A STUDY ON CASH FLOW ANALYSIS AT SRI LAKSHMI SARASWATHI TEXTILES ARANI

Abstract

Purpose: The main objective of the study is to present information regarding inflow and outflow of cash. To show the operating, financing and investing activities on cash resources. To know how to manage receivable, inventory and cash. To offer ideas and recommendations in light of the data analysis.

Research Methodology: Descriptive method is used for this study.

Data Collection: Using balance sheet of SLST Arani for the period of three years.

Findings: The investing activities are growing higher level in this year 2020-2021 and having lot of income to the next financial year. As comparing to last year financial result here the investing activities are decreased to lower level and the operating activities are increased in the financing year 2021-2022. As comparing to last year financial result here the operating activities are decreased to lower level and the investing activities are increased in the financial year 2022-2023.

Suggestions: It is my recommendation that the company create and adhere to an efficient management policy that will boost service process efficiency and, in turn, increase profit. The company needs to come up with new ideas in order to increase profit. Regular market research could also assist the company generate demand for its products and services.

Conclusion: The study clearly shows by analyzing company's Three years Financial Statements, the Cash Flow Statement is prepared for the three years I.e. 2020-2021, 2021-2022, 2022-2023. By analyzing the Cash Flow Statements we can say that the company has maintaining good cash and cash equivalents expected in the financial position of the firm is good.