Funds flow statement:
It is the statement deals with the financial resources for running business activities. It explains how the funds obtained and how they used.

Sources of funds:
There are two sources of funds Internal sources and external sources.

Internal source:
Funds from operations is the only internal sources of funds and some important points add to it they do not result in the outflow of funds

(a) Depreciation on fixed assets
(b) Preliminary expenses or goodwill written off, Loss on sale of fixed assets

Deduct the following items, as they do not increase the funds:
Profit on sale of fixed assets, profit on revaluation of fixed assets

External sources:
(a) Funds from long-term loans
(b)Sale of fixed assets
(c) Funds from increase in share capital

Application of funds:
(a) Purchase of fixed assets (b) Payment of dividend (c)Payment of tax liability (d) Payment of fixed liability

ICD (Inter corporate deposits):
Companies can borrow funds for a short period. For example 6 months or less from another company which have surplus liquidity. Such eposits made by one company in another company are called ICD.

Certificate of deposits:
The CD is a document of title similar to a fixed deposit receipt issued by banks there is no prescribed interest rate on such CDs it is based on the prevailing market conditions.

Public deposits:
It is very important source of short term and medium term finance. The company can accept PD from members of the public and shareholders. It has the maturity period of 6 months to 3 years.

Euro issues:
The euro issues means that the issue is listed on a European stock Exchange. The subscription can come from any part of the world except India.

GDR (Global depository receipts):
A depository receipt is basically a negotiable certificate , dominated in us dollars that represents a non-US company publicly traded in local currency equity shares.

ADR (American depository receipts):
Depository receipt issued by a company in the USA are known as ADRs. Such receipts are to be issued in accordance with the provisions stipulated by the securities Exchange commission (SEC) of USA like SEBI in India.

Commercial banks:
Commercial banks extend foreign currency loans for international operations, just like rupee loans. The banks also provided overdraft.

Development banks:
It offers long-term and medium term loans including foreign currency loans

International agencies:
International agencies like the IFC,IBRD,ADB,IMF etc. provide indirect assistance for obtaining foreign currency.

Seed capital assistance:
The seed capital assistance scheme is desired by the IDBI for professionally or technically qualified entrepreneurs and persons possessing relevant experience and skills and entrepreneur traits.

Unsecured loans:
It constitutes a significant part of long-term finance available to an enterprise.

Cash flow statement:
It is a statement depicting change in cash position from one period to another.

Sources of cash: Internal sources-
(a)Depreciation
(b)Amortization
(c)Loss on sale of fixed assets
(d)Gains from sale of fixed assets
(e) Creation of reserves External sources-

(a)Issue of new shares
(b)Raising long term loans
(c)Short-term borrowings
(d)Sale of fixed assets, investments

Application of cash:
(a) Purchase of fixed assets
(b) Payment of long-term loans
(c) Decrease in deferred payment liabilities
(d) Payment of tax, dividend
(e) Decrease in unsecured loans and deposits

Budget:
It is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies.

Budgetary control:
It is the system of management control and accounting in which all operations are forecasted and so for as possible planned ahead, and the actual results compared with the forecasted and planned ones.

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