CHAPTER 2

RESULT AND ANALYSIS

2.1 Presentation of data

In this research paper, I'm presenting the findings in a clear and organized manner so that readers
can understand them easily. I've arranged the information according to what I was trying to find
out. I use tables and charts to help explain the numbers I collected. These help me see patterns
and trends in the data. I also use simple math to summarize what I found, like figuring out
averages and seeing how spread out the numbers are. By looking at bigger trends, I can make
broader conclusions. The pictures and graphs are made to be easy to understand, with clear labels
and colors. Alongside the numbers, I explain what they mean in simple language, talking about
why they're important and what their limits might be. I make sure everything I show is accurate
and exact, so readers can trust what they're seeing. Overall, my goal is to make my findings clear
and understandable to everyone who reads my paper.

2.1.1 Analysis of Cashflow from Operating Activities

Operating activities in cash flow encompass the financial transactions directly associated with a
company's fundamental business operations. These activities reflect the core revenue-generating
functions, involving the inflow and outflow of cash related to the sale of goods and services.
Cash receipts from customers, stemming from product sales or service provision, constitute a
significant component. Conversely, cash payments are made to suppliers for necessary goods,
and vendors for services, ensuring the continuity of operations. Additionally, operating activities
include cash disbursements for employee wages, salaries, rent, utilities, taxes, and other routine
operational expenses. Cash receipts from interest and dividends, such as returns on investments,
contribute to the cash inflow. Conversely, cash payments for interest on loans and income taxes
constitute outflows. Essentially, the operating activities in cash flow delineate the financial pulse
of a business, providing a comprehensive overview of its cash-generating and cash-utilizing
functions inherent in day-to-day operations. This segment is pivotal for evaluating the company's
financial viability and efficiency in managing its core business functions.
 Table 1

Analysis of cashflow from operating activities

Fiscal year Cashflow from Increased/decreased Change %
operating activities

2075/76 6926677814 - -
2076/77 4499551092 (2427126722) -35.04%
2077/78 3656800751 (842750341) -18.72%
2078/79 (289409125) (3946209876) -107.91%
2079/80 14653774516 14943183640 5163.34%
Note: Annual report of ADBL (2075 to 2080)

Figure: 1

(cashflow from operating activities 2075 to 2080)

Table 1 and Figure 1 represent the operating cashflow of ADBL from the year 2075 to 2080. The
operating cashflow was Rs 6926677814, Rs 4499551092, Rs 3656800741, Rs (289409125) and
14653774516 from fiscal year 2075/76 to 2079/80 respectively. The highest inflow of cashflow
was in year 2079/80 and lowest inflow was in year 2077/78. Similarly, cash outflow was
recorded in the year 2078/79.

2.1.2 Analysis of Cashflow from Investing Activities

Cash from investing activities is like looking at the money a company spends on things that will
help it grow and make more money in the future, as well as the money it gets back from
investments it has made in the past. These investments could be buying new equipment,
purchasing other companies, or even buying and selling stocks or bonds.

When the company spends money on these things, it's called a negative cash flow because the
money is going out. But when it gets money back from these investments, it's a positive cash
flow because the money is coming in.

Investors pay attention to this number to see how a company is planning for the future and
whether it's making smart decisions with its money. If a company is spending a lot on
investments, it might be a sign that it's planning to grow, whereas if it's getting a lot of money
back, it might be selling off assets or paying back debts. This helps investors understand how the
company is managing its finances and what its future might look like.

Table 2
Analysis of cashflow from investing activities

Fiscal years Cashflow from Increased or Change%

investing activities decreased
2075/76 (4850233154) - -
2076/77 (7876923769) -3026690615 -62.16%
2077/78 (13446410762) -5569486983 70.74%
2078/79 (9122315225) 4324105537 -32.06%
2079/80 (10162565697) -10402504672 11.30%
Note: Annual report of ADBL (2075 to 2080)
Figure: 2
(cashflow from investing activities 2075 to 2080)

Table 2 and Figure 2 represent the investing cashflow of ADBL from the year 2075 to 2080. In
the year 2076/77, ADBL had much less money coming in from its investments, showing that they
were investing less. But the next year, in 2077/78, they got a lot more money from their
investments, meaning they were putting more money into new projects or assets. The following
years showed different trends: in 2078/79, there was a small decrease followed by an increase,
while in 2079/80, there was a big drop in the money coming in from investments.

2.1.3 Analysis of Cashflow from financing Activities

Cash flow from financing activities is the amount of money that comes in or goes out from a
company's financing activities, like borrowing money, repaying loans, issuing stock, or paying
dividends to shareholders. It's one of the sections of a company's cash flow statement that shows
how the company is managing its finances and raising capital to run its business or pay off debts.
If a company is borrowing money or selling stocks to fund its operations, it will show as positive
cash flow from financing activities. Conversely, if it's paying off debts or buying back its own
stock, it will show as negative cash flow from financing activities. Understanding this helps
investors and analysts gauge how a company is funding its operations and its financial health.
Table 3
Analysis of cashflow from financing activities

Fiscal year Cashflow from Increased or %change

financing activities decreased
2075/76 (1803258219) - -
2076/77 366052322 2169310537 -120.30%
2077/78 11936909766 11570857444 3161.27%
2078/79 5334893194 -6602013572 -55.32%
2079/80 (1588688494) -6923581688 129.94%

Figure: 3
(cashflow from financing activities 2075 to 2080)

Table 3 and Figure 3 represent the financing cashflow of ADBL from the year 2075 to 2080.
Over the five fiscal years, the company's financing activities fluctuated significantly. It began
with reliance on financing in 2075/76, followed by a positive turnaround in 2076/77. A
substantial surge occurred in 2077/78, but a decline followed in 2078/79. Despite a negative cash
flow in 2079/80, there was an improvement compared to the prior year.

2.1.4 Analysis of cash and cash equivalent

Cash and cash equivalents refer to assets that are readily convertible into cash and have a short-
term maturity, typically within three months or less. These assets are highly liquid and serve as a
vital component of a company's liquidity management strategy.

Cash includes physical currency like coins and bills, as well as balances held in bank accounts
that are readily available for immediate use in meeting financial obligations.

Cash equivalents are short-term investments that are highly liquid and easily convertible into
cash. These investments typically have a low risk of loss and a short maturity period, usually
three months or less from the date of purchase. Common examples of cash equivalents include
Treasury bills, money market funds, and short-term government or corporate bonds.

Both cash and cash equivalents are reported on a company's balance sheet as current assets since
they are expected to be converted into cash within a short period and are available to meet the
company's short-term financial obligations.

Monitoring the levels of cash and cash equivalents is crucial for assessing a company's liquidity
position and its ability to meet its short-term financial obligations without relying on external
financing.

Table 4

Analysis of cash and cash equivalent

Fiscal year Cash and cash increased/decreased % change

equivalents
2075/76 11500460233 - -
2076/77 849432167 -10651028066 -92.61%
2077/78 10366731923 9517296706 1120.76%
2078/79 6559900767 -380681116 -3.67%
2079/80 9462421092 2902520325 44.26%
figure 4

Analysis of cash and cash equivalent

Table 4 and Figure 4 represent the cash and cash equivalent of ADBL from the year 2075 to
2080. Over five fiscal years, the company's cash and cash equivalents fluctuated notably. There
was a significant decrease in 2076/77, followed by a remarkable surge in 2077/78. Despite minor
fluctuations, the company maintained substantial cash reserves overall, with a notable increase in
2079/80.

2.2 major findings

Operating Activities:

1. Operating cash flow fluctuated across the fiscal years, indicating varying operational
performance.
2. There was a notable increase in operating cash flow in 2079/80, suggesting potential
improvements in revenue generation or cost management.

Investing Activities:

3. Cash flow from investing activities displayed fluctuations, reflecting changes in

investment strategies or asset acquisitions.
4. A significant decrease in cash flow was observed in 2079/80, potentially signaling
reduced investment initiatives or asset divestment.
Financing Activities:

5. Financing cash flow demonstrated significant fluctuations, indicating shifts in borrowing,

repayment, or equity financing activities.
6. Despite a negative cash flow in 2079/80, there was an improvement compared to the
preceding year, indicating adjustments in financing approaches.

Cash and Cash Equivalents:

7. Cash and cash equivalents exhibited notable fluctuations, with periods of both increase
and decrease.
8. Despite fluctuations, the company maintained substantial cash reserves, suggesting
financial stability and liquidity management.

CHAPTER 2
SUMMARY AND CONCLUSION

3.1 SUMMARY
The cashflow analysis report for ADBL offers a thorough examination of the company's financial performance
spanning fiscal years 2075/76 to 2079/80. This analysis delves into the cashflows derived from operating,
investing, and financing activities, providing critical insights into ADBL's liquidity management strategies,
investment decisions, and overall financial health. The research design adopted for this analysis involved the
systematic collection of financial data from ADBL's annual reports for the specified fiscal years. Subsequently,
meticulous data analysis techniques were employed to identify trends, fluctuations, and patterns in cashflow
activities. Through computations of changes and percentage variations in cashflow amounts, a comprehensive
assessment of ADBL's financial performance was conducted. The findings from this analysis were interpreted
to discern key insights, highlighting the company's strengths and areas for improvement. In conclusion, the
cashflow analysis report offers valuable insights to stakeholders, enabling informed decision-making processes
and guiding ADBL in optimizing its financial management practices to enhance long-term sustainability and
growth.

3.2 conclusion
The analysis of ADBL's financial data spanning fiscal years 2075/76 to 2079/80 reveals a
dynamic and evolving financial landscape. Throughout the period, ADBL demonstrated
resilience in managing its operating, investing, and financing activities amidst fluctuating market
conditions. Operating cash flow experienced fluctuations, with notable improvements in 2079/80
suggesting enhanced operational efficiency. However, cash flow from investing activities
exhibited volatility, marked by a significant decrease in 2079/80, indicating potential
adjustments in investment strategies. Financing activities also showed fluctuations, highlighting
the need for strategic alignment in borrowing and equity financing approaches.

Suggestions to ADBL:

1. Enhance Operational Efficiency: ADBL should continue to focus on optimizing

operational processes and cost management to sustain and improve operating cash flow trends
observed in 2079/80.
2. Evaluate Investment Strategies: Given the fluctuating cash flow from investing activities,
ADBL should reassess its investment portfolio and prioritize initiatives that yield sustainable
returns and align with long-term business objectives.
3. Strengthen Financial Management: ADBL should maintain a balanced approach to
financing activities, ensuring prudent debt management and capital allocation to support growth
initiatives while mitigating financial risks.
4. Foster Transparency and Communication: ADBL should enhance transparency in
financial reporting and communication with stakeholders, providing insights into the company's
financial performance and strategic direction.
By implementing these suggestions, ADBL can bolster its financial resilience, optimize resource
utilization, and foster sustainable growth in the dynamic business environment.