Kishore Content - Merged

“A STUDY ON FUND FLOW MANAGEMENT WITH REFERENCE TO
SIGNWARE TECHNOLOGIES”
Submitted in the partial fulfillment of the

requirements for the award of the degree in
MASTER OF BUSINESS ADMINISTRATION

By
KISHORE R
205052101016
under the guidance of
Prof. Ms. K. Janani
FACULTY OF MANAGEMENT STUDIES

Dr. M.G.R.
Educational and Research Institute
(Deemed to be university)
Maduravoyal, Chennai-600 095

(An ISO 9001-2008 certified Institution)
University with Special

Autonomy Status
MAY 2022
i
DECLARATION
I, KISHORE R hereby declare that the Project entitled “A STUDY ON FUND FLOW
MANAGEMENT WITH REFERENCE TO SIGNWARE TECHNOLOGIES” is done by me
under the guidance of K. JANANI is submitted in partial fulfilment of the requirements for the
award of the degree in MASTER OF BUSINESS ADMINISTRATION.
DATE: SIGNATURE OF THE CANDIDATE

PLACE:
ii
Dr. M.G.R.
Educational and Research Institute
(Deemed to be university)
Maduravoyal, Chennai-600 095
(An ISO 9001-2008 certified Institution)
FACULTY OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This is to certify that this Project Report is the bonafide work of Mr. KISHORE R Reg No
205052101016 who carried out the project entitled “A STUDY ON FUND FLOW
MANAGEMENT WITH REFERENCE TO SIGNWARE TECHNOLOGIES” under our
supervision from January 2022.
Internal Guide Head of the Department

Ms. K. Janani Dr. G. Brindha
Submitted for Viva Voce Examination held on _________
iii
ACKNOWLEDGEMENT
To acknowledge here, all those who have been a helping hand in completing this project, shall
be an endeavor in itself
I extremely thankful to our Chancellor Thiru A. C. SHANMUGAM, B.A., B.L., our President
Er. A.C.S. ARUN KUMAR, B.E. I express my sincere thanks to our Secretary Thiru A.
RAVIKUMAR and our Vice Chancellor Dr. S. Geetha lakshmi. I would like to take the
opportunity to express my profound gratitude to Dr. G BRINDHA, Professor & head, and my
project guide, Faculty of Management Studies, for her kind permission to undergo project work
successfully.
I thank PROF. K. JANANI for guiding me to execute my final year project. I also thank all
faculties and batch mates in Faculty of Management Studies, for their support and guidance
throughout the course of final year project.
I thank Mrs. ALFANA F and Mr. RANJITH PRABHAKARAN of Signware Technologies PVT
LTD for guiding me throughout my project.
I owe my wholehearted thanks and appreciation to entire staff of the company for them
cooperation and assistance during the project.
Name of the student

Kishore R
iv
v
A STUDY ON FUND FLOW MANAGEMENT WITH REFERENCE TO
SIGNWARE TECHNOLOGIES
ABSTRACT
The project titled “A Study on Fund flow management” conducted in Signware
Technologies to analyze the performance of an asset or fund is not taken into
account. The objective of this study is to determine the operational efficiency of the
company using ratios, to know the changes in financial statement for the past 5
years by using working capital statement, to forecast the future changes using the
trend analysis, to conduct fund flow statement for 2016-2020, to identify the
financial strength and weakness that the company might have and to analyze the
relationship between Net profit and EPS using Correlation analysis. The scope for
this project is that the study covers all the components of current assets and
current liabilities for the year 2016-2020, the study also deals with the various
ratios imparted in the organization, and the working capital is one of the dynamic
and vital aspects of the business operation.
This project helps the company to achieve the objectives by using ratio analysis
and then arriving at conclusions, which are important to understand the efficiency /
inefficiency of Cash. It helps the company to analyze whether the cash required to
meet out the current liabilities is maintained at a normal level that shows the
company follows an average policy.
The firm has to invest enough funds in current asset for generating sales. Current
asset are needed because sales do not convert into cash instantaneously. There
is always an operating cycle involved in the conversion of sales into cash.
1
TABLE OF CONTENTS
CHAPTER CONTENTS PAGE
NO. NO.
I INTRODUCTION 5
1.1 Industry Profile 11
1.2 Company Profile 18
II LITERATURE SURVEY 23
III AIM AND SCOPE OF PRESENT INVESTIGATION 29
3.1 Objectives of the study 29
3.2 Scope of the study 29
3.3 Limitation of the study 30
IV RESEARCH METHODOLOGY 31
4.1 Working procedure for the Cash flow 31
Management
4.2 Preparation of fund flow statement 33
V DATA ANALYSIS AND INTERPRETATION 37
VI FINDINGS 71
VII SUGGESTIONS 72
VIII CONCLUSION 73
IX ANNEXURE 74
BIBLIOGRAPHY 74
BALANCESHEET 75
2
TABLE CONTENTS
SLNO CONTENTS PAGE NO.
1 Schedule Of Changes In Working Capital For The 37

Year 2016 And 2017
2 Statement Of Changes In Non-Current Accounts 38
For The Year 2016 And 2017
3 Calculation Of Fund Flow Statement For The Year 38
2016 And 2017
Schedule Of Changes In Working Capital For The 39
4
Year 2016 And 2017
For The Year 2017 And 2018
2017 And 2018
7 Schedule Of Changes In Working Capital For The 41
Year Ended 2018-2019
For The Year Ended 2018-2019
Ended 2018-2019
Schedule Of Changes In Working Capital For The 43
10
Year Ended 2019-2020
For The Year Ended 2019-2020
Ended 2019-2020
13 Current Ratio 45
14 Cash Position Ratio 47
15 Proprietary Ratio 48
16 Trend Percentage Of Current Assets 62
17 Trend Percentage Of Current Liabilities 65
18 Standard Deviation Calculation Of Net Profit 68
Standard Deviation Calculation Of Cash And 69

19
Company
20 Correlation Calculation Of Net Profit And Eps 70
3
CHART CONTENTS
SLNO CONTENTS PAGE NO.
1 Current Ratio 46
2 Cash Position Ratio 47
3 Proprietary Ratio 49
4 Dividend Payout Ratio 51
5 Debt-Equity Ratio 53
6 Fixed Asset Ratio 55
7 Return on Asset 57
8 Return on Shareholder's Equity 59
9 Debt to Total Asset Ratio 60
10 Trend Percentage Of Current Assets 64
11 Trend Percentage Of Current Liabilities 67
4
CHAPTER I
INTRODUCTION
DEFINITION OF FINANCE
According to Khan and Jain, “Finance is the art and science of managing money”.
According to Oxford dictionary, the word ‘finance’ connotes ‘management of
money’. Webster’s Ninth New Collegiate Dictionary defines finance as “the
Science on study of the management of funds’ and the management of fund as
the system that includes the circulation of money, the granting of credit, the
making of investments, and the provision of banking facilities.
DEFINITION OF BUSINESS FINANCE
According to the Wheeler, “Business finance is that business activity which

concerns with the acquisition and conversation of capital funds in meeting financial
needs and overall objectives of a business enterprise”.
According to the Guthumann and Dougall, “Business finance can broadly be

defined as the activity concerned with planning, raising, controlling, administering
of the funds used in the business”.
In the words of Parhter and Wert, “Business finance deals primarily with raising,
administering and disbursing funds by privately owned business units operating in
nonfinancial fields of industry”.
Corporate finance is concerned with budgeting, financial forecasting, cash

management, credit administration, investment analysis and fund procurement of
the business concern and the business concern needs to adopt modern
technology and application suitable to the global environment.
According to the Encyclopedia of Social Sciences, “Corporation finance deals with

the financial problems of corporate enterprises. These problems include the
financial aspects of the promotion of new enterprises and their administration
during early development, the accounting problems connected with the distinction
between capital and income, the administrative questions created by growth and
expansion, and finally, the financial adjustments required for the bolstering up or
rehabilitation of a corporation which has come into financial difficulties”.
5
TYPES OF FINANCE
Finance is one of the important and integral part of business concerns, hence, it
plays a major role in every part of the business activities. It is used in all the area
of the activities under the different names.
Finance can be classified into two major parts:
Private Finance, which includes the Individual, Firms, Business or Corporate

Financial activities to meet the requirements.
Public Finance which concerns with revenue and disbursement of Government

such as Central Government, State Government and Semi-Government Financial
matters.
DEFINITION OF FINANCIAL MANAGEMENT
Financial management is an integral part of overall management. It is concerned

with the duties of the financial managers in the business firm.
The term financial management has been defined by Solomon, “It is concerned
with the efficient use of an important economic resource namely, capital funds”.
6
The most popular and acceptable definition of financial management as given by
S.C. Kuchal is that “Financial Management deals with procurement of funds and
their effective utilization in the business”.
Howard and Upton: Financial management “as an application of general

managerial principles to the area of financial decision-making.
Weston and Brigham : Financial management “is an area of financial decision-

making, harmonizing individual motives and enterprise goals”.
Joshep and Massie : Financial management “is the operational activity of a

business that is responsible for obtaining and effectively utilizing the funds
necessary for efficient operations.
Thus, Financial Management is mainly concerned with the effective funds

management in the business. In simple words, Financial Management as
practiced by business firms can be called as Corporation Finance or Business
Finance.
SCOPE OF FINANCIAL MANAGEMENT
Financial management is one of the important parts of overall management, which

is directly related with various functional departments like personnel, marketing
and production. Financial management covers wide area with multidimensional
approaches. The following are the important scope of financial management.
1. Financial Management and Economics

Economic concepts like micro and macroeconomics are directly applied
with the financial management approaches. Investment decisions, micro
and macro environmental factors are closely associated with the functions
of financial manager. Financial management also uses the economic
equations like money value discount factor, economic order quantity etc.
Financial economics is one of the emerging area, which provides immense
opportunities to finance, and economical areas.
2. Financial Management and Accounting

Accounting records includes the financial information of the business
concern. Hence, we can easily understand the relationship between the
7
financial management and accounting. In the olden periods, both financial
management and accounting are treated as a same discipline and then it
has been merged as Management Accounting because this part is very
much helpful to finance manager to take decisions. But nowaday’s financial
management and accounting discipline are separate and interrelated.
3. Financial Management or Mathematics

Modern approaches of the financial management applied large number of
mathematical and statistical tools and techniques. They are also called as
econometrics. Economic order quantity, discount factor, time value of
money, present value of money, cost of capital, capital structure theories,
dividend theories, ratio analysis and working capital analysis are used as
mathematical and statistical tools and techniques in the field of financial
management.
4. Financial Management and Production Management

Production management is the operational part of the business concern,
which helps to multiple the money into profit. Profit of the concern depends
upon the production performance. Production performance needs finance,
because production department requires raw material, machinery, wages,
operating expenses etc. These expenditures are decided and estimated by
the financial department and the finance manager allocates the appropriate
finance to production department. The financial manager must be aware of
the operational process and finance required for each process of production
activities.
5. Financial Management and Marketing

Produced goods are sold in the market with innovative and modern
approaches. For this, the marketing department needs finance to meet their
requirements. The financial manager or finance department is responsible
to allocate the adequate finance to the marketing department. Hence,
marketing and financial management are interrelated and depends on each
other.
6. Financial Management and Human Resource

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Financial management is also related with human resource department,
which provides manpower to all the functional areas of the management.
Financial manager should carefully evaluate the requirement of manpower
to each department and allocate the finance to the human resource
department as wages, salary, remuneration, commission, bonus, pension
and other monetary benefits to the human resource department. Hence,
financial management is directly related with human resource management.
OBJECTIVES OF FINANCIAL MANAGEMENT

Effective procurement and efficient use of finance lead to proper utilization of the
finance by the business concern. It is the essential part of the financial manager.
Hence, the financial manager must determine the basic objectives of the financial
management. Objectives of Financial Management may be broadly divided into
two parts such as:
1. Profit maximization
2. Wealth maximization.
IMPORTANCE OF FINANCIAL MANAGEMENT

Finance is the lifeblood of business organization. It needs to meet the requirement
of the business concern. Each and every business concern must maintain
adequate amount of finance for their smooth running of the business concern and
also maintain the business carefully to achieve the goal of the business concern.
The business goal can be achieved only with the help of effective management of
finance. We can’t neglect the importance of finance at any time at and at any
situation. Some of the importance of the financial management is as follows:
Financial Planning
Financial management helps to determine the financial requirement of the
business concern and leads to take financial planning of the concern. Financial
planning is an important part of the business concern, which helps to promotion of
an enterprise.
Acquisition of Funds
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Financial management involves the acquisition of required finance to the business
concern. Acquiring needed funds play a major part of the financial management,
which involve possible source of finance at minimum cost.
Proper Use of Funds

Proper use and allocation of funds leads to improve the operational efficiency of
the business concern. When the finance manager uses the funds properly, they
can reduce the cost of capital and increase the value of the firm.
Financial Decision
Financial management helps to take sound financial decision in the business
concern. Financial decision will affect the entire business operation of the concern.
Because there is a direct relationship with various department functions such as
marketing, production personnel, etc.
Improve Profitability
Profitability of the concern purely depends on the effectiveness and proper
utilization of funds by the business concern. Financial management helps to
improve the profitability position of the concern with the help of strong financial
control devices such as budgetary control, ratio analysis and cost volume profit
analysis.
Increase the Value of the Firm

Financial management is very important in the field of increasing the wealth of the
investors and the business concern. Ultimate aim of any business concern will
achieve the maximum profit and higher profitability leads to maximize the wealth of
the investors as well as the nation.
Promoting Savings
Savings are possible only when the business concern earns higher profitability and
maximizing wealth. Effective financial management helps to promoting and
mobilizing individual and corporate savings.
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1.1 INDUSTRY PROFILE
Introduction
India is the world's largest sourcing destination for the information technology (IT)
industry, accounting for approximately 67 per cent of the US$ 124-130 billion
market. The industry employs about 10 million workforces. More importantly, the
industry has led the economic transformation of the country and altered the
perception of India in the global economy. India's cost competitiveness in providing
IT services, which is approximately 3-4 times cheaper than the US, continues to
be the mainstay of its Unique Selling Proposition (USP) in the global sourcing
market. However, India is also gaining prominence in terms of intellectual capital
with several global IT firms setting up their innovation centers in India.
The IT industry has also created significant demand in the Indian education sector,
especially for engineering and computer science. The Indian IT and ITeS industry
is divided into four major segments – IT services, Business Process Management
(BPM), software products and engineering services, and hardware.
The IT-BPM sector which is currently valued at US$ 143 billion is expected to grow
at a Compound Annual Growth Rate (CAGR) of 8.3 per cent year-on-year to US$
143 billion for 2020-16. The sector is expected to contribute 9.5 per cent of India’s
Gross Domestic Product (GDP) and more than 45 per cent in total services export
in 2020-16.
Market Size
The Indian IT sector is expected to grow at a rate of 12-14 per cent for FY2020-17
in constant currency terms. The sector is also expected triple its current annual
revenue to reach US$ 350 billion by FY 2025#.
India ranks third among global start-up ecosystems with more than 4,200 start-
ups##.
India’s internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by

2021, accounting for 5 per cent of the country’s GDP###. India’s internet user
base reached over 400 million by May 2020, the third largest in the world, while
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the number of social media users grew to 143 million by April 2020 and
smartphones grew to 160 million.
Public cloud services revenue in India is expected to reach US$ 1.26 billion in
2020, growing by 30.4 per cent year-on-year (y-o-y)^. The public cloud market
alone in the country was estimated to treble to US$ 1.9 billion by 2021 from US$
638 million in 2018^. Increased penetration of internet (including in rural areas)
and rapid emergence of e-commerce are the main drivers for continued growth of
data center co-location and hosting market in India. The Indian Healthcare
Information Technology (IT) market is valued at US$ 1 billion currently and is
expected to grow 1.5 times by 2022. India's business to business (B2B) e-
commerce market is expected to reach US$ 700 billion by 2022 whereas the
business to consumer (B2C) e-commerce market is expected to reach US$ 102
billion by 2022.
Investments
Indian IT's core competencies and strengths have attracted significant investments
from major countries. The computer software and hardware sector in India
attracted cumulative Foreign Direct Investment (FDI) inflows worth US$ 21.02
billion between April 2000 and March 2020, according to data released by the
Department of Industrial Policy and Promotion (DIPP).
Indian start-ups are estimated to have raised US$ 1.4 billion across 307 deals in
quarter ending March 2020.
Most large technology companies looking to expand have so far focused primarily
on bigger enterprises, but a report from market research firm Zinnov highlighted
that the small and medium businesses will present a lucrative opportunity worth
US$ 11.6 billion in 2020, which is expected to grow to US$ 25.8 billion in 2022.
Moreover, India has nearly 51 million such businesses of which 12 million have a
high degree of technology influence and are looking to adopt newer IT products,
as per the report.
Some of the major developments in the Indian IT and ITeS sector are as follows:
• Druva Incorporation, a data protection firm, has received US$ 51 million in a

funding round led by its existing investor Sequoia Capital India along with
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new investor EDBI which is the investment arm of the Singapore Economic
Development Board (EDB).
• Google, the American technology giant, has launched a new Wi-Fi platform
called Google station, under which the company will install Wi-Fi hot spots
in places frequented by a large number of people like malls, cafes,
universities.
• Reliance Industries Ltd (RIL) plans to set up entrepreneurship hubs in key
cities and towns, and a Rs 5,000 crore (US$ 748 million) fund, under the
name of Jio Digital India Startup Fund, to invest in technology based
startups.
• Gurgaon-based digital wallet start-up MobiKwik, which is owned and
operated by One MobiKwik Systems Private Limited, has raised US$ 40
million from Nasdaq-listed firm Net1, a South African payments technology
company.
• Orange Business Services, the business services arm of Orange Group,
has launched a state data centre for Himachal Pradesh government, which
will be the first data centre in India to be designed using 'green' data center
concepts that minimise power requirements and increase power utilisation
efficiency.
• PurpleTalk Inc, a US based mobile solutions company, has invested US$ 1
million in Nukkad Shops, a Hyderabad based uber-local commerce platform
that helps neighbourhood retail stores take their businesses online through
a mobile app.
• KartRocket, a Delhi based e-commerce enabler has completed its US$ 8
million funding round by raising US$ 2 million from a Japanese investor,
which will be used to enhance Kraftly, a mobile-first online-to-offline
marketplace targeting small sellers, individuals and home-based
entrepreneurs in India in product categories such as apparel and
accessories.
• Mumbai-based baby care and kids products e-tailer, Hopscotch.in, has
raised US$ 13 million in a Series C round of funding from Facebook co-
founder Mr Eduardo Saverin, which will help the firm in growth and
expansion of its technology platform.
• MoMark Services, a mobile based customer engagement platform for small
and medium businesses, has raised US$ 600,000 from YourNest Angel
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Fund and LNB Group, to scale up its product offerings and talent
acquisition.
• Shouut, a social discovery app by Giant Tech Labs Pvt Ltd, which helps
consumers discover deals, buy event tickets or redeem coupons, has
raised US$ 500,000 in angel funding from a high net-worth individual angel
investor based in India.
• Apple Inc. plans to set up its first technology development centre outside
the US in Hyderabad with an investment of US$ 25 million, which is
expected to create 4,500 jobs, as per Mr Jayesh Ranjan, Secretary, IT for
the state of Telangana.
• Xpressbees, an e-commerce logistics firm operated by Busybees Logistics
Solutions Private Limited, has raised US$ 12.5 million in a Series A funding,
led by its existing investors SAIF Partners, IDG Ventures, Vertex Ventures
and Valiant Capital, which will be used to strengthen technology initiatives
and processes of the firm.
• Housejoy, an online home services provider, has raised Rs 150 crore (US$
22 million) in a Series B round of funding led by Amazon, and which also
includes new investors such as Vertex Ventures, Qualcomm and Ru-Net
Technology Partners.
• Global PE firm Blackstone Group has acquired a minority stake in an Indian
travel, transportation and logistics software firm, IBS Software, for US$ 170
million, by buying the stake from General Atlantic and few other
shareholders.
• India’s top-tier IT company, Infosys Ltd, has bought a minority stake worth
US$ 3 million in Whoop, which is a US-based start-up that makes activity
trackers worn by athletes.
• Microsoft Ventures is planning to incubate 500 start-ups in India in the next
five years with a vision to create a viable and profitable business out of the
booming start-up sector in India.
• National Association of Software and Services Companies (NASSCOM)
plans to open four more tech start-up incubation centers in different parts of
India, in addition to existing three, in support of Government of India’s
‘Start-up India’ initiative.
• Nasscom Foundation, a non-profit organization which is a part of Nasscom,
has partnered with SAP India to establish 25 National Digital Literacy
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Mission (NDLM) centres in 12 cities across India, as a part of Government
of India's Digital India initiative.
• Infosys, India’s second largest Information Technology services company
has acquired US-based Noah Consulting, a provider of advanced
information management consulting services for the oil and gas industry.
• US-based Callidus Software Inc, cloud-based sales, marketing, learning
and customer experience solutions provider, has opened its centre in
Hyderabad and also launched its ‘The Lead to Money’ suite in Indian
markets.
• Wipro Ventures, Wipro’s US$ 100 million corporate venture arm, plans to
invest in early-stage Venture Capital (VC) funds based in the US to pursue
a strategy of investing/partnering country-focussed VCs.
• A recent study by research firm International Data Corporation (IDC)
suggests that India may soon be able to catch up with the global technology
trends that have disrupted enterprises, industry and the way consumers
behave and transact.
• Reliance is building a 650,000 square feet (sq ft) data center in India—its
10th data centre in the country—with a combined capacity of about 1 million
sq ft and an overall investment of US$ 200 million.
• Intel Corp plans to invest about US$ 62 million in 16 technology companies,
working on wearable, data analytics and the Internet of Things (IoT), in
2020 through its investment arm Intel Capital. The Indian IoT industry is
expected be worth US$ 15 billion and to connect 28 billion devices to the
internet by 2022.
Government Initiatives
Some of the major initiatives taken by the government to promote IT and ITeS
sector in India are as follows:
• Mr Ravi Shakar Prasad, Minister of Communication and Information

Technology, announced plan to increase the number of common service
centers or e-Seva centres to 250,000 from 150,000 currently to enable
village level entrepreneurs to interact with national experts for guidance,
besides serving as a e-services distribution point.
15
• The Government of Telangana has signed an agreement with network
solutions giant Cisco Systems Incorporation, to cooperate on a host of
technology initiatives, including Smart Cities, Internet of Things, cyber
security, education digitization of monuments.
• The Railway Ministry plans to give a digital push to the India Railways by
introducing bar-coded tickets, Global Positioning System (GPS) based
information systems inside coaches, integration of all facilities dealing with
ticketing issues, Wi-Fi facilities at the stations, super-fast long-route train
service for unreserved passengers among other developments, which will
help to increase the passenger traffic.
• The Pune Smart City Development Corporation (PSCDCL) has signed a
memorandum of understanding (MOU) with the European Business and
Technology Centre (EBTC), which will allow it to gain access to real-time
knowledge of technologies, solutions and best practices from Europe.
• The e-Tourist Visa (e-TV) scheme has been extended to 37 more countries
thereby taking the total count of countries under the scheme to 150
countries.
• Department of Electronics & Information Technology and M/s Canbank
Venture Capital Fund Ltd plan to launch an Electronics Development Fund
(EDF), which will be a 'Fund of Funds' to invest in 'Daughter Funds' which
would provide risk capital to companies developing new technologies in the
area of electronics, nano-electronics and Information Technology (IT).
• The Human Resource Development (HRD) Ministry has entered into a
partnership with private companies, including Tata Motors Ltd, Tata
Consultancy Services Ltd and real-estate firm Hubtown Ltd, to open three
Indian Institutes of Information Technology (IIITs), through public-private
partnership (PPP), at Nagpur, Ranchi and Pune.
• Government of India is planning to develop five incubation centers for
'Internet of Things' (IoT) start-ups, as a part of Prime Minister Mr Narendra
Modi's Digital India and Startup India campaign, with at least two centers to
be set up in rural areas to develop solutions for smart agriculture.
• The Government of India has launched the Digital India program to provide
several government services to the people using IT and to integrate the
government departments and the people of India. The adoption of key
technologies across sectors spurred by the 'Digital India Initiative' could
16
help boost India's Gross Domestic Product (GDP) by US$ 550 billion to
US$ 1 trillion by 2025.
• India and the US have agreed to jointly explore opportunities for
collaboration on implementing India's ambitious Rs 1.13 trillion (US$ 16.58
billion) ‘Digital India Initiative’. The two sides also agreed to hold the US-
India Information and Communication Technology (ICT) Working Group in
India later this year.
• The Government of Telangana has begun construction of a technology
incubator in Hyderabad—dubbed T-Hub—to reposition the city as a
technology destination. The state government is initially investing Rs 35
crore (US$ 5.14 million) to set up a 60,000 sq ft space, labelled the largest
start-up incubator in the county, at the campus of International Institute of
Information Technology-Hyderabad (IIIT-H). Once completed, the project is
proposed to be the world’s biggest start-up incubator housing 1,000 start-
ups.
• The Department of Electronics and Information Technology (DeitY) plans to
start a digital literacy programme, aimed at training over six crore Indians in
the next three years to empower them for digital inclusion.
Road Ahead
India is the topmost offshoring destination for IT companies across the world.
Having proven its capabilities in delivering both on-shore and off-shore services to
global clients, emerging technologies now offer an entire new gamut of
opportunities for top IT firms in India. Social, Mobility, Analytics and Cloud (SMAC)
are collectively expected to offer a US$ 1 trillion opportunity. Cloud represents the
largest opportunity under SMAC, increasing at a CAGR of approximately 30 per
cent to around US$ 650-700 billion by 2022. The social media is the second most
lucrative segment for IT firms, offering a US$ 250 billion market opportunity by
2022. The Indian e-commerce segment is US$ 12 billion in size and is witnessing
strong growth and thereby offers another attractive avenue for IT companies to
develop products and services to cater to the high growth consumer segment.
17
1.2 COMPANY PROFILE
Signware Technologies is a software development company based in Chennai

established in 2005. We take pride in introducing ourselves as one of the top
Software and website development company in Chennai and most creative and
ingenious among our peers, in this industry. We provide the latest technology and
most innovative solutions, allowing us to give our customers the best service
possible. We believe in working with the client, rather than for the client. This gives
us an opportunity to understand the exact needs of the client. We provide the most
effective and performance oriented company to our customers. In a very short
span of time we have been able to make a name for ourselves in our field. We
primarily develop a full life cycle software development and engineering services
to independent software vendors, systems companies and companies offering
enterprise, cloud, web, social networking, media and mobile applications. And also
develop web-sites and web based applications, our area of expertise includes
Web Design & Maintenance, Flash based Websites, Web application
development, 2D-3D animation, Mobile Phone application development, Domain
Name Registration, Search Engine Optimization (SEO). Our key technological
expertise include, but is not limited to, Database Administration(DBA), Dot Net,
PHP, C#, DHTML, CSS, Flash, Photoshop, JAVA & Android.
The company develops markets, sell and support software products, web-sites
and offers turnkey solutions to customers. Signware provides offshore
programming services, Application Development and Integration Services, Web
Design and Development Services. Our development centre focuses on timely
delivery of quality and meaningful secured Solutions, at an affordable price, that
foster measurable results and satisfaction to our clients.
QUALITY POLICY
Our Quality Objectives:
• To achieve ‘Timely’ and Zero Error delivery.

• To achieve minimum 30% of business growth every year.
• To provide customer support immediately and within 24 hours.
• To Achieve 100% Customer Satisfaction.
• To deliver minimum 90% orders on time.
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SERVICES
➢ Software Designing & Development

➢ Web Development
➢ Social Media Marketing
➢ Internet Marketing
➢ ERP/CRM Implementation
➢ Recruitment
SOFTWARE DESIGNING & DEVELOPMENT:
Our software development process consists of complete Software Development

Life Cycle that includes Requirement Analysis, Architecture and Design. We have
experienced Project Managers who have undertaken Software development using
various methodologies.
Software Application Development Services from Signware are innovative and

aimed at providing new trends in the field of software designing and development.
This is done in accordance with the software development standards to produce
compatible software solutions.
a. Enterprise Application
We design Enterprise applications to interface or integrate with other enterprise

applications used within the organization, and to be deployed across a variety of
networks (Internet, Intranet and corporate networks) while meeting strict
requirements for security and administration management. We understand your
business, so our products work in liaison with your existing technology thus
making it easier than ever to do your business.
• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)
• HR Management
• Enterprise Application Integration (EAI)
19
b. Security Application
Your business depends upon the security of your data and software. Secure
Application Security provides direct access to subject matter experts who pro-
actively manage the organizations security architecture, allowing the organizations
internal teams to focus on core business requirements. Signware has developed
modules especially for security of data and network. Our experts can do an
analysis of your existing system and can point out loopholes in your network and
can develop solutions for 24X7 secure environment, such than you can always be
worry-free and focus on the more crucial issues of core business.
WEB DEVELOPMENT:
Web designing means planning, creation & updating of a website. It also involves
in information architecture, user interface, colors, images, fonts as well as icons
designing. The different types of tasks are like: Designing, Creating an icons,
Creating banner and some other types of things are also involved in making a web
pages are called designing. It is most creative and the enthusiastic work for us. As,
we know that any common people cannot design a website pages because it is
the work of a high professional people or you can say web development company.
There are different types of companies around the world; they are not taking up
responsibilities of web designing because these types of work can be done only
with the high professionals, having experience of more than 2 years in
development and website designing. While creating a website keep in mind what
is the requirement of our client and what types of services they are going to
provide to their customer. Different types of website are created with different
types of logic, requirement and purposes. It is 100 per cent sure that any types of
website are not similar to the other website designing or having article data or
other types of data.
a. Web Application
We can program your ideas from simplest web applications to all-encompassing

custom business solutions, our experts can solve your problems in the most
simple and cost-effective manner. The iBusiness application is a customized ERP
20
tool for various levels of management for corporate. Our expertise over multiple
platforms, programming tools has helped us establish ourselves as an all-round
web application company.
b. Open Source Solutions
Cost-Effective, simple and fast! Alternative to commercial software, Open-Source

solutions are cost-effective and a good developer can develop some very good
application using them. Our talented team of developers knows open-source
software to their core and can develop excellent products that are reliable, secure
and work in most efficient manners.
Our open-source expertise include, but are not limited to: PHP, MySQL, JAVA,
Objective C, among others.
SOCIAL MEDIA MARKETING
The Social Media universe expands exponentially and keeping track of its varied
nuances requires an in-depth understanding of the logic that drives diverse social
media platforms. Take, for instance, the inherent difference between the tonalities
of LinkedIn and Facebook. They are two opposite ends of the spectrum and it
would be totally disastrous to adopt the tone of one onto the other.
Signware structures result-oriented Social Media Optimization strategies for its

clients, which are devised to deliver maximum ROI. We identify points of synergy
across the social media platform which creates an engaging conversation between
the potential end-user and the product, thereby making your business grow.
INTERNET MARKETING
a. Search Engine Optimization:
Four out of every five web-site visit starts with a search engine query. Unpaid or
organic search results, can also improve the web traffic. Our experts understand
how search engines work. We provide total makeover to your website, by
optimizing it for maximum hits. The page rank of your website improves
automatically and thus improves productivity of your website drastically.
21
b. Social Media Optimization:
Social media marketing improves the value and recognition of a brand by

spreading it over social media website. Corporate messages can be easily shared
and spread to hundreds of users via social media. We create Social Media
marketing programs for almost every major Social Media website, Twitter,
Facebook, LinkedIn, Youtube, Instagram, Blogger etc. We do detailed analysis of
trends and, develop ways to improve brand recognition and value on these
platforms. Nothing is better than word of mouth advertisement.
ERP/CRM IMPLEMENTATION
Successful implementation of any business system demands the adoption of a

well-planned and methodological approach. Our professional consultants provide
the services needed to manage and integrate your new business systems into the
day-to-day operations of your company.
While every enterprise has knowledge of its resources and customer base, very
few companies have consolidated a comprehensive enough database of
information to achieve a complete view of its business processes. Optimization of
this information - channeling, defining, analyzing and using it is the key to
achieving organizational efficiency.
RECRUITMENT
Within our diversity of coverage, Signware looks to deliver a tailored and

specialized approach to provide a service based upon expertise and market
intelligence. Our teams of Consultants are market leaders within their market
verticals.
First time in India, an organization has stepped up to provide the “Training in
Recruitment skills” to college students. Researchers conducted across India have
confirmed that majority (60%) of the jobs available in HR field are basically in
recruitment. With the phenomenal growth of IT and Telecom sectors in the last
decade, there is a big need for the employable MBA HR students in the
recruitment arena.
22
CHAPTER II
REVIEW OF LITERATURE
The Life Cycle of Hedge Funds: Fund Flows, Size and Performance
Author :Mila Getmansky y
This Draft: January 16, 2004
Since the 1980s we have seen a 25% yearly increase in the number of hedge
funds, and an annual attrition rate of 7.10% due to liquidation. This paper analyzes
the life cycles of hedge funds. Using the TASS database provided by the Tremont
Company, it studies industry and fund specific factors that affect the survival
probability of hedge funds. The findings show that in general, investors chasing
individual fund performance decrease probabilities of hedge funds liquidating.
However, if investors follow a category of hedge funds that has performed well,
then the probability of hedge funds liquidating in this category increases. We
interpret this finding as a result of competition among hedge funds in a category.
As competition increases, marginal funds are more likely to be liquidated than
funds that deliver superior risk-adjusted returns. We also find that there is a
concave relationship between performance and assets under management. The
implication of this study is that an optimal asset size can be obtained by balancing
out the effects of past returns, fund flows, market impact, competition and
favorable category positioning that are modeled in the paper. Hedge funds in
illiquid categories are subject to high market impact, have limited investment
opportunities, and are more likely to exhibit an optimal size behavior compared to
those in more liquid hedge fund categories.
Style drift, fund flow and fund performance: new cross-sectional evidence
Author: Kathryn A. Holmes, Robert W. Faff*
The linkages between style change, fund flows, fund size, and resulting fund
performance are
Complex and not clearly understood. In this paper, we investigate these
relationships using a sample of Australian multi sector trusts over the sample
period 1990 to 1999. We employ a range of fund performance measures of stock
selectivity. We find that levels of style drift are positively related to selectivity
performance, but are not related to fund flows. We also find that fund size is
23
positively related to fund performance and negatively related to expense ratios.
Implications of our findings for investors are identified in the paper.
Fund Sources and Fund Flow Mechanism

The main sources of fund for the program will be UNDP and IDA/World Company.
The program will follow the GoN's Rural Energy Policy (2006) and Subsidy Policy
for Renewable Energy (2006) to implement its initiatives. UNDP will provide
technical assistance which will be directly channelled through the PMU. The World
Company's fund will be channeled through AEPC which will be allocated to
implement district level activities under grant/subsidy policy of the Government to
install Micro Hydro Schemes. Flow of fund is contingent upon the approval of
Annual and Quarterly Work Plan by the PEB. For UNDP's fund, the PMU will
prepare quarterly plan according to the NEX/NIM modality. Based on the approved
quarterly work plan, the NPM will request UNDP for quarterly advances. Yearly
advance of IDA/WB fund will be delivered as grant to DEF through District
Development Fund (DDF) upon the approval of PEB. For channelling of fund from
AEPC to DEF, the AEPC and respective DDC will sign a Memorandum of
Understanding (MOU) based on the approved work plan. In addition, as practiced
in REDP, DDC will continue to allocate 5% of its resources for renewable energy
related project in the proposed project sites. Similarly, the budget for activities to
be implemented directly by RERL Kathmandu Office will be deposited into RERL
account.
The project fund will channelize from RERL to DEF as per the work plan. As per
the current practice, the EDO and LDO will be the signatories for the operation this
account.
At the district level, the fund will flow from DEF to the accounts of the Support
Organization and Functional Groups under MOUs between DDC and concerned
parties. EDO and Coordinator of SO will be the signatories of SO account.
Similarly, the EDO and Chairperson or Manager of FG will be the signatories of
FG accounts.
Working capital policy refers to the firm's policies regarding 1) target levels
for each category of current operating assets and liabilities, and 2) how current
assets will be financed. Generally good working capital policy (i.e. under
conditions of certainty) is considered to be one in which holdings of cash,
24
securities, inventories, fixed assets, and accounts payables are minimized. The
level of accounts receivables should be used as a means of stimulating sales and
other income. Previous literature on working capital management has found a
negative association, overall, between level of working capital and operating
performance as measured by operating returns and operating margins (Peterson
and Rajan, 1997). Under conditions of certainty (i.e. sales, costs, lead times,
payment periods, and so on, are known), firms have little reason to hold more
working capital than a minimum level. Larger amounts would increase the level of
operating assets, increase the need for external funding, resulting in lower return
on assets and a lower return on equity, without any increase in profit.
However the picture changes when uncertainty (i.e. uncertain growth) is
introduced (Brigham and Houston, 2000). Larger amounts of cash, securities,
accounts receivables, marketable securities, inventories, and fixed assets will be
needed to support increased sales Required levels will be based on expected
sales levels and expected order lead times. Additional holdings may be needed to
enable the firm to deal with departures from the expected values. Further, firms
will also attempt to increase their accounts payable balances as a means of
financing increased levels of current operating assets. Firms which are in high
growth stages will face the challenge of maintaining the necessary level of
operating assets to support subsequent growth, while at the same time attempting
to maintain adequate performance indicators.
This study focuses on understanding how IPO companies manage their
working capital and other balance sheet items to support subsequent growth. This
study supports the existing literature on working capital and contributes to the
existing literature by examining a sample of firms (i.e. recent IPO firms) which
have a wider range of growth levels than non-IPO firms. Our study examines the
impact of working capital management on the operating performance and growth
of new public companies. The study also examines these relationships under three
categories of growth (i.e. negative growth, moderate growth, and high growth).
The study also examines other selected firm characteristics in light of working
capital management: firm operating and financial risk, amount of debt, firm size,
and industry.
An underlying theme of this study is that high growth certainly does not
ensure high operating performance. Consistent with prior research (Peterson and
Rajan, 1997) this study provides further evidence that good working capital
25
management is positively associated with better operating performance. Higher
levels of accounts receivable are associated with higher operating performance, in
all three of the growth rate categories. The study also finds that maintaining control
over levels of cash, securities, inventory, fixed assets, and accounts payables is
associated with higher operating performance. We find that firms which are
experiencing very high growth will hold higher levels of cash, securities, inventory,
fixed assets, and accounts payable to support the high growth. The study
suggests that these firms are sacrificing operating performance (accepting lower
operating returns) to support the high growth. This, in turn, increases financial and
operating risk for these firms. Perhaps IPO firms should stay more focused on
their operating performance, while maintaining more moderate growth levels.
The study of (Shin & Soenen, 2002) consistent with later study on the
same objective that done by (Deloof, 2003) by using sample of 1009 large Belgian
non-financial firms for the period of 1992-1996. However, (Deloof, 2003) used
trade credit policy and inventory policy are measured by number of days accounts
receivable, accounts payable and inventories, and the cash conversion cycle as a
comprehensive measure of working capital management. He founds a significant
negative relation between gross operating income and the number of days
accounts receivable, inventories and accounts payable. Thus, he suggests that
managers can create value for their shareholders by reducing the number of days
accounts receivable and inventories to a reasonable minimum. He also suggests
that less profitable firms wait longer to pay their bills.
In other study, (Lyroudi & Lazaridis, 2000) use food industry Greek to
examined the cash conversion cycle (CCC) as a liquidity indicator of the firms and
tries to determine its relationship with the current and the quick ratios, with its
component variables, and investigates the implications of the CCC in terms of
profitability, indebtness and firm size. The results of their study indicate that there
is a significant positive relationship between the cash conversion cycle and the
traditional liquidity measures of current and quick ratios. The cash conversion
cycle also positively related to the return on assets and the net profit margin but
had no linear relationship with the leverage ratios. Conversely, the current and
quick ratios had negative relationship with the debt to equity ratio, and a positive
one with the times interest earned ratio. Finally, there is no difference between the
liquidity ratios of large and small firms.
26
Working capital policy refers to the firm's policies regarding 1) target levels
for each category of current operating assets and liabilities, and 2) how current
assets will be financed. Generally good working capital policy (i.e. under
conditions of certainty) is considered to be one in which holdings of cash,
securities, inventories, fixed assets, and accounts payables are minimized. The
level of accounts receivables should be used as a means of stimulating sales and
other income. Previous literature on working capital management has found a
negative association, overall, between level of working capital and operating
performance as measured by operating returns and operating margins (Peterson
and Rajan, 1997). Under conditions of certainty (i.e. sales, costs, lead times,
payment periods, and so on, are known), firms have little reason to hold more
working capital than a minimum level. Larger amounts would increase the level of
operating assets, increase the need for external funding, resulting in lower return
on assets and a lower return on equity, without any increase in profit.
However the picture changes when uncertainty (i.e. uncertain growth) is
introduced (Brigham and Houston, 2000). Larger amounts of cash, securities,
accounts receivables, marketable securities, inventories, and fixed assets will be
needed to support increased sales Required levels will be based on expected
sales levels and expected order lead times. Additional holdings may be needed to
enable the firm to deal with departures from the expected values. Further, firms
will also attempt to increase their accounts payable balances as a means of
financing increased levels of current operating assets. Firms which are in high
growth stages will face the challenge of maintaining the necessary level of
operating assets to support subsequent growth, while at the same time attempting
to maintain adequate performance indicators.
This study focuses on understanding how IPO companies manage their
working capital and other balance sheet items to support subsequent growth. This
study supports the existing literature on working capital and contributes to the
existing literature by examining a sample of firms (i.e. recent IPO firms) which
have a wider range of growth levels than non-IPO firms. Our study examines the
impact of working capital management on the operating performance and growth
of new public companies. The study also examines these relationships under three
categories of growth (i.e. negative growth, moderate growth, and high growth).
The study also examines other selected firm characteristics in light of working
27
capital management: firm operating and financial risk, amount of debt, firm size,
and industry.
An underlying theme of this study is that high growth certainly does not
ensure high operating performance. Consistent with prior research (Peterson and
Rajan, 1997) this study provides further evidence that good working capital
management is positively associated with better operating performance. Higher
levels of accounts receivable are associated with higher operating performance, in
all three of the growth rate categories. The study also finds that maintaining control
over levels of cash, securities, inventory, fixed assets, and accounts payables is
associated with higher operating performance. We find that firms which are
experiencing very high growth will hold higher levels of cash, securities, inventory,
fixed assets, and accounts payable to support the high growth. The study
suggests that these firms are sacrificing operating performance (accepting lower
operating returns) to support the high growth. This, in turn, increases financial and
operating risk for these firms. Perhaps IPO firms should stay more focused on
their operating performance, while maintaining more moderate growth levels.
28
CHAPTER III
AIM AND SCOPE OF PRESENT INVESTIGATION
3.1 AIM FOR THE STUDY:
➢ To understand that an ongoing approach to the problem is essential and that
short term responses may have negligible effect.
➢ Data such as savings ratio, debt-to-income ratio, self-evaluation of the
productivity, performance rating, and absenteeism are difficult to gather as
individuals may not know the exact figures of each category or may not want to
reveal this information
PRIMARY OBJECTIVES:
To study the fund flow management of Signware Technologies
SECONDARY OBJECTIVES:
1. To determine the operational efficiency of the company using ratios.

2. To know the changes in financial statement for the past 5 years by using
working capital statement.
3. To forecast the future changes using the trend analysis.
4. To conduct fund flow statement for 2016-2020.
5. To identify the financial strength and weakness that the company might
have.
6. To analyze the relationship between Net profit and EPS using Correlation
analysis
3.2 SCOPE OF STUDY
➢ The study covers all the components of current assets and current
liabilities for the year 2016-2020
➢ The study also deals with the various ratios imparted in the
organization.
29
➢ The working capital is one of the dynamic and vital aspects of the
business operation.
LIMITATIONS OF THE STUDY
➢ The study mainly depends on the secondary data taken from annual
report and internal records of the company.
➢ The figures taken from the financial statement for analysis were
historical in nature.
➢ The study is confined to a short period of 4 months. This would not
picture the exact position of company
➢ In depth analysis of data is not possible due to time constraint.

➢ Some of the data has not given by the company due to maintenance
of financial secrecy.
30
CHAPTER IV
RESEARCH METHODOLOGY
4.1 RESEARCH
Research is an organized, systematic, database, critical, objective,

scientific, inquiry or investigation into a specific problem, undertaken with the
purpose of finding answer or solutions to it. Emory defines research as, “any
organized inquiry designed and carried out to provide information for solving a
problem”
4.1.1RESEARCH DESIGN
Research design is specification of methods and procedures for acquiring

the information needed to structure or to solve problem.
Research design is defined as, “the arrangement of condition for collection

and analysis of the data in a manner that aims to combined relevant to the
research purpose with economy in procedure”
Analytical research technique was adopted in this project. The researcher

used analytical type of research to analyze the past data based on which certain
future decision can be made.
4.1.2 SOURCE OF DATA
SECONDARY DATA
These data, which have already been collected, complied and presented
earlier by any agency, may be used for the purpose of investigation. Such data
may be called secondary data. Secondary data may earlier be published data or
unpublished data. Usually published data are available in annual report.
ANNUAL REPORT
It provides all the information about the company for the accounting period. This
enables to understand the existing performance of the company.
31
4.1.3 TOOLS USED FOR THE STUDY
1. Ratio analysis
2. Working Capital Management
3. Fund flow Statement.
4. Trend Analysis
RATIO ANALYSIS
The following ratios are used to calculate the liquidity.
1. Current ratio = current assets/Current liabilities

2. Cash position ratio = cash &company/Current liabilities
WORKING CAPITAL
Working capital = current assets – current liabilities
Working capital refers to the cash a business requires for day-to-day operations. It
is the amount of funds necessary to cover the cost of operating the enterprise. It is
also known as revolving or circulating capital or short term capital.
FUND FLOW MANAGEMENT
The net of all cash inflows and outflows in and out of various financial assets.
Fund flow is usually measured on a monthly or quarterly basis. The performance
of an asset or fund is not taken into account, only share redemptions (outflows)
and share purchases (inflows).
Net inflows create excess cash for managers to invest, which theoretically creates
demand for securities such as stocks and bonds.
Investopedia explains 'Fund Flow'
Investors and market analysts watch fund flows to gauge investor sentiment within
specific asset classes, sectors, or for the market as a whole. For instance, if net
32
fund flows for bonds funds during a given month is negative by a large amount,
this would signal broad-based pessimism over the fixed-income markets.
PREPARATION OF FUND FLOW STATEMENT
Statement or schedule of changes in working capital
----------------------------------------------------------------------------------------
Particular--------------- ↓ previous year ↓ Current year ↓ Effect on working capital
-----------------------------------------------------------------------------------------
-----------------------------------------------------------↓ Increase ↓ Decrease
----------------------------------------------------------------------------------------
Current Assets
Þ Cash in hand
Þ Bills receivable
Þ Sundry debtors
Þ Temporary investments
Þ Stocks / inventories
Þ Prepaid expenses
Þ Accrued incomes
--------------------------------------------------------------------------------------------
Total current assets----------- ↓xxxx ↓ xxxxx↓
----------------------------------------------------------------------- -----------------
Current liabilities
Þ Bills payables
Þ Sundry creditors
Þ Bank overdraft
Þ Short term advances
Þ Dividends payables
Þ Provision for taxation
---------------------------------------------------------------------------------------
Total current Liabilities ----------↓xxxx ↓xxxx ↓
------------------------------------------------------------------ -------------------
Working capital
CA- CL
---------------------------------------------------------------------------
Net increase or decrease in working capital =
Increase in working capital – Decrease in working capital
33
2nd Step
Statement showing the fund from operation
Because is the source of fund and will show in fund flow statement’s source side.
So before making fund flow statement, we must make statement showing the fund
from operation.
Operation means business activity and fund from operation means profit from
business activity. So, you will easy understand that profit from business activity
between two accounting period must be the source of fund.
Statement of fund from operations

------------------------------------------------------------------------------------------
------------------------------------------------------------------------>↓ Amount ↓
-------------------------------------------------------------------------------------------
Closing balance of profit and loss account or retained earnings as

given in the Balance sheet
Add non –fund and non operating items which have been already
Debited to profit and loss account
1. Depreciation
2. Amortization of fictitious and intangible assets
Þ goodwill
Þ patents
Þ trademarks
Þ preliminary expenses
Þ discount on issue of shares
3. Appropriation of retained earning such as
Þ Transfer to general reserve

Þ Dividend equalization fund
Þ Transfer to sinking fund
Þ Contingency reserve etc.
4. Loss on sale of any non current or fixed assets such as
Þ Loss on sale of land and building
34
Þ Loss on sale of machinery
Þ Loss on sale of furniture
Þ Loss on sale of long term investments
5. Dividends including
Þ Interim dividend
Þ Proposed dividend
(If it is an appropriation of profit and not taken as current liability)

6. Provision for taxation (if it is not taken as current liability)
7. Any other non fund / non operating items which have been debited to P/L
account
-----------------------------------------------------------------------------------
Total ( A)-------------------------------------------------------> ↓ XXXXX ↓

-------------------------------------------------------------------------------------
Less Non –Fund or non operating items which have already been credited to
profit and loss account
1. Profit or gain from the sale of non current / fixed assets such as
Þ Profit on sale of land and building

Þ Profit on sale of plant and machinery
Þ Profit on sale of long term investment etc.
2. Appreciation in the value of fixed assets such as increase in the value of land if
it has been credited to profit and loss account
3. Dividends received
4. excess provision retransferred to profit and loss account or written back .
5. any other non operating item which has been credited to profit and loss account
6. opening balance of profit and loss account or retained earnings as given in the
balance sheet
-------------------------------------------------------------------------------------
Total ( B)--------------------------------------------------------------> ↓ XXXXX ↓
----------------------------------------------------------------------------------------
Funds received from operation or business activities = total ( A) – Total ( B)
You can make also above statement in t shape adjusted profit and loss account
form .
3rd Step
35
Fund flow statement
--------------------------------------------------------------------------------------
-------------------------------------------------------------------> ↓ Amount ↓
-------------------------------------------------------------------------------------
A ) Source of funds
1. fund from operation ( balance of second step )

2. issue of shares capital
3. issue of debentures
4. raising of long term loans
5. receipts from partly paid shares , called up
6. amount received from sales of non current or fixed assets
7. non trading receipts such as dividend received
8. sale of investments ( Long term )
9. decrease in working capital as per schedule of changes in working capital
----------------------------------------------------------------------------------
total -------------------------------------------------------------> ↓ XXXXX ↓
---------------------------------------------------------------------------------
Applications or uses of funds
1. Funds lost in operations ( Balance negative in second step )
2. redemption of preference share capital
3. redemption of debentures
4. repayment of long term loans
5. purchase of long term loans
6. purchase of long term investments
7. non trading payments
8. payment of tax
9. payment of dividends
10. increase in working capital ( As per positive balance of ist step )
-------------------------------------------------------------------------------------
total --------------------------------------------------------> ↓ XXXXX ↓
--------------------------------------------------------------------------------------
36
CHAPTER V
DATA ANALYSIS AND INTERPRETATION
5.1.1 SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2016

AND 2017
2016 2017 INCREASE DECREASE

PARTICULARS AMOUNT AMOUNT AMOUNT AMOUNT
Rs. Rs. Rs. Rs.
CURRENT ASSETS:
Cash & Balances

51534.62 55546.17 4011.55
Balance with
Company’s 15931.72 48857.63 32925.90
Advances
416768.20 542503.20 125735
TOTAL CURRENT
484234.50 646907
ASSETS
LESS: CURRENT
LIABILITIES
Other Liabilities &
83362.30 110697.57 162672.45 27335.27
Provisions
TOTAL CURRENT
LIABILITIES 83362.30 110697.57
NET WORKING 400872.20 536209.43

CAPITAL
TOTAL 162672.45 27335.27
NET CHANGE IN WC 135337.18
37
Statement of changes in Non-Current Accounts
Account Balance as on Change Type Result
2016 2017 Amount Direction
Fixed Asset 609408.96 822031.57 212622.61 Increase Asset Outflow
Share 631.47 634.88 3.41 Increase Liability Inflow

Capital
48,401.19 57,312.82 8911.63 Increase Liability Inflow

Reserves
589,131.35 795,786.81 206655.46 Increase Liability Inflow

Debt
CALCULATION OF FUND FLOW STATEMENT
Sources/ Inflow of funds RS Application/ Outflow of Rs

funds
Share Capital 3.41 Fixed Asset 212622.61
Reserves 8911.63 Fund Flow operation 135337.18
Debt 206655.46
Net Increase in WC 132389.29
347959.79 347959.79
INFERENCE:
The Net decrease in Working capital for the year 2016 -2017 is 132389.29
The fund flow operation for the year 2016-2017 is 135337.18
38
5.1.2 SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2017
AND 2018

Rs. Rs. Rs. Rs.
CURRENT ASSETS:
Cash & Balances

55546.17 61290.87 5744.70
Balance with
Company’s 48857.63 34892.98 13964.65
Advances
542503.20 631914.15 89411
TOTAL CURRENT
646907 728098
ASSETS
LESS: CURRENT
LIABILITIES
Other Liabilities &
110697.57 80336.70 30360.87
Provisions
TOTAL CURRENT
30360.87
LIABILITIES 110697.57 80336.70
NET WORKING 536209.43 647761.30

CAPITAL
TOTAL 125576.57 13964.65
39
Fixed Asset 822031.57 921822.05 99790.48 Increase Asset Out

flow
Share 634.88 634.88 - No Liability

Capital change No flow
57,312.82 65314.32 8001.50 Liability

Reserves Increase Inflow
795,786.81 907127.83 171341.02 Liability

Debt Increase Inflow

funds
Reserves 8001.50 Fund flow operation 111551.92
Debt 171341.02 Fixed assets
Increase in WC 31999.88 99790.48
211342.40 211342.40
INFERENCE:
The Net Increase in Working capital for the year 2017-2018 is 31999.88
The fund flow operation for the year 2017-2018 is 111551.92
40
5.1.3 SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR
ENDED 2018-2019

Rs. Rs. Rs. Rs.
CURRENT ASSETS:
Cash & Balances

61290.87 94395.50 33104.6
Balance with
Company’s 34892.98 28478.65 6414.33
Advances
631914.15 756719.45 124805
TOTAL CURRENT
728098 879593.6
ASSETS
LESS: CURRENT
LIABILITIES
Other Liabilities &
80336.70 105248.39 24911.69
Provisions
TOTAL CURRENT
LIABILITIES 80336.70 105248.39
NET WORKING 647761.30 774345.21

CAPITAL
TOTAL 31326.02 157909.6
41
Fixed 921822.05 1056751.97 134929.92 Increase Asset Outflow

Asset
634.88 635.00 0.12 Increase Liability Inflow

Share
Capital
65314.32 64351.04 (963.28) Decrease Liability Outflow
Reserves
907127.83 1053501.77 146374 Increase Liability Inflow
Debt

funds
Debt 146374 Fixed Asset 134929.92
Share Capital 0.12 Reserves 963.28
Funds from Operation 126583.58
Increase in WC 137064.50
272957.70 272957.70
INFERENCE:
The Net Increase in Working capital for the year 2018-2019 is 137064.50
The fund from operation for the year 2018-2019 is 126583.58
42
5.1.4 SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR
ENDED 2019-2020
2019 2020 INCREAS DECREASE

PARTICULARS AMOUNT AMOUNT E AMOUNT
Rs. Rs. AMOUNT Rs.
Rs.
CURRENT ASSETS:
Cash & Balances

94395.50 54075.94 40319.56
Balance with
Company’s 28478.65 43087.23 14608.60
Advances
756719.45 867578.89 110859
TOTAL CURRENT
879593.6 964742.06
ASSETS
LESS: CURRENT
LIABILITIES
Other Liabilities &
105248.39 80915.09 24333.30
Provisions
TOTAL CURRENT
LIABILITIES 105248.39 80915.09
NET WORKING 774345.21

CAPITAL
TOTAL 149800.9 40319.56
43
Fixed 1056751.97 1184910.37 128158.40 Increase Asset Outflow

Asset
635.00 671.04 36.04 Increase Liability Inflow

Share
Capital
64351.04 83,280.16 18929.12 Increase Liability Inflow
Reserves
1053501.77 1,170,652.93 117151.16 Increase Liability Inflow
Debt

funds
Share Capital 36.04 Decrease in WC 117439.26
Reserves 18929.12 Fixed Asset 128158.40
Debt 117151.16
Funds from Operation 109481.34
245597.66 245597.66
INFERENCE:
The Net Decrease in Working capital for the year 2019-2020 is 117439.26
The fund from operation for the year 2019-2020 is 109481.34

44
RATIO ANALYSIS
5.2.1 CURRENT RATIO
Current ratio is an index of the concern’s financial stability. If a higher current ratio
is an indication of in adequate employment of funds, a poor current ratio is a
danger signal to the management.
Current Ratio = Current Assets

Current Liability
TABLE: 5.2.1 CURRENT RATIO
Year Current Asset Current Liability Current Ratio
2016 484234.54 83362.30 5.81
2017 646907.00 110697.57 5.84
2018 728098.00 80336.70 9.06
2019 879593.60 105248.39 8.36
2020 964742.06 80915.09 11.92
SIGNIFICANCE
It shows that current ratio was high in the year 2020 with 11.92and low in the year
2016 with 5.81. The current year (2020) current ratio is found to be the highest
(11.92) due to the decrease in the liabilities.
45
CHART: 5.2.1 CURRENT RATIO
Ratio
14
11.92
12
10 9.06
8.36
8
5.81 5.84 Ratio
6
0
2016 2017 2018 2019 2020
46
TABLE: 5.2.2 CASH POSITION RATIO
Year Cash-company Current liabilities Ratio (Times)
2016 67,466.34 83362.30 0.81
2017 104,403.80 110697.57 0.94
2018 96,183.85 80336.70 1.20
2019 122,874.15 105248.39 1.17
2020 97,163.17 80915.09 1.20
SOURCE:SECONDARY DATA
SIGNIFICANCE
From the table, it is inferred that the cash position ratio is high in the years 2018
and 2020 with 1.20 and low in the year 2016 with 0.81. The current year (2020)
cash position ratio has increased to 1.20 when compared to the previous year
2019 with 1.17.
CHART: 5.2.2 CASH POSITION RATIO
Ratio
1.40
1.20 1.17 1.20
1.20
1.00 0.94
0.81
0.80
0.60 Ratio
0.40
0.20
0.00
2016 2017 2018 2019 2020
47
5.2.3 PROPRIETARY RATIO
Proprietary Ratio shows the relationship between shareholders’ funds to total

assets of the concern. The shareholders’ funds are equity share capital,
preference share capital, undistributed profits, reserves and surpluses.
Shareholders’ Funds
Proprietary Ratio = --------------------------
Total Assets
TABLE: 5.2.3PROPRIETARY RATIO
Year Shareholder fund Total Asset Ratio (Times)
2016 49032.66 721526.32 0.067957
2017 57947.70 964432.08 0.060085
2018 65949.20 1053413.74 0.062605
2019 64986.04 1223736.20 0.053105
2020 83951.20 1335519.24 0.062860
SIGNIFICANCE
It shows that proprietary ratio was high in the year 2016 with 0.067957 and low in
the year 2019 with 0.053105. Thus, it can be said that the company is maintaining
the long term solvency. The current year (2020) proprietary ratio is found to be
0.06286 it is in an increasing position.
48
CHART: 5.2.3 PROPRIETARY RATIO
Ratio
0.08
0.07
0.07
0.06 0.06 0.06
0.06
0.05
0.05
0.04
0.03
0.02
0.01
0
2016 2017 2018 2019 2020
49
TABLE: 5.2.4 Dividend Payout Ratio:
Dividend Payout Ratio = Total Dividend / Total Income
Year Total Dividend Total Income Ratio’s
2016 1,357.66 6,729.46 0.20
2017 1,841.15 9,121.57 0.20
2018 1,904.65 9,166.39 0.21
2019 1,905.00 7,370.69 0.26
2020 2,348.66 0.20

11,713.34
Significance:
From the above table it is found that the dividend payout ratio is found to be
high in the year 2019 with 0.26 and low in the years 2016, 2017 and 2020 with
0.20. The current year 2020 dividend payout ratio is found to be decreasing with
0.20 when compared to the previous year.
50
CHART:5.2.4 Dividend Payout Ratio:
Ratio
0.30
0.26
0.25
0.21
0.20 0.20 0.20
0.20
0.15
Ratio
0.10
0.05
0.00
2016 2017 2018 2019 2020
51
5.2.5 DEBT-EQUITY RATIO
This ratio helps to ascertain the soundness of the long term financial position of
the company. It indicates the proportion between total long term debt and the
shareholders’ funds. This also indicates the extent to which the firm depends upon
outsiders for its existence.
FORMULA:-
Total long term debt
Debt-equity Ratio = ------------------------------------
Shareholders’ funds
TABLE 5.2.5: DEBT-EQUITY RATIO
Year Total Long Term Shareholders Debt-Equity

Debt Fund Ratio
2016 589,131.35 49,032.66 12.01
2017 795,786.81 57,947.70 13.73
2018 907,127.83 65,949.20 13.75
2019 1,053,501.77 64,986.04 16.21
2020 1,170,652.93 83,951.20 13.94
52
CHART 5.2.5 : DEBT-EQUITY RATIO
DEBT-EQUITY RATIO
20
15
10
16.21
13.73 13.75 13.94
12.01
5
0
2016 2017 2018 2019 2020
INFERENCE:
The debt-equity ratio is another leverage ratio that compares a company's

total liabilities to its total shareholders' equity. In the debt ratio, a lower the
percentage means that a company is using less leverage and has a stronger
equity position. In the year 2019 the Debt-equity ratio is higher which means that
the company is having a higher leverage.
53
5.2.6 FIXED ASSET RATIO:
This ratio establishes the relationship between fixed assets and

long term funds. The objective of calculating this ratio is to ascertain the proportion
of long term funds invested in fixed assets. The ratio is calculated as given below
FORMULA:-
Fixed asset
Fixed asset ratio = ------------------------------------
Long term Funds
TABLE 5.2.6: FIXED ASSET RATIO
Year FIXED ASSET LONG TERM FUND FIXED ASSET

RATIO
2016 3139.22 589,131.35 0.0053
2017 3574.41 795,786.81 0.0045
2018 4,117.73 907,127.83 0.0045
2019 4,431.95 1,053,501.77 0.0042
2020 5,133.87 1,170,652.93 0.0044
54
CHART 5.2.6: FIXED ASSET RATIO
0.006
0.005
0.004
0.003 0.0053
0.0045 0.0045 0.0042 0.0044
0.002
0.001
0
2016 2017 2018 2019 2020
INFERENCE:
From the above chart it is inferred that the fixed asset of the company is in
the increasing position. Even though the fixed assets are in the increasing rate
2019 ratio is decreased to 0.0042. In the year 2020 the fixed asset ratio is
increased to 0.0044. This means that the company’s fixed asset position is
satisfactory
55
5.2.7 RETURN ON ASSETS :
The return on assets ratio (ROA) is considered an overall measure of

profitability. It measures how much net income was generated for each $1 of
assets the company has. ROA is a combination of the profit margin ratio and the
asset turnover ratio. It can be calculated separately by dividing net income by
average total assets or by multiplying the profit margin ratio times the asset
turnover ratio.
FORMULA:-
Net Income
Fixed asset ratio = ------------------------------------
Total Assets
TABLE 5.2.7:
YEAR NET INCOME TOTAL ASSETS RETURN ON

ASSETS
2016 6,729.46 721,526.32 0.93
2017 9,121.57 964,432.08 0.94
2018 9,166.39 1,053,413.74 0.87
2019 7,370.69 1,223,736.20 0.60
2020 11,713.34 1,335,519.24 0.88
56
CHARR 5.2.7:
ROA
0.8
0.6
0.93 0.94 0.87 0.88
0.4
0.6
0.2
0
2016 2017 2018 2019 2020
INFERENCE:
From the above it is inferred that the total asset and the net
income of the company raises every year but there is a fall in the Return on asset
in the year 2019 this is due to the Risk taken by the company in borrowings and
more investment is made. On the year 2020 the Return on Asset is higher. Thus
higher values of return on assets show that business is more profitable.
57
5.2.8 Return on common stockholders' equity:
The return on common stockholders' equity (ROE) measures how much

net income was earned relative to each dollar of common stockholders' equity. It is
calculated by dividing net income by average common stockholders' equity. In a
simple capital structure (only common stock outstanding), average common
stockholders' equity is the average of the beginning and ending stockholders'
equity.
FORMULA:
RETURN ON COMMON NET INCOME
STOCKHOLDERS ' EQUITY = --------------------------------------------
COMMON STOCK HOLDERS EQUITY
TABLE 5.2.8:
YEAR NET INCOME COMMON STOCK RETURN ON COMMON
HOLDERS EQUITY STOCKHOLDERS '
EQUITY
2016 6,729.46 631.47 10.66
2017 9,121.57 634.88 14.37
2018 9,166.39 634.88 14.44
2019 7,370.69 635.00 11.61
2020 11,713.34 671.04 17.45
58
CHART 5.2. 8:
RETURN ON SHAREHOLDER'S EQUITY
20
15
10 17.45
14.37 14.44
10.66 11.61
5
0
2016 2017 2018 2019 2020
INFERENCE:
From the above it is inferred that the return on stock holder’s equity is in an
increasing trend till 2018 but in the year 2019 the equity percentage has been
decreased to 11.61 this is due to the decrease in the net income. The current year
(2020) return on shareholders’ equity is increased to 17.45
59
5.2.9. Debt to total assets ratio:
The debt to total assets ratio calculates the percent of assets provided by
creditors. It is calculated by dividing total debt by total assets. Total debt is the
same as total liabilities.
FORMULA:
TABLE 5.2.9:
YEAR TOTAL DEBT TOTAL ASSETS DEBT TO TOTAL

ASSET RATIO
2016 589,131.35 721,526.32 81.65
2017 795,786.81 964,432.08 82.51
2018 907,127.83 1,053,413.74 86.11
2019 1,053,501.77 1,223,736.20 86.09
2020 1,170,652.93 1,335,519.24 87.65
60
CHARR 5.2.9:
DEBT TO TOTAL ASSET RATIO
88
86
84
87.65
86.11 86.09
82
81.65 82.51
80
78
2016 2017 2018 2019 2020
INFERENCE:
From the above it is inferred that the ratios are in oscillating

manner. This is due to the fluctuation in the total debt which makes a fluctuation in
the debt to total asset ratio. The present year debt to total asset ratio is increased
to 87.65% when compared to the previous year 86.09%.
61
TREND ANALYSIS
TABLE NO: 5.3.1 SHOWING TREND PERCENTAGE OF CURRENT ASSETS
Current Assets
Years X XY X2 y=a+b(x)
(Y)
2016 484234.50 -2 968469 4 501974.7
2017 646907 -1 -646907 1 621344.9
2018 728098 0 0 0 740715
2019 879593.6 1 879593.6 1 860085.2
2020 964742.06 2 1929484 4 979455.4
Total 3703575.16 0 1193702 10
∑y 3703575.16
a= --------- = -------------
N 5
= 740715
∑xy 1193702
b= --------- = ------------
∑x2 10
= 119370.2
62
Estimation of sales for 2020
Y = a + bx
For 2020,
X = 3,
Y = 740715 +1193702 (3)
= 4321821
Estimation of sales for 2021
Y = a + bx
For 2019, when X = 4,
Y = 740715 +1193702 (4)
= 5515523
63
CHART NO: 5.3.1 SHOWING TREND PERCENTAGE CURRENT ASSETS
SIGNIFICANCE
From the above it is inferred that the current assets of the company is high in the
year 2020 with Rs. 964742.06 when compared to the previous year 2019
(879593.6). From the above chart it is shown that the Current assets is tend to
Increase in the future.
64
TABLE NO: 5.3.2 SHOWING TREND PERCENTAGE OF CURRENT
LIABILITIES
Current
Years X XY X2 y=a+b(x)
Liabilities (Y)
2016 83362.30 -2 -166725 4 94180.73
2017 110697.57 -1 -110698 1 93146.37
2018 80336.70 0 0 0 92112.01
2019 105248.39 1 105248.4 1 91077.65
2020 80915.09 2 161830.20 4 90043.29
Total 460560.05 0 -10343.60 10
∑y 460560.05
a= --------- = -------------
N 5
= 92112.01
∑xy -10343.60
b= --------- = ------------
∑x2 10
= -1034.360
65
Estimation of Current Liabilities for 2020
Y = a + bx
For 2020, X = 3,
Y = 92112.01 -1034.360 (3)
= 89008.93
Estimation of Current Liabilities for 2021
Y = a + bx
For 2019, when X = 4,
Y = 92112.01 -1034.360 (4)
= 87974.57
66
CHART NO: 5.3.2 SHOWING TREND PERCENTAGE OF CURRENT
LIABILITIES
95000
94000
93000
92000
91000
90000
89000
88000
87000
86000
85000
84000
2016 2017 2018 2019 2020 2021 2022
SIGNIFICANCE
From the above it is inferred that the current liabilities of the company is in the
decreasing positon the year 2020 with Rs. 80915.09 when compared to the
previous year 2019 (105248.39). From the above chart it is shown that the current
liabilities value is tend to decrease in the future. From the above chart it is inferred
that the company is trying to decrease the current liabilities which shows a positive
sign to the company.
67
5.4.1 STANDARD DEVIATION CALCULATION OF NET PROFIT:
Year NET PROFIT (x) X2

=∑X/5 X=x-
2016 6729.46 8820.29 -2090.83 4371570.089
2017 9121.57 8820.29 301.28 90769.6384
2018 9166.39 8820.29 346.10 119785.21
2019 7370.69 8820.29 -1449.60 2101340.16
2020 11713.34 8820.29 2893.05 8369738.303
∑ X 44101.45 ∑X2 15053203.40
∑X2 / N 3010640.68
S.D = 1735.12
INFERENCE:
The greater the S.D, the greater will be the magnitude of the deviations of the
values from the mean. The S.D measures the variability of values. Net profit is
fluctuating throughout the period of study. Net profit is high in 2020 and very low in
2016. The Standard Deviation for NP is 1735.12
68
5.4.2 STANDARD DEVIATION CALCULATION OF CASH AND COMPANY:
Year Cash and X2

=∑X/5 X=X-
company (X)
2016 67466.34 97618.26 -30151.9 909138400.30
2017 104403.80 97618.26 6785.54 46043553.09
2018 96183.85 97618.26 -1434.41 2057532.048
2019 122874.15 97618.26 25255.89 637859979.70
2020 97163.17 97618.26 -455.09 207106.9081
∑ X 488091.30 ∑X2 1595306572
∑X2 / N 319061314.4
S.D = 17862.287
INFERENCE:
The cash and company of the company has been fluctuating for all the 5 years. In
the year 2020 the Cash and company balance has been decreased to 97163.17.
The standard deviation of Cash and company balance is 17862.287
69
5.5.1 CORRELATION CALCULATION OF NET PROFIT AND EPS
Year NET PROFIT X2 EPS(Y) Y2 XY

(X)
2016 6729.46 29357.39 106.56 11355.0336 717091.3
2017 9121.57 26425.75 143.67 20641.0689 1310496
2018 9166.39 233462.91 144.37 20842.6969 1323352
2019 7370.69 266204.40 116.07 13472.2449 855516
2020 11713.34 92695.89 174.15 30328.2225 2039878
∑ = 44101.45 404040781.8 684.82 96639.2668 30201955
CORRELATION 0.995787
INFERENCE:
There is a high degree of correlation between Net profit and EPS because the
correlation value (0.995787) is more than 0.05. It measures the closeness of
relationship between Net profit and EPS and they both have a positive correlation.
70
CHAPTER VI
FINDINGS
1. The Net decrease in Working capital for the year 2016 -2017 is 135337.18
2. The fund flow operation for the year 2016-2017 is 142545.18
3. The Net decrease in Working capital for the year 2017-2018 is 9288332.39
4. The fund flow operation for the year 2017-2018 is 9579226.83
5. The Net Increase in Working capital for the year 2018-2019 is 126583.58
6. The fund from operation for the year 2018-2019 is 9594259.74
7. The Net Increase in Working capital for the year 2019-2020 is 109481.34
8. The fund from operation for the year 2019-2020 is 53277.56
9. The current year (2020) current ratio is found to be the highest
(11.92) due to the decrease in the liabilities.
10. The current year (2020) cash position ratio has increased to 1.20
when compared to the previous year 2019 with 1.17.
11. The current year (2020) proprietary ratio is found to be 0.06286 it
is in a increasing position.
12. The Standard Deviation for NP is 1735.12
13. The standard deviation of Cash and company balance is
17862.287
14. There is a high degree of correlation between Net profit and EPS
because the correlation value (0.995787) is more than 0.05. It measures the
closeness of relationship between Net profit and EPS and they both have a
positive correlation.
15. The current year(2020) return on shareholders’ equity is increased to 17.45
16. In the year 2019 the Debt-equity ratio is higher which means that
the company is having a higher leverage.
17. In the year 2020 the fixed asset ratio is increased to 0.0044. This means
that the company’s fixed asset position is satisfactory
18. On the year 2020 the Return on Asset is higher. Thus higher values of
return on assets show that business is more profitable
19. The present year debt to total asset ratio is increased to 87.65% when
compared to the previous year 86.09%.
71
CHAPTER VII
SUGGESTIONS
1. There are various global challenges that are faced by every company in the
present competitive environment and Signware Technologies is not any
exemption. To face the present global challenges the human resources
department should be develop to improve various skills among the
employees specially the motivational skills and having the regular training
for the employees about various developments in the market.
2. The current assets should be managed more effectively so as to avoid
unnecessary blocking of capital that could be used for other purposes.
3. The Working Capital requirement is to be assessed based on the norms
circulated by RBI
4. The company has maintained proper records showing full particulars,
quantitative details and solutions of fixed assets are indicated for major
items in the register, the managements during the year has conducted a
random verification in respect of fixed assets, which in our opinion is
reasonable, having regard to the size of the company and the nature of its
assets.
72
CHAPTER VIII
CONCLUSION
The company is performing exceptionally well due to the uprising in the
global market followed by the domestic market. It is an upcoming one with good
and innovative ideas and believed in improving all the areas of its operations. The
company has a good liquidity position and does not delay its commitment in cash
of both its creditors and debtors. The company being mostly dependent on the
working capital facilities, it is maintaining very good relationship with their
companies and their working capital management is well balanced.
73
CHAPTER VIII
ANNEXURE
BIBLIOGRAPHY:
1. www.investopedia.com/
2. www.studyfinance.com/
3. en.wikipedia.org/wiki/
4. www.fundflowmanagement.com
BOOKS:
1. Bolten, SE, Managerial finance – Principles and Practices, Houghton, Miffin
company, Boston 1976, p.162
2. Financial Management(Tenth Edition), I.M. Pandey &Brealey, R. and S.,
Myers, principles of Corporate Finance, McGraw Hill, 1991, p.159 – 190
3. An introduction to Financial Management, Good year Publishing company,
Santa Califf, Solomn, Ezra and JJ Prigle, 1977, p.282 -312
4. Brigham, E. F. and Houston, J. F. Fundamentals of Financial Management,
Concise Third Edition, Harcourt Publishers, 2001.
74
BALANCESHEET
Standalone Balance Sheet

------------------- in Rs. Cr. -------------------
Signware Technologies
2020 2019 2018 2017 2016
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:

Net Worth 83,951.20 64,986.04 65,949.20 57,947.70 49,032.66
Deposits 1,043,647.36 933,932.81 804,116.23 742,073.13 537,403.94
Borrowings 127,005.57 119,568.96 103,011.60 53,713.68 51,727.41
Total Debt 1,170,652.93 1,053,501.77 907,127.83 795,786.81 589,131.35
Other
Liabilities & 80,915.09 105,248.39 80,336.70 110,697.57 83,362.30
Provisions
Total
1,335,519.22 1,223,736.20 1,053,413.73 964,432.08 721,526.31
Liabilities
2020 2019 2018 2017 2016
Assets
Cash Balances 54,075.94 94,395.50 61290.87 55,546.17 51,534.62
Balance in
43,087.23 28,478.65 34892.98 48,857.63 15,931.72
bank
Advances 867,578.89 756,719.45 631914.15 542503.20 416768.20
Investments 312,197.61 295,600.57 285,790.07 275953.96 189501.27
Gross Block 14,792.33 13,189.28 11,831.63 10403.06 8988.35
Accumulated
9,658.46 8,757.33 7,713.90 6828.65 5849.13
Depreciation
Net Block 5,133.87 4,431.95 4,117.73 3574.41 3139.22
Capital Work In
332.68 332.23 295.18 263.44 234.26
Progress
Other Assets 53,113.02 43,777.85 35,112.76 37733.27 44417.03
Total Assets 1,335,519.24 1,223,736.20 1,053,413.74 964,432.08 721,526.32
Contingent
698,064.74 585,294.50 429,917.37 614,603.47 736,087.59
Liabilities
Bills for
201,500.44 205,092.29 166,449.04 152,964.06 93,652.89
collection
Book Value
1,251.05 1,023.40 1,038.76 912.73 776.48
(Rs)
75
Standalone Profit & Loss
account: ------------------- in Rs. Cr. -------------------
Signware Technologies
2020 2019 2018 2017 2016
Income
Interest Earned 106,521.45 81,394.36 70,993.92 63,788.43 48,950.31
Other Income 14,351.45 14,935.09 14,968.15 12,691.35 9,398.43
Total Income 120,872.90 96,329.45 85,962.07 76,479.78 58,348.74
Expenditure
Interest expended 63,230.37 48,867.96 47,322.48 42,915.29 31,929.08
Employee Cost 16,974.04 14,480.17 12,754.65 9,747.31 7,785.87
Selling and Admin
15,625.18 12,141.19 7,898.23 5,122.06 4,165.94
Expenses
Depreciation 1,007.17 990.50 932.66 763.14 679.98
Miscellaneous
12,350.13 12,479.30 7,888.00 8,810.75 7,058.75
Expenses
Preoperative
0.00 0.00 0.00 0.00 0.00
ExpCapitalised
Operating Expenses 37,563.09 31,430.88 24,941.01 18,123.66 14,609.55
Provisions &
8,393.43 8,660.28 4,532.53 6,319.60 5,080.99
Contingencies
Total Expenses 109,186.89 88,959.12 76,796.02 67,358.55 51,619.62
2020 2019 2018 2017 2016
Net Profit for the Year 11,686.01 7,370.35 9,166.05 9,121.23 6,729.12
Extraordionary Items 21.28 0.00 0.00 0.00 0.00
Profit brought forward 6.05 0.34 0.34 0.34 0.34
Total 11,713.34 7,370.69 9,166.39 9,121.57 6,729.46
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 2,348.66 1,905.00 1,904.65 1,841.15 1,357.66
Corporate Dividend Tax 296.49 246.52 236.76 248.03 165.87
Per share data (annualised)
Earning Per Share (Rs) 174.15 116.07 144.37 143.67 106.56
Equity Dividend (%) 350.00 300.00 300.00 290.00 215.00
Book Value (Rs) 1,251.05 1,023.40 1,038.76 912.73 776.48
Appropriations
Transfer to Statutory
3,531.35 2,488.96 6,495.14 6,725.15 5,205.69
Reserves
76
Transfer to Other
5,536.50 2,729.87 529.50 306.90 -0.10
Reserves
Proposed
Dividend/Transfer to 2,645.15 2,151.52 2,141.41 2,089.18 1,523.53
Govt
Balance c/f to Balance
0.34 0.34 0.34 0.34 0.34
Sheet
Total 11,713.34 7,370.69 9,166.39 9,121.57 6,729.46
77

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“A STUDY ON FUND FLOW MANAGEMENT WITH REFERENCE TO

Submitted in the partial fulfillment of the

MASTER OF BUSINESS ADMINISTRATION

under the guidance of

Prof. Ms. K. Janani

FACULTY OF MANAGEMENT STUDIES

Maduravoyal, Chennai-600 095

University with Special

DATE: SIGNATURE OF THE CANDIDATE

FACULTY OF MANAGEMENT STUDIES

Internal Guide Head of the Department

Submitted for Viva Voce Examination held on _________

Name of the student

CHAPTER CONTENTS PAGE

1.1 Industry Profile 11

1.2 Company Profile 18

III AIM AND SCOPE OF PRESENT INVESTIGATION 29

3.1 Objectives of the study 29

3.2 Scope of the study 29

3.3 Limitation of the study 30

4.1 Working procedure for the Cash flow 31

4.2 Preparation of fund flow statement 33

V DATA ANALYSIS AND INTERPRETATION 37

SLNO CONTENTS PAGE NO.

1 Schedule Of Changes In Working Capital For The 37

14 Cash Position Ratio 47

16 Trend Percentage Of Current Assets 62

17 Trend Percentage Of Current Liabilities 65

18 Standard Deviation Calculation Of Net Profit 68

Standard Deviation Calculation Of Cash And 69

20 Correlation Calculation Of Net Profit And Eps 70

SLNO CONTENTS PAGE NO.

2 Cash Position Ratio 47

4 Dividend Payout Ratio 51

6 Fixed Asset Ratio 55

8 Return on Shareholder's Equity 59

9 Debt to Total Asset Ratio 60

10 Trend Percentage Of Current Assets 64

11 Trend Percentage Of Current Liabilities 67

DEFINITION OF BUSINESS FINANCE

According to the Wheeler, “Business finance is that business activity which

According to the Guthumann and Dougall, “Business finance can broadly be

Corporate finance is concerned with budgeting, financial forecasting, cash

According to the Encyclopedia of Social Sciences, “Corporation finance deals with

Finance can be classified into two major parts:

Private Finance, which includes the Individual, Firms, Business or Corporate

Public Finance which concerns with revenue and disbursement of Government

DEFINITION OF FINANCIAL MANAGEMENT

Financial management is an integral part of overall management. It is concerned

Howard and Upton: Financial management “as an application of general

Weston and Brigham : Financial management “is an area of financial decision-

Joshep and Massie : Financial management “is the operational activity of a

Thus, Financial Management is mainly concerned with the effective funds

SCOPE OF FINANCIAL MANAGEMENT

Financial management is one of the important parts of overall management, which

1. Financial Management and Economics

2. Financial Management and Accounting