SUMMER TRAINING REPORT

On
“Cash Flow”
At
Thomson Press Pvt. Ltd.
Submitted to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
for
The partial fulfillment of the award of degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SESSION (2016-2019)

SUBMITTED TO: SUBMITTED BY:

Controller of examination Name of student :- Uttam

MDU, ROHTAK Registration No.:-

Under the supervision of Roll No. :-

Ms. Meenu Dhembla

Institute of Management & Technology, Faridabad

(Approved by AICTE & Affiliated to Maharshi Dayanand University, Rohtak)
Near Sai Dham, Tigaon Road, Faridabad -121002
 CHAPTER -1

INTRODUCTION

Cash flow statement indicate the amount of cash receipts and the amount of cash payments or
distributions during a specified time. It outlines from where the cash was generated and to where
it was expenses. In other word, it report the cash inflow and cash outflow, during a time period.

The cash flow statement show the net increase or decrease un cash and explain the causes for the
changes in the cash balance, during a period. The major business activities the result in either net
cash inflow or net cash outflow are operating, financing activities.

SIGNIFICANCE PROBLEM OF STUDY

Study of project needed for the systematized effort to gain new knowledge. It is systemizing study
consisting of a problem using the any hypothesis for the collection of the facts, data, analysis and
conclusion.
1. Future uncertainty: Cash flow decisions involve long-term commitments. There is lot of
uncertainty in the long term. The uncertainty may be with reference to cost of the project,
future expected returns, future competition, legal provisions, political situation etc.

2. Time Element: The implications of a Cash flow decision are scattered over a long
period. The cost and benefits of a decision may occur at different point of time. The cost of a
project is incurred immediately. However, the investment is recovered over a number of years.
The future benefits have to be adjusted to make them comparable with the cost. Longer the time
period involved, greater would be the uncertainty.

3. Difficulty in Quantification of Impact: The finance manager may face difficulties in

measuring the cost and benefits of projects in quantitative terms.
Example: The new product proposed to be launched by a firm may result in increase or decrease
in sales of other products already being sold by the same firm. It is very difficult to ascertain the
extent of impact as the sales of other products may also be influenced by factors other than the
launch of the new product.

REVIEW OF LITERATURE

An efficient allocation of capital is the most important finance function in modern times. It
involves decisions to commit firm’s funds to long-term assets. Such decisions are tend to
determine the value of company/firm by influencing its growth, profitability & risk.
Investment decisions are generally known as cash flow or capital expenditure decisions.
It is clever decisions to invest current in long term assets expecting long-term benefits firm’s
investment decisions would generally include expansion, acquisition, modernization and
replacement of long-term assets.
Such decisions can be investment decisions, financing decisions or operating decisions.
Investment decisions deal with investment of organization’s resources in Long tern (fixed)
Assets and or Short term (Current) Assets. Decisions pertaining to investment in Short term
Assets fall under “Working Capital Management”. Decisions pertaining to investment in Long
term Assets are classified as “Capital Budgeting” decisions.

SCOPE OF THE STUDY

 The data of study of project collected of investor or capital structure may not
applicable in all the situations.
 The study of capital structure analysis of company financial position may be affected
or not.
 The calculations and methods adopted in my study may be carried an appropriately.
 Due to time constant of 45 days, the data of the study may on way net present overall
view of the capital structure.
OBJECTIVES OF THE STUDY

The objectives of the study are as follows:-

1. I will study the effect of cash flow decision on profitability of firm.

2. I will about various types of cash flow decision.

3. I will study about process of cash flow are long they or not.

4. I will know about difficulty level of cash flow decision.

5. I will study the cash flow control process also helpful to decide the path of the goals of the
company.

RESEARCH METHDOLOGY

When we talk of research methodology, we not only talk of the research methods but also the
comparison of the logic behind the methods, we used in this context of our research study and
explain why we are using a particular method or technique and why using the other. Research
methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done systematically. In this, we study the various steps that
are generally adopted by researcher in studying his research problem along with the logic behind
them.

“The present study is based upon the case study method of research to investigate procedures at

micro level”.
RESEARCH DESIGN

Research design involves defining the research problem, determining how to collect the data and
from whom, establishing the way the data will be analyzed estimating costs and the preparation of
the research approach. For this study, descriptive research was selected.

TYPE OF RESEARCH DESIGN

1. Historical Research Design

2. Case and Field Research Design
3. Descriptive or Survey design
4. Exploratory Research design

DATA COLLECTION

Data are facts, and other relevant materials, such as past and present are considered as bases for

study and analysis. For the study of research, the data requirement can be classified as:

Data relating to human beings.

Data relating to organizations.

The data are collected from both primary and secondary sources.

Primary Data
Primary data collected through face to face interview, observation, and by participation in the
selecting process.
Secondary Data
The secondary data is collected from website, magazine, memorandum, journals, books and some
other relevant sources.
Both primary data and secondary will be used to generate this report. Primary data sources are
scheduled, survey, informal discussion with professionals. Secondary data sources are the data
used previously for the analysis and the results are undertaken for next process.

ANALYSIS PATTERN

Analysis is placing the collected data in some order or format so that the data acquire a meaning.
Raw data become information only when they are placed in a meaningful form. Interpretation
involves drawing conclusions from the gathered data. Correlation method is used for analysis and
interpretation.The term analysis means the computations of certain measures or indices along with
searching for patterns of relationship that exists among data group.
“It is a process under which the relationship or differences supporting or conflicting with original
or new hypothesis should be, subjected to statistical tests of significance, determine with validity
data can be said to indicate any conclusion”.

Types of Analysis
 Descriptive Analysis
 Casual Analysis
 Co-relative Analysis
 Inferential Analysis
LIMITATIONS OF THE STUDY

 The respondents were limited and cannot be treated as the whole population.
 The respondents may be biased.
 Time will be the major constraint.
 The accuracy of indications given by the respondents may not be consider adequate.
 This data does not cover the whole budgeting impact.
 Chapter-2

Organization of study

 Chapter 1: - this chapter will contain the information about the introduction of the topic
“cash flow ” on Thomson Press Pvt. Ltd
 Chapter 2: -This chapter will contain the information about the research methodology and

profile of an organization

 Chapter 3: -This chapter will contain the information about the micro analysis means

objective wise analysis

 Chapter 4: -This chapter will contain the information about the macro analysis and this

analysis is important as it contains the conclusion of this study also

 Chapter 5: -This chapter will contain the information about the summary of major

observations and recommendation

REFERENCE

Kothari, C.R,” Research Methodology” “Sultan Chand Publication, New Delhi, 2017

Maheshwari And Mittal,”Cost Accounting “Mahavir Publication, New Delhi, 2017

Singal A.K,” Accounting For Managers” JBC Publishers,New Delhi, 2017

Agarwal, M.L., “COST ACCOUNTING “Sahitya Bhavan Publications, Agra, 2017