A BRIEF STUDY ON CASH FLOW STATEMENT IN
ANDHRA PRADESH HEAVY MACHINARY AND ENGINEERING LIMITED

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INTRODUCTION
Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. Though it was a branch of economics till 1890, as a separate activity or discipline it is of recent origin. Still, it has no unique body of knowledge of its own, and draws heavily on economics for this theoretical concept even today.
The subject of financial management is of immense interest to both academicians and practicing managers. It is of great interest to academician’s most crucial decision of the firm are those which related to finance, and an understanding of the theory of financial management provides them with conceptual and analytical insights to make decision skillfully.
Planning is the basic managerial function. It helps in determining the course of action to be followed for achieving organizational goals. It is decision in advance, what to do, when to do, how to do and who will do a particular task? Plans are framed to achieve better results. Control is the process of checking whether the plans are being adhered to or not, keeping a record of progress, comparing it with the plans and then taking corrective measures for future if there is any deviation. Every business enterprise needs the use of control techniques for surviving in the highly competitive and changing economics world. There are various control devices in use. Budgets are the most important tool of profit planning and control. They also act as an instrument of co-ordination.
This chapter presents a general view of budgeting, its meaning, objectives, essentials, advantages, limitation, classifications and preparation of budgets. An attempt has also been made to explain the concepts of performance budgeting and zero base budgeting.
To make wise decision a clear understanding of the objectives which are sought to be achieved is necessary. The objective provides framework for optimum financial decision making. In other words, they are concerned with designing method of operating the internal investment and financing of a firm. The term ‘objective’ is used in the sense of a goal or decision criterion for the three decision involved in financial management. It implies that what is relevant is not the overall objective or goal of a business but a operationally useful criterion by which to judge a specific set of mutually interrelated business decision, namely, investment, financing and dividend policy.
Scope of the study
The scope of the present study is rather limited. The present study covers the areas like budgeting and budgetary control system and it will not covers the areas like standard costing and marginal costing and marginal costing etc.

Significance of the study
This scope is confined to funds flow and cash flow analysis of A.P.H.M.E.L
The statement of changes in financial position is a statement of flows i.e., it measures the changes that have taken place in the financial position of a firm between two balance sheet dates. It summaries the sources from which funds have been obtained and the use to which they have been applied as a statement of sources and the uses of funds drawing on the information contained in the basic financial statement. It shows the sources of funds and application of funds during the period. The changes in financial position related to several different concepts of funds. The two most common usages of the term funds are cash and working capital viewed in this sense, the A.P.H.M.E.L would explain the changes in cash or working capital. Accordingly, we have two statements i.e., statement of changes in cash (popularly called cash flow statements) and statement of changes in working capital (popularly known as an application and uses statements of funds flow statement).
The presentation and use of the statement of changes in financial position involving:
1. Changes in the firms working capital positions.
2. Changes in the firms cash positions.
3. Changes in the firms total financial resources.


Need for the study
• In a developing country like India the demand for rice-bran oil is growing substantially.
• When compared to previous census, the turnover of this industry has grown substantially as its product is being in by different industries has their raw materials.
• The uses grew rapidly at a faster rate
• This industry is experiencing a high growth rate.
• The basic purpose of this study is to find out how far the management has been alert to the use and operations of financial analysis and how effectively and imaginatively they have been making use of modern tools and techniques of financial and what has been the impact of such effort on the profitability of the concern.

Objectives of the study
The following objectives have been formulated to make in the study
1. To access the working capital position of the company.
2. To identify sources and uses of the funds of the company.
3. To examine the sources and applications of the funds through cash basis.
4. To offer suggestions if any for improvement of financial position of the above said organization.
5. To evaluate the reasons for changes in the working capital of the company.