ee. _PROJECT WORK sc ¢ Project Illustration 52 Spec! fon Cash Flow Statement) | Dabur India Limited for the years ended 3 , Balance Sheets of Cash Flow S Following a" the jred to prepare a Cash Flow tatement and ae 2018 and 2017. You are required (0 PI analyse the changes ( in Lakhs) T EQUITY AND LIABILITIES 1, Shareholders’ Funds (a) Share Capital 17,565 17,438 (0) Reserves and Surplus 1 2,21,089) —_1,77,060 2, Non-Current Liabilities Long-term Provisions 4,279 4,014 3, Current Liabilities (a) Short-ern Borrowings 12,913 4429 (b) Trade Payables 95,623 94,202 (6) Other Current Liabilities 17,022 14,730 (@) Short-term Provisions (Provision for Tax) 345 287 TOTAL 3,68,836| 3,12,180 Tl ASSETS 1, Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets : (@ Property, Plant and Equipment 67,46 (i) Intangible Assets ee oe (6) Non-current Investments 1 40,700 ’ (©) Long-term Loans and Advances et ey (4) Other Non-current Assets 1230 1,485 2. Current Assets 200 =, (a) Current Investments (6) Inventories 37,117) 56,367 (c) Trade Receivables | 55,820 (d) Cash and Bank Balance 32,312 (© Other Current Assets 29,147 13,936, TOTAL tee 312,180, ———56,350 | 39,294 1,64,739 1,37,766 2,21,089| —1,77,060 Contingent Liability : 31.3.2018 (2) 31.3.2017(%) ” proposed Dividend 19,959 pies (@ in Lakhs) 2, Depreciation on Property, Plant and Equipment 6,219 ‘Amortisation of Intangible Assets 378 97, 4, Other Income includes Interest received on fixed deposits 10,759 Lakhs. 44, Loss on Sale of Property, Plant and Equipment is €78 Lakhs. 5, Gain on Sale of Property, Plant and Equipment is 52 Lakhs. 6, Other Expenses include interest payment on Long-term Borrowings 7514 Lakhs. 7, Sale of Property, Plant and Equipment during the year is €1,493 Lakhs. SOLUTION : —— eT Preparation and Analysis of Cash Flow Statement of Dabur India Limited 1, Name of Project Preparation and Analysis of Cash Flow Statement of Dabur India Ltd. Objectives : To provide information regarding sources and uses of cash from different activities. To highlight the net change in the position of Cash and Cash Equivalents. 3. Period under study Financial year ended March 31, 2018 and March 31, 2017 4. Tools of Analysis Cash Flow Statement 5. Source of Material From Dabur India Ltd. official websiteLeen Ope! ‘A. Cash ae ‘Tax an ow A M H FLOW STATEME! * ep car ended 31st March, 2018 for the ) rating Activities Amortisation of | pees, 0 a wisions (4,279 - 4 : acer Property, Plant and Equipment Finance Cost (Interest on -cast/Non-operating Income ; im hs ‘on Sale of Property, Plant and Equipment Interest received on fixed deposits Operating Profit before Working Capital Changes ‘Add: Increase in Current Liabilities and Decrease in Current Assets : Trade Payables Other Current Liabilities Inventories Less: Decrease in Current Liabilities and Increase in Current Assets ‘Trade Receivables Other Current Assets Cash Generated from Operations 4ess : Net Income Tax (paid) Cash Flow from Operating Activities Cash Flow from Investing Activities BE of Property, Plant and Equipment (Note 2) ‘urchase of Intangible Assets (Note 3) Sale of Property, Plant and Equipment Purchase of Non Current Investments Increase in other Non-current assets Decrease in Long-term loans and advance: Inlerest received on fixed depositg : Cash Used in Investing Activities ©. Cash Flow from Financing Activities in Short-term Borrowings ment of Dividend d from Share Capital Cost (interest on Long-term Borrowings) id Extra-ordinary Items (Note 1) Long-term Borrowings) 1,401 2,292 760 1,567 4,846 (9,304) (1,248) 1,493 | (85,225) (200)| 255 | 10,759 | 8484 (23,755) 127 4) 4453 69,225 6413 62812 281 62,525 wa ToG Pl To Bees work mT ~ sed in Financing Activities | 15,658) in Cash and Cash Equivalents (A + B +C) G Deere a Cash Fquivalent inthe bepining Pee ai ofthe year (Note 4) 86,114 and Cast Equivalents at the end of the year | on. ping Notes # ayeiation of Net profit Before Tax r (Clee Loss Balance on 31st March, 2018 inn prot profit & Loss Balance on 31st March, 2017 137.766 26,973 ‘Add: ‘Transfer to General Reserve (%56,350 — %39,294) 17,056 Provision for Tax 345 Proposed Dividend for 2017 23,755 68,129 PROPERTY, PLANT AND EQUIPMENT Cr. Powe tS Particulars z 65,899 | By Loss on Sale of Property, Plant and Equipment | 8 52| By Bank A/c | 9,304) (Sale of Property, Plant and Equipment) | 1,493 By Depreciation A/c | 6219 By Balance c/d | 67,465 75,255 | 75,55 |GIBLE ASSETS ACCOUNT f Cr. ee eae tance bid 1,139 | By Amortisation A/e | 378 ‘Alc (Balancing Figure) 1,248) By Balance o/d 2,009 31st March, 2018 9 1at March 2017 12,394 oa 37,117 56,367 B6,114 49,5112 : a ro can | | Net Cash used in Investing Acthties (20,000) (40,000) (60,000) (80,000) (200,000) equivalents Comments : 1. Cash generated from Operating Activities is £62,525 lakhs which indicates that Dabur India Limited is running its operations efficiently. 2. Increase in trade receivables from %32,312 lakhs to €33,879 lakhs is que normal because of increase in operating activities. 3. Cash used in Investing Activities is €83,470 lakhs. Since no Cash has ne generated from financing activities, amount used in investing a been utilized from Cash generated trom Operating. activities ia opening balance of Cash and Cash equivalents, It is not a prudent po because Property, Plant and Equipment should have been purc ‘Long-term sources generated from financing activities. Compan; issue of y should immediately raise long-term funds either bY iS by Long Term Debts otherwise it may have to face liquidity P