acounts term ppr by ashutosh kumar singh,lpu

8/7/2019 Acounts Term Ppr By Ashutosh Kumar Singh,LPU

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CASE STUDY ON ACCOUNTINGCASE STUDY ON ACCOUNTING

Analyze the cash flow statement of these

four company««..

R aymond LtdHindustan unilever Ltd

InfosysBlue Dart Ltd



Raymond Lt dRaymond Lt d

In 1925 it was establish near thane(Mumbai).In 1944 Lala kailashpat Sinhania took over it.Primarily it makes low price woolen fabrics.In 1968 R aymond set up a readymadegarment plant at thane.Presently it has turnover of R s 2000 million.Park avenue is its premium brand.In2002 it acquired color plus& in 2007R aymond entered into joint venture to retailpremium brand µGAS¶ in India.



Hi ndus t an un ilever Lt dHi ndus t an un ilever Lt d

It is India's largest FMCG company with

leadership in home & personal coreproducts & beverages.It has net volume sell about 4 milliontones & sales of R s 13178 crore.

It has 15000 employees is to add vitalityto life with 35 power brands.It holds 52.10% of the total equity.



I nfosys t ech no l og ie s I nfosys t ech no l og ie s li m i t e dli m i t e d

Started in 1981 by seven people withUS$ 250.

Present turnover nearly US$ 4 billion.

It design& deliver technology-enabledbusiness solution to help 2000 globalcompanies.

it has 50 offices & developmentcenter in India ,china ,Australia,

check republic, Poland, UK,Canada,& Japan.

Presently it have 1,05,453employee.

Mr. Kris gopalkrishnan is CEO &



H ono r s & p ri d e fo r I nfosys H ono r s & p ri d e fo r I nfosys

R anked among the top 50 most respectedcompanies in the world by µG R P 2009¶.

Most admired Indian co. in the wall street journal.It won sears holding corporation partner inprogress award for two consecutive years.It was also listed in the µMAKE 2008¶ study.R

anked among India¶s best co. for 2009 byGPWI.Asset magazine declared it best in industry for itscorporate governance.Hd¶ diamond award for Best green strategy for

a data center



B LUE DA R TB LUE DA R T EExp re ss Lt d.xp re ss Lt d.

Its object is to provide air & groundtransportation & distribution of time sensitive

packages.It has a operating network of 307 offices, 21000location ,& 220 countries worldwide.The group has a fleet of 10 Boeing &757aircrafts.the group has assigned for the µhighest fit¶ &

A++ rating for short term debt program.It has 52 warehouses across the country & aswell as bonded warehouses for 7 major cities likeDelhi , Chennai, Mumbai, Ahmadabad, Bangalore, Kolkata, Hyderabad.



Cas h F l ow s t a t e m e n t ana l ys i sCas h F l ow s t a t e m e n t ana l ys i s

the analysis of the cash flow statement is

generally employed to measure««««

Cash generating efficiency of the businessfree cash flows



S i m il a ri t ie s i n t he c as h f l ows of S i m il a ri t ie s i n t he c as h f l ows of t he c o.t he c o.

in all the four co. depreciation & amortization ispresent which is increasing in the next year of every co. due to obsolence of old machinery & itswear & tear.Increase in the cash generated from operatingactivities in all co. is 70% in Infosys, 26.93% inR aymond's, 32.30% in Blue Dart express,63.73% increase in HUL.More cash invested in all except Infosys . Usagein investing activities has decreased by 54.80%in it . Because in IT industry , not muchinvestment in the purchase of FA are required.



Con t i««««« .Con t i««««« .

In case of R aymond's the outflow of cash hasbeen increased by 76.76%.because it belongs to

textile industry ,in which much investmentrequired in purchasing of FA like heavymachinery.In case of Blue Dart its outflow from investingactivities have increased by only 4.7%becauseit¶s a service provider co. so not muchinvestment required to purchase of FA.In case of HUL the cash outflow have increasedby 85% because it deals in FMCG sector , somuch investment required in purchasing of investment rather than in FA.



Con t i nu e««««««« .Con t i nu e««««««« .

In case of financing activities there has been increase in flowfrom two companies Infosys & R aymond, & decrease in 2companies, Blue dart & HUL. Inflows has increased in Infosys

from 158%due to the proceeds of fresh equity share capital.In case of R aymond ltd net cash inflow in course of financingactivities has been increased by 170%.due to proceeds from termloans & other borrowings & also from the proceeds from thedebentures.In case of Blue dart company the cash outflow from financingactivities has increased by 51.12% due to repayment of long

term borrowing & debenture & also due to repayment of unsecured loans.In case of HUL due to the repayment of borrowing & of debenture& because of the increase in the payment of dividend. The cashflow by Financing activities has increased by 78.56%.



N e t p r of i tN e t p r of i t

N et profit of every company has been

increased by««..

Infosys 28.55%R aymond 46.82%

Blue dart 17.70%HUL 8.60%



D i ss i m il a ri t ie s i n t he Cas h f l owsD i ss i m il a ri t ie s i n t he Cas h f l ows

The main reason for the inflow of funds in

activities of finance in case Infosys ltddue to issue of fresh equity share.In case of R aymond's it is due to theproceeds of term loans , long term loans

etc.There has been net out flow of cash fromthe remaining two companies ie. HUL & Blue dart express.



Con t i nu e««««««««« ..Con t i nu e««««««««« ..

N et cash used in investing activities of Infosys because of the purchase of FA.In R aymond there is also outflow of cash dueto proceeds from disinvestment of business & sale of investment.In case of blue dart there is outflow of cash

due to investment of mutual funds.And lastly in case of HUL there is also outflowof cash from investing activities due topurchase of investment & FA.



R e f lec t s ««« .R e f lec t s ««« .

This reflects that the liquidity position of

the company has worsened due toincrease in current liabilities &provisions & also due to decrease in the current assetsof the company.



S i gn i f ic an t ch ang e s i n t hree S i gn i f ic an t ch ang e s i n t hree a c t ivi t ie s of Raymonda c t ivi t ie s of Raymond

N et cash flow from operating activities hasincreased by 12.91% due to increase inliabilities, this is also due to the increase in theprofit of the company by 46.82%.N et cash flow in investing activities haveincreased by 76.76%. This Is mainly due to theacquisition of FA & increase in FA by 62.35%.In the case of financing activities the cash inflowhas increased by quite an extent of over 170%this is due to the increase in the proceeds of longterm borrowing by the company.



S i gn i f ic an t ch ang e s i n t hree S i gn i f ic an t ch ang e s i n t hree a c t ivi t ie s of B l u e D a r ta c t ivi t ie s of B l u e D a r t

Cash inflows has increased by 32.30% in theoperating activities due to increase in the CL by183% & decrease in the CA .there has beenincrease in the depreciation of the co. by 67%.In investing activities there has been increase incash outflow by 4.7% due to the investment inthe mutual funds by 143% aprox.In case of financing activities the net cash usedhas increase by 51.12%, due to the repaymentof long term borrowing & repayment of unsecured loans.



R e f lec t s ««««««R e f lec t s ««««««

This shows that there has increase in the

current liabilities of the company & reduction in the current assets of thecompany, showing the negative growth of the company.



S i gn i f ic an t ch ang e s i n t hree S i gn i f ic an t ch ang e s i n t hree a c t ivi t ie s of H ULa c t ivi t ie s of H UL

N et cash flow from operating activities hasincreased by 63.33% due to that there hasbeen increase in the net profit of the co. anda increase in CL.N et cash flow from investing activitiesincrease by 85% due to the purchase of investments of the company & reduction in

the sale of securities or FA.In case of financing activities the net cashoutflows has been increased by 78.56% dueto that there has been repayment of debenture.



R e f lec t s «««R e f lec t s «««

This shows that there is decrease in the

long term liabilities and the net profit alsoincrease so from which we can say thatHUL performance is satisfactory.



Con cl us i onCon cl us i on

In all four co. there has been increase in cash inflowfrom operating activities this shows that there isincrease in net profit &increase in the CL & thereduction in the CA.in case of investing activities in all the four

companies there has been a cash outflow because of the purchase of FA.In case financing activities two companies Infosys & R aymond shows that there is cash inflow because of the issue of share capital or because of proceeds of term loans or long term borrowings .but in other twoBlue Dart & HUL there has been a cash outflowstating that there has been repayment of long termloans & borrowings by these two.



T H ANK YOU ««««« .T H ANK YOU ««««« .

Presented by«.

Ashutosh Kumar Singh (B43)Manik Mahajan (B46)

to«..Miss Ashu kakkar

acounts term ppr by ashutosh kumar singh,lpu

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