SUMMER TRAINING REPORT

ON
CASH FLOW AT

I.K. Gujral Punjab Technical University,

Kapurthala
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF DEGREE OF
MASTERS OF BUSSINESS ADMINSTRAION (MBA )

SUBMITTED BY
SUBMITTED TO-
RITIK
Mrs. SANDEEP KAUR
UNIVERSITY ROLL NO -2455978 SAWAMI
SARVANAND GROUP

OF INSTITUTE ,DINANAGR

CERTIFICATE

TABLE OF CONTENTS
CHAPTE TITLE
R
NO.
ABSTRACT
LIST OF TABLES
LIST OF CHARTS
LIST OF ABBREVIATIONS
INTRODUCTION
1. 1.1 INTRODUCTION
1.2 INDUSTRY PROFILE
1.3COMPANY PROFILE
1.4 NEED FOR THE STUDY
1.5STATEMENT OF THE PROBLEM
1.6 OBJECTIVE OF THE STUDY
1.7 SCOPE OF THE STUDY
1.8LIMITATIONS OF THE STUDY
2. REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE
2.2 THEORETICAL FRAMEWORK AND REVIEW
3. RESEARCH METHODOLOGY
3.1 METHODOLOGY
INTRODUCTION
3.2RESEARCH DESIGN

3.3SOURCE OF DATA
3.4 TOOLS FOR THE STUDY
3.5 PERIOD OF STUDY
DATA ANALYSIS AND INTERPRETATION
4.1DATA ANALYSIS AND INTERPRETATION
FINFINGS, SUGGESTIONS AND
CONCLUSION
5.1 FINDINGS OF THE STUDY
5.2 SUGGESTIONS AND RECOMMENDATIONS
5.3 CONCLUSION
REFERANCES
ANNEXURE – BALANCE SHHETS
 ACKNOWLEDGEMENT
It was a great opportunity for me to work with
THINKNEXT TECHNOLOGIES [Link], in the field of Finance
industry. I am extremely grateful to all those who have shared
their expertise and knowledge with me and without whom the
completion of this project would have been virtually impossible.
Firstly, I would like to thank our company guide Miss Bharti
Malhotra mam who has been a constant source of inspiration for
us during the completion of this project. He gave me invaluable
inputs during our endeavour to complete this project.
I am indebted to all staff of THINKNEXT TECHNOLOGIES
[Link] for their valuable support and cooperation during the
entire tenure of this project. Not to forget, all those who have kept
our spirits surging and helped delivering our best.
I thank my faculty guide Dr. SAPNA who helped me out at every
critical situation that I faced in my project and give me his
valuable advice to solve problems.
I want to give my special thanks to SSGI Dinanagar, for providing
me opportunity to work on this project with this great
organization.
At last, I would like to thanks all the respondents met in the
preparation who gave their valuable time to provide us required
information and their honest support to complete my project in
time.
RITIK
Roll No. 2455978
 STUDENT
DECLARATION
I RITIK hereby declare that I have undergone my
Summer Training at “THINKNEXT Technologies Pvt
Ltd” from 16 June to 30 JULY 2025. I have
completed a research project title “WORKING CAPITAL
AT THINKNEXT TECHNOLOGIES [Link]”. under the
guidance of Miss Bharti Malhotra. Further, hereby confirm
that the work presented herein is genuine and original
and has not been published elsewhere.
 CHAPTER – 1
INTRODUCTION

1.1 INTRODUCTION
This project work will be undertaken in the context of partial
fulfillment of MBA. The process of manufacturing can be termed
as the process of creation of producing a product with the help of
machineries, manpower and tools etc. The raw materials are
therefore transformed into finished products. It includes the
manufacturing of products such as steel tubes, strips , automotive
and car door frames and also bicycles.
It holds the largest form of industries and factories that helps to
produce and transform raw materials into finished products. The
manufacturing form of industries or factories provide maximum
amount of turnovers. The products are first engineered and it is
then transformed as finished products. Manufacturing industries
are therefore classified under the title of engineering industries.
Management of cash is one of the most important operative area
of any business operating as a working capital directing as a
portion from the reality which is mostly liquid form of current
asset. Cash can be determined as a ordinary denomination for
which all the current assets which is to be received and stocks will
get finally regenerated into a cash underscore which is the
implications of managing the [Link] all the firm whatever the
size it may be, cash management is one of the most important
aspects of its operations.
A cash flow statement is one of the major financial statements for
the purpose of a planning or for the purpose of the business. The
statement can be constructed in different ways. It may be
constructed in the easy format of one page synthesis or may
including various agendas to make a centralized evidence. A cash
flow statement is nothing but maintaining the cash flows of the
business and also evaluating the books of accounts of the firm.
The cash flow statements are not only concentrated with the total
sum amount of the flow of cash. Some cash flows are formatted
with period of time. This statements not only predict the
remaining scale of cash at the end of the year but also we can get
cash proportion at the end of the year.
But if the working capital of a firm seems to be inadequate to
meet its needs a cash flows will spotlight liquidity issues that may
occur in the upcoming future periods. Few cash flows plans are
developed so that we can effortlessly supervise the quality of the
future predictions. This plan will help us in predicting the flows of
monthly cash for the coming future period and also get into a
potential inflow and outflow as we move forward for the period of
time. This process will finally helps to examine the predictions to
potential cash flow and to make alterations to those prepared
projections for the remaining period of the year.

1.2 INDUSTRY PROFILE

Information Technology covers a broad spectrum of hardware and
software solutions that enable organizations to gather, organize,
and analyse data that helps them achieve their goals. It also
details technology-based workflow processes that expand
the capacity of an organization to deliver services that generate
revenue. The four main focuses of IT personnel are business
computer network and database management, information
security, business software development, and computer tech
support.
As the IT industry evolves to meet the technology demands of
today’s workplace, different challenges are arising and IT
professionals are striving to meet them. Network security is
by far the greatest concern for many companies and they rely on
their IT staff to prevent or stop these system breaches. Data
overload is becoming an increasingly important issue since many
businesses are processing large amounts of data on a daily basis,
with many of them not have the processing power to do so. Last,
but not least, two of the most essential skills needed
from IT professionals are teamwork and communication skills.
Systems are complex and people are needed to help translate
that task. Therefore, IT professionals are the ones responsible for
helping others get their work done efficiently without the complex
jargon of the technology world.
Let’s talk about careers for a moment. Employment for
information technology and related services are projected to grow
rapidly over the next decade, outpacing similar professional,
scientific, and technical industries, as well as the economy as a
whole. According to the Bureau of Labor Statistics (BLS), “output
in computer systems design and related services is expected to
grow at an average annual rate of 6.1 percent [between 2010 and
2020], compared with 3.6 percent for the broad industry category
—professional, scientific, and technical services—and 2.9 percent
for all industries.”Compared to 2.6 percent for professional,
scientific, and technical services and 1.3 percent for all other
industries, that’s a huge demand coming up! Why is this
happening?
Because the necessity for information technology is king.
With the emerging popularity of the Cloud technology,
many organizations are taking this up as an alternative
to actual hardware using up space. Cloud computing
service providers manage IT infrastructure and platforms, and
provide businesses with access to remote data storage and
software packages.
Another reason for the rise of IT careers is the need to defend our
information systems from countless attacks. Just in the past few
years alone, the BLS reports “there is a 17- fold increase in the
number of cyber-attacks on U.S. infrastructure between 2009 and
2011.” Security companies also have produced reports that show
large increases in security breaches on private businesses in
those years as well.
With the increasing need for IT professionals, this seems to be one
of the more stable careers for the next decade. One of the first
steps to becoming an IT professional is to obtain a degree or
certification in computer or management information systems.
Then you must decide which field to go into, as there are many in
the IT universe.

1.3 INTRODUCTION TO THE COMPANY

Thinknext Technologies Private Limited (Formerly Brilliant
Software Solutions) is an ISO 9001:2008 certified software
development company founded in November 2011 Thinknext
Technologies Private Limited is majorly in Business Services
business from last 12 years and currently, company operations
are active. Current board members & directors are GHANSHAM
DASS and MUNISH MITAL.
Company is registered in Chandigarh (Punjab) Registrar Office.
Thinknext Technologies Private Limited registered address is
S.C.F. 113, SECOND FLOOR PHASE-XI MOHALI PB 160065 IN.
and it is approved from Ministry of Corporate Affairs which deals
in University/College/School ERP Solutions, Android /iPhone
Applications development, Web designing, Web
development, Discount Deals([Link],
[Link]), Bulk SMS, Voice SMS, Bulk Email, Biometric
Time Attendance, Access Control, SEO/SMO, Database Solutions,
Payment Gateway Integration, E-Mail Integration, Industrial
Training, Corporate Training and Placements etc. Thinknext
Technologies provides software solutions using latest
technologies e.g., Smart Card, NFC, Biometrics, GPS, Barcode,
RFID, SMS, Auto SMS (Short code), Android, iPhone, Web,
Windows and Mobile based technologies. Thinknext has wide
expertise in .NET, Crystal Reports, Java, PHP, Android, iPhone,
Databases (Oracle and SQL Server), Web Designing,
Networking, Web Server configurations, various RAID Levels
etc.
Thinknext Technologies has also setup its offices in USA,
Delhi, Shimla and Bathinda, Chandigarh for its software
support. Thinknext has its own multiple Smart Card printing,
encoding and barcode label printing machines to provide better
and effective customer support solutions.
Thinknexthas also setup its own placement consultancy
and is having numerous placement partner companies to
provide best possible placements in IT industry. Thinknext
Technologies has developed for the first time in
northern region cloud computing-based Cloud Campus 4.0
to facilitate knowledge and placement centric services. It is
a unique concept for effective and collaborative learning.
1. Thinknext deals exclusively in campus automation through
Smart Campus ERP Solutions. Therefore, we have better
experience in handling large group of institutions through
proper time-tested policies and procedures.
2. First Company of India who has Launched NFC Technology (The
Future) forSmart Campuses through NFC Smart Cards.
3. First Company of India who has launched Android Version of
Smart Campus ERP Solutions for Mobiles and Tablet PCs.
4. First company of India who has developed SMS Opt-In
Technology so that Institutes/Colleges can send Transactional
SMS with SMS Sender ID and without SMS Template approval.
5. First company of Punjab, Haryana, Himachal, J&K
(Northern region) who launched Smart Cards (Contact Type),
Smart Cards (Contactless) in Punjab for campus automation.
6. First company of India which has launched its Thinknext Smart
Card as Discount Card in more than 120 enterprises.
7. Established own multiple Smart Card Designing, Smart Card
Printing, Smart Card Lamination and Oyster
8. Multiple SMS Gateway Support.

1.4 NEED FOR THE STUDY

• To make sure that the best investment plan is practiced. As
there are variety of investment opportunities present the best one
can be taken off.
• To assess the pattern do that it is beneficial for all the other
small company to follow and execute the plans and male sure
that they are also benefitted from it.
• To choose the best one for the company’s growth.

1.5 STATEMENT OF THE PROBLEM

An income statement showing sales, revenue, taxes, expenses,
etc. is part of an accounting statement. The liabilities and asset
positions for the prior year are shown on another section of the
balance sheet. With the aid of the previous and most recent five
years' worth of cash flow statements and financial condition, I
sought to analyse the data in my study objectively.

1.6 OBJECTIVES OF THE STUDY

• To understand the various investment provided to the
customers.
• To provide the level of investments and also the various
methods of investments in the company.
• To analyse the choice of interest of the employers on the basis
of the work
• To provide various schemes and investment opportunities of the
business.
• To understand the type of investments design of the company
and also the allocation of the funds.
• To maintain better cash flow in the company and also yield
maximum profits.

1.7 SCOPE OF THE STUDY

• To understand the pattern of investment provided by TII and
make sure that it is followed up by the smaller company.
• To enhance the growth of the company and also its beneficial
products for the company.
• To understand the new ways of operation in various new areas
and also new sectors.

1.8 LIMITATIONS OF THE STUDY

1. Time: the time period given for the purpose of preparation of
project has been about 12 weeks. The study can be done only for
the period of 5 years
2. Finance: as I got a limited financial resource indepth research
cant be undertake.
3. The cash flow statement of 5 years of a firm is used for the
purpose of project.
 CHAPTER – 2
CONCEPTUAL BACKGROUND AND
LITREATURE REVIEW
REVIEW OF LITREATURE

1.Güleç, Ö.F. & Bektaş, A. (2019). Cash Flow Ratio

Analysis: The Case of Turkey. Muhasebe ve
Finansman Dergisi Ağustos Özel Sayısı, 247-262
Cash flow-based information provides more insights about liquidity,
profitability and Financial structure of companies with the other primary
financial statements. Hence, Using cash flow ratios together with the
conventional financial ratios will contribute to The financial statement
analysis. Since cash flow ratios are not common as much as The traditional
ratios and are still evolving, developing benchmarks and determining
Normative values are relatively harder for the assessment of firms. Thus, the
main Motivation of this study is to demonstrate the power of the statement
of cash flows By using 8 fundamental cash flow ratios with 10 traditional
ratios in the areas of Liquidity, profitability and financial structure.

2.(Chang et al., 2019; Li et al., 2017; Tsao et al., 2019).

Timely payment is necessary for the efficient delivery of goods and services
to all Entities in the supply chain. Traditionally, there has been a lot of
manual processes Related to payment. Nowadays the technology
advancements make the payment Process in electronic form. Even the
electronic form is not easily accessible to all Parties in the supply chain. Each
entity of the supply chain maintains separate Transaction records that
remain difficult, inefficient, and error prone. Often Companies face difficulties
in monitoring the status of shipments and linking them to Payments.

[Link] Kamaluddin & Norhafizah Ishak & Nor Farizal Mohammed,

2019.

“Financial Distress Prediction Through Cash Flow Ratios Analysis,”

International Journal of Financial Research, International Journal of Financial
Research, Sciedu Press, vol. 10(3) The purpose of this study to examine the
relationship of cash flow Ratios in predicting financial distress companies,
with industrial and consumer Product companies in Bursa Malaysia as the
sample. The study on financial distress Is critical as it can lead to bankruptcy,
which may adversely affect the economy of The country. Therefore it is worth
exploring any indicators that can identify the Possibility of financial distress
in the company.

4.(U. Lee et al., 2020)

Once the product performance and attributes are linked based on

engineering Models, profit can be obtained through a marketing model that
determines demand Based on customer decisions. A discrete choice analysis
is a statistical technique That explores customer decision-making and
measures the trade-offs for product Attributes based on the choice data
observed from respondents

[Link], G. and Rideg, A. (2021)

The purpose of this paper is to interconnect the firm level competitive

performance (competitiveness) to the financial performance of the firms. The
goal is to give Evidence on how successful small- and medium-sized
enterprises (SMEs) use their Financial performance to support their
competitive performance.

6.Günay, F. & Ecer, F. (2020)

The cash flow of a company is a key element for the firm value. The firm
value of a Company is depending largely on the ability to generate cash
flows. In other words, a Company’s firm value is calculated by using cash
flows. Financial performance Analysis helps companies in effective decision-
making, planning, and auditing Functions. Traditional ratio analysis uses the
statement of financial position (balance Sheet) and the profit and loss
statement (income statement) to measure financial Performance.

[Link] Aba , Ayodeji Ladeinde and Emmanuel Afimia (2019)

The outcome of the assessment conducted by Evans et al. [2] on the

available Renewable technologies was considered in selecting the
combination of RETs to be Included in the HRES. Thus, solar photovoltaic (PV)
and wind technologies have Been selected for inclusion in the HRES. These
two types of RETs were selected Because, as posited by Evans et al. [2], wind
is the most sustainable RET, while PV Is the third most sustainable RET in the
world.

[Link], M. and Jarboui, A. (2017), “CSR, agency costs and

investment-cash flow

Sensitivity:
a mediated moderation analysis”

The purpose of this paper is to document the relation between investment-

cash flow Sensitivity and a firm’s engagement in corporate social
responsibility (CSR) activities In European context. Specifically, this paper
aims to empirically examine how CSR Moderates the sensitivity between
investment spending and firm internal funds.

[Link]. (2021)

At any point in time, a firm can be viewed as a collection of capital coming

from Various sources: from investors, creditors, as well as income received as
a result of The firm’s activities. These funds are used for various purposes:
the acquisition of Fixed assets, the creation of inventories, the formation of
receivables, and others. The article discusses theoretical approaches to the
analysis of cash flow, compares The formation of indicators by direct and
indirect method, examines the directions of Cash flow, and explains the
essence of cash flows and methods of their assessment.

10. Jan-Pieter Oosterom, Charles A.S. Hall 2022

Energy companies, like companies more generally, routinely have to make

Investment decisions by comparing alternative investment projects. In the
face of the Uncertainty of the current energy transition, traditional economic
tools, such As discounted cash flow (DCF) analysis, that depend on long term
cash forecasting, Offer limited, deterministic and potentially misleading
insights. Additionally there are many pressures on companies to expand
decision making Criteria to “ESG” (Environmental, Social and Governance)
considerations. But these Are often qualitative with no clear standards,
leaving investors often forced to make Significant investments based on
poorly understood, at times misleading and even Self-defeating
considerations. We explore the application of Biophysical Economics (BPE),
an approach to Economics based on the natural sciences, as an alternative to
provide an additional Lens that cuts through the uncertainty and political
pressures to help companies Navigate this uncertainty and make more
robust long term investment decisions. The Most immediately useful tool
within BPE is the concept of Energy Return on Energy Invested (EROI).

11.S Ogbeide, B Akanji – Revista de Management Comparat

International, 2017

The study uses both descriptive and inferential statistics to determine the
Relationship among the variables. It also employs the series of diagnostic
tests to Ensure stability of the time series used as well as to ensure the
model meets the Assumption of ordinary list square . The findings reveal that
cash flow was observed To determine insurance firms’ financial performance
and is statistically significant. Cash flow from operating activities was
observed to significantly increase financial Performance of insurance
companies in the period examined. Cash flow from Financing activities was
found to increase the financial performance of the sampled Insurance firms,
but was not statistically significant. The size of the insurance Company did
not increase the financial performance of the insurance firms and was Also
not statistically significant. The paper recommends that managers in
insurance firm should regularly change The extent at which cash is spent to
avoid negative cash flow position as well asfinancial crisis. Adequate
investment appraisal is really a concern that insurance Firms need to take
into consideration when customers are taking up insurance Coverage. The
costs have to be weighed against the benefits accruable thereto.

12. G Vayas-Ortega, C Soguero-Ruiz, JL Rojo-Álvares, 2020

The Discounted Cash Flow (DCF) method is probably the most extended
approach Used in company valuation, its main drawbacks being probably the
known extreme Sensitivity to key variables such as Weighted Average Cost of
Capital (WACC) and Free Cash Flow (FCF) estimations not unquestionably
obtained. In this paper we propose an unbiased and systematic DCF method
which allows us To value private equity by leveraging on stock markets
evidences, based on a Twofold approach: First, the use of the inverse method
assesses the existence of a Coherent WACC that positively compares with
market observations; second, Different FCF forecasting methods are
benchmarked and shown to correspond with Actual valuations. We use
financial historical data including 42 companies in five sectors, extracted
From Eikon-Reuters. Our results show that WACC and FCF forecasting are not
Coherent with market expectations along time, with sectors, or with market
regions, When only historical and endogenous variables are taken into
account. The best estimates are found when exogenous variables,
operational normalization Of input space, and data-driven linear techniques
are considered (Root Mean Square Error of 6.51). Our method suggests that
FCFs and their positive alignment With Market Capitalization and the
subordinate enterprise value are the most Influencing variables. The fine-
tuning of the methods presented here, along with an Exhaustive analysis
using nonlinear machine-learning techniques, are developed And discussed
in the companion paper.
13. K Singh, M Misra – Agricultural economics–Czech, 2019

A significant number of studies have been conducted on the determinants of

cash Holding levels for different corporates. However, no such study has
been witnessed So far on the agricultural enterprises. In this study, we
examine the determinants of The cash-holding levels for the Indian agrarian
enterprises during 1995–2016 period. With the help of weighted least-
squares (WLS) regression analysis, we find Evidence that the Indian agro-
enterprises with greater lucrative opportunities tend to Hold less cash. On
the other side, we found that large agro-enterprises tend to hold some other
Mode of liquid assets rather than cash. The firms with higher capital
expenditure and Distributing profits as a dividend were shown to hold more
cash. In our analysis, we Find supportive evidence of the static trade-off
theory of cash holding. In general, Transaction motives and precautionary
motives also play an important role in Explaining the determinants of cash
holding levels for Indian agrarian enterprises.

14.V Mohagheghi, SM Mousavi, B Vahdani – Neural Computing 2017

Reliable knowledge of project cash flow is essential for effective project

Management. Since the nature of project is uncertain and easily effected by
different Criteria, considering uncertainty has become a vital part of any
effective project Management approach. Cash, as one of the most important
project resources, Requires reliable management techniques. In this paper, a
new interval type-2 fuzzy project cash flow analysis model based on Interval
type-2 fuzzy project scheduling is proposed to predict project cash flow in
Different periods of project life cycle. Despite using type-2 fuzzy sets in
various Practical problems, they are new to project management; thus, they
are used in this Paper to address the uncertainty and lack of sufficient
knowledge in project activity Durations and costs. In the first part, interval
type-2 fuzzy project scheduling model is introduced, and Then the forward
and the backward passes are defined. In order to improve this part, A new
flexible and controllable method of interval type-2 fuzzy ranking is
introduced. In the second part, a model of cash flow assessment is proposed
under an interval Type-2 fuzzy environment.

15. A Nosov, O Tagirova – Scientific Papers 2021

In financial management a special attention has to be paid on the main

financial Indicators among which cash flow is very important as it is closely
related to Efficiency of the company. In any sector of activity, but especially
in the agricultural Companies, the success in their development depends,
first of all, on how efficiently Its cash flows are organized . Cash flow
management is a tool that helps to achieve a high level of enterprise profit .
Assessment and forecasting of cash flows allow management to control the
Synchronization of income and expenditures of funds, thereby maintaining
theAmount of funds required to fulfill payment obligations .In addition, this
allows a more realistic assessment of the payment capabilities of The
enterprise, making such a choice of funding sources and purposes of use
that Will create an optimal cash flow scheme that can lead to growth of
economic value And long-term viability of the enterprise . The purpose of this
study is to propose Practical recommendations for improving the
management of cash flows in an Agricultural organization.

16. A Litvinenko, J Alver – Accounting and Management Information

2023

Credit risk modelling becomes an important part of the daily operations to

assess a Borrower’s solvency and liquidity, especially with the increase in the
number of Applications to obtain business financing (European Central Bank,
2021). However, The researchers and business practitioners question the
validity and completeness of The analysis obtained from credit risk modelling
based on traditional financial Statements, such as income statements and
balance sheets (Jury, 2012). To acquire certain benefits (i.e. additional
funding) managers may internally manipulate the Information in traditional
accrual-based financial statements. The researches show plenty of evidence
that accounting professionals within the Companies intentionally manipulate
the financial records and reports to meet a Specific target (Bhasin, 2016). On
the other hand, when financial institutions make Decisions to grant a loan, it
is essential for them to determine the exact numerical Value of risk
exposure. Having clear credit risk estimations is not only important to
improve decision-making And its possible financial consequences, but it is
also a legal requirement to the Financial institutions set by the controlling
institutions (European Bank Authority, 2021). For investors, it is crucial to
have a clear analysis of the financial state of their Potential investment,
especially foreign direct investment.

17.Y Yannizar, W Wazirman International Research 2020

The phenomenon of the “megadolar” case that occurred in Enron

Corporation and The profits stated over stated at PT. Kimia Farma caused by
earnings management. Earning management results in reporting on financial
statements asymmetry with The actual situation. This can bring huge losses
to shareholders because financial Statements are the main basis for
shareholders in conducting business transactions. Utami (2005) in his
research stated that Indonesia is the country with the most rice Earning
management. Thus, it is important for investors and shareholders in
Indonesia to look at things that can trigger earnings management and what
can Prevent earnings management. In this study the researchers tested the
effect of Good corporate governance, free cash flow, and leverage on wealth
earning Management and shareholders. The researcher examines the effect
of good corporate governance as a variable that Can prevent earnings
management and test free cash flow and leverage as triggers For earnings
management. In this study using a sample of 178 service sector Companies
taken through the Yamane method with a sampling method namely
Purposive sampling in the 2016-2018 period. Data analysis and hypothesis
testing in This study using the Partial Least Square Path Modeling (PLS-SEM)
method. The results showed that good corporate governance proved to have
a significant Negative effect on earnings management while shareholders in
wealth had a Significant positive influence. Free cash flow proved to be
insignificant to earning Management while shareholder wealth had a
significant positive effect. The leverage Variable proved to have a significant
negative relationship to earnings management As well as wealth
shareholders.

18. EAG Adjei, FD Fugar, E Adinyira, DJ Edwards, EA Pärn – 2018

This paper identifies and explore significant quantifiable cash flow factors
influencing Building projects profitability in Ghana. A thorough literature was
undertaken to unravel the quantifiable cash flow factors which facilitated
design of questionnaire. A Survey with prime focus on large firms registered
with the Association of Building And Civil Engineering Contractors, Ghana
was undertaken. A total of 50 Questionnaires were received from 63
administered representing 79.36% response Rate with a Cronbach Alpha
value of 0.895 and Kappa value of 0.743 respectively Were attained. One-
sample t-test was performed on the rated responses to establish 12
significant Factors. Principal component analysis was subsequently employed
to reduce factors To the most significant components. Prominent variables
selected from rotated and Component score matrixes were: wages of labour
and staff; progress payment Duration; bank interest rate; and replacement of
defective works as significant Variables. This study was limited to
quantifiable cash flow factors and large construction firms Hence,
recommended further study with focus on qualitative factors, procurement
Types, broader scope of construction firms and other developing countries.
The Outcome of this is to aid construction managers effectively manage the
significant Cash flow factors to maximize profit.

19. J Natolski, R Werner – Risks, 2017

The replicating portfolio approach is a well-established approach carried out

by Many life insurance companies within their Solvency II framework for the
Computation of risk capital. In this note, we elaborate on one specific
formulation of a Replicating portfolio problem. In contrast to the two most
popular replication Approaches, it does not yield an analytic solution (if, at
all, a solution exists and is Unique). Further, although convex, the objective
function seems to be non-smooth, And hence a numerical solution might
thus be much more demanding than for the Two most popular formulations.
Especially for the second reason, this formulation did not (yet) receive much
Attention in practical applications, in contrast to the other two formulations.
In the Following, we will demonstrate that the (potential) non-smoothness
can be avoided Due to an equivalent reformulation as a linear second order
cone program (SOCP). This allows for a numerical solution by efficient second
order methods like interior Point methods or similar. We also show that—
under weak assumptions—existence and uniqueness of the Optimal solution
can be guaranteed. We additionally prove that—under a further Similarly
weak condition—the fair value of the replicating portfolio equals the fair
Value of liabilities. Based on these insights, we argue that this unloved
stepmother Child within the replication problem family indeed represents an
equally good Formulation for practical purposes.

2.2 Theoretical background and review

Cash Flows Statement

The statement of cash flows, also known as a cash flows statement, is one of
the Financial documents that provides a clear picture of how changes to the
balance Sheet account and gains affect cash and cash equals. The statement
will divide the Analysis into three main categories: operating, investing, and
financing activities. This claim is made in reference to or concerned with the
movement of money within And outside of the company. The statement will
include the current operating results As well as any changes to the balance
sheet. The statement is highly helpful in Determining the company’s short-
term viability and, peculiarly, its ability to pay. Persons and units who are
curious about cash flows statement are:

1. Latent borrowers or creditors are those who are interested in learning

About a company’s ability to pay back its obligations.
2. The reporting staff is responsible for examining the company’s
capacity To manage its paysheet and any other related
disbursement.
3. Bridge players or prospective employees are the ones who are most
Interested in learning whether a company can pay commissions on
Schedule.
4. Prospective investors are those who carefully consider whether a
Company is financially sound or not.
5. Stakeholders or stockholders of the firm

Previously known as a flows of funds statement, a statement is now known

as a Cash flows statement. This assertion reflects the firm’s liquidity position
in its purest Form. The cash flows statement can be seen of as a clear
representation of the Types of financial innovation that an induces at a
particular point in time, whereas the Financial gains statement elaborates a
firm’s financial transactions over a Predetermined period of time. The
accumulative basis of accounting, which is Employed in a company to equate
the item that creates the income to the total Income, is indicated by cash
flow statements and the income argument.

Cash flows statements take into account the inflow and outflow of the value
of cash And cash equals, and they will exclude any transactions that do not
immediately Affect the amount received and all of the payments made. A
cash ground examination of three 18 types of activity (operation, financial,
and investment), as Well as non-cash activity, is what a cash flows statement
is.
Cash Flows Activity:

Cash flows statement is mainly divided into three main activities

1. Cash flows resulting from the operating activity.

2. Cash flows resulting from the investing activity.

3. Cash flows resulting from the financing activity.

Operating Activity:

This comprises displaying, marketing, and transferring the company’s

products, as Well as collecting customer money. Transporting the product,
purchasing raw Materials, creating an inventory, and publicity are all part of
the operating activity.

Under International Accounting Standard operating activity of cash flow

Statement having the following items:

1. Interest which is accepted on loan.

2. Paid to workers or paid on lieu of workers.

3. Received for the purpose of selling of loan, debt or equity instruments

in a trade Listings.

4. Purchasing of goods.

5. Paid to the distributors of goods and services.

6. Payments of interest.
Items which are added back to the net income figure to arrive at cash flows
from

Operating activities basically includes the following items:

1. Depreciation.

2. Postponed tax.

3. Amortization.

4. Any profit or loss connected with the selling of a non-current assets

related cash Flow does not belong to an operative segment.

5. Dividend accepted.

Investing Activities:

Examples for the investing activity are:

1. Payment made for the purpose of merger and acquisition.

2. Loans made to providers or took from the clients.

3. Buying or selling of an asset.

Financing Activity:

The capital that businesses raise for their transactions and external
expansion Constitute all financing activity. This activity excludes financing for
the company’s Internal operations. The parties who are eager in learning
how the firm is spending Its current cash effectively and how successfully a
firm can raise funds for its Impending proceedings are all investors and the
firms’ creditors. The financing Activities part of the cash flows statement
helps accurately determine the firm’s Liquidity.

Financing activities includes following items:

1. Nett borrowing.

2. Repayment of the debt principal amount including the capital leases.

3. Dividend payment.

4. Selling or repurchasing the stocks of the firm.

Preparation modes of the cash flow statement

The cash flows statement can be prepared in a direct manner, which makes
it very Simple to interpret. However, Financial Accounting Standards 95
requires a Subsidiary statement to indirect mode if a firm chooses to
construct cash flow Statement in this manner, despite the fact that indirect
mode will be widely utilised Throughout the world.

Direct Mode

Major classes of gross cash receipts and payments are reported using the
direct Approach for constructing a cash flow statement. Dividends may be
recorded under Operating activities or investing activities under IAS 7. The
taxes paid are recorded under operating activities if they are directly related
to Such operations. Taxes that are aimed at financing or operating activities
are described as funding or 20 investing activities. International Financial
Reporting Standards (IFRS) are different from generally accepted accounting
principles

(GAAP).
Dividends obtained from an organization's investing activities are classified
as an

operating activity, not an investing activity, under GAAP regulations.

Sample format of the cash flow statement with the

help of direct method.

Indirect Mode
Using net gain as a starting point, the indirect mode makes improvements
for all of The carry outs from the non-cash based trading. Gain from the asset
account is Deducted from the net gain, and the increase in the susceptibility
account is added Back to the net gain. By applying a series of additions and
subtractions, an indirect Method tries to turn the accumulation basis of net
gain into cash flows.

Sample format of the cash flow statement with the

help of indirect mode.
Cash flow management needs to carry out three
important classic tasks:
1. Monitor cash position: current income and expenditure assessment.
2. Management of cash balances: cash has turned to regional areas
where a deficit Area and investment of excess cash surplus from
profit making activities.
3. Interest rate risk management practices and communication
mobility
CASH MANAGEMENT CYCLE:

Importance of Statement of cash flows:

1. An organisation can learn about the operating activities, or the net
difference between the net cash flow, through the cash flow statement.

2. Through its expanded operating activities, it assists the organisation in

arranging additional funding for the company.

3. It helps the firm to find-out if there is any requirement of financial

assistance from outside.

4. It helps to know the strength and weakness of the company.

5. It will reveal the size and sector in which the cash flow of the business with
reference to different speeds.

CHAPTER-3
RESEARCH
DESIGN
3.1 INTRODUCTION
The project is entitled as “A study on cash flow analysis at Tube Investments
India

Limited”. As this is a Company Based Finance project secondary data of the

company

that is available in the company’s website is used. The 5 Years balance sheet
of the

company is being used for this project.

3.2 RESEARCH DESIGN

The study will be descriptive type with a quantitative approach is employed
for the

analysis of the data collected.

Data sources and Sampling design:

To achieve the objective of Cash Flow analysis, data of Tube Investment India
Limited

have been gathered.

3.3 SOURCE OF DATA

Research methodological analysis applied for the purpose of studying the

theme is

mainly of two types

1. Primary

2. Secondary
PRIMARY:
1. In primary content we will use a fresh form of records which has been used
for

first time use and it indicates Germinal records of an institution.

2. In this project the primary data has been taken from the staffs of Tube
Investment

India Limited and guide of the project.

3. Information will be collected with the help of auditor of the firm.

4. Observation method was has been used for understanding various tools
used in

Logistic Management and their features

SEC0NDARY:
The secondary contents will be majorly interpreted from various web site,
publication,

Periodical, etc.

3.4 TOOLS FOR THE STUDY

The cash inflows and outflows within a given period are shown on the cash
flow Statement, which aids in determining the sources and uses of cash.

Total cash flow = Cash from Operations + Cash from investing + Cash from
Financing

3.5 PERIOD OF STUDY

The project is completed within the time span of 10-12 weeks of study and
also with the Help of employees at Tube Investments India.
 CHAPTER 4
ANALYSIS AND
INTERPRETATION
4.1 Data Analysis and Interpretation:
4.1.1 Table indicating cash flow from operating
activities to total cash Flow

INTREPRATION:
From the above table and chart it is understood that the cash flow from
operating activities of the firm is less in the year ending 31st March 2021
with 33.29%. Cash flow of 664.77 cr and total cash flow 1996.38 cr. the cash
flow from operating activities is more for the year ending 31st March 2020
cash flow is 527.72 Cr cash flow and total cash flow 9 94.67 with 53.05%.
4.1.1 Chart indicating cash flow from operating
activities to total cash Flow

Inference:
The cash flow and total cash flow from operations in high in the year 2021

4.1.2 Table indicating cash flow from investing

activities to total cash Flow
INTERPRETATION:

From the book table and chart it is understood that the cash flow from
investing activities of the firm is less in the year ending 31st March 2028 with
16.48% and Cash flow of 127.66 cr and total cash flow of 774.18 cr. the cash
flow from investing activities is more for the year ending 31st March 2020 is
1005.51 Cr cash flow and total cash flow 1996.38 with 50.36%.

4.1.2 Chart indicating cash flow from investing

activities to total cash flow
I

Inference:

The cash flow and total cash flow from investing in high in the year 2021

4.1.3 Table indicating cash flow from financial

activities to total cash flow
INTERPRETATION:

From about table and chart it is understood that the cash flow from
financial activities is less in the year ended 31st March 2022 with 6.33%.
The cash flow is 41.65 cr and total cash flow is 657.87 cr. The cash flow
from financial activities is more in the year ended 31st March 2018 with
33.28 cr the cash flow is 290.81 and total cash flow is 873.79 cr.

4.1.4 Chart indicating cash flow from financial

activities to total cash flow
 Inference:
The cash flow and total cash flow from financial activities is high in
the year 2021

4.1.5 Table indicating cash flow from operating

activities
INTERPRETATION:
From about table and chart it is understood that the cash flow from
financial activities is less in the year ended 31st March 2022 with
6.33%. The cash flow is
41.65 cr and total cash flow is 657.87 cr. The cash flow from
financial activities is more in the year ended 31st March 2018 with
33.28 cr the cash flow is 290.81 and total cash flow is 873.79 cr.

4.1.4 Chart indicating cash flow from

operating activities
 Inference:
The cash flow from operating activities is high in the year 2021 with
29%.

4.1.6 Table indicating cash flow from investing

activities
INTERPRETATION:
From the above table and chart we can say that the cash flow is
increasing from the year 2020 March 31 and 2021 March 31. But
due to covid and shut down the cash flow from investing activities
has been decreased in the year 31st March 2022.

4.1.5 Chart indicating cash flow from

investing activities
 Inference:
The cash flow from investing activities is high in the year 2021 with
57%.

4.1.7 Table indicating cash flow from financial

activities
INTERPRETATION:
From the above table, we can say that the cash flow financial
activity has been
decreased in the year 2019 from 2018 and further reduced by small
margin in 2020 and saw a drastic increase in financial activities in
the year 2021 and then there is sudden and large decrease in the
year 2022.

4.1.6 Chart indicating cash flow from

investing activities
 Inference: The cash flow from financial activities is high in
the year 2021 with 28%.

4.1.8 Table indicating alterations in net cash and

cash sales
INTERPRETATION:
From the about table and chart we can say that the net cash and
cash equals was
80.75 in the year 2018 March 31 but decrease to 22.02 in 2019
March 31. it is again increased in 2020 it has started to decline in
2021 and for the decrease to 6.23 in 2022.

4.1.7 Chart indicating alterations in net cash

and cash sales
 Inference:
The alterations in net cash and net cash sales is high in the year
2021 with 28%.

4.1.9 Table indicating alterations in opening cash

and cash equals
INTERPRETATION:

In 31st March 2018 the cash and cash equals are 14.36 2019 it's a rapid
increase to 61.18 and in 2020 it was reduced to 39.16 and reduced to further
to 21.61 in 2021. It saw an all time low of 6.97 in 2022.

4.1.8 Chart indicating alterations in opening cash

and cash equals

Inference:

The alterations in opening cash and cash equals is high in the year 2019 with
44%.

4.1.10 Table indicating alterations in closing

cash and cash equals
INTERPRETATION:

In 2018 closing cash balance is 57.08 and there is for the decline in the
value 39.16

in 2019, 21.61 in 2020 and 6.97 in 2021 and further it is reduced to 0.74
in 2022.

4.1.9 Table indicating alterations in closing cash

and cash equals
Inference:

The alterations in closing cash and cash equals is high in the year 2022
with 50%.

CHAPTER 5
SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS
5.1 Findings:

1. From the above table and chart it is understood that the cash flow from
operating

activities of the firm is less in the year ending 31st March 2021 with
33.29%. Cash flow

of 664.77 cr and total cash flow 1996.38 cr. the cash flow from operating
activities is

more for the year ending 31st March 2020 cash flow is 527.72 Cr cash
flow and total

cash flow 9 94.67 with 53.05%.

2. From the above table and chart it is understood that the cash flow from
investing

activities of the firm is less in the year ending 31st March 2028 with
16.48% and Cash

flow of 127.66 cr and total cash flow of 774.18 cr. the cash flow from
investing activities

is more for the year ending 31st March 2020 is 1005.51 Cr cash flow and
total cash flow

1996.38 with 50.36%.

3. From above table and chart it is understood that the cash flow from
financial activities

is less in the year ended 31st March 2022 with 6.33%. The cash flow is
41.65 cr and

total cash flow is 657.87 cr. The cash flow from financial activities is more
in the year

ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and total
cash flow is

873.79 cr.

4. From about table and chart it is understood that the cash flow from
financial activities
is less in the year ended 31st March 2022 with 6.33%. The cash flow is
41.65 cr and

total cash flow is 657.87 cr. The cash flow from financial activities is more
in the year

ended 31st March 2018 with 33.28 cr the cash flow is 290.81 and total
cash flow is

873.79 cr.

5. From the above table and chart we can say that the cash flow is
increasing from the

year 2020 March 31 and 2021 March 31. But due to covid and shut down
the cash flow

from investing activities has been decreased in the year 31st March 2022.

6. From above table we can say that the cash flow financial activity has
been decreased

in the year 2019 from 2018 and further reduced by small margin in 2020
and saw a

drastic increase in financial activities in the year 2021 and then there is
sudden and

large decrease in the year 2022.

7. From the about table and chart we can say that the net cash and cash
equals was

80.75 in the year 2018 Mar

8. In 31st March 2018 the cash and cash equals are 14.36 2019 it's a
rapid increase to

61.18 and in 2020 it was reduced to 39.16 and reduced to further to 21.61
in 2021. It

saw an all time low of 6.97 in 2022.

9. In 2018 closing cash balance is 57.08 and there is for the decline in the
value 39.16 in 2019, 21.61 in 2020 and 6.97 in 2021 and further it is
reduced to 0.74 in [Link] 31 but decrease to 22.02 in 2019 March 31. it
is again increased in 2020 it has started to decline in 2021 and for the
decrease to 6.23 in 2022.
5.2 Suggestions
As I found that the companies financial position is very good, but I found
some areas

during my analysis which gives a sharp alarm for the firm to have an
effective cash

management.

- In order to increase efficiency in the delivery of services and, in turn,

increase profit, I

advise the company to develop and implement an effective management

strategy.

- For the increase of profit the firm must make an alternative plans.

- The company must diverge its plan into other areas such as EV’s etc.

- The firm should make market research at an regular intervals which

could help the firm

in increasing the demand for the sales and services.

- It would be suggested to the firm to replace the fixed assets with the

new and modern

- The firm should form a research and development department to update

with the

recent trends in global competitive market.

- It is suggested to the firm to increase its fleet to give equal competition

to its

Competitors. and improved technology which helps in reducing the idle

capacity and increase the overall stability and which would help in earning

high returns.

- The firm should try to decrease its liability through payback of all the

debts which will

results in high interest payment.

- The company should implement innovative advertising strategies to

promote its sales

and enhance its reach.

- The firm should form a research and development department to update

with the

recent trends in global competitive market.

- It is suggested to the firm to increase its fleet to give equal competition

to its

competitors.

5.3 Conclusion:
The process of managing financial risk has been going on for a while. It is
necessary to develop and improve new strategies in order to transform
the market.

Changes in consumer expectations, charges in the corporate

environment, or potential

changes in the global environment can all be considered as reflections of

refinement.

In general way the following will summarize the process.

> Prioritizing and identifying the key financial risks.

> Appropriate level of risk tolerance should be determined.

> In accordance with the policy the risk management strategy should be
implemented.

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