anticipated adjustments in the commercial accounts payable and the different
financial criteria. By this way, it helps the management more efficiently in the
organization of the funding.

CONTROL DEVICE

It is used as a tracking tool in that assertion in conjunction with the estimates for the
budget which would indicate the degree of which the funds have been spent according to
the program. Upon this basis, the financial planner can take remedial action if there is any
deviation.

46
This is clear that the Fund Flow Statement is a very valuable instrument in the hands of
the managers, but one should not be very optimistic about the Fund Statement because it
does not incorporate the original facts of financial position or improvement, but rather
rearranges the details existing elsewhere in the reports only to draw emphasis to certain
factors that are relevant to the financial situation Investigation and stand out as being
objectively important in the real case.

Notwithstanding this aid, announcements offer useful knowledge to management and

help effectively in the preparation of expansion, the creation of fragmented policy and
other significant programmes. If it is duly turned over, it disseminates information that is
not available elsewhere. Fund flow analysis is a tool by which we research the
improvements in the financial condition of a corporate entity between the details of the
financial statements at the beginning and at the end.

47
 CHAPTER-5

DATA ANALYSIS

48
 CHAPTER-V

ANALYSIS & INTERPRETATIONS

SPECIMEN OF REPORT FORM FUNDS FLOW STATEMENT

Sources of funds Amount Amount

1. Funds from operations xxx xxx

2. Sales of non-current assets
3. Issue of share capital1.
4. Issue of debentures
5. Receipt from partly paid shares
6. Non-trading receipts such as dividend received
7. Sale of Investments
8. Raising of long-term borrowings
9. Decrease in working capital
(As per schedule of changes in working capital)

Total :

APPLICATION OF FUNDS

1. Funds lost in operation

2. Purchase of non-current assets
3. Payment of dividend
4. Redemption of preference share capital
5. Redemption of debentures
6. Repayment of long term loans
7. Payment of loans
8. Non-trading payments
9. Purchase of long term investments
10. Increase in working capital

49
(As per schedule changes in working capital)

Total :

 CHANGES IN WORKING CAPITAL STATEMENT:

For the year ended 31st March 2015 Rs. LAKHS

PARTICULARS 2014 2015 increase Decrease

CURRENT ASSETS

Inventories 7620.13 5776.20 ---- 1843.93

Sundry debtors 22170.64 31124.31 8953.67 ---

Cash& bank 1922.16 6084.00 4161.84 ---

Loans and advances 18163.62 24529.91 6366.29 ---

TOTAL C.A 49876.55 67514.42

CURRENT LIABILITIES

Small scale industrial under

takings
40.41 2.99 37.42 ---
Others

Other liabilities
7086.42 12898.27 --- 5811.85

50
Unclaimed dividend 195.78 180.98 14.80 ---

Deposits 441.83 280.75 161.08 ---

Unclaimed fixed deposits 898.39 1133.90 --- 235.51

Unclaimed mature 59.98 46.80 13.18 ---

debentures
359.15 --- 359.15 ---
Interest accrued but not due
262.87 251.69 11.18 ---
on loan

Interest accrued on above

30.86 7.19 23.67 ---
Provisions
695.23 5349.25 --- 4654.02
Cash credit
13081.85 18209.30. --- 5190.45
TOTAL C.L

23089.77 38361.12
A-B (W.C)

INCREASE IN W.C
26786.78 29153.30

2366.52 --- 2366.52

TOTAL

29513.30 29153.30 20102.28 20102.28

51
 CHANGES IN WORKING CAPITAL STATEMENT

For the year ended 31st March 2016 Rs. LAKHS

PARTICULARS 2015 2016 increase Decrease

CURRENT ASSETS

Inventories 5776.20 8488.30 2712.10 ---

Sundry debtors 31124.31 31375.61 251.30 ---

Cash& bank 6084.00 1499.95 --- 4584.05

Loans and advances 24529.91 24009.67 --- 520.24

TOTAL C.A 67514.42 65373.53

CURRENT LIABILITIES

Small scale industrial under

takings
2.99 0.84 2.15 ---
Others

Other liabilities
12898.27 10898.27 2091.42 ---
Unclaimed dividend
180. 98 206.06 --- 25.08
Deposits
280.75 117.97 162.78 ---
Unclaimed fixed deposits
1133.90 1532.08 --- 398.18

46.80 35.67 11.13 ---

52
Unclaimed mature --- --- --- ---
debentures

Interest accrued but not due

251.69 7.98 243.71 ---
on loan

Interest accrued on above

7.19 5.87 1.32 ---
Provisions
5349.25 9928.18 --- 4578.93
Cash credit
18209.30 30326.70 --- 12117.40
TOTAL C.L

38361.12 52968.20
A-B (W.C)

29153.30 12405.33
DECREASE IN W.C
16747.97 16747.97 ---

TOTAL
29153.30 29513.30 22223.88 22223.88

 CHANGES IN WORKING CAPITAL STATEMENT

For the year ended 31st March 2017 Rs. LAKHS

53
PARTICULARS 2016 2017 increase Decrease

CURRENT ASSETS
Inventories 7494.23 18923.84 11429.61 ---
Sundry debtors 34604.99 29814.36 --- 4790.63
Cash& bank 22040.15 9977.36 ---
12062.14
Loans and advances 27035.32 25882.99 ---
1152.33
--- 6576.69
6576.69
------------- ------------- ---
TOTAL C.A [A] 91174.69 84598.55

CURRENT LIABILITIES
Small scale industrial
23.40 71.02
under takings
47.62
27529.33 25176.27
Others
---
250.06 269.72 2357.6
Other liabilities
19.66
Unclaimed fixed deposits
2031.82 1757.97
Interest accrued but not
273.85
due on loan 278.42 12.65 273.16

TOTAL C.L 30113.03 27287.62

[ B] 2825.41

A-B (W.C) 61061.66 57310.93

54
 --- 4769.17

TOTAL 52968.20 81200.25

12405.33 12251.81
153.52

12405.33 12405.33
--- 153.52

29926.44 29926.44

CHANGES IN WORKING CAPITAL STATEMENT

For the year ended 31st March 2018 in lakhs

55
PARTICULARS 2017 2 increase Decrease

CURRENT ASSETS

Inventories 18923.84 7494.23 ---- 11429.61

Sundry debtors 29814.36 34604.99 4790.63 ---

Cash& bank 3119.66 5745.66 2626.00 ---

Loans and advances 27857.20 28775.79 918.59 ---

Other current assets 13717.36 6478.17 ----- 7259.19

TOTAL C.A 93452.42 83098.83 8335.22 18688.80

CURRENT LIABILITIES 71.02 23.40 2353.06

Small scale industrial under --- 47.62

takings
25176.27 27529.33 ----
Others
269.72 250.06 ---
Other liabilities
22.70 9.07 273.85 19.66
Unclaimed dividend
----- --- 13.63
Deposits
1757.97 2031.82 ---- ---
Unclaimed fixed deposits
------ --- --- ---
Unclaimed mature
------ --- --- ---
debentures
----- --- 1.26

56
Interest accrued but not due ---- --- ---
on loan
3.67 2.40 ----
Interest accrued on above
---- ---- ----
Provisions
------------- -------------
Cash credit
27314.00 30124.50 ----
TOTAL C.L
------------- -------------
52973.83
66138.42 --------------
A-B (W.C) 13164.59 15080.06
------------- 13164.59
DECREASE IN W.C -------------
66138.42
66138.42

TOTAL

 CHANGES IN WORKING CAPITAL STATEMENT

For the year ended 31st March 2018Rs. LAKHS

PARTICULARS 2017 2018 increase Decrease

CURRENT ASSETS

Inventories 7494.23 5937.72 1556.28

Sundry debtors 34604.99 29816.19 4788.8

Cash& bank 5769.97 6195.91 425.94 ---

57
Loans and advances 1449.42 11517.12 67.7 ---

Other current asserts 6478.17 --- --- 6478.17

TOTAL C.A 65796.78 53466.94

---

CURRENT LIABILITIES

Small scale industrial under 23.40 --- 23.40 ---

takings

Others
27529.33 31458.93 --- 3929.6
Other liabilities
250.06 206.79 43.27 ---
Unclaimed dividend
9.07 1.12 7.95 ---
Deposits
--- --- --- ---
Unclaimed fixed deposits
2031.82 2498.86 --- 467.04
Unclaimed mature
--- --- --- ---
debentures
--- --- --- ---
Interest accrued but not due
on loan --- --- --- ---

278.41 260.11 18.33 ---

Interest accrued on above

Provisions 2.40 0.25 2.15 ---

---- --- --- ---

Cash credit

TOTAL C.L -------------

58
 30124.49 ------------
34426.06
A-B (W.C) -------------
------------
DECRESE IN W.C 35672.29
19040.88
16631.41
16631.41
TOTAL ------------- ------------ ------------
-----------
35672.29 17720.18 17720.18
35672.29

59
FUNDS FLOW STATEMENT FOR THE YEAR 2017-18

SOURCE OF Amount APPLICATION OF Amount

FUNDS FUNDS

Funds from Purchase of fixed 143941.44

operation asset
163325.83

Share capital
-----
Decrease secured
17566.72
loans
Increased un
secured loan
548.85
Increase w c capital
2366.52

163874.68 163874.68

INTERPRETATION:

The above statement shows the applications of funds and the sources during the year
2017-18.This year main sources of funds are from increased unsecured loans, which
are 548.85laks and the application of funds are from mainly depend on the decreased in
the un secured loan17566.72lakhs.

60
FUNDS FLOW STATEMENT FOR THE YEAR 2018-19:

SOURCE OF Amount APPLICATION OF Amount

FUNDS FUNDS
Increased in un 681.84 Purchase of fixed 1448.38
secured loans asset

Share capital

Decrease secured
4748.31
loans
16747.97
Decreased working
capital Purchase of
investment 837.94

Funds lost in
operation
10395.18

17429.81 17429.81

INTERPRETATION:

The above statement shows the applications of funds and sources during the year
2018- 19.This year main sources of funds are from increased in unsecured loans, which
are 681.84laks and the application of funds are from mainly depend on the decreased
in the secured loans 4748.31lakhs.

61
FUNDS FLOW STATEMENT FOR THE YEAR 2019-20:

SOURCE OF Amount APPLICATION OF Amount

FUNDS FUNDS

Increased in 34768.88 Purchased of fixed 35579.21

secured loan asset

Share capital Increase working

46520.31 4769.03
capital

Increased un
9479.24
secured loan

135188.62
Funds from
operation

181536.86 181536.86

INTERPRETATION:

The above statement shows the sources and applications of funds during the year
2019-20.this year main sources of funds are increased secured loans, which are
5497.79laks.and the application of funds, are from mainly depend on the decreased in
the purchase of fixed asset13449.19lakh

62
FUNDS FLOW STATEMENT FOR THE YEAR2020-21:

SOURCE OF Amount APPLICATION OF Amount

FUNDS FUNDS

Increase un secured 508.68 Purchase of fixed 10617.96

loans asset

Share capital
----
Decrease secured
14380.6
loans

Decreased working
capital
13164.59

Funds from
operation
10267.06

23940.33 23940.33

INTERPRETATION:

The above statement shows the sources and applications of funds during the year
2020-21.This year main sources of funds are from increase secured loans, which
areRs508.68laks and the application of funds are from mainly depend on the
decreased in the secured loans which 14389.6lakhs.

63
FUNDS FLOW STATEMENT FOR THE YEAR2021-22:

SOURCE OF Amount APPLICATION OF Amount

FUNDS FUNDS

Increased un secure 4834.03 Purchase of fixed 580.72

loans asset

Funds flow from

6636.91
operation

Share capital
Decrease secured
---- 38599.7
loans

Decreased working
16631.41
capital

39180.42 39180.42

INTERPRETATION:

The above statement shows the sources and application of funds during the year
2021- 22.This year main sources of funds are from increased unsecure loans, which are
4834.03laks and the application of funds are from mainly depend on the decreased in the
secured loans 38599.7lakhs.

64
 CHAPTER – VI
FINDINGS, SUGGESTIONS & CONCLUSION

65
 CHAPTER-VI

 FINDINGS

 The company has obtained a cheaper financial source than by the external portion

 NFCL shall set the price of its goods in compliance with the
"ESSENTIAL COMMODITY ACT" enacted by the Union.

 NFCL plays a leading role in the Indian fertilizer industry.

 It is really useful to accomplish the goals of the company as a whole and

to implement the success evaluation strategy.

 The business lenders contributed more money than the owner's. Which is
the reason why the firm pays high interest to the borrowers.

 NFCL provided better financial services than in the previous year.

66
 SUGGESTIONS:

 The company can make more money if it is able to access cheaper financial capital
by reducing its interest components.

 The company should reduce the collection period after sales in order to
increase the liquidity condition.

 At the same time, the company will seek to reduce contractual obligations
by charging high EPS.

 The company should make arrangements for receivables and cash.

 Out of total working capital the debtors occupies major part.

 The government needs to offer some subsidies to grow the business.

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 CONCLUSION

The company's plants continue to operate efficiently and the company's

fertilizer operation is viable and profitable. Fertilizer activities in the recovery
cycle are exceptional non-recurring products. The company proposes to improve
profitability by taking measures to improve efficiency and profitability.

In order to meet the demand for output, the company maintained an adequate
inventory stock. It requires every sort of change. The company will benefit more
because it is able to access cheaper financial capital by reducing its interest portion,
but though the company produces urea at maximum capacity, sales to fixed assets
are less than one if the company produces urea at full capacity.

We hope that the entire fertilizer should be re-assessed, as the productivity

of the product should improve over the coming years.

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BIBLIOGRAPHY

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 BIBLIOGRAPHY

FINANCIAL MANAGEMENT I.M. PANDEY

FINANCIAL MANAGEMENT SHASHIK K. GUPTHA,

R.K. SHARMA

FINANCIAL MANAGEMENT M.Y.KHAN & P.K. JAIN

FINANCIAL MANAGEMENT PRASANNA CHANDRA

FINANCIAL MANAGEMENT DR. VARMA & AGARWAL

FINANCIAL ANALYSIS NAND KISHORE SHARMA

COMPANY ANNUAL REPORTS 2016TO 2022(6 YEARS)

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