FUND FLOW STATEMENT IS A TECHNIQUE THAT DESCRIBES FLOW OF FUNDS IN AND OUT OF THE BUSINESS WITHIN PARTICULAR ACCOUNTING YEAR.

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201-Financial MANAGEMENT
Unit No.2. Analysis of Financial
Statements
2.9 Fund Flow Statement
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Dean EDP & Associate Professor MBA
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Sanjivani College of Engineering, Kopargaon
Department of MBA
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Unit 2: Financial Management
 At the End of the Session Student will be able to
understand-
A. Fund Flow Statement

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FUND FLOW STATEMENT
A Funds Flow Statement is a financial document
that analyses a company’s Balance Sheet of two
years to validate the movement of funds from the
previous financial year to the current year.

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FUND FLOW STATEMENT
Sources of Funds Amount Application of Funds Amount
Issue of Shares -- Redemption of Shares --
Loans Obtained -- Loans Repaid --
Issue of Debentures -- Redemption of Debentures --
Deposits Made -- Deposits Withdrawn --
Funds from Operations -- Loss from Operations --
Sale of Asset/Investment -- Purchase of Asset/Investment --
Interest Received -- Interest Paid --
Dividend Received -- Dividend Paid --
Commission Received -- Commission Paid --
Rent Received -- Rent Paid --
Tax Refund Received -- Taxes Paid --
Decrease in Working Capital -- Increase in Working Capital --
TOTAL ___ TOTAL ___

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FUNDS FROM OPERATION
• 𝑭𝒖𝒏𝒅𝒔 𝒇𝒓𝒐𝒎 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏 =
[𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝑃&𝐿 𝐴𝑐 + 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑠 +
𝑃𝑟𝑜𝑝𝑜𝑠𝑒𝑑 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 + 𝑃𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 𝑓𝑜𝑟 𝑇𝑎𝑥𝑎𝑡𝑖𝑜𝑛 +
𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 + 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 +
𝐿𝑜𝑠𝑠 𝑜𝑛 𝑆𝑎𝑙𝑒 𝑜𝑓 𝐴𝑠𝑠𝑒𝑡 𝑜𝑟 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 +
𝐺𝑜𝑜𝑑𝑤𝑖𝑙𝑙 𝑜𝑟 𝑃𝑟𝑒𝑙𝑖𝑚𝑖𝑛𝑎𝑟𝑦 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠 𝑊𝑟𝑖𝑡𝑡𝑒𝑛 𝑂𝑓𝑓 +
𝐴𝑛𝑦 𝑜𝑡ℎ𝑒𝑟 𝑛𝑜𝑛 𝑐𝑎𝑠ℎ 𝑖𝑡𝑒𝑚𝑠]-[Profit on Sale of Asset
or Investment + Interest, Dividend, Commission,
Rent, Tax Refund Received+ Any other non cash
Items]

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FUNDS FLOW STATEMENT
• 𝑵𝑶𝑻𝑬:
• While Calculating Working
Capital, Proposed Dividend and
Provision for Taxation should not
be considered as part of Current
Liability.

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EXERCISE
 State and Explain Fund Flow Statement in detail?

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For More Details Contact
Dr. V M Tidake
tidkevishal@gmail.com
tidkevishalmba@sanjivani.org.in

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Thank You