CONTENTS

CHAPTER CHAPTER NAME PAGE NO.

INTRODUCTION

INTRODUCTION

NEED OF THE STUDY

I 1-7
OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

RESEARCH METHODOLOGY

LIMITATIONS OF THE STUDY

INDUSTRY PROFILE &

II 8-20
COMPANY PROFILE

DATA ANALYSIS AND

III 21-31
INTERPRETATION

FINDINGS,

CONCLUSIONS
IV 32-34
SUGGESTIONS &

BIBLIOGRAPHY 35
 CHAPTER-I

INTRODUCTION
 INTRODUCTION

In financial accounting, a cash flow statement, also known as statement of cash

flows, is a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents, and breaks the analysis down to operating,
investing and financing activities. Essentially, the cash flow statement is concerned
with the flow of cash in and out of the business.

The statement captures both the current operating results and the accompanying
changes in the balance sheet.[1] As an analytical tool, the statement of cash flows is
useful in determining the short-term viability of a company, particularly its ability to
pay bills. International Accounting Standard 7 (IAS 7), is the International
Accounting Standard that deals with cash flow statements.

People and groups interested in cash flow statements include:

 Accounting personnel, who need to know whether the organization will be able to
cover payroll and other immediate expenses

 Potential lenders or creditors, who want a clear picture of a company's ability to

repay

 Potential investors, who need to judge whether the company is financially sound

 Potential employees or contractors, who need to know whether the company will
be able to afford compensation

 Shareholders of the business.

An analysis of cash flow of a concern during a specified period presented in

the form of a statement is known as flow analysis. Thus cash flow statement can be
for the part or can be a projection for the future. The cash flow of the concern in the
near future. Say for a period of six months or one year.

1
 It can be prepared based on the past trends and expectations of the concern
regarding factors that would affect its cash receipts and cash payment. Such an
estimate of future cash flows is better termed 'cash budget', Cash flow statement
generally refers to the statement showing the receipts (inflows) and payments
(outflows) of cash during the period covered by two consecutive balance sheets.

George Phillipatos is of the view that, in its generic sense, a cash flow is the
receipts and the payment of amount of money and that it implies more than our
accrual or a financial obligation, observes that a cash flow is frequently and
erroneously assumed to include only current operations.

Cash flow analysis enables the management to plan and coordinate the
financial operations of the enterprises, and furnish the basis for evaluating financing
polices. It provides a barometer for the ensuring the profitability of the business and
makes financing problems of the business much more manageable.

Definition

“The financial statements provide a summary of the accounts of a business

enterprise, the balance sheet reflecting the assets, liabilities and capital as on a certain
date and the income statement showing the results of operation during a certain
period”.

- John.N.Myer

2
NEED OF THE STUDY

The concept of cash flow can be defined in different manners. Some people
feel that it is fit to define cash flow as an income through sales or a revenue through
any economic activity or any expenditure for the organization. Cash flow is any kind
of income or expenditure, that affects the cash accounts. It must be noted that inward
cash flow does not include many incomes such as a credit sale of goods or income due
but not received. A cash flow must be strictly, financially liquid cash or finances that
can be stored in a bank account or in the form of currency. Any financial statement,
that shows an inward or outward flow of cash is a proof of cash flow. It must be noted
that profits, due payments, and other factors related to credit are not included under
the domain of cash flow.

3
OBJECTIVES OF THE STUDY

1. Helpful in efficient cash management: It is very helpful in understanding the

cash position of a firm. Since cash is the basis flow statement is very useful in
evaluating the current cash position.

2. Planning of programmers: The repayment of loans, replacement of assets

and other such programmers can be planned on its basis.

3. Helpful in short-term financial decision: The cash flow statement is helpful

in making short-term financial decision relating to liquidity, and the ways and
ways and means position of the firm.

4. Useful as a control: IT helps the management to understand the past behavior

of the cash cycle. And to control the uses of cash in future. A comparison of
the projected cash flow statement helps the management in appraising the
inflows and out flows of cash according to the plan and taking the necessary
remedial measures.

5. Helpful in efficient cash management: It is very helpful in understanding the

cash position of a firm. Since cash is the basis flow statement is very useful in
evaluating the current cash position.

6. Planning of programmers: The repayment of loans, replacement of assets

and other such programmers can be planned on its basis.

7. Helpful in short-term financial decision: The cash flow statement is helpful

in making short-term financial decision relating to liquidity, and the ways and
ways and means position of the firm.

8. Useful as a control: IT helps the management to understand the past behavior

of the cash cycle. And to control the uses of cash in future. A comparison of
the projected cash flow statement helps the management in appraising the
inflows and out flows of cash according to the plan and taking the necessary
remedial measures.

4
SCOPE OF THE STUDY

 Income Assurance: The biggest importance of cash flow is that the business
organization tends to have an assured income irrespective of the outside
economic condition. Many business corporations have a very well-balanced
and uniform inward and outward cash flow.

 Ensures Timely Payment: The uniform and assured cash flow, in both the
directions, ensures two principal payments, namely, the salaries of employees
are paid on time and installments of all loans are made on time. This
safeguards the trust of employees and upholds the credit rating.

 Return Ratio: The analysis of cash flow ensures that the business is not
investing finances in the wrong avenues, and investments already made are
paying off well. This ratio is often termed as return over asset ratio.

 Keeps You Out of Debt: The timely cash inflow plays a very instrumental
role in keeping you out of debt, as a timely inflow of cash prevents you from
taking small loans.

 Saves Unnecessary Expenditure: The use of inward and outward cash flow,
prevents all unnecessary expenditure such as piled up interest, late payment
charges, etc.

 Timely Investments: As the inflow and outflow of cash is on time, you are
left with adequate free and liquid finances, which you may invest in time-
bound instruments and securities.

5
RESEARCH METHODOLOGY

Cash flow statement may provide considerable information about what is really
happening in a business beyond that contained in either the income statement or the
balance sheet. Analyzing this statement should not present an intimidating task;
instead it will quickly become obvious that the benefits of understanding the sources
and uses of a company’s cash far outweigh the costs of undertaking some very
straightforward analyses.

Critics point out that the term cash-flow, meaning net profit inclusive of the
provision for depreciation and similar non-cash transactions, is a misnomer since it
implies that because of the write-back of expense items like depreciation which do not
currently use cash, additional cash has flown into the business when nothing of the
sort has really happened. All that has been achieved by adding back to the net profit
the provision for depreciation and other non-cash transactions is to put on a cash basis
the annual accounts originally written on the accrual basis.

The data for present study is collected from two sources. They are

1. Primary data and:

2. Secondary data

Primary data:

Data observed or collected directly from first-hand experience.

The primary data is collected by interacting with the finance manager and
other concerned executives at the administrative office of the company.

Secondary data

Published data and the data collected in the past or other parties are called
secondary data.

All the secondary data used for the study has been extracted from the annual
reports, manuals and other published materials of the company.

6
LIMITATIONS OF THE STUDY

Despite it’s multiple managerial uses, the CASH flow statements suffers from certain
limitations:

a) As this statement ignores non-fund items, becomes a crud device

compare to the income statement and balance sheet.
b) The statement does not reveal shifts among the items making up the
current assets and current liabilities. It does not tell weather any loss of
working capital has un duly we can the financial position. Only an
examination of the balance sheet at the end of the period will show the
under effect of the changes .therefore the CASH flow statement can’t
supplant but only supplement conventional financial statement either in
whole or in part.
c) The information used for the preparation of the CASH flow statement is
essential historical in nature though attempts are made to protect the
CASH statement for the future period.

7
 CHAPTER-II

INDUSTRY PROFILE &

COMPANY PROFILE
 HISTORY OF BANKING IN INDIA

A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while
enriching investors. Government restrictions on financial activities by banks vary over
time and location. Banks are important players in financial markets and offer services
such as investment funds and loans. In some countries such as Germany, banks have
historically owned major stakes in industrial corporations while in other countries
such as the United States banks are prohibited from owning non-financial companies.
In Japan, banks are usually the nexus of a cross-share holding entity known as the
keiretsu. In France, bancassurance is prevalent, as most banks offer insurance services
(and now real estate services) to their clients.

The level of government regulation of the banking industry varies widely, with
countries such as Iceland, having relatively light regulation of the banking sector, and
countries such as China having a wide variety of regulations but no systematic
process that can be followed typical of a communist system.

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in
Siena, Italy, which has been operating continuously since 1472.

History

Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Jewish Florentine bankers, who used to make their transactions above
a desk covered by a green tablecloth. However, there are traces of banking activity
even in ancient times, which indicates that the word 'bank' might not necessarily come
from the word 'banco'.

In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest money

8
as merely convert the foreign currency into the only legal tender in Rome—that of the
Imperial Mint.

The earliest evidence of money-changing activity is depicted on a silver drachm coin

from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–
325 BC, presented in the British Museum in London. The coin shows a banker's table
(trapeza) laden with coins, a pun on the name of the city.

In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table
and a bank.

Traditional banking activities

Banks act as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts. Banks also enable customer payments via
other payment methods such as telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current accounts, by accepting

term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend
money by making advances to customers on current accounts, by making installment
loans, and by investing in marketable debt securities and other forms of money
lending.

Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that
provide payment services such as remittance companies are not normally considered
an adequate substitute for having a bank account.

Banks borrow most funds from households and non-financial businesses, and lend
most funds to households and non-financial businesses, but non-bank lenders provide
a significant and in many cases adequate substitute for bank loans, and money market
funds, cash management trusts and other non-bank financial institutions in many cases
provide an adequate substitute to banks for lending savings to.

9
Entry regulation

Currently in most jurisdictions commercial banks are regulated by government

entities and require a special bank licence to operate.

Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order—although money lending, by itself, is generally not included in the
definition.

Unlike most other regulated industries, the regulator is typically also a participant in
the market, i.e. a government-owned (central) bank. Central banks also typically have
a monopoly on the business of issuing banknotes. However, in some countries this is
not the case. In the UK, for example, the Financial Services Authority licences banks,
and some commercial banks (such as the Bank of Scotland) issue their own banknotes
in addition to those issued by the Bank of England, the UK government's central
bank.

Definition

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the
business of banking, which is specified as:

 conducting current accounts for his customers

 paying cheques drawn on him, and
 collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that
codifies the law in relation to negotiable instruments, including cheques, and this Act
contains a statutory definition of the term banker: banker includes a body of persons,
whether incorporated or not, who carry on the business of banking' (Section 2,
Interpretation). Although this definition seems circular, it is actually functional,
because it ensures that the legal basis for bank transactions such as cheques do not
depend on how the bank is organised or regulated.

10
The business of banking is in many English common law countries not defined by
statute but by common law, the definition above. In other English common law
jurisdictions there are statutory definitions of the business of banking or banking
business. When looking at these definitions it is important to keep in mind that they
are defining the business of banking for the purposes of the legislation, and not
necessarily in general. In particular, most of the definitions are from legislation that
has the purposes of entry regulating and supervising banks rather than regulating the
actual business of banking. However, in many cases the statutory definition closely
mirrors the common law one. Examples of statutory definitions:

 "banking business" means the business of receiving money on current or

deposit account, paying and collecting cheques drawn by or paid in by
customers, the making of advances to customers, and includes such other
business as the Authority may prescribe for the purposes of this Act; (Banking
Act (Singapore), Section 2, Interpretation).

 "banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with
a period of call or notice of less than that period;
2. paying or collecting cheques drawn by or paid in by customers[6]

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct
credit, direct debit and internet banking, the cheque has lost its primacy in most
banking systems as a payment instrument. This has led legal theorists to suggest that
the cheque based definition should be broadened to include financial institutions that
conduct current accounts for customers and enable customers to pay and be paid by
third parties, even if they do not pay and collect cheques.

Accounting for bank accounts

Bank statements are accounting records produced by banks under the various
accounting standards of the world. Under GAAP and IFRS there are two kinds of
accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit

11
STATE BANK OF INDIA

The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2
June 1806. Three years later the bank received its charter and was re-designed as the
Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock
bank of British India sponsored by the Government of Bengal. The Bank of Bombay
(15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal.
These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by the felt needs
of local European commerce and were not imposed from outside in an arbitrary
manner to modernise India's economy. Their evolution was, however, shaped by ideas
culled from similar developments in Europe and England, and was influenced by
changes occurring in the structure of both the local trading environment and those in
the relations of the Indian economy to the economy of Europe and the global
economic framework.

12
Bank of Bengal H.O.

BOARD OF DIRECTOR OF SBI

Sr. Name of Director Sec. of SBI Act,

No 1955

Shri O.P. Bhatt

1. 19(a)

Chairman

Shri S.K. Bhattacharyya 19(b)

2.
MD & CC&RO

Shri R. Sridharan 19(b)

3.
MD & GE(A&S)

Dr. Ashok Jhunjhunwala

4. 19(c)

Shri Dileep C. Choksi

5. 19(c)

Shri S. Venkatachalam
6. 19(c)

Shri. D. Sundaram
7. 19(c)

Dr. Deva Nand Balodhi

8. 19(d)

Prof. Mohd. Salahuddin 19(d)

9.
Ansari

Dr.(Mrs.) Vasantha Bharucha

10. 19(d)

Dr. Rajiv Kumar

11. 19(d)

Shri Ashok Chawla

12. 19(e)

13
 Smt. Shyamala Gopinath
13. 19(f)

ABOUT LOGO

THE PLACE TO SHARE THE NEWS ...……

SHARE THE VIEWS ……

Togetherness is the theme of this corporate loge of SBI where the world of
banking services meet the ever changing customers needs and establishes a link that is
like a circle, it indicates complete services towards customers. The logo also denotes a
bank that it has prepared to do anything to go to any lengths, for customers.

The blue pointer represent the philosophy of the bank that is always looking
for the growth and newer, more challenging, more promising direction. The key hole
indicates safety and security.

MISSION STATEMENT:

To retain the Bank’s position as premiere Indian Financial Service Group,

with world class standards and significant global committed to excellence in
customer, shareholder and employee satisfaction and to play a leading role in
expanding and diversifying financial service sectors while containing emphasis on its
development banking rule.

VISION STATEMENT:

14
  Premier Indian Financial Service Group with prospective world-class
Standards of efficiency and professionalism and institutional values
 Retain its position in the country as pioneers in Development banking.
 Maximize the shareholders value through high-sustained earnings per Share.
 An institution with cultural mutual care and commitment, satisfying and
 Good work environment and continues learning opportunities.

VALUES

 Excellence in customer service

 Profit orientation
 Belonging commitment to Bank
 Fairness in all dealings and relations
 Risk taking and innovative
 Team playing
 Learning and renewal
 Integrity
 Transparency and Discipline in policies and systems.

Organization Structure of SBI

15
16
ASSOCIATE BANKS OF STATE BANK OF INDIA

There are six associate banks that fall under SBI, and together these six banks
constitute the State Bank Group. All use the same logo of a blue keyhole and all the
associates use the "State Bank of" name followed by the regional headquarters' name.
Originally, the then seven banks that became the associate banks belonged to princely
states until the government nationalized them between October, 1959 and May, 1960.
In tune with the first Five Year Plan, emphasizing the development of rural India, the
government integrated these banks into State Bank of India to expand its rural
outreach. There has been a proposal to merge all the associate banks into SBI to create
a "mega bank" and streamline operations. The first step along these lines occurred on
13 August 2019 when State Bank of Saurashtra merged with State Bank of India,
which reduced the number of state banks from seven to six. Furthermore on 19th June
2020 the SBI board approved the merger of its subsidiary, State Bank of Indore, with
itself. SBI holds 98.3% in the bank, and the balance 1.77% is owned by individuals,
who held the shares prior to its takeover by the government.

The acquisition of State Bank of Indore will help SBI add 470 branches to its existing
network of 11,448. Also, following the acquisition, SBI’s total assets will inch very
close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore
stood at Rs 998,119 crore as on March 2020.

GROWTH OF STATE BANK OF INDIA

State Bank of India has often acted as guarantor to the Indian Government, most
notably during Chandra Shekhar's tenure as Prime Minister of India. With 11,448
branches and a further 6500+ associate bank branches, the SBI has extensive
coverage. State Bank of India has electronically networked all of its branches under
Core Banking System (CBS). The bank has one of the largest ATM networks in the
region. More than 8500 ATMs across India. The State Bank of India has had steady
growth over its history, though it was marred by the Harshad Mehta scam in 1992. In
recent years, the bank has sought to expand its overseas operations by buying foreign
banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune
Global 500 rating and various other rankings

17
INTERNATIONAL PRESENCE OF SBI

The bank has 92 branches, agencies or offices in 32 countries. It has branches

of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and
environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and
Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and
representative offices in Bhutan and Cape Town.

SBI operates several foreign subsidiaries or affiliates. In 1990 it established an

offshore bank, State Bank of India (Mauritius). It has two subsidiaries in North
America, State Bank of India (California), and State Bank of India (Canada). In 1982,
the bank established its California subsidiary, named State Bank of India (California),
which now has eight branches - seven branches in the state of California and one in
Washington DC which was recently opened on 23rd November, 2020. The seven
branches in the state of California are located in Los Angeles, Artesia, San Jose,
Canoga Park, Fresno, San Diego and Bakersfield. The Canadian subsidiary too dates
to 1982 and has seven branches, four in the greater Toronto area, and three in British
Columbia.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-
Nigerian Merchant Bank and received permission in 2002 to commence retail
banking. It now has five branches in Nigeria.

In Nepal SBI owns 50% of Nepal SBI Bank, which has branches throughout
the country. In Moscow SBI owns 60% of Commercial Bank of India, with Canara
Bank owning the rest. In Indonesia it owns 76% of PT Bank Indo Monex.

State Bank of India already has a branch in Shanghai and plans to open one u
in Tianjin.

18
MAJOR COMPETITORS

State bank of India has been facing great rivalry and major competition with other
public sector banks and some of private commercial banks. State bank of India has
many banks as art rival. Some of its art rival.

List of major competitors of SBI

1. ICICI Bank
2. Bank of Baroda
3. Canara Bank
4. Punjab National Bank
5. Bank of India
6. Union Bank of India
7. Central Bank of India
8. HDFC Bank
9. Oriental Bank of Commerce.

Here especially some of the public sector and private sector banks are giving
hardcore competition to the state bank of India. So let us have some of the best banks
which is also mentioned above and mentioned below in detail.

Market share in deposits and advances

MARKET SHARE IN DEOPSITS
NAME OF BANK
AND ADVANCES (%)

STATE BANK OF INDIA 30.32 %

HDFC BANK 3.01 %

UCO BANK 3.05%

CENTRA BANK OF INDIA 3.45 %

UNION BANK OF INDIA 4.23 %

BANK OF BARODA 5.10 %

BANK OF INDIA 5.28 %

19
PUNJAB NATIONAL BANK 6.45 %

CANARA BANK 6.51 %

ICICI BANK 10.33 %

OTHER BANKS 22.27 %

TOTAL 100%

STATE BANK OF
MARKET SHARE INDIA
HDFC BANK

UCO BANK
23% 31%
CENTRA BANK OF
INDIA
10% UNION BANK OF
3%3% INDIA
7% 6% 5% 5% 4%3%
BANK OF BARODA

BANK OF INDIA

PUNJAB NATIONAL
BANK

20
 CHAPTER-III
DATA ANALYSIS & INTERPRETATION
 DATA ANALYSIS & INTERPRETATION

CASH FLOW STATEMENT OF THE STATE BANK OF INDIA FOR THE

YEAR ENDED 31st MARCH, 2021

PARTICULARS in Crores

A. CASH FLOW FROM OPERATING

ACTIVITIES
Profit / (Loss) Before tax (153,124,591)

Non-cash adjustment to reconcile profit before tax

to net cash flows
(+) Depreciation/ amortization 81,128,752

(+) Loss / (profit) on sale of fixed assets 10,648,880

(+) Provision for doubtful debts made/(written back) 156,366

(+) Provision for doubtful deposits and advances 8,176,764

(+) Net (gain) / loss on sale of current investments (10,871,369)

(+) Interest expense 47,053,000

(+) Interest (income) (83,663,801)

(+) Dividend (income) (16,500)

OPERATING PROFIT BEFORE WORKING

(100,512,499)
CAPITAL CHANGES
Movements in Working Capital :

(-) Increase / (decrease) in trade payables (40,211,292)

(+) Increase / (decrease) in long-term provisions 368,693

21
(+) Increase / (decrease) in short-term provisions 147,898

(-) Increase / (decrease) in Other current Liabilities (214,034,243)

(-) Increase / (decrease) in Other Long-Term

(610,041)
Liabilities
(-) Decrease / (increase) in trade receivables 178,590,556

(-) Decrease / (increase) in Other bank current account

49,417,042
balance
(-) Decrease / (increase) in long-term Loans and
20,810,678
Advances
(-) Decrease / (increase) in short-term Loans and
109,806,544
advances
(+) Decrease / (increase) in Other current assets (13,156,958)

Cash generated from / (used in) operations (9,383,622)

(+) Direct Taxes paid (net of refunds) — —

(+) Cash Flow before exceptional items (9,383,622)

(+) Exceptional Item —

NET CASH FROM / (USED IN) OPERATING

(9,383,622)
ACTIVITIES (A)
B. CASH FLOWS FROM INVESTING
ACTIVITIES
(-) Purchase of fixed assets, including CWIP and
(10,653,974)
capital advances
(+) Proceeds from sale of fixed assets 1,034,593

(-) Purchase of Mutual Fund (17,143,704,557)

(+) Proceeds from Sale of Mutual Fund 17,154,575,926

(-) Investments in bank deposits (having original

(456,767,704)
maturity of more than three months) and lien deposits

22
(+) Maturity of bank deposits (having original
258,360,238
maturity of
(+) Interest Received 83,663,801

(+) Dividends Received 16,500

NET CASH FLOW FROM / (USED IN)

(113,475,177)
INVESTING ACTIVITIES
C. CASH FLOWS FROM FINANCING
ACTIVITIES
(+) Proceeds from Short-term borrowings 803,050,000

(-) Repayment of short-term borrowingss (849,550,000)

(+) Proceeds from Issue of Preference share capital —

(-) Repayment of Inter Corporate deposits (200,000,000)

(+) Proceeds from Issue of Commercial Paper 1,944,994,418

(-) Repayment of Commercial Paper (1,657,836,580)

(-) Interest paid (47,053,000)

N ET CASH FLOW FROM / (USED IN) IN

(6,395,162)
FINANCING ACTIVITIES (C)
N ET INCREASE/(DECREASE) IN CASH AND
(129,253,960)
CASH EQUIVALENTS (A+B+C)
Cash and Cash Equivalents at the beginning of the
133,582,989
Year
Cash and Cash Equivalents at the Year ended 4,329,030

23
INTERPRETATION

 The analysis of outflows statements from operating activities by the yearend

31st Mar, 2021 conveys a message of good operating efficiency of the firm by
utilization of the scarce resources like cash efficiency by generating good
profits and also the increasing in net cash used in operating activities i.e.
(9,383,622) where inflows are more than outflows i.e. surplus.

 By the analysis of investment activities the income from investments are good,
realization of loans given and interest received on loans is also good which
was good sign of portfolio management and also recovery management of the
organization.

 By the analysis of outflow from investment activities consecutively since three

years of study reveals that much amount of cash is in the form of outflow for
purchasing fixed assets regularly.

 By analysis of cash flow from financing activities inflow is more than inflows
by long term borrowings, short term borrowings as a result of slight decline in
the net cash from financing activities.

 The overall cash flow analysis from operating, investing, financing activities
shows a net decrease in cash and cash equivalents and totally the liquidity
position of the organization is good.

24
 CASH FLOW STATEMENT OF THE STATE BANK OF INDIA FOR THE
YEAR ENDED 31st MARCH, 2022

PARTICULARS ` in Crores

A. CASH FLOW FROM OPERATING

ACTIVITIES
Profit / (Loss) Before tax (117,378,975)

Non-cash adjustment to reconcile profit before tax to

net cash flows
(+) Depreciation/ amortization 64,619,340

(+) Loss / (profit) on sale of fixed assets 7,574,460

(+) Provision for doubtful debts made/(written back) (3,536,630)

(+) Provision for doubtful deposits and advances 6,413,000

(+) Net (gain) / loss on sale of current investments (10,812,644)

(+) Interest expense 24,197,440

(+) Interest (income) (41,397,935)

(+) Dividend (income) (19,800)

OPERATING PROFIT BEFORE WORKING

(70,341,744)
CAPITAL CHANGES
Movements in Working Capital :

(-) Increase / (decrease) in trade payables (3,339,536)

(+) Increase / (decrease) in long-term provisions (690,061)

(+) Increase / (decrease) in short-term provisions (563,878)

25
(-) Increase / (decrease) in Other current Liabilities 559,228,226

(-) Increase / (decrease) in Other Long-Term Liabilities 213,198

(-) Decrease / (increase) in trade receivables (363,735,369)

(-) Decrease / (increase) in Other bank current account

(60,699,188)
balance
(-) Decrease / (increase) in long-term Loans and
7,768,697
Advances
(-) Decrease / (increase) in short-term Loans and
(157,503,714)
advances
(+) Decrease / (increase) in Other current assets (70,305,081)

Cash generated from / (used in) operations (159,968,450)

(+) Direct Taxes paid (net of refunds) — —

(+) Cash Flow before exceptional items (159,968,450)

(+) Exceptional Item —

NET CASH FROM / (USED IN) OPERATING

(159,968,450)
ACTIVITIES (A)
B. CASH FLOWS FROM INVESTING
ACTIVITIES
(-) Purchase of fixed assets, including CWIP and capital
(4,800,492)
advances
(+) Proceeds from sale of fixed assets 3,149,896

(-) Purchase of Mutual Fund (28,126,450,000)

(+) Proceeds from Sale of Mutual Fund 28,137,262,644

(-) Investments in bank deposits (having original

(1,015,346,440)
maturity of more than three months) and lien deposits

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(+) Maturity of bank deposits (having original maturity
of 1,480,797,000
more than three months) and lien deposits

(+) Interest Received 70,692,067

(+) Dividends Received 19,800

NET CASH FLOW FROM / (USED IN)

(B) 545,324,475
INVESTING ACTIVITIES
C. CASH FLOWS FROM FINANCING
ACTIVITIES
(+) Proceeds from Short-term borrowings 474,000,000

(-) Repayment of short-term borrowingss (527,500,000)

(+) Proceeds from Issue of Preference share capital 100,000,000

(-) Repayment of Inter Corporate deposits —

(+) Proceeds from Issue of Commercial Paper 750,000,000

(-) Repayment of Commercial Paper (1,150,000,000)

(-) Interest paid (17,328,980)

N ET CASH FLOW FROM / (USED IN) IN

(370,828,980)
FINANCING ACTIVITIES (C)
N ET INCREASE/(DECREASE) IN CASH AND
14,527,045
CASH EQUIVALENTS (A+B+C)
Cash and Cash Equivalents at the beginning of the
4,329,030
Year
Cash and Cash Equivalents at the Year ended 18,856,074

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INTERPRETATION

 The analysis of outflows statements from operating activities by the yearend

31st Mar, 2022 conveys a message of good operating efficiency of the firm by
utilization of the scarce resources like cash efficiency by generating good
profits and also the increasing in net cash used in operating activities i.e.
(159,968,450) where inflows are more than outflows i.e. surplus.

 By the analysis of outflow from investment activities consecutively since three

years of study reveals that much amount of cash is in the form of outflow for
purchasing fixed assets regularly.

 The overall cash flow analysis from operating, investing, financing activities
shows a net decrease in cash and cash equivalents and totally the liquidity
position of the organization is good.

 By the analysis of investment activities the income from investments are good,
realization of loans given and interest received on loans is also good which
was good sign of portfolio management and also recovery management of the
organization.

 By analysis of cash flow from financing activities inflow is more than inflows
by long term borrowings, short term borrowings as a result of slight decline in
the net cash from financing activities.

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 CASH FLOW STATEMENT OF THE STATE BANK OF INDIA FOR THE
YEAR ENDED 31st MARCH, 2023

PARTICULARS ` in Crores

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before tax 49,957,195

Adjustments for :

(+) Depreciation 3,324,251

(+) Provision for bad & doubtful debts &

—
advances(Net)
(+) Diminution in Value of Investments —
808,464
Interest Expenses

(+) Interest Income (4,705,982)

Operating Profit Before Working

49,383,928
Capital Changes

(+) Decrease / (Increase) in trade and other

(160,020,395)
receivables

(+) Increase / (Decrease) in trade and other

173,649,180
payables

Cash Generated From Operations 63,012,713

(+) Income Taxes Paid (14,200,000)

NET CASH FROM OPERATING ACTIVITIES 48,812,713

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (1,875,807)

(+) Interest Received 4,705,982

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NET CASH (USED IN)/FROM INVESTING
2,830,175
ACTIVITIES

C. CASH FLOW FROM FINANCING ACTIVITIES

(+) Interest and Finance Charges paid (808,464)

NET CASH (USED IN)/FROM FINANCING

(808,464)
ACTIVITIES

NET INCREASE IN CASH AND EQUIVALENTS 50,834,424

(A+B+C)
CASH AND CASH EQUIVALENTS
37,291,708
(OPENING BALANCE)

CASH AND CASH EQUIVALENTS

88,126,132
(CLOSING BALANCE)

INTERPRETATION
30
 The analysis of outflows statements from operating activities by the yearend
31st Mar, 2023 conveys a message of good operating efficiency of the firm by
utilization of the scarce resources like cash efficiency by generating good
profits and also the increasing in net cash from operating activities i.e.
48,812,713 where inflows are more than outflows i.e. surplus.

 By the analysis of investment activities the income from investments are good,
realization of loans given and interest received on loans is also good which
was good sign of portfolio management and also recovery management of the
organization.

 By the analysis of outflow from investment activities consecutively since three

years of study reveals that much amount of cash is in the form of outflow for
purchasing fixed assets regularly.

 By analysis of cash flow from financing activities inflow is more than inflows
by long term borrowings, short term borrowings as a result of slight decline in
the net cash from financing activities.

 The overall cash flow analysis from operating, investing, financing activities
shows a net decrease in cash and cash equivalents and totally the liquidity
position of the organization is good.

31
 CHAPTER-IV
FINDINGS, CONCLUSIONS
AND
SUGGESTIONS
 FINDINGS

1. Net profit before tax of STATE BANK OF INDIA in the year 2023 is
49,957,195
2. Net increase in cash and equivalents in the year 2023 is 50,834,424
3. By the analysis of investment activities the income from investments are good,
realization of loans given and interest received on loans is also good which
was good sign of portfolio management and also recovery management of the
organization.
4. Cash generated from operations in the year 2023 is 48,812,713
5. Interest paid & other finance charges paid by the STATE BANK OF INDIA is
(808,464)
6. Depreciation of STATE BANK OF INDIA is 3,324,251 in 2023
7. There are no direct taxes paid (net of refunds) by the bank.
8. Provision for doubtful deposits and advances is (3,536,630) in 2022
9. maturity of bank deposits (having original maturity of More than three
months) and lien deposits is 1,480,797,000 in 2022.

32
 SUGGESTIONS

 For the improving the financial performance of the company the following
suggestions are made.
 In order to reduce the outside borrowings in the company has to acquire. The
capital from equity sources. Keeping in view the debt equity the proportion as
normal.
 The liquidity of the company should be improved by maintaining the optimum
current assets and liquid assets according to standard norms.
 The quantum of the sales generated should be improved impressively in order
to attain higher return on investment. To improve the financial health of the
company and maximizing the time between the source mobilization and
utilization the management must introduce the new cost saving techniques.

33
 CONCLUSIONS

 There is an increase in Net Profit Before Tax of the bankin the years 2019 to 2023
and there is a Net Loss Before Tax in the year 2023.
 There is an Operating Profit/(Loss) before Working Capital changes in the year
2019 to 2020 and there is a operating Loss before Working Capital changes in the
year 2023.
 There is always a Cash Generated / Used In Operating activities from the years
2019 to 2023.
 There is always a Net Cash generated/Used in Investing Activities from the years
2019 to 2023.
 There is always a Cash Generated From Financing Activities from the years 2019
to 2023.
 Cash and Cash Equivalents at the end of the Year is increasing year by year.

34
BIBLIOGRAPHY
 BIBLIOGRAPHY

Text books:

 FINANCIAL MANAGEMENT - I.M. Panday

 FINANCIAL MANAGEMENT - Prasanna Chandra

 FINANCIAL MANAGEMENT - M.Y. Khan & P.K. Jain

 PRINCIPLES OF MANAGEMENT - Man Mohan & Goyal S.N.

 FINANCIAL MANAGEMENT - Maheshwari S.N.

Websites:

 http://www.businessdictionary.com/definition/cash-flow.html
 http://en.wikipedia.org/wiki/Cash_flow

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