Page 71 - Corporate Finance PDF Final new link

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BRILLIANT’S Fund Flow Statement 71

2. Long-term borrowing (debentures or loans) Inflow Increases
bm°ÝJ-Q>‘© ~mamoB§J ({S>~|Mg© ¶m bmoZ) BZâbmo ~‹T>Vm h¡&
3. Sale of Fixed assets (Plant and machinery, equipment etc.) Inflow Increases
{’$³ñS> AgoQ²>g H$m gob (ßbm§Q> VWm ‘erZar, B{³dn‘|Q> Am{X) BZâbmo ~‹T>Vm h¡
4. Funds from Business Operations (Net profit of the firm) - -
{~OZog Am°naoe§g go ’§$S²>g (g§ñWm H$m Hw$b bm^) - -

Note: Funds from Business operations is ZmoQ>… {~OZog Am°naoe§g go ’§$S²>g H$mo Bgr àíZ ‘|
explained later in same question. ~mX ‘| g‘Pm¶m J¶m h¡&
(b) Use of funds/ Application of Funds : (b) ’§$S²>g Ho$ Cn¶moJ/AZwà¶moJ: ’§$S²>g H$mo H$B©
Funds may be applied by the firm in a number joÌm| ‘| g§ñWm Ûmam n«¶w³V {H$¶m Om gH$Vm h¡& ’§$S²>g Ho$
of areas. Some of the more common uses of Hw$N> gm‘mݶ Cn¶moJ h¢…
funds are:
1. Payment of Dividend; 1. {S>{dS>|S> H$m ^wJVmZ;
2. Purchase of Fixed Assets; 2. {’$³ñS> AgoQ²>g H$m H«$¶;
3. Redemption of Debentures; 3. {S>~|Mg© H$m [aS>råneZ;
4. Repayment of liabilities etc. 4. bm¶{~{bQ>rO H$m nwZ^w©JVmZ Am{X&

Format of Funds Flow Statement ’§$S²>g âbmo ñQ>oQ>‘|Q> H$m àmê$n
A funds flow statement can be prepared EH$ ’§$S²>g âbmo ñQ>oQ>‘|Q> H$mo ñQ>oQ>‘|Q> ê$n ¶m 'T'
in statement form or "T" form is given below: ê$n ‘| V¡¶ma {H$¶m Om gH$Vm h¡ Omo ZrMo {X¶o J¶o h¢…

(A) Fund Flow Statement (Statement Form) / ’§$‹S> âbmoñQ>oQ>‘|Q> (ñQ>¢S>S>© ê$n)
Particulars Amount

({ddaU) (am{e)
(`)
A. Sources of Funds (’§$S²>g Ho$ òmoV):

(i) Funds from Business Operations / {~OZog Am°naoe§g go ’§$S²>g xxx
(ii) Sale of Fixed Asset / {’$³ñS> AgoQ> H$m {dH«$¶ xxx
(iii) Issue of Shares / eo¶g© H$m Bí¶y xxx
(iv) Issue of Debentures / {S>~|Mg© H$m Bí¶y xxx

(v) Long-term borrowings / bm°ÝJ Q>‘© ~mamoB§J xxx
Total Sources / Hw$b òmoV xxx

B. Applications of Funds / ’§$S²>g Ho$ AZwà¶moJ:
(i) Loss from Business Operation / {~OZog Am°naoeZ go hm{Z xxx
(ii) Payment of dividend / {S>{dS>|S> H$m ^wJVmZ xxx