A Study on Fund Flows of Tata Motors Company

Abstract

This study is about the fund flows of TATA Motors organization which sum up the inflow and surge of funds. The primary target of the investigation is to know the adjustments in working capital and the different sources from which the fund are raised and the uses of those fund in an organization and furthermore to break down the development of fund of the organization. Fund flow statement helps in distinguishing the adjustment in level of current resources ventures and current liabilities financing. It is restricted to the inner climate and relies for the most part upon the auxiliary information which were gathered from organization's Profit and Loss record and Balance sheet. The optional information is gotten from the yearly reports gathered by the Finance Department in the organization. Data was additionally secured from diaries, magazines, papers. Asset stream proclamation shows the relationship of overall gain to the adjustments in Funds from business activities. Articulation helps in deciding the organizations capacity to deliver interest and profit, and pay obligation when they become due. Comparative balance sheet statement tool is used in this study to compare the financial position of 2 years to depict the trend, direction of change, analyze and take suitable actions. Fund flow statement shows the organizations capacity to produce to long – term financing to fulfil the interest in long – term resources. Fund flow statement helps in distinguishing the figure answerable for changes resources, liabilities and proprietors value at two accounting reports. From this study we conclude that the working capital of the organization was adequate and the inflow of fund in the organization is not adequate. The study recommends the organization to make investments and it should also concentrate on flow of funds. The organization ought to procure credit for expanding the working capital. We conclude that the working capital is sufficient and the inflow of fund is not sufficient and it should concentrate on flow of funds.