cash flow statement@ ncl

8/15/2019 Cash Flow statement@ Ncl

1/95

FINANCIAL MANAGEMENT

INTRODUCTION

Finance is called “The science of money”. It studies the principles and the

methods of obtaining control of money from those who have saved it, and of

administering it by those into whose control it passes. Finance is a branch of

Economics till 1!". Economics is defined as study of the efficient use of scarce

resources. The decisions made by business firm in production, mar#eting,

finance and personnel matters form the sub$ect matters of economics. Finance is

the process of conversion of accumulated funds to productive use. It is so

intermingled with other economic forces that there is difficulty in appreciating

the role it plays.

MEANING AND DEFINITION OF FINANCE:

%oward and &ptron in their boo# “Introduction to 'usiness Finance”

defined finance “as that administrative area or set of administrative function in

an organi(ation which relate with the arrangement of cash credit so that the

organi(ation may have the means to carry out its ob$ectives as satisfactorily as

possible”.

In simple terms finance is defined as the activity concerned with the

planning, raising, controlling and administering of the funds used in the

business. Thus, finance is the activity concerned with the raising and

administering of funds used in business.

MEANING AND DEFINITION OF FINANCIAL MANAGEMENT:

Financial management is managerial activity which is concerned with the

planning and controlling of the firm)s financial resources. *n entity whose

income e+ceeds its e+penditure can lend or invest the e+cess income. n the

1


2/95

other hand, an entity whose income is less than its e+penditure can lend or

invest the e+cess income. n the other hand, an entity whose income is less than

its e+penditure can raise capital by borrowing or selling e-uity claims,

decreasing its e+penses, or increasing its income. The lender can find a

borrower, a financial intermediary such as a ban#, or buy notes or bonds in the

bond mar#et. The lender receives interest, the borrower pays a higher interest

than the lender receives, and the financial intermediary earns the difference for

arranging the loan.

Finance is used by individuals personal finance/, by governments

public finance/, by businesses corporate finance/ and by a wide variety of

other organi(ations, including schools and non0profit organi(ations. In general,

the goals of each of the above activities are achieved through the use of

appropriate financial instruments and methodologies, with consideration to their

institutional setting. Finance is one of the most important aspects of business

management and includes decisions related to the use and ac-uisition of funds

for the enterprise.

DEFINITIONS:

%oward and &pton define financial management “as an application of

general managerial principles to the area of financial decision0ma#ing”.

eston and 'rig hem define financial management “as an area of

financial decision ma#ing, harmoni(ing individual motives and enterprise goal”.

“Financial management is concerned with the efficient use of an

important economic resource, namely capital funds”

– Solomon Ezra & J. John Prinl!.

2


3/95

“Financial management is the operational activity of a business that is

responsible for obtaining and effectively utili(ing the funds necessary for

efficient business operations”

" J.L. Ma##i!.

“Financial 2anagement is concerned with managerial decisions that

result in the ac-uisition and financing of long0term and short0term credits of the

firm. *s such it deals with the situations that re-uire selection of specific assets

or combination of assets/, the selection of specific liability or combination of

liabilities/ as well as the problem of si(e and growth of an enterprise. Theanalysis of these decisions is based on the e+pected inflows and outflows of

funds and their effects upon managerial ob$ectives”.

– Philli$$a%#.

NATURE OF FINANCIAL MANAGEMENT:

The nature of financial management refers to its relationship with related

disciplines li#e economics and accounting and other sub$ect matters. The area of

financial management has undergone tremendous changes over time as regards

its scope and functions. The financeFunction assumes a lot of significance in the

modern days in view of the increased si(e of business operations and the

growing comple+ities associated thereto.

O'JECTI(ES OF FINANCIAL MANAGEMENT:

Efficient financial management re-uires the e+istence of some ob$ectives

or goals because $udgment as to whether or not a financial decision is efficient

must be made in the light of some ob$ective. *lthough various ob$ectives are

possible we assume two ob$ectives of financial managements. These are3

3


4/95

I. 4rofit 2a+imi(ation

II. ealth 2a+imi(ation.

I. Pro)i% Ma*imiza%ion:

It has traditionally been argued that the ob$ective of a company is to earn

profit5 hence the ob$ective of financial management is also profit ma+imi(ation.

This implies that the finance manager has to ma#e his decisions in a manner so

that the profits of the concern are ma+imi(ed. Each alternative, therefore, is to

be seen as to whether or not it gives ma+imum profit.

%owever profit ma+imi(ation cannot be the sole ob$ective of a company.

It is at best a limited ob$ective. If profit is given undue importance, a number of

problems can arise. There are0

• The term profit is 6ague. It does not clarify what e+actly it means. It

conveys a different meaning to different people. For e+ample, profit may

be in short term or long term period5 it may be total profit or rate of profit

etc7.

• 4rofit ma+imi(ation has to be attempted with a reali(ation of ris#s

involved.

• 4rofit 2a+imi(ation as an ob$ective does not ta#e into account the time

pattern of returns.

• 4rofit 2a+imi(ation as an ob$ective is too narrow.

II. +!al%h Ma*imiza%ion:

The readers would appreciate that a company, which has profit

ma+imi(ation as its ob$ective, may adopt policies yielding e+orbitant profits in

the short run which are unhealthy for the growth, survival and overall interests

of the business. * company may not underta#e planned and prescribed shut0

downs of the plant for maintenance, etc. for simply to ma+imi(e its profits in the

short run. If this reduces the life of a plant say by five years, the company is

4


5/95

ignoring maintenance only at its own peril although it may have greater profits

in the short run. %ence, it is commonly agreed that the ob$ective of a firm

should be to ma+imi(e its value or wealth.

*ccording to 6an %orne “value of firm is represented by the mar#et price

of the company” common stoc#. 8ormally, this value is a function of two

factors3

a/ The li#ely rate of earnings per share of the company3 and

b/ The capitali(ation rate.

SCOPE AND SIGNIFICANCE OF FINANCIAL MANAGEMENT:

Financial 2anagement is essential in all types of organi(ation wherever

the funds are involved, whether profit oriented or non0profit oriented, in a

centrally planned economy and also in a capitalist set0up. It is a must for private

and public enterprises. If Financial 2anagement of a company is bad, there is a

danger of li-uidation, even when the company ma#es high profits.

Financial 2anagement optimi(es the output from the given input of

funds. It attempts to use funds in the most productive manner. If proper

financial management techni-ues are used, most of the enterprises can reduce

their capital employed and improve their return on investment.

The strength of the finance function determines the strength of other functions since production, mar#eting etc., are possible only with sound

financial management. Financial 2anagement plays crucial role in ma#ing the

best use of resources.

Financial 2anagement today covers the entire gamut of activities and

functions given below. The head of finance is considered to be important ally of

5


6/95

the 9E in most organi(ations and performs a strategic role. %is responsibilities

include3

• Estimating the total re-uirements of funds for a given period.

• :aising funds through various sources, both national and international,

#eeping in 2ind the cost effectiveness.

• Investing the funds in both long term as well as short term capital needs.

• Funding day0to0day wor#ing capital re-uirements of business.

• 9ollecting on time from debtors and paying to creditors on time.

• 2anaging funds and treasury operations.

• Ensuring a satisfactory return to all the sta#e holders.

•

4aying interest on borrowings.• :epaying lenders on due dates.

• 2a+imi(ing the wealth of the shareholders over the long term.

• Interfacing with the capital mar#ets.

• *wareness to all the latest developments in the financial mar#ets.

• Increasing the firm)s competitive financial strength in the mar#et

• *dhering to the re-uirements of corporate governance.

ROLE OF FINANCIAL MANAGEMENT:

• To participate in the process of putting funds to wor# within the business

and to control their productivity5 and

• To identify the need for funds and select sources from which they may be

obtained. The functions of financial management may be classified on the

basis of li-uidity, profitability and management.

,. LI-UIDIT:

;i-uidity is ascertained on the basis of three important considerations3

6


7/95

• Forecasting cash flows, that is matching the inflows against cash

outflows5

• :aising funds, that is financial management will have to ascertain the

sources from which funds may be raised and the time when these funds

are needed5

• 2anaging the of internal funds, that is #eeping its accounts, with a

number of 'an#s to ensure a high degree of li-uidity with minimum

e+ternal borrowing.

,. PROFITA'ILIT:

hile ascertaining profitability, the following factors are ta#en into account3

• Co#% /on%rol3 e+penditure in the different operational areas of an

enterprise can be analy(ed with the help of an appropriate cost accounting

system to enable the financial manager to bring costs under control.

• Pri/in3 4ricing is of great significance in the company)s mar#eting

effort, image and sales level. The formulation of pricing policies shouldlead to profitability, #eeping, of course, the image of the organi(ation

intact.

• For!/a#%in F%r! Pro)i%#3 E+pected profits are determined and

evaluated. 4rofit levels have to be forecast from time to time in order to

strengthen the organi(ation.

• M!a#rin Co#% o) Ca$i%al3 Each source of funds has a different cost of

capital which must be measured because cost of capital is lin#ed with

profitability of an enterprise.

0. MANAGEMENT:

The financial manager will have to #eep assets intact, for assets are

resources which enable a firm to conduct its business. *sset management has

7


8/95

assumed in important role in financial management. It is also necessary for the

financial manager to ensure that sufficient funds are available for smooth

conduct of the business. In this connection, it may be pointed out that

management of funds has both li-uidity and profitability aspects. Financial

management is concerned with the many responsibilities which are thrust on it

by a business failures, financial failures do positively lead to business failures.

The responsibility of financial management is enhanced because of this

peculiar situation. Financial management may be divided into two road area of

responsibilities, which are not by any means independent of each other. Each,

however, may be regarded as a different #ind of responsibility5 and each

necessitates very different considerations. These two areas are3

• The management of long0term funds, which is associated with plans for

development and e+pansion and which involves land, buildings,

machinery, e-uipment, transport facilities, research pro$ect, and so on5

• The management of short0term funds, which is associated with the overall

cycle of activities of an enterprise. These are the needs which may be

described, as wor#ing capital needs.

FUNCATIONS OF FINANCIAL MANAGEMENT:

The modern approach to the financial management is concerned with the

solution of ma$or problems li#e investment financing and dividend decisions of

the financial operations of a business enterprise. Thus, the functions of financial

management can be broadly classified into three ma$or decisions, namely3

1/ Investment decisions,


9/95

=/ >ividend decisions.

The functions of financial management are briefly discussed as under3

,. IN(ESTMENT DECISION: The investment decision is concerned

with the selection of assets in which funds will be invested by a firm. The assets

of a business firm include long term assets fi+ed assets/ and short term assets

current assets/. ;ong term assets will yield a return over a period of time in

future whereas short term assets are those assets which are easily convertible

into cash within an accounting period i.e. a year. The long investment decision

is #nown as capital budgeting and the short term investment decision is

identified as wor#ing capital management. 9apital 'udgeting may be defined as

long0term planning for ma#ing and financing proposed capital outlay.

In other words 9apital 'udgeting means the long0range planning of

allocation of funds among the various investment proposals. *nother important

element of capital budgeting decision is the analysis of ris# and uncertainty.

?ince, the return on the investment proposals can be derived for a longer time in

future, the capital budgeting decision should be evaluated in relation to the ris#

associated with it.

n the other hand, the financial manager is also responsible for the

efficient management of current assets i.e. wor#ing capital management.

or#ing capital constitutes an integral part of financial management. The

financial manager has to determine the degree of li-uidity that a firm should

possess. There is a conflict between profitability and li-uidity of a firm.

or#ing capital management refers to a Trade0off between li-uidity :is#/ and

4rofitability. Insufficiency of funds in current assets results li-uidity and

possessing of e+cessive funds in current assets reduces profits. %ence, the

finance manager must achieve a proper trade0off between li-uidity and

profitability. In order to achieve this ob$ective, the financial manager must e-uip

9


10/95

himself with sound techni-ues managing the current assets li#e cash,

receivables and inventories etc.

0. FINANCING DECISION:

The second important decision is financing decision. The financing

decision is concerned with capital0mi+, financing0mi+/ or capital structure of a

firm. The term capital structure refers to the proportion of debt capital and

e-uity share capital. Financing decision of a firm relates to the financing0mi+.

This must be decided ta#ing into account the cost of capital, ris# and return to

the shareholders. Employment of debt capital implies a higher return to the

shareholders and also the financial ris#. There is a conflict between return and

ris# in the financing decisions of a firm. ?o, the financial manager has to bring a

trade0off between ris# and return by maintaining a proper balance between debt

capital and e-uity share capital. n the other hand, it is also the responsibility of

the financial manager to determine an appropriate capital structure.

1. DI(IDEND DECISION:

The third ma$or decision is the dividend policy decision. >ividend policy

decisions are concerned with the distribution of profits of a firm to the

shareholders. %ow much of the profits should be paid as dividend@ i.e. dividend

pay0out ratio. The decision will depend upon the preferences of the shareholder,

investment opportunities available within the firm and the opportunities for

future e+pansion of the firm. The dividend payout ratio is to be determined in

the light of the ob$ectives of ma+imi(ing the mar#et value of the share.

CAS2 FLO+ STATEMENT

The basic financial statements i.e. the balance sheets profit and loss account or

income statement of business reveal the net effect of various transactions on the

10


11/95

operational and financial position of the company. The balance of assets and

liabilities of an underta#ing at a particular point of time. It reveals the financial

states of the company. The assets side of a balance sheet shows the deployment

of resources of an underta#ing while the liabilities side indicates its obligations

i.e. the manner in which these resources were obtained. The profit and loss

account reflects of the business operation for a period of time.

* cash flow statement is statement of changes in cash position between

beginning and end of the period. It is statement which summari(es the sources

from which cash payments are made during a particular period of time, say

months or a year. In other words, a cash flow statement shows the various of

cash flows and uses of cash outflows and uses of cash outflow during a period

thus e+plaining the changes in cash position of the business.

9ash flow statement is prepared from the given balance sheets and other

additional information. The statement of cash flows portrays the sources from

which cash moves out of the concern and the uses to which cash is put on, thuscash moves out of the concern.

The net effect of such cash movement is shown as net cash flows, which is

added or deducted to the opening balance of cash to give closing balance of

cash. The cash flow statement is superior to funds flow statement as it is

particularly useful to management, credit grantors, investors and others to assess

the cash position of firm. This cash flow statement us very useful to the

management in budgeting cash re-uirement. Thus the cause of changes in cash

is determined by analy(ing the changes in all accounts e+pecting cash.

CLASSIFICATION OF CAS2 FLO+S

operating activities

11


12/95

investing activities

financing activities

OPERATING ACTI(ITIES:

perating activities are the principal revenue activities of the enterprise. 9ash

flows from these activities result from transactions and other events that enter in

to the determination of net profit or loss.

E+ample

9ash receipts from the sale of goods and the rendering of services usually

forms a ma$or share of cash flow

9ash receipts from royalties fees, commission and other revenues

9ash payment of wages and salaries to employees etc.,,

IN(ESTING ACTI(ITES:

These are the ac-uisitions and disposal of long0term assets such as plant,

machinery, furniture, land and building/ and other investments not included in

cash e-uivalents.

E+ample

9ash receipts from disposal of fi+ed assets

9ash payments to ac-uire shares0 debentures of other enterprise

9ash payments to ac-uire fi+ed assets etc.,,

FINANCING ACTI(ITES:

These are the activities that result in changes in the si(e and composition of the

owners capital and borrowings of the enterprise.

12


13/95

E+ample

9ash receipts from issue of shares and debentures

9ash receipts from loans raised etc.,

NEED FOR T2E STUD:

• 8o firm can be maintained without inventory management, but the

re-uirement of inventory differs from firm to firm.

13


14/95


15/95

necessary for the operation of the production. ?ale process of the firm

with a minimum of dislocations. * stoc# of both raw materials and

wor#ing progress is re-uired to ensure that re-uired items are available

when needed. Finished goods inventory must be available to provide a

buffer stoc# that will enable the firm to satisfy sales demand as it arises.

The study is longitudinal. I consider annual reports for a period of five

years. The present study is an attempt to the Finance *nalysis of an 89;

;T> from


16/95

To #now the earning capacity or profitability of 89; ;T>, %>E:*'*> To

conduct a -uantitative analysis of information in a company)s financial

statements.

• To determine the financial condition and performance of 89; ;T>,

%>E:*'*> for the fast five years


17/95

Ar!a o) #%34:

The study has been conducted at 89; ;T>, %>E:*'*>.

R!#!ar/h D!#in:

It is a basic guide line for researcher)s study. 2y study involves finance analysis

of 89; ;T>, %>E:*'*> I have adopted descriptive research design.

Sor/!# o) Da%a:

The data re-uired for the study is collected through primary and secondary

sources.

Primar4 Da%a:

The primary >ata is also called as first in hand data. 'ut it is not

applicable for the study of financial management.

S!/on3ar4 Da%a:

The study in entirely based on the data obtained from the officers,

managers, and staff of 89; ;T>.

2anagers and supervisors of the organi(ation have also been interviewed

to elicit necessary information on the basis of non0structured schedules.

LIMITATIONS OF T2E STUD:

• The reliability of the study depends upon the information furnished by the

officials.• The time for the study is limited to C wee#s only.

17


18/95

• The study is entirely based on the information given by the stores

department, purchase department, production department and sales

department of 89; ;T>.

• The study is mostly dependent on the secondary data. %ence, the findings

of the study are based on the accuracy of the data collected from

secondary sources.

• The analysis is usually based on historical information and thus indicates

the past performance, which may not always be an indicator of the future

performance.

• The difference in definition of items in balance sheet and income

statement ma#e interpretation of ratios very difficult.

• The study is concerned in short period, due to which the study may not

detailed in all aspects.

• The financial data collected for the study is only from the annual reports

of 89; ;T>.

INDUSTRY PROFILE

18


19/95

CEMENT INDUSTR IN INDIA

The I8>I*8 9E2E8T I8>&?T: is the fourth largest in the world

and by


20/95


21/95

9ement is a ma$or contribution to the e+che-uer. The e+cise revenue

during 1!!A0! is at uty on integrated plant is :s.=D" tons

while it is :s.


22/95


23/95

T*';E K E99*8 9E2E8T %&L&:8**: =,"","""

H*H*TI* 9E2E8T >8>*4*>& =,"","""

9:2*8>E; :*2*4&:*2 1,


24/95

PRODUCT DESCRIPION

The product is a comple+ of tangible and intangible attributes,

including pac#ing, color, price, manufacturers, prestige of retailers,

manufacturers and services which buyer may accept as offering satisfaction of

wants and needs.

* product is simply a set of physical and chemical attributes assembled

in recogni(ed form.

TPES OF CEMENT

There are mainly eight varieties of cement. They vary from each other

in chemical composition and other properties. They are

1 rdinary 4ortland cement

< 4ortland slag cement

= 4ortland po((oland cement

C :apid hardening 4ortland cement

D %igh alumina cement

A il well cement

hite cement

*cid resistant cement

ORDINAR PORTLAND CEMENT

24


25/95

This is a mi+ture of limestone, marble, chal# etc., i.e., calcareous M

argillaceous i.e. clay, shale to which other materials li#e silica, alumna or iron

ore are added. They are burnt at a clin#ering temperature and the resulting

clin#er is the ground. *fter burning, only gypsum or air entering agent is added.

PORTLAND SLAG CEMENT

* fine mi+ture of 4ortland cement clin#er and granulated blast furnace

slag ma#es 4ortland cement. The clin#er for this form is manufactured in same

manner as for the 4ortland ordinary cement. The granulated blast furnace slag is

non0metallic product obtained by rapidly chilling or dipping in water, steam or

air. The molten slag tapped from the blast furnace of steel plant. The slag

constituent should be less than


26/95

2IG2 ALUMINA CEMENT

The ma$or ingredient in this type cement is hydraulic calcium

aluminates. It hardens very rapidly in one day, which ta#es


27/95

C2ANGING STRUCTURE OF T2E INDIAN CEMENT

INDUSR

The structural transformation in the Indian cement industry had started

much before when the government started loosening the grip over it by gradual

decontrolling measures. This has transformed the domestic mar#et for cement

from a state driven one to a mar#et driven one in a very short period of less than

1" years. In the early 1!"s government was it largest single customer with a

share of D"Bin total domestic consumption of cement.

'ut, by early 1!!"s its share has fallen to around


28/95

1 Nuarry3 Typically limestone, marl and clays as well as other materials

containing the re-uired proportion of the calcium, silicon, aluminum, and

iron o+ides are e+tracted using drilling and blasting techni-ues.

< 9rusher3 The -uarried material is then reduced in si(e by compression

andOor impact in various mechanical crushers. 9rushers roc# is reduced in

si(e from 1


29/95

! 9ooler3 The molten cement clin#er is then cooled as rapidly as possible.

The ambient air used to cool the clin#er is then fed into the #iln as

combustion air ensuring high utili(ation of the heat produced.

1"9lin#er silo3 clin#er may be either stored on site in preparation for

grinding to form cement, or transported to other sites.

119ement mill3 Finish milling is the grinding together of cement clin#er,

with around DBof natural or synthetic gypsum. ther cementations

materials such as slag, flash or other po((olans may also be incorporated

into the final cement power.

1ust transport system3 Investment3 :s1D" la#hs

?avings3 ".C= H%O 2T of clin#er


30/95

%igh efficiency fan incorporated in place of cold conventional fan.

=. :.2. silo vent fan

Investment3 :s. 1=.= ;a#hs

?avings3 ".elta star >elta sector. It will wor#s on motor load

conditions, li#e when there is a load it automatically changes to delta

connection, and when there is no load it will come bac# to star connection only.

A. :aw mill vent fans3

Investment3 :s. 1=.= ;a#hs

?avings3 1.= H%O 2T

%igh efficiency fan incorporated in place of old conventional fan.

30


31/95

. 9ement mill vent fans

Investment3 :s. C.C ;a#hs

?avings3 ".


32/95

COMPANY PROFILE

32


33/95

COMPANY PROFILE:

VISION

The vii!" #$#e%e"# !& #he N$'$()*"$ Ce%e"# Li%i#e+ i

#! ,%$i"#$i" i"+*#(- $"+ +eve.!/ !%/.e%e"#$(- /(!+*#

$"+ e(vie #! #(e"'#he" !*( !(e *i"e !& *i.+i"'

/(!+*# -:

• F*...%e"# !& %$(e# "ee+ i#h !# ee#ive !.*#i!"

&!( e"+*(i"' $"+ e"h$"e+ *#!%e( $#i&$#i!"

• S#(ivi"' &!( ee..e"e i" $.. #h$# e +!

• I""!v$#ive !.*#i!" #! (e$#e $ !(.+ .$ /(!+*# $"+

e(vie

• F!(e $#i"' !..e#ive i+!% $"+ !%%i##ee !&

e%/.!-ee #! (e$#e !!/e($#e $"+ '(!*/ *.#*(e $"+

v$.*e #he- $(e /(!*+ #! e /$(# !&

• M$i"#$i"i"' e*i#$.e $.$"e e#ee" +eve.!/%e"# $"+

e"vi(!"%e"#$. "ee+ !& #he !ie#- #h$# e $(e /$(# !&

33


34/95

The (# %$)!( ve"#*(e ;!$#e+ - h(iRO?P P@ILOSOP@Y

L!!i"' i"#! #he .$('e "ee+ &!( h!*i"' "ee+ i" !*(

!*"#(- #! /(!%!#e( !& NCL '(!*/ h$+ +ei+e+ i" 1986 $e(

#he *e !& #he e%e"# /.$"# #h$# $.. &*#*(e '(!#h !*.+ e

i" h!*i"' (e.$#e+ $#ivi#ie T!$(+ hi e"+ #he (# $#ivi#-

i+e"#ie+ $ +!!( $"+ i"+! -#e% hih .e+ #! #he

e##i"' */ !& NCL e!.!( .#+ Ae( #he i%/.e%e"#$#i!" !& #hi

/(!)e# #he %$"$'e%e"# +ei+e+ #! i"(e$e #he e%e"#

%$"*&$#*(i"' $/$i#- i#h $/$"ee !..$!($#i!"

T?RN OVER

T!#$. i"#$..e+ $/$i#- /e( -e$( i 3600 #!"e $"+ #he

#!#$. $/$i#- i" v$.*e /e( -e$( i (4500 !(e

34


35/95

C?STOMERS

The *#!%e( !& NCL i"+*#(ie .i%i#e+ $(e .ie LBT

N*.e$( /!e( C!(/!($#i!" E(i !" Te.e!% .#+ @i"+*#$"

Leve( .#+ C(!%/#i!" >(e$ve .#+ AAI SAIL @PCL I"+i$" Ai(

Li"e =i/(! $"+ %$"- %!(e

?ALITY POLICY

The *$.i#- /!.i- !& #he !('$"iD$#i!" i #h$# ,e $# NCL

i"+*#(ie .i%i#e+ $(e !%%i##e+ #! *//.- /(!+*# i#h

!"i#e"# !%/e#i#ive /(ie =e h$.. $hieve #hi -!"#i"*$..- i%/(!vi"' $.. $/e# !& !*( *i"e

/e(&!(%$"e

MILE STONE

The !('$"iD$#i!" h$ (eeive+ $" $$(+ hih #!!+ $ $

%i.e #!"e &!( #he !('$"iD$#i!" $ #he M !& #he !%/$"- h$

(eeive+ #he ,e# I"+*#(ie A$(+ i" #he -e$( 1996

AC@IEVEMENTS

35


36/95

The $hieve%e"# !& #he !%/$"- $ #! e #(e$#e+ $ i#

h$ "! $i+e"# e(e (e!(+ i" #he !('$"iD$#i!" The !%/$"-

$ #$('e#e+ $"+ $hieve+ #he De(! $i+e"# $e+ ?/ #!

"! "! $i+e"# e(e (e!(+ i" #he !('$"i$#i!"

EPARMENTS IN NCL:

The(e $(e v$(i!* +e/$(#%e"# i" #he !('$"i$#i!"

!/e($#i"' v$(i!* &*"#i!" The- $(e

1 Mi"e +e/$(#%e"#

2 T($"/!(# +e/$(#%e"#

3 C(*he( +e/$(#%e"#

4 R$ %i.. +e/$(#%e"#

5 C!$. %i..

6 (i"+ %i..

8 Ti%e !Ge $"+ e.&$(e

9 S#!(e $"+ P*(h$e +e/$(#%e"#

10 Meh$"i$. %$i"#e"$"e +e/$(#%e"#

11 E.e#(i$. %$i"#e"$"e

12 M$#e(i$. h$"+.i"'

36


37/95

13 *$.i#- !"#(!. +e/$(#%e"#

14 Fi"$"e $"+ $!*"# +e/$(#%e"#

15 A+%i"i#($#i!" +e/$(#%e"#

1 Mi"e +e/$(#%e"#

The !('$"i$#i!" i h$"+.i"' #hi +e/$(#%e"# $ #hi %i"e

!%/(ie #he ($ %$#e(i$. $ i# !"i# !& .i%e #!"e Thi

%i"e +e/$(#%e"# i.. .!! $e( #he ($ %$#e(i$. hih i

(e*i(e+ &!( #he e%e"#

2 T($"/!(# +e/$(#%e"#

Thi !%e $ #he ($ %$#e(i$. hih i #he .i%e #!"e !(

$"!#he( .ie '-/*% i.. e #($"/!(#i"' &(!% !"e /.$e #!

$"!#he(

3 C(*he( +e/$(#%e"#

@e(e #he ($ %$#e(i$. i.. e (!e" i"#! /iee !"

!"ve-e( e.# $"+ #i.. i# e!%e #he ve(- %$.. /iee #he

(ei(*.$#i!" /(!e i.. e .!!e+ $e( - #hi +e/$(#%e"#

4 R$ %$#e(i$. +e/$(#%e"#

37


38/95

I# i $ #!($'e h$(!*( he(e #he (!e" /iee e(e

+*%/e+ i"#! +ie(e"# '($+e $"+ #he %i#*(e !& .i%e #!"e

$*i#e $"+ i(!" !(e i.. e #!(e+ $"+ #hi +e/$(#%e"# i..

.!! $e( #hi /(!e

5 C!$. %i..

F!( #he /*(/!e !& *("i"' #he ($ %$#e(i$. #he !$. %i..

+e/$(#%e"# i.. .!! $e( #he *$"#i#- $"+ #!(i"' !& #he !$.

6 (i"+ %i..

=i#h +ie(e"# /(!/!(#i!" !& .i%e #!"e $*i#e i(!" i..

e '(i"+e+ he(e $"+ #hi %i.. i.. e #!(i"' #he /!+e( i" #hi

i.!

38


39/95

8 Ti%e !Ge $"+ e.&$(e

Re'$(+i"' #he e%/.!-eeH e"#($"e $"+ ei# $"+ #he

hi %$"$'e%e"# $"+ #he e.&$(e !& #he e%/.!-ee i.. e

.!!e+ $e( - #he +e/$(#%e"#

9 S#!(e $"+ /*(h$e +e/$(#%e"#

Thi +e/$(#%e"# i.. .!! $e( #he #!(i"' !& #he e%e"#

/$ $"+ #he /*(h$i"' !& #he ($ %$#e(i$. !( $"- !#he(

/*(h$e $"+ #he /*(h$e $"+ $.e !& #he e%e"# i.. e

+!"e he(e

10 Meh$"i$. %$i"#e"$"e +e/$(#%e"#

Thi +e/$(#%e"# i.. .!! $e( %$i"#$i"i"' #he #hi"'

hih $(e (e*i(e+ &!( #he %$#e(i$. $"+ #he !/e($#i"' e#i!"

!& #he %$hi"e i.. e +!"e he(e i" #hi +e/$(#%e"#

11 E.e#(i$. %$i"#e"$"e

Re'$(+i"' #he /!e( 'e"e($#i!" &!( #he %$hi"e(- $"+

$"- h!(# i(*i# i.. e %$i"#$i"e+ - #hi +e/$(#%e"# $"+

39


40/95

(e'$(+i"' $"- /(!.e% i#h /!e( i.. e i"/e#e+ - #hi

+e/$(#%e"#

12 M$#e(i$. h$"+.i"'

Thi +e/$(#%e"# i.. .!! $e( #he #!(i"' $"+ ee/i"' #he

%$#e(i$. !& #he e%e"# hih h$ #! e (eeive+ $"+ +e.ive(e+

$"+ /$e+ %$#e(i$. i.. e h$"+.e+ - #hi +e/$(#%e"#

13 *$.i#- !"#(!. +e/$(#%e"#

Thi +e/$(#%e"# i.. e i"/e#i"' #he *$.i#- .eve. $"+

%$i"#$i"i"' #he e# *$.i#- $"+ '($+e+ *$.i#- !& #he e%e"#

Thi +e/$(#%e"#H +*#- i #! !"#i"*!*.- i"/e# he $"+

%$i"#$i" #he *$.i#- !& #he e%e"# hih i (e*i(e+

14 Fi"$"e $"+ $!*"# +e/$(#%e"#

The "$"e %$##e( !& #he /(!+*# #he !# $"+ (e'$(+i"'

/(ie /$(#i*.$( $"+ #he %$i"#e"$"e !& #he !# $"+ /(ie $

#! e %$i"#$i"e+ - #hi +e/$(#%e"#

40


41/95

15 A+%i"i#($#i!" +e/$(#%e"#

The $+%i"i#($#i!" +e/$(#%e"# +!e #he !/e($#i!" !& "!

$.. #he !#he( +e/$(#%e"# $(e /e(&!(%i"' $"+ #he +e/$(#%e"#

i.. $+%i"i#e( #he &*"#i!" $"+ !/e($#i!" hih #he !#he(

+e/$(#%e"# h$ #! /e(&!(%e+ $ ee" +e(ie+ - #he

$+%i"i#($#i!" +e/$(#%e"#

Si'"i$"e !& #he #!/i:

E"vi(!"%e"# he$.#h $"+ $&e#- /!.i-

NCL I"+*#(ie Li%i#e+ i !%%i##e+ #! $hieve E"vi(!"%e"#

@e$.#h e.&$(e B S$&e#- E@=SJ Pe(&!(%$"e #h(!*'h

• C!%/.i$"e i#h $//.i$.e E"vi(!"%e"#$. O*/$#i!"$.

@e$.#h =e.&$(e $"+ S$&e#- Le'i.$#i!" $"+ Re'*.$#i!"

• P(!vi+i"' S$&e $"+ @e$.#h- E"vi(!"%e"# &!( $.. e%/.!-ee

i" #he !('$"i$#i!"

• E#$.ih%e"# !& /(!e+*(e #! i+e"#i&- i%/.e%e"#

ev$.*$#e $"+ %!"i#!( E@=S K Pe(&!(%$"e

• C!"#i"*$. i%/(!ve%e"# !& E@=SPe(&!(%$"e #h(!*'h e#

!)e#ive $"+ #$('e#

• Pe(i!+i$. (evie #! e"*(e #h$# #he !"#i"*e #! e

(e.ev$"# #! #he !('$"iD$#i!"

41


42/95

• E@=S #($i"i"' $"+ !(ie"#$#i!" #! $.. e%/.!-ee $

$//(!/(i$#e

• E"vi(!"%e"# @e$.#h =e.&$(e $"+ S$&e#- $(e i"+ivi+*$.H

(e/!"ii.i#- Eve(- e%/.!-ee !& NCL h!*.+ #$e #hi

(e/!"ii.i#- Eve(- e%/.!-ee !& NCL h!*.+ #$e #hi

(e/!"ii.i#- */!" hi% e $.e(# &!( /!i.e *"$&e

i#*$#i!"e"vi(!"%e"#$. h$D$(+ $# &$#!(- $"+ e"*(e

#h$# #hee $(e e.i%i"$#e+

E%/.!-ee $(e (e(*i#e+ $e+ !" #hei( *$.i$#i!" $"+

e/e(ie"e+ i& &(ehe( $(e (e(*i#e+ #he- $(e 'ive" !" #he )!

#($i"i"' $"+ /.$e+ *"+e( .!e */e(vii!" Se.e#e+

e%/.!-ee $(e e"# $(!$+ i& %$hi"e #($i"i"' i "ee$(-

C!"#($#!( $(e e.e#e+ $e+ !" #hei( e/e(#ie $"+

!%%e(e #! +! #he )!

=ELFARE MES?REMENT IN NCL

STAT?TORY MEAS?RES

Li'h#i"' Ve"#i.$#i!" $"+ Te%/e($#*(e:

42


43/95

A!(+i"' #! e#i!" 13 !& #he &$#!(ie A# /(!vii!" h$

#! e %$+e &!( /(!/e( .i'h#i"' ve"#i.$#i!" $"+ #e%/e($#*(e I"

NCL *Gie"# ve"#i.$#i!" h$ ee" /(!vi+e+ !" #he h!/ ;!!(

$"+ !#he( /(!+*#i!" $(e$ A+e*$#e ve"#i.$#i!" %$i"#$i"e+ -

i(*.$#i!" !& &(eh $i( (e$!"$.e #e%/e($#*(e i %$i"#$i"e+

hih +e/e"+ */!" #he i(*%#$"e

She.#e( (e#(!!% $"+ .*"h(!!%:

Eve(- &$#!(- e%/.!-i"' %!(e #h$" 150 !(e( %*#

/(!vi+e $+e*$#e $"+ *i#$.e he.#e( !( (e# (!!% $"+ $

.*"h(!!% i#h /(!vii!" !& +(i"i"' $#e( he(e !(e( $"

e$# %e$. (!*'h# - #he% *# i" $e $ $"#ee" i

%$i"#$i"e+ i" $!(+$"e i#h #he /(!vii!" !& e#i!" 46 i#i.. e (e'$(+e+ $ $/$(# !& #hi (e*i(e%e"# She.#e( $"+ (e#

(!!% e(e &!*"+ i#h e.. +eve.!/e+ $"+ $ h-'ie"i $"#ee"

i /(!vi+e+ i" #he !%/$"- /(e%ie

Fi(# Ai+ !:

A /e( e#i!" 45 !& #he &$#!(ie $# eve(- &$#!(- %*#

/(!vi+e $"+ %$i"#$i" (# !e !( */!$(+ e*i//e+ i#h

#he /(e(ie+ !"#e"# The "*%e( !& *h !e !(

*/!$(+ %*# "!# e .ee #h$" !"e &!( eve(- 150 !(e(

43


44/95

Thi /(!vii!" ei# i" NCL $"+ #he- e(e (e$+i.- $v$i.$.e $"+

$ei.e

A%*.$"e &$i.i#-:

A /e( #he e#i!" 45 !& &$#!(ie A# $%*.$"e i#h #he

e(vie !& $ +!#!( i /(!vi+e+ i" NCL I" $e #he(e $(e %!(e

#h$" 500 !(e(H #h$" $" $%*.$"e (!!% !& #he /(e(ie+

iDe $"+ !"#$i"i"' #he /(e(ie+ e*i/%e"# i #! e

/(!vi+e+ *"+e( #he h$('e !& *$.ie+ %e+i$. $"+ "*(i"'

#$ I" NCL #he(e i $ *$.ie+ %e+i$. +!#!( i#h "*(e

/(!vi+i"' #hei( e(vie (!*"+ #he .!

=e.&$(e !Ge(:

A /e( #he e#i!" 49J 2J O& #he $# .$- +!" #he

#$#*#!(- $//!i"#%e"# !& $ #$#*#!(- !Ge( i" $ &$#!(- i#h

%!(e #h$" 500 !(e( I" NCL #he @R +e/$(#%e"# !%/(ie !&

e.&$(e i"' i#h e.&$(e !Ge(

C$"#ee" &$i.i#-:

44


45/95

A!(+i"' #! e#i!" 46 !& F$#!(ie A# (*.e .$i+ +!" &!(

#he /(!vii!" !& $"#ee" - #he !*/ie( i" $"- /eie+

&$#!(- $# (*.e .$i+ +!" &!( #he /(!vii!" !& $"#ee" - #he

!*/ie( i" $"- &$#!(- e(e %!(e #h$" 250 !(e( e(e

e%/.!-e+ The(e i $ e..e*i//e+ $"#ee" (*" - !#he( i" "!

/(!# "! .! $i =hih /(!vi+e #e$ "$ $"+ .*"h #!

e%/.!-ee $# *#$"#i$. ($#e

(i"i"' $#e(:

A!(+i"' #! e#i!" !& #he &$#!(ie A# NCL .$-

#$"+$(+ &!( /(!vi+i"' .e$" $"+ !!. +(i"i"' $#e( #! #he

e%/.!-ee i" i# &$#!(-

L$v$#!(ie $"+ *(i"$.:

Se#i!" 19 !& #he &$#!(ie $# #i/*.$#e #h$# &!( #he (#

100 !(%e" &!*( .$v$#!(ie $(e #! e /(!vi+e+ $"+ &!( eve(-

*e*e"# 50 !(%e" !"e $++i#i!"$. .$v$#!(- %*# e

/(!vi+e+ i" NCL *(i"$. $"+ .$v$#!(ie $(e .e$"e+ i#h

+ii"&e#i!" $e( eve(- hi $"+ $"i#$(- he./e( $(e

e%/.!-e+ &!( #hi /*(/!e

=$hi"' &$i.i#ie:

Se#i!" 42 !& #he &$#!(ie $# .$- +!" #h$# eve(-

&$#!(- h$ #! /(!vi+e $+e*$#e $"+ *i#$.e $hi"' &$i.i#ie

e/$($#e.- &!( #he *e !& %$.e $"+ &e%$.e !(e( I" NCL

45


46/95

#hee &$i.i#ie e(e "!# */'($+e+ e$*e #he- e(e /(!vi+i"'

#he *$(#e( i" #he !%/$"- /(e%ie !".- ! #h$# #he- $"

e$i.- $h #hei( .!#h i" #hei( *$(#e( !".- - *i"' #he

$hi"' /!+e( /(!vi+e+ - #he !%/$"-

NONSTAT?TORY MEAS?RES

@!/i#$.iD$#i!" i"*($"e:

I" #he eve"# !& @!/i#$.iD$#i!" !& $" ee%/#e+ !(%$"

i.. &!( #he e/e"e (ei%*($.e - #he i"*($"e !%/$"-

h! i.. %$e (ei%*(e%e"# +i(e#.- #! #he !(%e" $ /e(

#he #e(% !& #he /!.i-

?"i&!(%:

T! /$i( !& *"i&!(% i.. e 'ive" #! #he e%/.!-ee i" NCL

.*e +(e &!( !(e( $#e'!(- $"+ .i'h# -e..!ih !($"'e

+(e !.!*( &!( ee*#ive $#e'!(-

S$&e#- h!e:

I# i $'(ee+ #h$# $/$(# &(!% !"#i"*i"' #he ei#i"'

/($#ie !& $""*$. i*e !& $&e#- h!e #! $.. #he !(%e"

!%/$"- i.. /(!vi+e !"e e# !& $&e#- h!e !"e i" $ -e$(

A"+ he.%e# #! $.. /e(%$"e"# $"+ "!"/e(%$"e"# !(e( $"+

i !%/*.!(- &!( #he% #! e$( h!e hi.e (e/!(#i"' &!( +*#-

46


47/95

F$i.*(e #! e$( $&e#- h!e i.. e"#$i. +e"i$. !& $+%ii!" i"#!

#he &$#!(-

Ai+e"# .e$ve:

Th!e h! %e# i#h $i+e"# %$"$'e%e"# /(!vi+e

$i+e"# .e$ve i".*+i"' (# $i+ (e&e(e"e #! $//(!/(i$#e

h!/i#$. he" "ee$(- h!%e vii# he(eve( !"i+e(e+

"ee$(- !*(e !& #(e$#%e"# #e# h!/i#$.iD$#i!" +eii!"

#! $!(+ $i+e"# .e$ve i*e e(#i$#e &!( (e*%/#i!" !& +*#-

e# h$.. ve# e.*ive.- i#h &$#!(- %e+i$. !Ge(

Me+i$. he*/:

The !%/$"- i.. %$e $(($"'e%e"# &!( %e+i$. he*/

&!( #he !(%e" $e+ !" #he &!..!i"' /(!e+*(e &!( /h-i$.

#"e

C!"e/# !& e.&$(e

The *e&*. !& $"- !('$"iD$#i!" *.#i%$#e.-

+e/e"+ */ !" h*%$" (e.$#i!" The $!.*#e.- %e#h!+ !&

&*"#i!"i"' $# #he hi% $"+ "$"e( !& $" i"+ivi+*$. !(

'(!*/ h!.e "! %$##e( i" (ee"# #i%e A"- )*(i+i$.

%$"$'e%e"# h!*.+ e$( i" %i"+ #h$# i& %$hi"e (e$

+!" #he- $" (e#i&- *# i& h*%$" (e.$#i!" (e$ +!"

#he- $""!# e e$i.- (e/$i(e+ The +i(e#ive /(i"i/.e !&

#$#e /!.i- i" !( !"#i#*#i!" (e&e( 'e"e($..- &!( #he e.&$(e

!& #he /e!/.e =e.&$(e i" I"+i$" i"+*#(ie i%/.ie #he

47


48/95

/(!vii!" !& %e+i$. $"+ e+*$#i!"$. e(vie !"'e"i$. !(

$#%!/he(e e# #he "ee+ &!( /(!vi+i"' *h e(vie $"+

&$i.i#ie $(ie &(!% !i$. (e/!"ii.i#- !& i"+*#(- $ +ei(e

&!( */h!.+i"' +e%!($#i v$.*e $"+ !"e("e+ &!(

e%/.!-ee

=e.&$(e !ve( #he &$%i.ie !& #he !(e( e/ei$..- i"

I"+i$ he(e e$*e !& #(!"' &$%i.- #ie !(e( e.. ei"'

e"!%/$e #h$# #hei( &$%i.ie L$!*( e.&$(e i%/.ie/(!vi+i"' e##e( !(i"' !"+i#i!" *h $ /(!/e( .i'h#i"'

he$# !"#(!. .e$".i"e $"+ .! "!ie .eve. T!i.e# $"+

+(i"i"' $#e( &$i.i#- $"#ee" $"+ (e#(!!%

L$!*( e.&$(e i #he hi"'e !" hih #he +!!( !&

/(!+*#i!" (ev!.ve Th(!*'h L$!*( e.&$(e $"+ /(!+*#i!"

$(e #! +ie(e"# e.+ Ye# #he- $(e +e/e"+ !" e$h !#he( The

!"e/# !& L$!*( e.&$(e i" $" i"+*#(- !%/(ie !& #he e..

ei"' !& #he !(e( hi &$%i.- $"+ #he !%%*"i#- i" hih he

ei# L$!*( e.&$(e h$ #! e viee+ i" #he /!i#ive $"+

"e'$#ive $"'.e I" #he &!(%e( $e i# !"i# !& /(!vii!" &!(

#he +eve.!/%e"# !& #he !(e( ! #h$# he $" .ive e!"!%i$..-

!*"+ !i$..- #(!"' $"+ /e(!"$..- !%&!(#$.e .i&e I" #he

e!"+ $/e# #! *"+ei($.e !"e*e"e $"+ L$!*(

/(!.e% hih h$ve *(&$e+ i" #he /(!e !& #($"i#i!"

=e.&$(e %e$*(e %*# e.i%i"$#e (i *"e(#$i"#- "ee+e+ #!

+($ $ &$i(e +$-H $'e i#h !*# $"- &ee.i"' !& '*i.#- >ive" #he

!(e( e!"!%i !"#($i"# /(!$.- +*e #! .$('e &$%i.ie

48


49/95

!('$"iD$#i!" h!*.+ /(!vi+e &$i.i#ie $ #($"/!(#$#i!" %e+i$.

$i+ (he $"+ *i+iDe+ &!!+ (e*i(e+ - #he !(e(

?"i!" !*.+ .ie #! e*(e eve($. e"e# #! %$i"#$i"

#hei( i%$'e The !i! /!.i#i$. $"+ .e'$. e"vi(!"%e"# $"+ #he

e!"!%- $ $.! i";*e"e+ #he (!.e !& #he *"i!" i" e.&$(e The

(!.e i" L$!*( e.&$(e #(e$% &!( #he !(e( "ee+ &!( e.&$(e

e(vie $/$(# &(!"# h!e $v$i.$.e #! #he% $ i#iDe" $"+

%e%e( !& #he !%%*"i#-

E%/.!-e( /(!vi+e $%e"i#ie #! +ih$('e #hei( !i$.

(e/!"ii.i#ie ($ie #he e%/.!-eeH %!($. *e #he !( &!(e

%!(e ee#ive.- $"+ (e+*e #he #*(" !ve( $"+ $e"#eei%

e"e# *h $ !"* e# $(e !*"+ - .e"'#h !& e(vie #h*e"*(i"' #h$# $" e%/.!-ee (e%$i" &!( e(#$i" %i"i%*% /e(i!+

$# .e$# Th(!*'h /$#e("$.i% %$- e !*# &$hi!"e+ %$"-

%$"$'e( &e.. hi.e !#he( $(e !"vi"e+ #h$# e.&$(e e"e#

"!# !".- ($ie e%/.!-ee %!($. *# %$e i# e$- &!# #he

e%/.!-e( #! $##($# $"+ hi(e !%/e#e"# /e(!""e. =e.&$(e h$

#! *i9.# $ /!i#ive i%$'e !& #he !('$"iD$#i!" $"+ &$i.i#ie

+e$.i"' i#h #he *"i!"

L$!*( e.&$(e i" e!"!%i h$ %$"- +ie(e"#

+e"i#i!" $"+ "!# !"e !& #he% '!# *"ive($. !"#$"# O"e

*h +e"i#i!" i #h$#: i# i $ v!.*"#$(- e!(# !& #he e%/.!-e( #!

i%/(!ve #he .ivi"' $"+ !(i"' !"+i#i!" !& hi e%/.!-ee

49


50/95

e%/h$iDe ei"' $ &$i( $'e $"+ (e$!"$.e e.&$(e !( &!(

e##e( $'e $"+ h!(#e( h!*( I# i .e$( &(!% i# $++e+

/(!"!*"e%e"# #h$# #he /i(i# !& #he $'e $"+ e.. ei"' !& #he

e%/.!-ee A"- #-/e !& v!.*"#$(- e(vie i.. !%e #he /he(e

!& .$!*( /(!vi+e+ i# $i% $# $i+i"' #he !(e( #! !( e##e(

$"+ i" %!(e !"'e"i$. e"vi(!"%e"#

The(e e(e +$- +*(i"' #he i"+*#(i$. (ev!.*#i!" he"

!(e( e(e !/e($#i"' *"+e( %!# !+i!* $"+ hi+e!*!"+i#i!" Me" !%e" $"+ hi.+(e" e(e *)e#e+ #! h$(+

$"+ !"#i"*e !( &!( .!"' h!*( The" $%e #he +$- !&

i"+*#(i$.iD$#i!" #he e%/.!-ee h! e(e $ e"#!" #he

/(!# +i+ "!# $(e &!( #he e"e# !& #he !(e( *# $ #i%e

/$e+ i# $ (e$.iDe+ #h$# #! 'e# e##e( /(!+*#i!" $"+

/(!+*#ivi#- $"+ $.! &$i"$#e+ i..e+ !(e( #! #he i"+*#(-i"e"#ive i" #he &!(% !& .$!*( e.&$(e h!*.+ e /(ev$.e"#

!#h #he e%/.!-e( $"+ e%/.!-ee e(e %*#*$..- e"e#e+ !"

i"#(!+*i"' e.&$(e he%e The !)e#ive i" i"#(!+*i"' #he

he%e $(e #! ev$+e #he #$ /$-%e"# $"+ i%*.#$"e!*.-

*i.+i"' */ !& !(+i$. (e.$#i!" i#h #he e%/.!-ee The !#he(

$i% i $.! #! !*"#e($# !*#i+e $'e"ie ee# #hee%/.!-ee

TYPES OF WELFARE FACILITIES

=e.&$(e e(vie (!$+.- .$ie i" #! #! $#e'!(ie

50


51/95

1 S#$#*#!(- e.&$(e

2 N!"#$#*#!(- e.&$(e

S#$#*#!(- e.&$(e

The #$#*#!(- e.&$(e !%/(ii"' #he .e'$. /(!vii!" i"

v$(i!* /iee !& L$!*( .e'i.$#i!" *"+e( +ie(e"# .$ .ie

#he &$#!(ie A# P.$"#$#i!" L$!*( A# C!"#($# L$!*( M!#!(#($"/!(# !(e( A# e#

1 C$"#ee" &$i.i#- i& #he(e $(e %!(e #h$" 150 e%/.!-ee

2 F$i.i#- &!( !$i!"$. (e# &!( !(e( h! !( i"

#$"+i"' /!i#i!" &!( .!"' h!*(

3 Fi(# Ai+ !e &!( eve(- 150 !(e( $"+ $%*.$"e

&$i.i#- $.!

4 C(he i& %!(e !%e" e%/.!-ee $(e e%/.!-e+

5 E+*$#i!"$. $(($"'e%e"#

6 @!*i"' &$i.i#- &!( !(e( $"+ #hei( &$%i.ie

7 M$#e("i#- $..!$"e &!( &e%$.e e%/.!-ee

8 C!%&!(#$.e .e$" ve"#i.$#e+ $"+ e...i'h#e+ (e# (!!%

$# eve(- /.$e he(e %!#!( #($"/!(# !(e( $(e

(e*i(e+ #! h$.# $# "i'h#

9 =$hi"' &$i.i#ie

10 ?"i&!(% $"+ h!e h!*.+ e /(!vi+e+

11 P$-i"' !%/e"$#i!" #! #he /e(!" h! %e# $"

$i+e"# hi.e !(i"'

51


52/95

12 P(!vi+e"# &*"+

13 =e.&$(e OGe( i& %!(e #h$" 500 /e!/.e $(e

e%/.!-e+

NONSTAT?TORY =ELFARE

The "!"#$#*#!(- e.&$(e i".*+e #h!e $#ivi#ie hih

$(e *"+e(#$e" - e%/.!-e( &!( #hei( !(e( v!.*"#$(i.-

M$"- e%/.!-e( "! $ +$- !e( #he &!..!i"' &$i.i#ie

v!.*"#$(i.-:

1 E+*$#i!" #! #he !(e(

2 @!*i"'

3 T($"/!(#$#i!"

4 Re(e$#i!"$. &$i.i#ie5 C(e+i# !ie#ie !#he( &$i.i#ie

OECTIVIES OF =ELFARE ENEFITS

The i%/!(#$"# !)e#ive $(e

1 T! (e$#e $"+ i%/(!ve !*"+ i"+*#(i$. (e.$#i!"2 T! !!# */ e%/.!-ee %!($.e

3 T! %!#iv$#e #he e%/.!-ee - i+e"#i&-i"' $"+ $#i&-i"'

#hei( *"$#ie+ "ee+

4 T! /(!vi+e e*(i#- #! #he e%/.!-ee $'$i"# !i$. (i

.ie O.+ $'e e"e# $"+ %$#e("i#- e"e#

5 T! (e$#e $ e"e !& e.!"'i"'"e $%!"' e%/.!-ee $"+#! (e#$i" #he%

52


53/95

?*FET *T 89;

1 M$i"' #($#e'i h!ie

2 eve.!/%e"# /!.iie /(!e+*(e $"+ #($i"i"' -#e%

3 O('$"i$#i!" &!( $&e#-

4 A"$.-e !& #he $*e $"+ !*((e"e !& $i+e"#

5 I%/.e%e"#$#i!" !& #he P(!'($%%e

53


54/95

1 S#($#e'i h!ie: S!%e !& #he #($#e'i h!ie

• M$"$'e( %*# +e#e(%i"e #he .eve. !& /(!#e#i!" #h$#

he#he( %i"i%*% .eve. !( %i"i%*% .eve. !& /(!#e#i!"

• M$"$'e( $" +ei+e he#he( $ $&e#- /(!'($%%e i..

e &!(%$. !( i"&!(%$.

• M$"$'e( $" $.! e /($#ie i" +eve.!/i"' /(!e+*(e

!( /.$" i#h (e/e# #! e%/.!-ee $&e#-

•

M$"$'e( $" +ei+e #! *e #he $&e#- !& !(e( $%$(e#i"' #!!. &!( #he !('$"iD$#i!"

2 S$&e#- P!.i-: S/ei$..- $ $&e#- /!.i- %*# !"#$i" $

+e.$($#i!" !& #he !('$"iD$#i!" i"#e"# $"+ #he %e$" -

hih #he i"#e"# i #! e (e$.iDe+ A $ /$(# !& #he i"#e"#

#he #$#e%e"# h!*.+ e%/h$iDe &!( &!*( &*"+$%e"#$.

/!i"#

• The S$&e#- !& e%/.!-ee $"+ #he /*.i i !&

/$($%!*"# i%/!(#$"e

• S$&e#- i.. #$e /(ee+e"e !ve( e/e+ie"-

• Eve(- e!(# i.. e %$+e #! i"v!.ve $.. %$"$'e(

*/e(vi!( $"+ e%/.!-ee i" #he +eve.!/%e"# !&

$&e#- /(!e+*(e

• S$&e#- .e'i.$#i!" i.. e !%/.ie+ i" #he /i(i# $ e..

$ #he .e##e( !& #he .$

54


55/95

3 O('$"i$#i!" &!( $&e#-:

The #hi(+ #e/ i" ev!.vi"' $ $&e#- /(!'($%%e i #!

!"#i#*#e $" !('$"iD$#i!" &!( $&e#- I" #h$# !%%i##ee $..

+e/$(#%e"# %e%e( i"v!.vi"' S$&e#- C!%%i##ee !"+*#$&e#- %e$*(e !"e eve(- #h(ee %!"#h C!%%i##ee i

(e!'"iDi"' *"$&e !( /.$e $"+ "e# !%%i##ee i.. 'ive

i"&!(%$#i!" $!*# *"$&e !"+i#i!" !& !( #! %$"$'e%e"#

C!%/$"- $ /!i"# $&e#- /ei$.i# #! +ei'" $"+ h$"+.e

#he +$- #! +$- $#ivi#ie !& #he $&e#- /(!'($%%e

Re/!"ii.i#- !& e%/.!-ee $&e#- #!! #he @R +e/$(#%e"#

h!e #$ i #! !!(+i"$#e #he $#ivi#ie !& $.. #h!e !"e("e+

i#h $&e#-

4 C$*e !& $i+e"#:

AJ ?"$&e $# !& /e(!":

1 O/e($#i"' i#h!*# .e$($"e &$i.*(e #! he$+ $("i"'

2 O/e($#i"' !( !(i"' $# $" *"$&e /ee+

3 ?i"' *"$&e e*i/%e"# !( *i"' e*i/%e"# *"$&e.-

55


56/95

4 M$i"' $&e#- +evie i" !/e($#ive

5 F$i.*(e #! *e $&e $##i(e !( /e(!""e. /(!#e#ive +evie

6 *e #! "e'.i'e"e !& #he e%/.!-ee

7 Ove( !"+e"e i #he %$i" $*e

8 ?" $$(e"e !& e%/.!-ee

9 C!%%*"i$#i!" '$/

10 N!# &!..!i"' $&e#- '*i+e .i"e /(!vi+e+ - #he

!('$"i$#i!"

J ?"$&e %eh$"i$. !( /h-i$. !"+i#i!":

1 I"$+e*$#e.- '*$(+e+ '*$(+ !& i%/(!/e( hei'h# #(e"'#h

%eh e#

2 ?"'*$(+e+ $e"e !& (e*i(e+

3 e&e#ive (!*'h h$(/ .i//e(- +e$-e+ ($e+ e#

4 ?"$&e.- +ei'"e+ /!!(h!*e ee/i"' !"'e#i!" !.#e+ei# e#

5 I"$+e*$#e.- .i'h#e+ !*(e !& '.$(e e#

6 I"$+e*$#e.- ve"#i.$#e+ i%/*(e !i. !*(e e#

7 ?"$&e /(!e %eh$"i$. he%i$. e.e#(i$. "*.e$(

e#

5 I%/.e%e"#i"' #he /!.i-:

F!( i%/.e%e"#$#i!" #he $&e#- /(!'($%%e %*# !ve(

• P(!e+*(e &!( (e/!(#i"' $i+e"# h$D$(+ (e /(!#e#i!"

( $i+

56


57/95

• A(($"'e%e"# &!( i"#(*#i"' !(e( $!*# $&e !(i"'

%e#h!+ $"+ &!( #($i"i"' e%/.!-ee i" $&e#- %$##e(

• >!!+ h!*e ee/i"' (e*i(e%e"# !ve(i"' #!($'e

&$i.i#ie $+e*$#e /$e &!( %$hi"e(- $"+ /.$"# $"+

#he /(!vii!" !& '$"' $-

• S/ei$. (*.e &!( !( +!"e $# $ hei'h# i" !""e+

/$e !" hei'h# i" !""e+ e.e#(i$. e*i/%e"# !(

*"'*$(+e+ %$hi"e(-

• The %$i"#e"$"e !& e*i/%e"# $"+ /(!vii!" !& /(!/e(

i"/e#i!" $"+ #e#i"' $(($"'e%e"#

• >e"e($. (*.e !" $&e !(i"' h$i#

• S/ei$. (*.e &!( i"#e("$. #($"/!(# +(ive(

• A(($"'e%e"# &!( hei"' "e %$hi"e(- $"+

%$#e(i$.

•

The /(!vii!" !& /e(!"$. /(!#e#ive e*i/%e"# $"+(*.e $ #! i# *e

• S*''e#i!" !" $&e#- %$##e(

Ev$.*$#i!" ee#ive"e !& #he /(!'($%%e: C!%/$"- i

$+!/#i"' !('$"i %e#h!+ &!( %e$*(i"' #he $&e#- Thee

%e#h!+ $##e%/# #! ev$.*$#e h! e.. $&e#- /(!'($%%e i

+ei'"e+ $"+ &*...e+ !& i"#e(e# i" #he $e i #he %e(i# !&

/(!'($%%e( e.e%e"# $"+ #hei( .eve. !& i%/.e%e"#$#i!" The

!"e+e i" -#e%$#i i i#h #he ee# !& #he /(!'($%%e

+ei'"e+ #! e(ve

57


58/95

58


59/95

59


60/95

THEORITICAL FRAME WORK

CAS2 FLO+ FROM IN(ESTING ACTI(ITIES:

Investing activities are the ac-uisition and dispose of long term assets and other investments

not included in each e-uivalents. The separate disclosure cash flows arising from investing activists is

important because the cash flows represent the e+tent to which e+penditure has been made from

resources intended to generate future income and cash flows.

E+amples for the cash flows arising from investing activities are3

a/ 9ash payments to ac-uire fi+ed assetsincluding intangibles/

60


61/95

These payments including those relating to capitali(ed research and development costs and

self contracted fi+ed assets.

b/ 9ash payments ac-uire shares, warrants, or debt instrument of other enterprise and interest in

$oint ventures other than payments for those instruments considered to be cash e-uivalents

and those held for dealing and trading purpose/.c/ 9ash receipts from disposal of fi+ed assets including intangibles/.

CAS2 FLO+S FROM FINANCIAL ACTI(ITIES:

Financing activities are the activities that results in changes in the si(e and composition of

owners capital including preference capital in the case of a company/

Financing activities are the activities that results in changes in si(e and composition of owners

capital including preference share capital in the case of a company/ and borrowing of the company

the enterprise disclosers of the cash flows arising from financing activities) is important because it is

useful in predicting claims on future cash flows by provides of funds both borrowing and capital/ to

the company.

E+amples of cash flows arising from financing activities are3

9ash proceeds from issuing of shares or other similar instruments.

9ash proceeds from issuing of debentures, loans, notes, bonds and other short term

borrowings.

9ash repayments of amounts of amounts borrowed such as resumption of debentures, bonds,

preference shares.

LIMITATIONS OF CAS2 FLO+ STATEMENTS:

>espite a number of uses cash flows statements suffers from the following limitations

9ash flow statements is based on cash basis of accounting, it ignores the basic accounting

concept of accrual basis.

61


62/95

?ome people feel that as wor#ing capital is wider concepts of funds, a funds flow statements

provides more complete picture then cash flow statement.

9ash flow statements is not suitable for $udging the profitability of the firm as non0cash

charges are ignored while calculating cash flows from operating activities.

CONCEPT OF FUNDS FLO+ STATEMENT:

Funds flow statements is a summary from that indicates changes in items of financial position

between two different balance sheet dates showing clearly the different sources and applications of

funds. The ma$or purpose of the financial statements is to provide a detailed presentation to the results

of financial management as distinguish from operated management. ith summari(es the financing

and investing activities of the enterprises. The statements shows directly information that renders of

the financial reports could otherwise obtained only by ma#ing a finance and information published balance sheet and statement of income and retained earnings.

'alance sheet is statements of financial position. hereas funds statements are obviously

statements of. “9hanges” in financial position. 'alance sheet shows the status on a day. In contrast

funds statements income statements of retained earnings over a period of time they provided the

e+planation of why the balance sheet items have changed. The continental financial statements show

mostly the position of accounting, rather then the financial condition of the business in terms of flow

of funds. %owever, since all financial events are reflected in the conventional statements. It becomeseasy to unearth trends and promotion by the uses of analytical methods li#e the funds flow statement.

USES OF FUNDS FLO+ STATEMENTS:

'y highlighting the change in the distribution of the resources of an underta#en the funds

flow statement enables the financial manager to have a clear prospective of the organi(ation financial

strength and vea#ness, it provides answers to a number of different -uestions. The uses of a funds

flow statement may be listed as follows.

Fir#%:

62


63/95

It e+plains the financial conse-uences of business of operation. For e+ample, a business may

be earnings use profits but its li-uidity positions would by highly unsatisfactory. The funds flow

statement will e+plain the causes of such a seemingly in recogni(able situation by howing what has

become flow of funds to activities considered more beneficial for the efficient wor#ing of the

enterprise and which is very essential for the effective managerial control. hen balance sheet

presents distorted picture of an understanding because of a number of non0fund transactions the funds

statement would be an illuminating document.

S!/on3l4,

>ebt capital is very essential for increase profitability to any enterprise but the creditor or

lender as#s the financial manager a number of -uestion in order to ascertained the credit worthiness

and the funds generating capacity of the organi(ation. *lso they would li#e to #now in what way the

management has utili(ed. The funds in the past and how the funds would be utili(ed in future. The

funds flow statement by providing the re-uired the information of dues would enables the financial

manager to answer such in a benefit manner.

Thir3l4,

it acts as an instrument for allocation of the companies secure resources. * proposal funds

flow statement will help to find out how the management is going to allocate resources for meeting

the future productive programs of the business. hen a predicated statement is ties to the capital

budget, it will help manager to maintain the financial health of the organi(ation. Future problems

faced by the firm do not arise all of a sudden. They ta#e time to reach a critical stage and elected by a

number of factors. * protected funds flow statement by providing a prospective far considering the

financial implication of evolving issues would help management reserve the favorite trend.

La#%l4

it is test for evaluation of the effectiveness use of wor#ing capital of management.

Information on the ade-uacy of wor#ing capital will enable the management to decide what possible

steps its should ta#e for effective use of surplus wor#ing capital or incase of in ade-uate wor#ing

capital to ma#e suitable arrangements.

63


64/95

IMPORTANCE OF FUNDS FLO+ STATEMENTS3

Funds flow analysis is an invaluable analytical tool for a financial manager or a creditor for evaluation

of the emplacement of funds by a firm and in determining the sources for such funds. In addition to studying

past flow by means of funds statement based upon forecasts. ?uch a statements provides an efficient method to

the financial manager to assess the growth of the firm and it results in financial needs, and to determined

the best way to those need in particular, funds flow analysis is very useful in planning intermediate

and long term financing the traditional pac#age of fund accounts and statements through vary

significant statements as such a limited role to play in financial analysis. The balance sheet is a

statement of assets and liabilities on particular date. ?imilarly the income statement will show in more

detail only the profit or loss, change in owners e-uity arising during accounting period as result of the

productive and commercial activities in that period. The main criticism against the balance sheet is

that it is merely a stade statement. In order to as creation such ma$or financial transactions or

movement of financial sources of funds. The balance sheet of two periods shown in a separate

statement. The statement is a variously #nown a “funds flow statements” “statement of sources and

application of funds” “when got and where gone statement” or simply “funds statements”.

LIMITATIONS OF T2E FUNDS FLO+ STATEMENTS3

>espite its multiple managerial uses, the funds flow statements suffers from certain

limitations.

*s this statement ignores non0fund items, becomes a crud device compare to the

income statement and balance sheet.

The statement does not reveal shifts among the items ma#ing up the current assets and

current liabilities it does not tell whether any loss of wor#ing capital has unduly we

can the financial position. nly an e+amination of the balance sheet the end of the

period will show the under effect of the changes therefore the funds flow statement

can)t supplant but only supplement conventional financial statement either in whole or

in part.

The information used for the preparation of the funds flow statements is essentialhistorical is nature though attempted are made to protect the funds statement for the

future period.

>espite these limitations the information supplied by the funds flow statement is really is

valuable and the management in planning capital e+penditure, devising dividend and other

financial policies etc., ta#en in con$unction with ratio analysis provides a rich source of

information regarding possible managerial uses.

64


65/95

DIFFERENCE 'ET+EEN T2E FUNDS FLO+ STATEMENTS AND CAS2 FLO+

STATEMENTS

Ca#h )lo6 #%a%!m!n%# Fn3# )lo6 #%a%!m!n%#

1/ It is based on cash basis on accounting


66/95


67/95

PREPARATION OF CAS2 FLO+ STATEMENT: The cash flow statement is to be presented

as per the as0= of the institute of charted accounts of India icai/. The icai issued as0= in Gune, 1!1 of

the first time. ;ater in march, 1!! it revises the standard. The model stipulated in as0= is the widely

accept model for presentation of cash flow statement. *ll the listed companies O entities whose

financial year end on 2arch, 1!!A and there after will be re-uired to give cash flow statement along

with balance sheet at profit and loss account. The above amendment comes into effect immediately

i.e., w.e.f. 1D0epreciation M >epletion or

*morti(ation of Fictions and

Intangible *ssets +++

'y pening 'alance of 4 M

;aOc/ +++

ood will, 4atents, Trade

mar#s, 4reliminary E+penses, etc.,

'y Transfer from e+cess

provisions +++

To *ppropriation of :etained

Earnings +++

'y *ppreciation in the value of

fi+ed assets +++

Transfer to eneral :eserves,

>ividend E-uali(ation Fund,

?in#ing Fund, etc., 'y >ividends :eceived +++

To ;oss on ?ales of any 8on 0

9urrent or Fi+ed *ssets +++

'y 4rofit on sale of fi+ed or non

current assets +++

To >ividends Including interim

>ividend/ +++

'y Funds from operations

balancing figures incase debit

side e+ceeds credit side/ +++

To 4roposed >ividend if not ta#en

as a current liability/ +++

To 4rovision for Ta+ation if not

ta#en as a current liability +++

To 9losing balance of 4M ; aOc/ +++

67


68/95


69/95

9. 9ash Flows from Financing *ctivities

:epayment of 'onds and >ebentures

Issue of 9ommon ?hares

>ividend paid

8et cash flows Financing *ctivities

8et IncreaseO>ecrease in cash

+++

+++

+++

+++

Forma% O) Ca#h Flo6 S%a%!m!n%

Par%i/lar# Amon%

R#

Amon%

R#

*. 9ash Flow from perating *ctivities3

8et Income

*d$ustments to :econcile 8et income to 8et cash

4rovided by perating *ctivities3

>epreciation

ain on sale of Investments

;oss on sale of 4lant *sset

Increase in 9urrent *ssets

>ecrease in 9urrent ;iabilities

8et 9ash Flows from perating *ctivities

'. 9ash Flow from Investing *ctivities3

?ale of 4lant *ssets

?ale of Investments

4urchase of 4lant *ssets

4urchase of Investments

>ecrease in 9urrent *ssets

Increase in 9urrent ;iabilities

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

69


70/95

8et 9ash Flows used by Investing *ctivities

9. 9ash Flows from Financing *ctivities3

:epayment of 'onds and >ebentures

Issue of common shares

>ividends paid

8et 9ash Flows from Financing *ctivities

8et IncreaseO>ecrease in cash

+++

+++

+++

PERFORMA OF A FUNDS FLO+ STATEMENT

?tatement of sources and applications of funds

Sor/!# R# A$$li/a%ion# R#

Income from business

operationsprofit/

J+++ Income from business

operationsloss/

J+++

Issue of shares at par

discountOpremium/

J+++ :edemption of share at

pardiscountOpremium/

J+++

Issues of debentures at par

discountOpremium/

J+++ :edemption of debentures at par

discountOpremium/

J+++

;ong term and medium loans ta#en J+++ 4ayment of loans J+++

?ale of investments J+++ 4urchases of investment J+++

8on0trading income J+++ 8on0trading payment J+++

?ale of fi+ed assets J+++ >ividend paid J+++

Total J+++ Total ++++

•?ources0applicationsP increase in wor#ing capital.

• *pplication0sourcesP decrease in wor#ing capital

70


71/95

PERFORMA OF STATEMENTS OF C2ANGES IN +ORING CAPITAL

E))!/% in 6or;in /a$i%al

Par%i/lar#

Pr!


72/95

Crr!n% Lia9ili%i!#

'ills 4ayable J++ +++

?undry 9reditors J++ +++

utstanding E+penses J++ +++

'an# verdraft J++ +++

?hort term advances J++ +++

>ividend 4ayable J++ +++

4roposed >ividend > J++ +++

4rovision for Ta+ation > J++ +++

To%al Crr!n% Lia9ili%i!# =** *** *** ***

+or;in Ca$i%al 8CA " CL7 =** ***

8et Increase O >ecrease in or#ing9apital =** *** *** ***

or#ing capital P current assets0 current liabilities5 net increaseOdecrease in wor#ing capital.

CURRENT ASSETS:

The term current assets includes cash and other assets that are e+pect to be convert into cash

or consumed in production of goods or rendering of services in the normal course of business.

%owever, the best definitions of the term “current assets” has been given by gray in the following

words. For accounting purpose, the term “current assets” is used to designate cash and other assets or

resources commonly identified as those, which are reasonable e+pected to be reali(ed in cash or soled

consumed during the normal operating cycle of the business the board categories of “current assets”

are3

9ash including fi+ed deposits with ban#s.

*ccounts receivables, trade debts and bills receivables.

Inventory stoc# of raw material, wor#0in0progress, finished goods stores and spare parts.

*dvances recoverable the advances given to suppliers of goods and services or deposit with

government or other public authorities, custom, parts authorities, advance income ta+. 4repaid e+penses, cost of une+plored services, insurance premium paid in advance.

72


73/95

CURRENT LIA'ILITIES

The term “current liabilities” is used principally to designated such obligation whose

li-uidation is reasonable e+pected to re-uire the use of assets classified as current assets in the same

balance sheet or the creation of other liabilities or those e+pected to be satisfied with in relatively

short period of time usually one year. %owever, these concepts of current liabilities as all obligations

that will re-uire within the coming year of operating cycle whichever is longer. The use does e+isting

current assets.

The creation of the current liabilities. In other words, the more fact that an amount is due

within a year does not ma#e it current liabilities. For e+ample, debenture due for redemption with in a

year of the balance date will not be ta#en as a current liability of they are to be paid out of the

proceeds return on account of debentures redemption fund investments. The term current liabilities

also includes amounts sea part or provide for any #now liability or which the amount can)t be

determined with substantial accuracy called provision rather than liabilities.

The broad categories of “current liabilities” are3

*ccounts payable, bills payable and trade creditors.

ut standing e+penses, e+penses for with services have been received by the payment have

not been made.

'an# over drafts. ?hort0term loans from ban#s which are payable with in one year from the date of balance

sheet.

*dvanced payment received by the business for the service to be rendered or goods to be

supply in future.

NON CURRENT ASSETS

*ll assets other than current assets come with in the categories of non0current assets. ?uch

assets includes goodwill, land and buildings, plant, machinery, furniture, long0term investments,

patent rights, trade mar#s, debit balance of the profit and loss account, discount on issue of shares and

debentures, preliminary e+penses etc.

NON"CURRENT LIA'ILITIES

*ll liabilities other than current liabilities come with the category of non0current liabilities.

They includes share capital, long term loans, debentures and share premium, credit balances of the

profit and loss account, revenue and capital reserves

73


74/95

DATA ANALYSIS AND

INTERPRETATION

74


75/95

9*?% F; ?T*TE2E8T *? 4E: *99&8TI8 ?T*8>*:>0=

F: T%E E*: escription 9urrent ear


76/95

*/ 9*?%F;F:2

4E:*TI8 *9TI6ITIE?

8et profit before ta+ and

e+traordinary items

*d$ustment for depreciation

*d$ustment for interest paid

*d$ustment for interest receivedO

other income

perating profit before wor#ing

capital changes

>ecrease in unsecured loanIncrease in current assets and loans

and advances

>eferred Ta+ asset

IncreaseO>ecrease/ in current

liabilities and provisions

9ash generated from operations

Interest paid

Interest :eceivedO other income

8et cash flow operating *ctivities

4rior period *d$ustments 8et/

E+pr0/

4rovisions with drawn

4rovision for Ta+ation

4rovision for F'T

4rovisions

'/9*?% F; F:2 4E:*TI8

*9TI6ITIE?

4urchase of fi+ed *ssets

9apital wor#0in0progress

>ecrease of Fi+ed assets

D!!.!

1."

.=

1=D.C"/

DD!.C!

1=A.D/

A1.D1/

D."<

=C."

1=.==


77/95

8et cash used in investing *ctivities

9/9*?% F; F:2 FI8*89I8

*9TI6ITIE?

IncreaseO >ecrease/ in loans from ban#s

and institutions

8et Increase in cash M'an# *Q'Q9/

pening balance of cash and ban#

9losing balance of cash and ban#

C


78/95

• 8et profit before ta+ becomes reduced from 8'T is DC.A to D!!.! in


79/95

>escription 9urrent ear


80/95

8'7 CAS2 FLO+ FROM IN(ESTING

ACTI(ITIES



>ecrease of fi+ed assets

9*?% F; F:2 I86E?TI8

*9TI6ITIE? '/

8C7 CAS2 FLO+ FROM FINANCING

ACTI(ITIES

Increase O>ecrease 0/ in loans from ban#s

Minstitutions

8et increase in cash M'an#*Q'Q9/

pening balance of cash M'an#

9losing balance of cash M'an#

D.="/


81/95

I8TE:4:ET*TI8

8et profit before ta+ becomes reduced from 8'T is D!!.! to CA.1 in *:>

F: T%E E*:


82/95


ecrease in unsecured loans

Increase O decrease in current assets

Mloans Madvances

IncreaseO >ecrease deferred ta+ asset

IncreaseO >ecrease 0/in currentliabilities Mprovisions

8et cash flow from operating activities


Earlier provisions

provision for ta+ation

4rovision for F'T

4rovisions

>eferred Ta+ asset 8et/

Transitional gratuity s

4rior period ad$ustment

9*?% F; F:2 4E:*TI8

*9TI6ITIE?


ACTI(ITIES



83/95



9*?% F; F:2 I86E?TI8

*9TI6ITIE? '/

8C7 CAS2 FLO+ FROM

FINANCING ACTI(ITIES

Increase O>ecrease 0/ in loans from

ban#s Minstitutions

4aid interest




D.="/

".""

11.


84/95

INTERPRETATION

•

8et profit before ta+ becomes raised from CA.1 in to A1!.11 in because of the e+penditure of the previous year is low.

• 9ash flow from operating activities becomes increased from A1D.D" in

to !


85/95


ecrease deferred ta+ asset

IncreaseO >ecrease 0/in current

liabilities Mprovisions

8et cash flow from operating activities


Earlier provisions

provision for ta+ation

4rovisions

>eferred Ta+ asset 8et/

4rior period ad$ustment

9*?% F; F:2 4E:*TI8

*9TI6ITIE?


ACTI(ITIES



1!.1

1".


86/95


9*?% F; F:2 I86E?TI8

*9TI6ITIE? '/

8C7 CAS2 FLO+ FROM

FINANCING ACTI(ITIES

Increase O>ecrease 0/ in loans from

ban#s Minstitutions

4aid interest




".=!

1D.=

1".


87/95

I8TE:4:ET*TI83


88/95



89/95

*9TI6ITIE?


ACTI(ITIES




9*?% F; F:2 I86E?TI8

*9TI6ITIE? '/

8C7 CAS2 FLO+ FROM

FINANCING ACTI(ITIES Increase O>ecrease 0/ in loans from

ban#s Minstitutions

4aid interest




1".!

1!.""/

=.A/

"


90/95

I8TE:4:ET*TI8

• The net profit before ta+ is raised slightly than previous year because of

the sources and applications of the company becomes comparable to each

year

• 9ash from operating activities are raised from C."1/ in to =C.!

• The investing activities are decreased from D


91/95

FINDINGS AND SUGGESTIONS

FINDINGS

91


92/95

From the statements available, the cash flow from operating activities

become more unreliable to the company.

Investment on purchase of fi+ed assets are to be increased.

>iffered ta+ are to be raised year by year which increases the high

investment on operations.

;oan from ban#s are continuously raise year by year which decreases the

credit worthiness of firm.

Interest on the investment is paid high year by year when compared with

previous year.

The ban# cash balances are to be reduced continuously.

or#0in0progress is to be raised it leads to over investment on it.

* ration 131 has been suggested as the bench mar# for Nuic# ratio. The

;i-uid :atio and absolute) li-uidity ratio of the company are satisfactory5

provided the company)s drawing ;imits with ban#s in cash credit

accounts etc are considered. This is because while considering the

li-uidity assets, these drawings right with ban# also provide li-uidity.

The following ratios depends upon the sales turnover of the company and

are as follow. From the year


93/95

SUGGESTIONS Investment on short term provisions are high it should be better to control

the limit on these.

It)s better to invest the amount rather than the purchase of fi+ed assets.

Ta+ is the mandatory but here the ta+ paid very high to regulate the ta+

the company has to reduce the investment on operating activities.

:eserves to be increased for decreasing the ta#ing loan from ban#s.

93


94/95

The payments should be paid before the due date to reduce the interest

amount.

Investments on various activities are lead to reduce the cashMban#

balances, to control those investments it leads better maintaining of the

cashMban# balance

Try to complete the production with low wor#0in0progress leads to better

financial position of firm.

I would li#e to give few suggestions to 89; ltd5 ?uggesting using trendy

machinery with new techni-ues for good productivity.

?uggesting ta#ing contract with the transportation company up to

re-uirement, so that we can control cost of production. ?uggesting to conduct training development programs for wor#ers to

providing awareness about new machinery and usage, time management,

and about best utili(ation resources, company achievements, vision and

mission. Its performance and wor#ing condition is satisfactory from all the

corners.

I suggested to 89; ltd5 to improve operational efficiency in production. The 8et *ssets of the company are to be efficiently used.

'I'LIOGRAP2

'OOS

2anagement 'y . ?.H.:. 4aul

Financial 2anagement 'y . ?.8. 2aheshwari

Financial 2anagement 'y. :.H. ?harma M upta

JOURNALS:

94


95/95

cash flow statement@ ncl

Documents