41

5.1 STATISTICAL TOOLS AND TECHNIQUES

Facts and figures about any phenomenon are called statistics . Statistics is the
body of methods of obtaining and analysing data in order to base decisions on them. It
is a brand of scientific method used in dealing with phenomena that can be described
numerically either by counts or by measurements. Thus the work statistics refers
either by counts or by measurements. Thus the work statistics refers either to
quantitative information or to the method dealing with quantitative information. The
methods by which statistical data are analysed are called statistical methods. Although
the term is sometimes used more closely to cover the subject statistics as a whole.
Statistical methods are applicable a very large number of fields. Statistics is widely
employed as a tool in the analysis of problems in natural, physical and social science.
That statistical tools and techniques are used by the researcher for the purpose of
analysis of data. Tools and techniques used are given below:
Bar diagrams-are the most convincing and appealing ways in which statistical
results may be present is through diagrams and graphs. There are numerous
ways in which data can be graphically represented. Bar diagrams are
commonly used for data analysis. There are different types of bar diagrams.
Those used by the researcher as follows:

Sub divided bar diagrams: these diagrams are used to represent
various parts of the whole. While constructing such a diagram,
the various competences in each bar should be In the same
order. To distinguish between the different components, it is
useful to use different shades of colours. Index or key should be
given explaining these differences.
Multiple bar diagrams: in a multiple bar diagrams two or more
sets of interrelated data are represented. Since more than one
phenomenon is represented, different shades, colours, dots or
crossings are used to distinguish between the bars. Wherever
the comparison between two or more related variables is made,
multiple bar diagrams are preferred
42

DATA ANALYSIS
The following tables and data shows the result of the analysis done by the researcher
from the data collected. Analysis is done by using the tools and techniques explained
previously.
TABLE 5.1.1: ANALYSIS OF THE RECEIPTS OF APPLICATION










Year Application
received no
Application
received amount
Application
sanctioned no
Application
sanctioned amount
2006-07 541 22406 461 13583
2007-08 567 28246 526 24557
2008-09 619 43658 580 34910
2009-10 855 79947 759 61593
2010-11 769 59698 747 50739
43


FIGURE : 5.1.1
CHART SHOWING ANALYSIS OF THE RECEIPTS OF APPLICATION


From the above table and chart it is seen that the number of applications received each
year from 2006-2007 has been shown increasing trend as well as the loan amounts
requirement fell significantly from 2006 to 2011 after which the loan requirement has
tremendously increased. Highest number of applications received and the highest
amount sanctioned is in the year 2009-2010




application
received no
application
received amount
application
sanctioned no
application
sanctoned
amount
2006-07 541 22406 461 13583
2007-08 567 28246 526 24557
2008-09 619 43658 580 34910
2009-10 855 79947 759 61593
2010-11 769 59698 747 50739
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
ANALYSIS OF THE RECEIPTS OF
APPLICATION
44



TABLE 5.1.2 : ANALYSIS OF DISBURSEMENTS BY THE FIRM DURING
2006-07
Year
Applications
Received
No.
Applications
Received
Amount
Applications
Sanctioned
No
Applications
Sanctioned
Amount
Disbursement
Amount
2006-07 541 22406 461 13583 9725
2007-08 567 28246 526 24557 18643
2008-09 619 43658 580 34910 29394
2009-10 855 79947 759 61593 41953
2010-11 769 56998 747 50739 44636

FIGURE : 5.1.2
ANALYSIS OF DISBURSEMENTS BY THE FIRM DURING 2006-11









application
received no
application
recived
amount
application
sanctioned
no
application
sanctioned
amount
disburseme
nt amount
2006-07 541 22406 461 13583 9725
2007-08 567 28246 526 24557 18643
2008-09 619 43658 580 34910 29339
2009-10 855 79947 759 61593 41953
2010-11 769 56998 747 50739 44363
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
ANALYSIS OF DISBURSEMENTS BY
THE FIRM DURING
45

The amount of disbursements made during 2006-07 to 2010-11 shows it increasing
trend in loan disbursals. The highest amount disbursed is during 2010-11. KFC has
increased disbursals amount significantly after the 2006-07 .

TABLE 5.1.3: ANALYSIS OF RECOVERY FROM 2006 TO 2011
Year Principal Recovery Interest Total
2006-07 11449 8459 19908
2007-08 13715 8466 22181
2008-09 17821 9104 26925
2009-10 16386 9412 25798
2010-11 19645 11744 31389

FIGURE 5.1.3 : ANALYSIS OF RECOVERY FROM 2006 TO 2011


It is seen from the table and the diagram that the total amount recovered every year,
which is principal amount includes half the interest showing a increasing trend in
2006 to 2008 then again in 2008 the principal recovered had increased but then in
11449
13715
17821
16386
19645
8459 8466
9104
9412
11744
19908
22181
26925
25798
31389
2006-07 2007-08 2008-09 2009-10 2010-11
ANALYSIS OF RECOVERY FROM 2006 TO
2011
principal recovery interest total
46

2009-10 the principal recovery has again decreased and it is increased in the 2010-11
financial year . This shows that KFC has been improvising their methods to recover
principal amounts from their customers but then also the methods used are not that
much effective. We can see that their amount of interest received from the last five
years (2006-2011) showed an increasing trend. The total recovery has not shown any
significant changes in the past 5 years.

TABLE 5.1.4 : ANALYSIS OF ARREARS DURING 2006-2011
year principal interest total
2006-07 23684 51566 75250
2007-08 20182 56062 76244
2008-09 826 6915 7741
2009-10 3625 1126 4751
2010-11 1904 2448 4352

FIGURE 5.1.4: ANALYSIS OF ARREARS DURING 2006-11

0
10000
20000
30000
40000
50000
60000
70000
80000
2006-7
2007-08
2008-09
2009-10
2010-11
23684
20182
826
3625
1904
51566
56062
6915
1126
2448
75250
76244
7741
4751
4352
ANALYSIS OF ARREARS DURING 2006-2011
principal
interest
total
47

Arrears to be recovered, which show the principal amount inclusive of interest,
increased in the last years until 2007-08. Since then KFC has written off almost 150
crores of bad debts which has cleared a very large portion of bad debts by which there
has been significant reduction in the total amount of arrears to be recovered. This
shows the customers repaying the borrowed loans in timely manner has significantly
been going down. This shows that there has to be new mechanism to be introduced by
which KFC can successfully get the arrears of each year within a specified time
period.
TABLE 5.1.5 : PERCENTAGE OF RECOVERY TO DISBURSMENT
Year Disbursement Recovery Percentage Of Recovery
To Disbursement
2006-07 9725 19908 204.71
2007-08 18643 22181 118.98
2008-09 29394 26925 91.6
2009-10 41953 25798 61.49
2010-11 44636 31389 70.32

FIGURE 5.1.5 COMPARISION OF RECOVERY AND DISBURSMENT


9725
18643
29394
41953
44636
19908
22181
26925
25798
31389
2006-07 2007-08 2008-09 2009-10 2010-11
comparision of recovery and
disbursment
disbursment recovery
48

KFC disburses almost 70% amount of loan requirement. The recovery of the same is a
hefty task for KFC because each year more loans are sanctioned and more amounts
are dispersed. By looking at the pattern of the percentage of recovery to
disbursements shows that a tremendous effort from KFC which yielded 204
percentage recovery after which the recovery percentage shows a steep declining
trend. This means that each year KFC has to borrow more funds. The recovery of an
year also includes the disbursals from previous years. From the about table can
understand that the recovery efforts have not yielded much of a success.
TABLE 5.1.6:
ANALYSIS OF BORROWINGS TO LOANS AND ADVANCES 2006-11
(AMT 0000)
YEAR BORROWINGS LOANS & ADVANCES RATIO OF
BORROWINGS
TO LOANS &
ADVANCES
2006-07 42420 50957 .82
2007-08 43211 50826 .85
2008-09 53360 58981 .90
2009-10 57651 88869 .64
2010-11 76790 112481 .68







49

FIGURE 5.1.6 :
CHART SHOWING RELATION OF BORROWINGS AND LOANS &
ADVANCES


The Kerala Financial Corporation borrow money mainly from RBI(Reserve Bank of
India) and raise capital from issue of its bond refinance from SIDBI(Small Industries
Development Bank of India),subsidies from cetral and the state government and
refinance from IDBI(Industrial Development Bank of India). The trend of Loans and
Advances show s an increasing trend in extending credit by KFC which in turn
reflects in increased borrowings by KFC from external sources mentioned above.
KFC has to meet capital requirements of a large portion of the society but the problem
is the repayment capacity of the people





2006-07 2007-08 2008-09 2009-10 2010-11
borrowings 42420 43211 53360 57651 76790
loans & advances 50957 50826 58981 88869 112481
0
20000
40000
60000
80000
100000
120000
Chart showing relation of borrowings
and loans & advances
50

TABLE 5.1.7:
ANALYSIS OF INTEREST RECEIVABLES ON LOANS AND ADVANCES
OF THE COMPANY FROM 2006-2011
YEAR LOANS&
ADVANCES
INTEREST ON LOANS
& ADVANCES
% OF INTEREST ON LOANS
AND ADVANCES

2006-07 50957 8390 16.46
2007-08 50826 8292 16.31
2008-09 58981 10192 17.28
2009-10 88869 14131 15.9
2010-11 112481 16598 14.75

FIGURE 5.1.7:
INTEREST RECEIVABLES ON LOANS AND ADVANCES OF THE
COMPANY FROM 2006-2011

2006-07 2007-08 2008-09 2009-10 2010-11
loans& advances 50957 50826 58981 88869 112481
interest on loans &
advances
8390 8292 10192 14131 16598
0
20000
40000
60000
80000
100000
120000
INTEREST RECEIVABLES ON LOANS AND ADVANCES OF
THE COMPANY FROM 2006-2011
51

From the analysis of the above table and chart the loans and advances given by the
corporation goes on increasing . The highest amount of interest collections was in the
year 2010-11 which constituted 14.75% of interest collections as to loans and
advances in the same year and the highest percentage of interest collected in 2008-09.
For the past 5years an average of 16.14% is the interest collections each year. The
highest amount of loans and advances given out by the company was in the year
2010-11 which amounts to 112 crores. The performance of KFC in terms of interest
collections has not been that much satisfactory when compared to the amount of loans
and advances given out each year.


TABLE 5.1.8
PERCENTAGE OF BAD & DOUBTFUL DEBTS TO LOANS & ADVANCES

YEAR LOANS&
ADVANCES
BAD AND DOUBTFUL
DEBTS
% BAD & DOUBTFUL
DEBTS TO LOANS &
ADVANCES
2006-07 50957 23920 46.94
2007-08 50826 14410 28.35
2008-09 58981 8038 13.62
2009-10 88869 1991 2.24
2010-11 112481 1974 1.75






52

FIGURE 5.1.8
BAD & DOUBTFUL DEBTS TO LOANS & ADVANCES

The percentage of bad and doubtful debts of sanctioned loans and advances showing
decreasing tendency. The percentage of bad and doubtful debts comes down every
financial year. The average percentage of bad and doubtful debts is 18.58 percentages.
The highest percentage was in the year 2006-07. The lowest was in the year 2010-11.
In the last three years percentage of bad and doubtful debts goes decreasing. It means
that KFC take lot of effort to collect the debts

TABLE 5.1.9
ANALYSIS OF LOANS& ADVANCES AND NPA OF THE COMPANY
year loans
&advances
NPA amount % NPA
2006-07 50957 23920 48.52%
2007-08 50826 14410 28.35%
2008-09 58981 8038 13.63%
2009-10 82830 1991 2.40%
2010-11 76970 1975 1.88%
2006-07 2007-08 2008-09 2009-10 2010-11
BAD AND DOUBTFUL
DEBTS
23920 14410 8038 1991 1974
LOANS& ADVANCES 50957 50826 58981 88869 112481
0
20000
40000
60000
80000
100000
120000
140000
bad & doubtful debts to loans &
advances
53


FIGURE 5.1.9
ANALYSIS OF LOANS& ADVANCES AND NPA OF THE COMPANY


For KFC in the year 2006-07 recorded the highest percentage of NPA to loans and
advances which stood at 48.52%. Since that year NPA percentage fell to almost 1.88
by the year 2010-11. The decreasing tendency of net NPA shows that the KFC made
tremendous effort to recover the loan amounts



TABLE 5.1.10
ANALYSIS OF PROFITABILITY
YEAR NET PROFIT
2006-07 440
2007-08 -2815
2008-09 1170
2009-10 2114
2010-11 3334

2006-07 2007-08 2008-09 2009-10 2010-11
NPA amount 23920 14410 8038 1991 1975
loans &advances 50957 50826 58981 82830 76970
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Analysis of loans& advances and NPA
54


FIGURE 5.1.10
ANALYSIS OF NET PROFIT

A crucial part of an organisation is the profit making capacity. KFC is a non banking
financial company so profit making is difficult task. For the last years the company
reported profits totalling to 4 crore. The following year in 2007-08 the company
reported an hefty 28 crore loss. This was on account of increasing amounts
receivables in the company. The financial restructuring which took in the year 2008-
09 where the company removed Rs.105 crores of bad debt from its accounts. Which
resulted in the profitability of the company in the year 2008-09 and followed by 21
crore profits in the year 2009-10 and the company earned a profit of 33 crore in the
current financial year 2010-11





2006-07 2007-08 2008-09 2009-10 2010-11
net profit 440 -2815 1170 2114 3334
440
-2815
1170
2114
3334
-4000
-3000
-2000
-1000
0
1000
2000
3000
4000
Net profit
55



5.2 RATIO ANALYSIS
The Balance Sheet and the Statement of Income are essential, but they are only the
starting point for successful financial management. Apply Ratio Analysis to
Financial Statements to analyze the success, failure, and progress of your business.
Ratio Analysis enables the business owner/manager to spot trends in a business and to
compare its performance and condition with the average performance of similar
businesses in the same industry. To do this compare your ratios with the average of
businesses similar to yours and compare your own ratios for several successive years,
watching especially for any unfavorable trends that may be starting. Ratio analysis
may provide the all-important early warning indications that allow you to solve your
business problems before your business is destroyed by them.
Balance Sheet Ratio Analysis
Important Balance Sheet Ratios measure liquidity and solvency (a business's ability to
pay its bills as they come due) and leverage (the extent to which the business is
dependent on creditors' funding). They include the following ratios:
Liquidity Ratios

These ratios indicate the ease of turning assets into cash. They include the Current
Ratio, Quick Ratio, and Working Capital.
Current Ratios

The Current Ratio is one of the best known measures of financial strength. It is
figured as shown below:
Current Ratio = Total Current Assets / Total Current Liabilities
56

The main question this ratio addresses is: "Does your business have enough current
assets to meet the payment schedule of its current debts with a margin of safety for
possible losses in current assets, such as inventory shrinkage or collectable accounts?"
A generally acceptable current ratio is 2 to 1. But whether or not a specific ratio is
satisfactory depends on the nature of the business and the characteristics of its current
assets and liabilities. The minimum acceptable current ratio is obviously 1:1, but that
relationship is usually playing it too close for comfort.
If you feel your business's current ratio is too low, you may be able to raise it by:
Paying some debts.
Increasing your current assets from loans or other borrowings with a maturity
of more than one year.
Converting non-current assets into current assets.
Increasing your current assets from new equity contributions.
Putting profits back into the business.
Quick Ratios

The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best
measures of liquidity. It is figured as shown below:
Quick Ratio = Cash + Government Securities + Receivables / Total Current Liabilities
The Quick Ratio is a much more exacting measure than the Current Ratio. By
excluding inventories, it concentrates on the really liquid assets, with value that is
fairly certain. It helps answer the question: "If all sales revenues should disappear,
could my business meet its current obligations with the readily convertible `quick'
funds on hand?"
An acid-test of 1:1 is considered satisfactory unless the majority of your "quick
assets" are in accounts receivable, and the pattern of accounts receivable collection
lags behind the schedule for paying current liabilities.
57

Working Capital

Working Capital is more a measure of cash flow than a ratio. The result of this
calculation must be a positive number. It is calculated as shown below:
Working Capital = Total Current Assets - Total Current Liabilities
Bankers look at Net Working Capital over time to determine a company's ability to
weather financial crises. Loans are often tied to minimum working capital
requirements.
A general observation about these three Liquidity Ratios is that the higher they are the
better, especially if you are relying to any significant extent on creditor money to
finance assets.
Leverage Ratio

This Debt/Worth or Leverage Ratio indicates the extent to which the business is
reliant on debt financing (creditor money versus owner's equity):
Debt/Worth Ratio = Total Liabilities / Net Worth
Generally, the higher this ratio, the more risky a creditor will perceive its exposure in
your business, making it correspondingly harder to obtain credit.
Income Statement Ratio Analysis

Return on Assets Ratio

This measures how efficiently profits are being generated from the assets employed in
the business when compared with the ratios of firms in a similar business. A low ratio
in comparison with industry averages indicates an inefficient use of business assets.
The Return on Assets Ratio is calculated as follows:
Return on Assets = Net Profit Before Tax / Total Assets
58

Return on Investment (ROI) Ratio

The ROI is perhaps the most important ratio of all. It is the percentage of return on
funds invested in the business by its owners. In short, this ratio tells the owner
whether or not all the effort put into the business has been worthwhile. If the ROI is
less than the rate of return on an alternative, risk-free investment such as a bank
savings account, the owner may be wiser to sell the company, put the money in such a
savings instrument, and avoid the daily struggles of small business management. The
ROI is calculated as follows:
Return on Investment = Net Profit before Tax / Net Worth
These Liquidity, Leverage, Profitability, and Management Ratios allow the business
owner to identify trends in a business and to compare its progress with the
performance of others through data published by various sources. The owner may
thus determine the business's relative strengths and weaknesses.

DATA ANALYSIS
5.2.1 TABLE SHOWING CURRENT RATIO OF KFC FOR THE PAST 5
YEARS
year current asset current liability ratio=current asset/current
liability
2006-07 33621 21013 1.60
2007-08 23319 29231 0.79
2008-09 141306 9644 14.65
2009-10 10416 13353 0.78
2010-11 7684 20651 0.37


59

ANALYSIS
The Higher the ratio of working capital (current assets-current liabilities), the
higher will be the liquidity of the business. Thus working capital can be considered
as the measure of liquidity.
The current ratio was 1.60 in the year 2006-07, which was below ideal. It
decrese to 0.79 in [Link] was 14.65 in 2008-09 which was a great increase and
highest among the 5 years and was also not a comfortable ratio. The ratio was
reduced to 0.78 in 2009-10 and again decreased to 0.37 in 2010-11 financial year
As mentioned above current ratio is used to measure the liquidity position of
the concern and thus reflects the short term solvency of the concern.
INTERPRETATION
The conclusion drawn only on the basis of current ratio is illusory.
In the year 2006-2007, the concern has a good liquidity position which was
slightly above the ideal.
Compared to 2006-07, the ratio shows a decline from 1.60 to 0.79 .In the
balance sheet of KFC it shows that overall current assets and overall current
liability also increases. But increase in current liability is more than increase
in current assets that's why the current ratio increases even though there is
increase in current assets. Current liability increases in the year 2007-08.
In the year 2008-09,there is large increase in current assets than current
liability when compared to the previous [Link] might be the reason
behind increase in current ratio in the year 2008-09 The financial
restructuring which took in the year 2008-09 where the company removed
Rs.105 crores of bad debt from its accounts. Which resulted in the increasing
of current ratio The current ratio was low in the last two year than that of
2008-09 .This might be due to decrease in cash or bank balances of that
years when compared to the 2008-09 financial year.


60

5.2.2 TABLE SHOWING RETURN OF ASSET RATIO OF KFC FOR THE
PAST 5 YEARS
year net profit before tax Total asset Ratio
2006-07 12537 665205 0.018
2007-08 -10290 661779 -0.015
2008-09 76295 775148 0.098
2009-10 46646 941866 0.049
2010-11 61697 1195285 0.051

ANALYSIS
The return of asset ratio was 0.018 in the year [Link] became -0.015 in the
next year. This increases to 0.098 in 2008-09. In 2009-10 it come down to 0.049 .In
the year2010-11 the ratio increased to 0.051
INTERPRETATION
Here in the balance sheet of KFC it is showed clearly that
the amount of return of asset to the total asset shows increasing tendency in the last
two years. It is highest in the year 0.098 and lowest in the year 2007-08. As this ratio
adds significance in case of a manufacturing concern, it is not that important in case
of a service industry.
This measures how efficiently profits are being generated from the assets employed in
the business. A low ratio indicates an inefficient use of business assets.
5.2.3 TABLE SHOWING RETURN OF INVESTMENT OF KFC FOR THE
PAST 5 YEARS
year net profit before tax net worth Ratio
2006-07 12537 159064 0.078
2007-08 -10290 159064 -0.064
2008-09 76295 74060 1.030
2009-10 46646 204060 0.228
2010-11 61697 204060 0.302
61

ANALYSIS
The return of investment ratio was 0.078 in the year [Link] became -0.064 in the
next year. This increases to 1.030 in 2008-09. In 2009-10 it come down to [Link]
the year2010-11 the ratio increased to 0.302
INTERPRETATION
Here in the balance sheet of KFC it is showed clearly that the amount of return of
asset to the total asset shows increasing tendency in the last two years. It is highest in
the year 0.098 and lowest in the year 2007-08.
The ROI is perhaps the most important ratio of all. It is the percentage of return on
funds invested in the business by its owners. In short, this ratio tells the owner
whether or not all the effort put into the business has been worthwhile.
If the ROI is less than the rate of return on an alternative, risk-free investment such as
a bank savings account, the owner may be wiser to sell the company, put the money in
such a savings instrument, and avoid the daily struggles of small business
management










62

5.3 CASH FLOW STATEMENT
Cash flow is the movement of money into or out of a business, project, or financial
product. It is usually measured during a specified, finite period of time. Measurement
of cash flow can be used for calculating other parameters that give information on a
company's value and situation. Cash flow can e.g. be used for calculating parameters:
to determine a project's rate of return or value. The time of cash flows into and out
of projects are used as inputs in financial models such as internal rate of
return and net present value.
to determine problems with a business's liquidity. Being profitable does not
necessarily mean being liquid. A company can fail because of a shortage of cash
even while profitable.
as an alternative measure of a business's profits when it is believed that accrual
accounting concepts do not represent economic realities. For example, a company
may be notionally profitable but generating little operational cash (as may be the
case for a company that barters its products rather than selling for cash). In such a
case, the company may be deriving additional operating cash by issuing shares or
raising additional debt finance.
cash flow can be used to evaluate the 'quality' of income generated by accrual
accounting. When net income is composed of large non-cash items it is considered
low quality.
to evaluate the risks within a financial product, e.g. matching cash requirements,
evaluating default risk, re-investment requirements, etc.

Cash flow is a generic term used differently depending on the context. It may be
defined by users for their own purposes. It can refer to actual past flows or projected
future flows. It can refer to the total of all flows involved or a subset of those flows.
Subset terms include net cash flow, operating cash flow and free cash flow.
ANALYSIS OF SOURCES AND APPLICATIONS OF CASH FLOW
STATEMENT OF THE COMPANY FROM 2008-09 TO 2009-10
63



Sl
No.
PARTICULARS 2010-11 2009-10 2008-09
1 Cash flow from Operating activities
Interest and other Revenue receipts (A) 15,577.77 15,523.90 9,454.00
Interest and other Financial charges
paid (B)
-5660.84 -4,929.98 -4,139.00
Payment to employees and
Administrative expenses (C)
-3,872.44 -2,237.38 -3,575.00
Operating profit before changes in
operating assets (A-B-C)
5,660.84 8,356.54 1,740.00
Increase in operating assets (Loans &
Advances)
-23,612.29 -27,639.64 -11,439.00
Net cash from operating activities
before Income Tax
-17,951.45 -19,283.10 -9,699.00
Income tax paid -1,568.28 -233 -
Net cash from operating activities after
Tax (x)
-19,519.73 -19,516.10 -9,699.00
2 Cash flow from Investment Activities
Interest received on
deposits/Investments in M/F
63.63 54.19 145
Purchase of Fixed Assets -93.72 -24.81 -21
Proceeds from Sale of Fixed Assets 19.5 - 16
Increase/Decrease in other assets (Net) -419.19 -34.62 -566
Increase/Decrease in other liabilities
(Net)
521.8 140.76 -1,215.00
Net Cash from Investment Activities
(Y)
92.02 135.52 -1,641.00
3 Cash Flow from Financing activities
Share Capital from State Government 791.3 - 15,000.00
Long term borrowings (Refinance from
SIDBI)
16,000 20,988.52 16,000.00
Repayment of Long Term Borrowings -20,181.79 -14,696.94 -7,861.00
LOC from banks 26,100 _ _
repayment of LOC from bank -2,600 _ _
divident and divident tax paid -954.96 _ _
Net Cash used in financing activities
(Z)
19,154.55 6,291.58 23,139.00
Net increase in Cash or Cash equivalent
(X+Y+Z)
-273.16 -13,089.00 11,799.00
Cash and Cash equivalent at the
beginning of the Financial Year
1,041.63 14,130.62 2,332.00
Cash and Cash equivalent at the end of
the Financial Year
768.47 1,041.62 14,131.00
64

From the analysis of cash flow statements of 2008-09 to 2009-10 it shows that there
has been a reasonable increase in the interest and revenue receipts to the extent of
61%. Which shows operational efficiency of KFC has been improved. The next year
a nominal amount increase in the total amount, it shows operational efficiency of
KFC come down comparing to the previous year . But looking at the net cash from
operating activities it shows a trend of almost -50% compared to 08-09. In the year
2010-11 only a nominal increase the cash flows from operating activities. It is The
interest received from investing activities has increased in 2009-10 years .the next
year it is decreased by almost 68%. The net cash from financing activities decreased
in 2009-10 compared to 2008-09 and it is increased in the financial year [Link]
the cash or cash equivalent at the end of financial year goes on decreasing