Cash Flow Statement

Chapter I :       Introduction Need and Importance of study Scope of the study Objectives of the study Methodology of the study Assumptions and Limitations

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ChapterII:  Introduction to Industry Profile

Chapter III:  Introduction to Company profile

Chapter IV:  Theoretical Framework

Chapter V:  Analysis and Interpretation

Chapter VI:    Findings Suggestions & Recommendations Conclusion

Bibliography:

CHAPTER – I INTROUDUCTION

INTRODUCTION

Cash is the important current asset for the operations of the business. Cash is the basic input needed to keep the business running on a continuous basis; it is also the ultimate output expected to be realized by selling the service or product manufactured by the firm.

Cash, the most liquid asset, is of vital importance to the daily operations of the business. While the proportion of corporate assets held in the form of cash is very small, often between 1and 3 percent. In the view of its importance, it is generally referred as the “life blood” of business enterprise. Cash Management is one of the key areas of working capital management. Cash is the common denominator to which current asset can be reduced because the other liquid assets are converted into cash.

Business analysts report that poor management is the main reason for business failure. Poor cash management is probably the most frequent stumbling block for entrepreneurs. Understanding the basic concepts of cash flow will help you plan for the unforeseen eventualities that nearly every business faces.

Cash is ready money in the bank or in the business. It is not inventory, it is not accounts receivable (what you are owed) , and it is not liquid asset these can potentially be converted to cash ,but can’t be used to pay suppliers, rent ,or employees.

NEED AND IMPORTANCE OF THE STUDY
LANCO INFRATECH LIMTED (LITL), an infrastructure company is one of the fastest growing corporate entities in India. Lanco has more than 2 decades of experience operating in the core sectors of Power Generation, Power Trading, Realty and Infrastructure.

Cash management deals with every year total cash inflows and out flows. The operation has to maintain certain amount in the form of cash. This study makes a humble attempt to evaluate the corporate financial position, in terms of cash. Really access to cash also gives the company the financial flexibility to take expenditure decisions when ever its requires.

CASH MANAGEMENT in LANCO INFRATECH helps to know the total income and expenditure occurred every year. It helps to analyze the surplus cash and deficit amount. The management of cash is important because it helps to predict cash flows accurately, particularly the inflows and outflows.

OBJECTIVES OF THE STUDY 1) To have an overall study of the infra industry. 2) To get an in depth knowledge on the targeted company (LANCO). 3) For analytical study of Cash Management Concept. 4) To have a detailed study of the Cash Management practices at LANCO INFRATECH. 5) To study about sources of funds and application of funds of LANCO INFRATECH. 6) To study the cash management cycle of LANCO INFRATECH. 7) To study the strategies of cash management in LANCO INFRATECH. 8) To give suggestions and recommendations.

RESEARCH METHODOLOGY OF THE STUDY
DATA COLLECTION The data has been collected through primary and secondary source of data.

PRIMARY SOURCES OF DATA The collection is done by personal interaction with the concerned executives of the LANCO INFRATECH LIMITED.

SECONDARY SOURCE OF DATA The major source of data for analyzing cash is the secondary sources like financial records of LANCO INFRATECH, books of renowned authors, internet, business magazines, journals etc.,

SCOPE OF THE STUDY
1. The scope of the cash management is managing of cash flows into and out of the firm. 2. Managing the cash flows with in the firm 3. Financing deficit or investing surplus cash and thus , controlling cash balance at a point of time 4. Cash management involves, cash budget which is recorded generally for short periods such as weekly, monthly, quarterly, half – yearly or yearly. 5. The cash management tells how cash flows

ASSUMPTIONS AND LIMITATIONS OF THE STUDY
1. Though the study refers to cash management. A study in LANCO INFRATECH the in – depth analysis is restricted to the analysis of capital account and revenue accounts , cash flows ,balance sheet and cash budget only. 2. The conclusions may be generalized to the extent of this limitation 3. The study restricted to limited period of time. 4. Most of data is generated from the secondary sources .Therefore the accuracy and authentication of data depends upon the reliability of the source.

CHAPTER-II INDUSTRY PROFILE

INDUSTRY PROFILE
As per leading market research firm RNCOS (2008) report on “Indian Power Sector Analysis” more than 64% of India’s total installed capacity is contributed by thermal power. Significant jump in unit size and steam parameters will result in higher efficiencies and better economics for the Indian power sector.

Western region accounts for largest share (30.09%) of the installed power in India followed by Southern region with 27.76%.

Unbalanced growth remains the cause of concern for the Indian power sector. Only about 56% of households have access to electricity, with the rural access being 44% and urban access about 82%

Southern region remains the dominant region in renewable energy source accounting for more than 57% of the total renewable energy installed capacity.

Key players currently operating in the Indian power sector are National Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India, Tata Power, etc.

The total installed capacity in India is calculated to be 145,554.97 mega watt, out of which 75,837.93 mega watt (52.5%) is from State, 48,470.99 mega watt (34%) from Centre, and 21,246.05 mega watt (13.5%) is from Private sector initiative.
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Generation capacity of 141 GW; 663 billion units produced (1 unit = 1kwh)-January 2008. CAGR of 5% over the last 5 years

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India has the fifth largest electricity generation capacity in the world. Low per capita consumption at 631 units; less than half of China



Transmission & Distribution network of 6.6 million circuit km - the third largest in the world

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Coal fired plants constitute 54% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 8% from renewable sources

STRUCTURE


Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs)

 

Private sector participation is increasing especially in Generation and Distribution Distribution licences for several cities are already with the private sector Three large ultra-mega power projects of 4000MW each have been recently awarded to the private sector on the basis of global tenders.

MAIN PLAYERS
Major players in the Power sector can be broadly divided into public, private and international private sectors.

•G - Generation •T - Transmission •D - Distribution

POLICY


100% FDI permitted in Generation, Transmission & Distribution - the Government is keen to draw private investment into the sector

 

Policy framework: Electricity Act 2003 and National Electricity Policy 2005 Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods' import duties on mega power projects (above 1,000 MW generation capacity)



Independent Regulators: Central Electricity Regulatory Commission for central PSUs and interstate issues. Each state has its own Electricity Regulatory Commission

BLUEPRINT OF MINISTRY
The Ministry of Power has set a goal - Mission 2012: Power for All.

A comprehensive Blueprint for Power Sector development has been prepared encompassing an integrated strategy for the sector development with following objectives:     

Sufficient power to achieve GDP growth rate of 8% Reliable of power Quality power Optimum power cost Commercial viability of power industry Power for all

STRATEGIES TO ACHIEVE THE OBJECTIVES:
Power Generation Strategy with focus on low cost generation, optimization of capacity utilization, controlling the input cost, optimisation of fuel mix, Technology upgradation and utilization of Non Conventional energy sources.

Transmission Strategy with focus on development of National Grid including Interstate connections, Technology upgradation & optimization of transmission cost.

Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss reduction, theft control, consumer service orientation, quality power supply

commercialization, Decentralized distributed generation and supply for rural areas

Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable

Financing Strategy to generate resources for required growth of the power sectorConservation Strategy to optimise the utilization of .electricity with focus on Demand Side management, Load management and Technology upgradation to provide energy efficient equipment / gadgets.

Power Industry The critical role played by the power industry in the economic progress of a country has to be emphasized. A self sufficient power industry is vital for a nation to achieve economic stability.

Indian Power Industry Before Independence The British controlled the Indian power industry firmly before Independence. The then legal and policy framework was conducive to private ownership, with not much regulation with regard to operational safety.

Post Independence Immediately after Independence, the country was faced with capacity restraint. India adopted a socialist structure for economic growth and all the major industries were controlled by public sector enterprises.

By 1970's India had nationalized most of its energy assets, due to its commitment to social goals. By the late 1980's the Indian economy felt the strain of the socialist agenda followed since independence. Faced with a serious deterioration in public finance and balance of payment crisis, the Union government as part of its policy of economic liberalization allowed greater investment by private sector in the power industry.

Power Constitutional Position Power as a matter of legislative and executive competence, falls in the Concurrent List (List III of the Seventh Schedule to the Constitution of India).Both the Parliament and state legislatures have the rights to pass laws on the matter and any law passed by the Parliament overrides the existing state laws unless
 

The existing law is conserved or saved from such a repeal or A law passed by the state legislature receives acknowledgment from the President of India.

Post Liberalization Understanding the critical part played by the power industry, the Union government passed several laws and restructured the Power Industry to gear it up to meet the challenges posed to the Indian economy post Liberalization.

Electricity Bill 2001 Learning from the experience gained through various reform initiatives, the Indian government passed the Electricity Bill 2001.The Bill seeks to
 

Consolidate and rationalize existing laws. To address the issues of developing industry including regulation, power trading, non discriminatory open access, choice of dispensing with vertically integrated state enterprises and encouraging private enterprise.

STERILITE CORPORATION COMPANY ABOUT US Hot heels didn't do much for Sterilite, but it has found success at home. Maker of the #2 home storage brand, behind Newell Rubbermaid, Sterilite began by making plastic heels. Shoes that melted were not a smashing success, so it eventually honed in on plastic house wares. It specializes in food storage containers (pitchers, tumblers), laundry and utility items (clothes baskets, trash cans), and home storage and organizational hardware (tote boxes, storage drawers). Its products are sold through big-box and discount retailers. The firm was founded in 1939 as a partnership between Earl Tupper (inventor of Tupperware) and brothers Saul and Edward Stone; the Stone family still owns and operates Sterilite.

Industry information Sector : Consumer Goods Industry: packaging & containers

Top competitors Home products international, inc Newell Rubbermaid inc, (nwl) Tupperware brands corporation

Packaging & Containers News
Owens-Illinois 2Q profit climbs 60 percent Wed Jul 30 (AP) Owens-Illinois Inc., which makes glass containers, said Wednesday its second-quarter profit rose 60 percent as rising costs were offset by higher price tags for its wares.    3 killed when tank explodes at Wise. paper mill - (AP) Packaging Corporation of America Reports Explosion and Three Fatalities at Its Tomahawk, Wisconsin Paper Mill - (Business Wire)

Industry top performers Industry price performance % change Market Cap UFP TECH INC [UFPT] CONSTAR INTL INC [CNST] BWAY HOLIDINGS CO [BWY BOLL CAP[BLL] NORTHERN TECH INC [NTIC] +4.22% +1.96% +0.70% +0.18% 0.00% $15.9 M $40.6 M $O $4.2 B $0

Market capitalization Owens-Illinois, inc.[0I] Crown Holidings Inc [CCK] Ball Corp [BLL] Sealed Air Corp. (NEW) [SEE] Pactiv Corp.[PTV]

% Change +0.52% -0.18% +0.18% +0.05% 0.91%

Market Cap $7.1 B $4.5 B $4.3 B $3.4 B $3.2 B

NATIONAL THERMAL POWER CORPORATION HISTORY NTPC Limited is the largest power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. Click Here for shareholding pattern. Within a span of 32 years, NTPC has emerged as a truly national power company, with 'power generating facilities in all the major regions of the country.

GROWTH OF NTPC INSTALLED CAPACITY

NTPC's core business is engineering, construction and operation of power generating plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. As on date the installed capacity of NTPC is 29,144 MW through its-15 coal based (23,395 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,794 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas & Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL, Indian Financial Institutions and Maharashtra SEB Holding Co. Ltd. The present capacity of RGPPL is 1480 MW, NTPC's share on 31 Mar 2008 in the total installed capacity of the country was 19.1% and it contributed 28.50% of the total power generation of the country during 2007-08. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to

various organizations in the power business. NTPC is committed to the environment, generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive forestation in the vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2600 MW) have contributed reducing the temperature in the areas by about 3°c. NTPC has also taken proactive steps for ash utilisation. In 1991, it set up Ash Utilisation Division to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement,-concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep is an efficiency oriented, eco-friendly and eco- nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India.

As a responsible corporate citizen, NTPC is making constant efforts to improve the socioeconomic status of the people affected by the projects.

Through it's Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socio- economic status of Project Affected Persons. NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative. Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize it's vision of being "A world class integrated power major, powering India's growth, with increasing global presence".

CHAPTER-III COMPANY PROFILE

LANCO INFRATECH LIMITED
LANCO Infratech Limited (LITL), established in 1993, is an integrated infrastructure developer with interests in Power, Infrastructure, Construction and Property Development. With its 23subsidiary spanning 12 States, today its market capitalization stands around Rs160.000 million. Building its expertise in project execution and construction, LITL has forayed into Power Generation and Property development. LITL at present has a power generation capacity of 518 MW and is constructing power projects having capacities of 11,500 MW. It has also identified power projects having cumulative capacities of more than 3000mw for development. Company has a vision to have an installed capacity of 15,000 MW by2015. On the Property Development initiatives L!TL has undertaken development of Lanco Hills Information Technology Park in Hyderabad, one of the biggest mixed use developments in India envisaging building up of 30 million square of usable space comprising Residential Space,

Office Space, Malls, Hotels and Serviced Apartments. LITL is also developing a. property in Chennai which will have around 10 million square feet of developed. area. . The Vision for, the Company is to have developed around 100 million square feet of usable space by 2015. LITL is keenly focused on Infrastructure, which includes opportunities in Roads, Sea Ports, Air Ports and Transmission Lines. The Company has been bidding for Roads, Transmission Lines and Sea Ports and awarded Road Projects by the National Highways Authority of India for a total length of 163 km on Build, Operate and Transfer basis. The construction and EPC division of the Company at present has an order book of more than Rs 110,000 million, including the construction and EPC of many of its own power projects currently being developed.

:

ORGANIZATION PROFILE
The other area on which the company is keenly focused is Infrastructure, which includes opportunities in Roads, Sea Ports, Air Ports and Transmission Lines. The company has been bidding for Roads, Transmission Lines and Sea Ports and awarded Road Projects by the National Highways Authority of India for a total length of 163 km on Build, Operate and Transfer basis. The Construction and EPC division of the company at present has an order book of more than Rs 110,000 million, including the construction and EPC of many of the power projects currently being developed by the company.

VISION
 To empower, enable and enrich partners, businesses and associates  To be a chosen vehicle of growth for all stakeholders and a source of inspiration to society

Company Growth Plans
LANCO Company is focused on capturing a share of the growing infrastructure pie. It was with this objective that the Company re-organized itself into an integrated infrastructure developer with investments in various infrastructure projects. The focus is now on developing large infrastructure projects such as Power, Roads, Ports, Airports, SEZs, Irrigation and Transmission lines. The Company has also launched property development initiatives, which are aimed at establishing itself as a serious player in the Real Estate segment. The integrated business model, which the Company has adopted, is based on leveraging its experience in Construction and EPC while developing all the infrastructure projects. At the end of the Fiscal 2007 the Company, on a consolidated basis, had an aggregate asset base of approximately Rs 47 billion. Further the Company is executing various infrastructure initiatives with investment requirements to the tune of more than Rs 180 billion. These initiatives include power projects having aggregate capacities of 3,200 MW, 163 km of Road BOTs and more than 35 million square feet of Property Development. Most of these projects are likely to become operational in the next five years. The finances for most of these projects have been tied

up and the Company is confident of contributing its share of equity requirements for these projects from the internal accruals and the balance of IPO proceeds. During the period the Company's Construction and EPC Division, which at present has an order book in excess of Rs 75,000 million, would construct, build and execute a significant portion of its construction activities relating to the power projects, road projects and property development projects, thus earning significant cash flows and margins. Company is confident of achieving' the plans under execution and even more. It has already identified more power projects for development. It is keenly eyeing the upcoming opportunities in the Road BOTs, Transmission Lines, Airport Development and more Property Initiatives. It is committed to delivering superior growth to all its stakeholders by investing the accruing cash flows in high growth areas.

Performance highlights
Some of the key performance highlights of the year 2006-07 were: • The Company achieved a consolidated Gross Revenue of Rs 16,473 million as againstRs 1,484 million in the previous year. • The Company achieved a consolidated Profit After Tax (after Minority Interest) of Rs 1,880 million as against Rs 171 million in the previous year. • An amount of Rs 10,673 million was raised through IPO. • The Company won the Anpara 'C' power project in Uttar Pradesh through a competitive bidding process • The Company acquired 74% stake in the Nagarjuna Power Project at Mangalore in Kamataka. • Developmental work is progressing as per schedules at Amarkantak Power Plant, Nagarjuna Power Plant and Hydropower Plants in Uttaranchal, Himachal Pradesh and Sikkim. • LANCO Electric Utility the power trading arm of LANCO achieved a turnover of Rs 3,210 million. • 120 MW Aban Gas Power Project became the first gas power project in the world to be registered as Clean Development Mechanism project.

Further, the phenomenal response received for the commercial launch of bookings for the residential accommodation at LANCO Hills has been an overwhelming experience. It gives us the confidence that there is a demand for good quality property development initiatives in Indian cities. We are also happy to have played a pioneering role in bringing new designs in high-rise apartment buildings to Hyderabad. The success of LANCO Hills will go a long way in establishing the LANCO brand in the property development space.

Future Performance
LANCO Company is aware that it is very important to implement projects on schedule and well within estimated costs. Further we are working in an extremely competitive environment and our performance would be dependent on being able to innovate and excel always. All this requires a whole set of managerial systems, practices and processes, which ensure that development initiatives are well planned and executed. It is also very important to have the right human resource assets and provide right motivation and environment to perform. I am confident that an effective managerial framework and an efficient human resource pool in a work environment, which encourages innovation, would deliver the required levels of performance.

Corporate Citizen
LANCO Company is very much aware of its social responsibilities. It believes that the growth, which the country is experiencing, is not entirely equitably distributed. There are sections of the populace, which remain untouched by the growth. LANCO Company would channelise its share of efforts in fulfilling some of its social responsibilities through LANCO Institute of General Humanitarian Trust (LIGHT). LIGHT has been taking up a number of initiatives such as providing water to poor rural communities, helping artisans of traditional arts, distributing mobility devices among the differently abled and sponsoring sports activities, aimed at evolving systems to make the larger community self-supporting. LIGHT is also going to play a key role in undertaking and monitoring community development initiatives around the vicinities where the Company's infrastructure projects are being developed.

Acknowledgements
The Central and State Governments, Bankers, Financial Institutions, Customers, Vendors, Investors and all our Shareholders have made LANCO COMPANY’s growth possible with the

support and encouragement. We seek their continued support in all our future Endeavor’s. I would also like to place on record the collective efforts of all LANCO and the contribution & involvement of my colleagues.

Quality policy:
LANCO goal is to be a globally respected organization and to offer products of world-class quality through effective implementation of quality management system and continued review of processes and training of employees.

Computerization:
Here in this LANCO Company computers in one form or the other control almost all unit processes. These computers are related automation systems are meant to aid all levels of personnel involved in operations and maintenance of Plant.

BOARD OF DIRECTORS:
BOARD OF DIRECTORS Mr. L. Madhusudhan Rao Mr. G. Bhaskara Rao Mr. L. Sridhar Mr. G. venkatesh Babu Mr. D. V. Rao Dr. p. Kotaiah Mr. P. Abraham Dr. Uddesh kumar Kohil Mr. P. Narasimharamulu Dr. B. Vasanth Executive Chairman Executive ViceChairman Vice-Chairman Managing Director Joint Managing Director Director Director Director Director Director COMPANY SECRETARY Mr. C. Krishna Kumar

CHIEF FINANCIAL OFFICER

Mr. J. Suresh Kumar

BANKERS TO THE COMPANY

Allahabad Bank Andhra Bank Bank of Barods Indian Overseas Bank Indus Ind Bank Limited The Lakshmi Vilas Bank Limited Lord Krishna Bank Limited

Oriented Bank of Commerce Punjab National Bank State Bank of India State Bank of Mysore Syndicate Bank UCO Bank

Awards LANCO Infratech Limited Construction World NICMAR Awards 2007 for the Second Fastest Growing Construction Company (Medium Category) in India. Award for Excellence in Bridge Engineering 1999 from the Indian Institute of Bridge Engineers.

LANCO BIBILOGRAPHY
Books referred:  Financial Management: M.Y. Khan & Jain, 4th Edition Published by TATA Mc. Graw Hill.  Financial Management: M.Y. Khan & Jain, 2nd Edition Published by TATA Mc. Graw Hill.  Financial Management: Prasanna Chandra, 6th Edition Published by TATA Mc. Graw Hill.  Financial Management: I.M. Panedey, 4th Edition Published by Vikas Publishers..

Internet sites:  www.lancogroup.com  www.gmail.com  www. Power generation.com

Power Pvt Ltd:
 OHSAS 18001 :1999 Certification in respect of Environmental Management System by Lloyd's Register Quality Assurance Ltd in 2005.  National Award for Excellence in Water Management 2005 by Cll - GBC Green Business Centre. 

Silver Award in Gas Power Sector for Outstanding Achievement in Environment Management for 2003-04 from Greentech Foundation.

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Leadership Efforts towards Environmental Management and Sustainable Initiative among Corporates for 2002-03 by TERI.

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Best Environment Improvement Activity Award 2002 - 03 from FAPCCI. CM Leadership and Excellence Award in Safety, Health and Environment 2002.

ABAN Power Company Ltd:
 OHSAS 18001:1999 Certificate from TUV SUD Management Service GmbH Trading as TUV South Asia Pvt Ltd.

Clarion Power Corporation Ltd:
  FAPCCI Award for Excellence in Renewable Energy 2007. LANCO Institute of General Humanitarian Trust (LIGHT) TERI Award 200607 for Excellence in Corporate Social Responsibility.

LANCO Group Corporate Communications
2008   PRSI National Award for House Journal (English) - First Prize PRSI National Award for Corporate Film in English - First Prize

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PRSI National Award for Corporate Brochure - First Prize

2007    PRSI National Award for In- House\Magazine (Content and Layout-Second Prize PRSI National Award for Corporate Campaign - Second Prize PRSI National Award for Corporate Brochure - Second Prize

2006  PRSI National Award for In-House Magazine (Content and Layout- Third Prize

PRSI State (Andhra Pradesh) Award for In- House Magazine (Content and Layout) - Second Prize

Steps in Recruitment and selection Process
According to famularo, Personnel Recruitment process involves five elements viz a recruitment policy. A recruitment and selection process in an organization, forecast at manpower, the development of sources of recruitment and different techniques used for utilizing these sources and a method of ascending the recruitment programmed.

Indenting
All recruitment will be against duly authorized indents.        Advertising Applications processing. Bio-Data forms processing Internal applications Pre-interview preparation. Group discussion. Panel interview

       

One to one interview Settlement interview stage. Appointment Post-interview processing. Pre-joining preparation. Joining Employment Exchange Notification. Recruitment Records.

DEATIALS OF COMPANY
LANCO has executed most demanding projects on schedule in the field of civil and construction engineering, earning repute as a world- class construction company. It has executed major works in irrigation, dam construction hyropower, railways, industrial instaliation, buildings and highways. The major projects executed by LITL include the rs 2930 million veeranam water supply pipeline work in tamil nadu, a joint venture with punchak of malaysia, completed in a record time of 18 months, the rs 2560 million balance of plant of 368 mw LANCO kondapally power project at vijayawada in andhra pradesh and the first cable stay flyover at khaghar in navi mumbai, a joint venture with usha group. LANCO has constructed roads and highways across India for the National Highways Authority of India. LANCO has won the contract for construction and operation of two road projects in Karnataka, the 81 km Bangalore-Hoskote-Mudbagal stretch on National Highway 4 and the 82 km Neelamangia - Devihalli stretch on National Highway 48 on Build, Operate and Transfer (BOT) basis under the National Highways Development Project (NHDP) Phase III. The concession agreements for the projects have been signed with the National Highways Authority Ltd. The total project cost is estimated at INR 1300 crores and involves six laning of 16 km stretch and four laning of the remaining stretches. The concession periods are 20 and 25 years for the two projects respectively, including 30 months of construction period. The contracts have been awarded through a competitive bidding process,

INVESTORS Lanco Infratech Limited became a listed entity in November 2006 following the Initial Public Offering of shares. Presently the market capitalization of the company is around US$ 2 billion. Of the total outstanding 222.36 million shares 75% is held by the founder promoters of the company, 20% is available with the Public and th

SHAREHOLDING PATTERN AS ON 31-12-07 Sl Category of Shareholder Shareholding of Promoter and Promoter Group Number of Shareholders 10 31 10 75 982 62959 749 64816 Total Number of Shares 166771428 3434824 4579006 28518662 2037093 5354969 11665923 222361905 Percentage

1

75.00% 1.54% 2.06% 12.83% 0.92% 2.40% 5.25% 100.00%

2 Mutual Funds 3 Financial Institutions / Banks 4 Foreign Institutional Investors 5 Bodies Corporate 6 Individuals 7 Others Total

Media Welcome to the Lanco Group Media Information Center. Here we have high resolution pictures of our key executives, plants, sites, events and recent press releases for download. For any further clarification/information please feel free to contact us. Careers Lanco believes that people management is a matter of creating, nurturing and sustaining an environment conducive to optimal use of employee potential. Lanco is home to more than 3500 committed, talented and ambitious professionals. As one of the preferred employers in the

industry, LANCO attracts and retains the best talents. Lanco has adopted some of the best people practices and policies from around the world to delight its people. Lanco helps its people stay at the fore front of cutting edge technology and skills by providing regular exposure to world class training programs in some of the most reputed academies in the country. Lanco has openings across a wide range of skills and professions. When all-round success matters most today, LANCO shows the way. LANCO believes that people management is a matter of creating, nurturing and sustaining an environment conducive to optimal use of employee potential. LANCO therefore is truly a place where you get to nurture your entrepreneurial spirit and enjoy the stability of a visionary company.

Core Values
LANCO is committed to adhering to the core values of Belief in People, Entrepreneurship, Customer Orientation and Pursuit of Excellence. These values are practised to realise its vision "to empower, enable and enrich partners, businesses and associates and to be a chosen vehicle of growth for all stakeholders and a source of inspiration to society." The core values are based on the internal strengths of the organisation and today form the guiding parameters for all its initiatives.

Hot Jobs
Surpass your limitations by seeking bigger opportunities, bigger responsibilities and bigger challenges. LANCO always encourages you to move on. LANCO is home to hundreds of committed, talented and ambitious professionals. LANCO offers a range of challenging opportunities that provide fast growth. By providing a challenging work environment, LANCO attracts and retains the best talents. Great care is taken to recruit the best people available. By providing unlimited access to the latest technology, LANCO helps its people stay at the cutting edge of software and engineering skills. LANCO has the best Human Resources practices where employees are exposed to need-based training and encouraged

Social Responsibility

Social Responsibility --Introduction
Beyond capital investments, the operations of any corporate do entail social costs as well as social benefits. Social responsibility begins with good governance, efficient utilization of resources and protection of stakeholder and consumer interests. It is for a successful corporate to take initiatives for socially relevant activities and causes. It is this realisation that has led LANCO Group to set up LANCO Institute of General Humanitarian Trust (LIGHT) in 2000. In a short time, the Trust has succeeded in making its presence felt in the social service sector through its various programmes.

Social Responsibility--objectives
     To provide basic amenities for the rural poor. To save arts of historical relevance which are on the verge of extinction. To develop integrated programmes for the differently abled. To encourage fresh talents in the area of sports To take up other humanitarian activities.

Social Responsibility -- Programmes
A. Sujalavahini: In 2003 when Andhra Pradesh was in the grip of severe drought, Sujalavahini was launched to provide water to some of the affected communities that had no access to water for drinking and other usages. B. Kondapalli Toys LIGHT has been making efforts to support artisans struggling to keep alive the tradition of Kondapalli toys by helping them market their products and by upgrading their skills. C. Aids And Appliances: LIGHT has been rendering service to the differently disabled living in the rural areas of Andhra Pradesh by conducting medical camps and by offering other services depending on their needs. D. Sponsoring Sports: To infuse more life into sports, LIGHT either sponsors sports events or extends support to institutions involved in organising them, besides directly supporting sports persons.

Activities:

YEAR 2000  Distribution of Aids and Appliances at Ravindra Bharati in Hyderabad on 3 December, International Day for Disabled Persons. Devices distributed: Wheelchairs-30, Tricycles Braille Slates and Canes-220, Callipers-20 and Hearing Aids-5. YEAR 2001  Distribution of Aids and Appliances at Chittoor on 28 January . Devices distributed: Wheelchairs-50, Tricycles-100, Braille Slates and Canes-120 and Callipers-10.   Distribution of Aids and Appliances at Ananthapur on 4 February. Devices distributed: Wheelchairs-50, Tricycles-100, Braille Slates and Canes-120 and Callipers-10.

YEAR 2002  Distribution of Aids and Appliances at Kumool on 11 January . Devices distributed: Tricycles- 25.  Distribution of Aids and Appliances at Chittoor On 30 January. Devices distributed: Tricyles- 275. YEAR2003    Donation to the Foundation for Democratic Reforms. Donation to the Loknaik foundation. Three Sports events at Loyola Public School in Guntur.

YEAR 2004  Sponsored track suits to athletes representing Andha Pradesh in National meet at Kollam (to AP Amateur Athletic Association) in January.   Donation to the Hyderabad Amateur Athletic Association in February. Entered into association with Make-A-Wish Foundation towards fulfilling wishes of children with life threatening diseases in February. YEAR 2005    Distribution of Artificial Limbs among 16 beneficiaries on 7 January. Distribution of Aids and Appliances in Srikalahasthi on 20 January. Devices distributed: Tricycles-21, Wheelchairs-5, Elbow Crutches-5, Tripods-3, Hearing Aids-4, Bicycles-3 and Sewing Machines-6. YEAR 2006   LANCO - JHIC Tennis tournament from 9-14 January. Distributed 20 Tricycles, 9 Artificial Limbs, 11 Polio Shoes and 2 Crutches among disabled

Social Responsibility –Trustees:
Chairman Managing Trustee Trustee Trustee Trustee Trustee L Rajagopal Suresh Chukkapalli L Madhusudhan Rao G Bhaskara Rao L Sridhar Y Harish Chandra Prasad

CHAPTER – IV THEORETICAL FRAME WORK

FRAME WORK OF CASHMANAGEMENT
Cash, the most liquid asset , is of vital importance to daily operations of business firms . While the proportion of corporate assets held in the form of cash is very small , often between 1 and 3 percent , its efficient management is crucial to the solvency of the business because in a very important sense cash is the focal point of funds flows in a business. Cash is the important current asset for running the operations in the business . Cash is the basic need to keep the business running on a continuous basis. For most corporations, both the inflow and out flow of funds are frequently uncertain .It is therefore important for companies to maintain a certain degree of liquidity. Cash can take a number of forms , including coin and currency. Business analysts report that poor management is the main reason for business failure. Poor cash management is probably the most frequent stumbling block for entrepreneurs . Understanding the basic concepts of cash flow will help you plan for the unforeseen eventualities that nearly every business faces

MEANING OF CASH
Cash , is the money which a firm can disburse immediately without any restriction . The term cash includes coins, currency and cheques held by the firm , and balances in its bank accounts. Sometimes near – cash items , such as marketable securities or bank deposits , are also included in cash .

OBJECTIVES OF CASHMANAGAEMENT
Cash management is concerned with the managing of ,      To find cash inflows and outflows of the LANCO INFRATECH in particularly period of time To know about the how cash flows in with in the firm in every year. Cash balances held by firm at a point of time by financing deficit or investing surplus cash . To know the source of funds and application of funds in LANCO INFRATECH in each year. To understand the cash management practice in LANCO INFRATECH in every year

IMPORTANCE OF CASH MANAGEMENT
CASH MANAGEMENT Cash is the important liquid asset for the operations of the business . Cash is the basic input needed to keep the business running on a continuous basis ; it is also ultimate output expected to be realized by selling the service or product manufacturing . Cash is the important current asset in working capital management without this we can not perform the transactions .

CASH & CASH FLOWS
Cash is ready money in the bank or in business . It is not inventory , it is not account receivable , and it is not property . profit growth does not necessarily mean more cash on hand profit is the amount of money you expect to make over a given period of time , while cash is what you must have on hand to keep your business running . Over time , a company’s profits are of little value if they are not accompanied by positive net cash flow , you can spend only cash .On credit , at time it collects its money or cash lately. In the firm cash collection is more than cash payments the firm goes to surplus . The company invest its surplus in profit making units. I f cash payments more than cash collection then company goes for , deficit .It run its business properly it takes borrow from outsiders nothing but creditors.

POSITIVE CASH FLOW
If its cash inflow exceeds the outflows, a company has a positive cash flow. A positive cash flow is a good sign of financial health , but is by no means the only one .

NEGATIVE CASH FLOW
If its cash outflow exceeds the inflow , a company has a negative cash flow. Reasons for negative cash flow include too much or obsolete inventory and poor collections on account receivable .If the company can’t borrow additional cash at this point , it may be in serious trouble.

MOTIVES FOR CASHMANAGEMENT
The firm’s need to hold cash may be attributed to the following three motives. 1. The Transactions motive 2. The Precautionary motive 3. The Speculative motive

TRANSACTION MOTIVE
The transaction motive requires a firm to hold cash to conduct its business in the ordinary course . The firm needs cash primarily to make payments for purchases , wages and salaries , other operating expenses , taxes , dividends. The need to hold cash would not arise if there were perfect synchronization between cash receipts and payments . The transaction motive , mainly refers to holding cash to meet anticipated payments whose timing is not perfectly matched with cash receipts.

PRECAUTIONARY MOTIVE
The precautionary motive is the need to hold cash to meet contingencies in the future . It provides a cushion or buffer to withstand some unexpected emergency . The precautionary amount of cash depends upon the predictability of cash flows . If cash flows can be predicted with accuracy, less cash will be maintained for an emergency .

SPECULATIVE MOTIVE
Speculative motive relates to the holding of cash for investing in profit making opportunities as and when they arise. The opportunity to make profit may arise when the security prices change .The firm will hold the cash , when it is expected that interest rates will arise and security price will fall . Securities can be purchased when the interest rates expected to fall : the firm will benefit by the subsequent fall in interest rates and increases in security prices.

MODELS OF CASHMANAGEMENT
The cash budget of the firm indicates periods when the firm is expected to have shortage of funds and surplus of funds . If a shortage is expected , ways and means of overcoming the shortage must be explored. Several cash management models have add revised this issues of split between marketable securities and cash holdings .Two of these models. 1. The Baumol model , and 2. The Miller and Orr model

BAUMOL MODEL
William J.Baumol proposed a model which applies the economic order quantity (EOQ) concept , commonly used in inventory management , to determine the cash conversion size. The purpose of such an analysis is to balance the income forgone when the firm holds cash balances against the transaction costs incurred when marketable securities are converted in to cash.

MILLER AND ORR MODEL
Expanding on the Baumol model , Millers and Orr consider a stochastic generation process for periodic cash balances changed . As against the completely deterministic assumptions .

FUNCTIONS OF CASH MANAGEMENT
While cash server these functions , it is an idle resource which has an opportunity cost. The liquidity provided by cash holding is at the expenses of profit sacrificed by foregoing alternative investment opportunities. Hence the financial manger should follow below functions .    Establish reliable forecasting and reporting systems. Improve cash collections and disbursements , and Achieve optimal conservation and utilization of funds

STRATEGIES OF CASHMANAGEMENT
The firm should evolve strategies regarding the following four facts of cash management

CASH PLANNING
Cash inflows and out flows should be planned to project cash surplus or deficit for each period of the planning period .Cash budget prepared for this purpose

MANAGING THE CASHFLOWS
The flow of cash should be properly managed . The cash inflows should be accelerated while as far as possible , the cash outflows should be decelerated

OPTIMUM CASHLEVEL
The firm should decide about the appropriate level of cash balance .The cost of excess cash and danged of cash deficiency should be matched to determine the optimum level of cash balances

INVESTING SURPLUS CASH
The surplus cash balance should be properly invested to earn profits

CASHMANAGEMENT CYCLE

Business Operations Information & Control

Cash Collections Deficit Surplus Cash Payments Borrow Invest

In CASHMANAGEMENT CYCLE we started at business operations stage .Company sale their products to their customers. At that time only it collected information about the daily transactions. Company allocated the daily operations into two 1. cash collections 2. cash payments Cash collection made by company when it sold products . with that cash collections firms goes for surplus or deficit .If it surplus then firm goes for investment in profit making units .If it deficit it goes for borrowings Cash payments like salary, rent , operating expenses

CASH FORCASTING AND BUDGETING
Cash budget is the most significant device to plan for and control cash receipts and payments . A cash budget is a summary statement of the firm’s expected cash inflows and outflows over a projected time period. Cash forecasts are needed to prepare cash budgets . Cash forecasting may be done on short or long – term basis SHORT – TERM FORECASTS It is comparatively easy to make short - term forecasts .The important functions of carefully developed short – term cash forecasts are.    To determine operating cash requirements To anticipate short- term financing To manage investment of surplus cash

LONG – TERM CASH FORECASTING
Long - term cash forecasts are prepared to give an idea of the company’s financial requirements in the distant future .There are not as detailed as the short – term forecasts are    It indicates as company’s future financial need’s especially for its working capital requirements . It helps to evaluate proposed capital projects . It pinpoints the cash required to finance these projects as well as the cash to be generated by the company’s to support them. It helps to improve corporate planning . Long-term cash forecasts compel cash division to plan for future and to formulate projects carefully.

CASH FLOW STATEMENT
The Institute of Charted Accounts of India has issued on accounting standard ( AS – 3 ) providing details of now the cash flow statement should be prepared .

MEANING OF CASHFLOW
The cash flow statement provides information about historical changes in cash and cash equalents. Cash flow classified in to 3 categories . 1. Operating activities 2. Investing activities 3. Financing activities

OPERATING ACTIVITIES
In operating activities cash flows arising from the purchase and sale of dealing or trading in securities or cash advances and loans made by financial enterprise are usually classified as operating activities . In this we can also slow the changes in current assets and current liabilities .

INVESTING ACTIVITIES
In investing activities cash flow arising from sale and purchase of fixed assets , sale and purchase of investment

FINANCING ACTIVITIES
Financing activities are activities that result in the size and composition of the owners capital and borrowing of the enterprise. Cash proceeds from issuing of shares , debentures , loans and share premium and repayment of long term debt, additional loans.

CASH BUDGET
Cash budget will serve its purpose only if the firm can accelerate its collections and postpone its payments within allowed limits .The main concerns in collections are ;   To abstain payment from customers within the credit period ,and To minimize the time between customers pays the bill and the time cheques

Once the cash budget has been prepared and appropriate net cash flow established , the financial manager should ensure that there does not exist significant deviation between projected cash flow and actual cash flow According to the Guthmen and dougal “cash budget is an estimate of cash receipts and disbursements for a future period of time”. OBJECTIVES OF CASH BUDGET:
 The probable cash position as a result of planned operations is indicated and thus the excess (or) shortages of cash is known . This helps in arranging short term borrowings in advance to meet the situation of shortage of cash (or) making investements in times of excess of cash.

 

Cash can be co-ordinated in relation to total working capital,sales,investment and debt.

A sound basis for credit and for current control of cash positioned is established.

CHAPTER –V ANALYSIS AND INTERPRETATION

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2005-06 (Rs .In lakhs)
2006
A)Cash flow from Operating Activates Profit before taxation Adjustments: Add: Deprecation Interest paid Loss on sale of assets /interments Preliminary expenses written off Less: Dividend income Prior period expenses Profit on sale of investments Operating profit before working capital changes Adjustments for: Receivables Inventories /working in progress Other current assets Current liabilities & provisions Net adjustments Cash generated form operations Income tax Net cash from operating activities B) Cash flow from investing activities Purchase of fixed assets Sale of fixed assets Purchase of investment Sale of investment Dividend income Net cash from investing activates C) Cash flow from financing activities Interest paid Bank borrowings (Net) Proceeds from term loan from banks Repayment of hire purchase & DPG liabilities Mobilization of advance (Net) Inter-corporate loans Other loans(Net) Net cash from financing activities Net increase /(decrease) in cash &cash equivalents(A)+(B)+(C) Cash and cash equivalents as the beginning of the year Cash and cash equivalents as at the end of the year 944.15

2005
591.16

212.72 409.48 480.37 1102.57 769.35 27.36 204.30 1001.01 1045.71 (1066.35) 1126.24 (1014.56) 192.26 (726.41) 283.30 226.00 57.30 (5.93) 672.07 (870.50) 3063.49 769.35 3629.07 (409.48) 319.01 (883.89) (190.34) 205.84 (797.00) (1755.86) 1930.52 1217.81 3148.33

230.16 525.45 124.35 0.21 880.45 191.20 6.73 197.92 1273.69 714.59 (706.95) 51.73 (2265.43) (2206.06) 932.37 193.25 (1125.62) (15.25) 485.35 (3675.78) 19.10 191.20 (2995.38) (525.45) (331.35) 653.17 (222.00) 2048.17 2000.00 38.68 3583.86 (343.90) 1754.96 1217.81

INTERPRETATION:
Net cash from operating activities increased (1125.62) of 2005 to 57.30 of 2006. Net cash from investing activities also increased (2995.38) of 2005 to 3629.07 of 2006. Net cash from financing activities decreased 3583.86 of 2005 to ((1755.86) of 2006. In the 2005-06 cash inflows are increased than the cash out flows

Cash flow statement for the year ended March 31,2006-07
2007
A) Cash flow from operating activities Net profit before taxation extraordinary items Adjustments: Deprecation Interest expenses Loss on sale of assets Profit on sale of investments Operating profit before working capital changes (Increase) / decrease in trade & other receivables (Increase) / decrease in inventories (Increase) / decrease in other current assets (Increase) / decrease in loans & advances (Increase) / decrease in current liabilities and provisions Net adjustments Cash flow from operations Income tax paid Fringe benefit tax Net cash flow from operating activities 130.99

2006
91.68

18.91 36.25 0.21 55.37 15.68 15.68 170.68 (243.81) (5.25) 0.73 (750.58) 1335.36 336.45 507.13 40.00 0.24 466.89

21.27 42.43 48.04 111.74 20.43 20.43 182.99 (106.63) 112.62 (101.45) (79.70) 39.80 (135.36) 47.63 22.60

25.03

B) cash flow form investing activities Purchase of fixed assets Proceeds from the sales of fixed assets Purchase of investments Sale of investments Net cash from investing activities C) Cash flow from financing activities Proceeds from long term borrowing s Repayment of long term borrowings Bank borrowings Repayments of hire purchase & DPG liabilities Interest paid Net cash from financing activities’ Net increase/decrease in cash and cash equivalents(A+B+C) Cash and cash equivalents as at the beginning of the year Cash and cash equivalents as at the end of the year

(12.82) 0.11 (657.96) 33.28 (637.39)

(0.53) 67.20 (87.05) 306.35 285.97

220.00 (6.07) (24.39) 1.86 (36.25) 155.15 (15.35) 314.83 299.48

(88.39) 31.90 (19.03) (42.43) (117.95) 193.05 121.78 314.83

INTERPRETATION:
Net cash from operating activities increased 25.03 of 2006 to 466.89 of 2007. Net cash from investing activities decreased 285.97 of 2006 to (637.39) of 2007. Net cash from financing activities increased (117.95) of 2006 to 155.15 of 2007. In the 2006-07 cash inflows are decreased than the cash out flows.

Cash flow statement for the year ended March 31, 2007-08
A) Cash flow from operating activities Profit before taxation Adjustments: Deprecation Loss on sale of fixed assets Interest income Interest expenses Dividend income Profit on sale of investments Cash generated form operations before working capital changes Adjustments Inventories Trade and other receivables/other assets Current liability & provisions Cash generated from operations Direct taxes paid Net cash from operating activities B) cash flow from /(used in)investing activities (Purchase) /sale of fixed assets(net) (Purchase )/Sale of investments(net) Profit on sale of investment Dividend income Interest received Net cash from investing activities C) Cash flow from financing activities Proceeds from issue of equity shares Issue of common stock in consolidated subsidiary Proceeds/ (repayments)from/of borrowings(Net) Interest paid Net cash from financing activities Net increase /(decrease)in cash &cash equivalents(A)+(B)+(C) Cash and cash equivalents as at the beginning of the year Cash and cash equivalents as at the end of the year 2008 3129.55 2007 124.97

655.64 0.96 (220.57) 787.58 (74.04) 4279.12

18.91 0.21 (9.25) 26.39 (0.16) (15.68) 145.39

(4732.23) (5017.57) 9909.43 4438.75 (392.65) 4046.10 (24636.17) 7043.49) 74.04

(77.36) (1395.54) 1249.79 (77.72) (47.66) (125.38)

(210.90) (339.62) 15.68 0.16 220.57 9.25 (31.385.05) (525.43) 12185.99 2836.79 15700.97 (787.58) 29936.17 2597.22 413.57 3010.79

96.90 634.76 (26.39) 705.27 54.46 359.11 413.57

INTERPRETATION:
Net cash from operating activities increased (125.38) of 2007 to 4046.10 of 2008. Net cash from investing activities decreased (525.43) of 2007 to (31385.05) of 2008. Net cash from financing activities increased 705.27 of 2007 to 29936.17 of 2008. In the 2007-08 cash inflows are increased than the cash out flows.

Cash flow statement for the year ended MARCH 31, 2008-09
2009 A)Cash flow from operating activities Net profit before tax Adjustments for: Deprecation Income from current investments Loss on sale of assets Interest income Interest expenses Operating profit before working capital changes (Increase )/decrease in trade and other receivables (Increase) /decrease in inventories Increase /(decrease) in trade payables Cash flow from operations Direct taxes paid B) Net cash flow from operating activities Cash flow from investing activities Purchase of fixed assets Proceeds from sale of fixed assets Purchase of long – term investments Investment in subsidiaries Advance for investment –others Proceeds from sale/redemption of current investments Capital work in progress including capital advances Income from current investments Interest income received C)Net cash flow from investing activities Cash flow from financing activities Proceeds from short-term borrowing (Net) Proceeds from long –term borrowings Repayment of long –term borrowing Proceeds from share capital Premium on account of ESOP Share issue expenses Interest paid Net cash flow used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 2970.82 116.15 (35.92) 2.19 (186.90) 344.73 3211.07 (9692.28) (1072.01) 15127.57 7574.35 (745.95) 6828.40 (1124.09) 4.56 (1370.14) (2329.75) (1781.67) (2384.48) 2087.13 (795.24) 186.90 (7470.86) 863.96 3429.78 (360.20) 150.15 (11.52) (344.73) 3727.44 3084.98 630.98 3715.96 2008 1009.49 36.93 0.35 (111.51) 195.88 1131.14 (4154.90) (366.25) 6396.70 3006.69 (214.32) 2792.37 (701.20) 0.06 (5252.85) (5959.92) (948.60) 241.54 (2990.56) (18.98) 111.51 (15519.00) 171.47 896.55 12586.54 1.50 (402.05) (195.88) 13058.13 331.50 299.48 630.98

INTERPRETATION:
Net cash from operating activities increased 2792.37 of 2008 to 6828.40 of 2009. Net cash from investing activities also increased (15519.00) of 2008 to (7470.86) of 2009. Net cash from financing activities decreased 13058.13 of 2008 to 3727.44 of 2009. In the 2008-09 cash inflows are increased than the cash

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2005-2009 (Rs .In lakhs) 2006 2005 2009 2008 2007 A)Cash flow from Operating Activates 3129.55 130.99 944.15 591.16 Profit before taxation 2970.82
Adjustments: Add: Deprecation Interest paid Loss on sale of assets /interments Preliminary expenses written off Less: Dividend income Prior period expenses Profit on sale of investments Operating profit before working capital changes Adjustments for: Receivables Inventories /working in progress Other current assets Current liabilities & provisions Net adjustments Cash generated form operations Income tax Net cash from operating activities B) Cash flow from investing activities Purchase of fixed assets Sale of fixed assets Purchase of investment Sale of investment Dividend income Net cash from investing activates C) Cash flow from financing activities Interest paid Bank borrowings (Net) Proceeds from term loan from banks Repayment of hire purchase & DPG liabilities Mobilization of advance (Net) Inter-corporate loans Other loans(Net) Net cash from financing activities Net increase /(decrease) in cash &cash equivalents(A)+(B)+(C) Cash and cash equivalents as the beginning of the year Cash and cash equivalents as at the end of the year

116.15 (35.92) 2.19 (186.90) 344.73 3211.07 (9692.28) (1072.01) 15127.57 7574.35 (745.95) 6828.40

655.64 0.96 (220.57) 787.58 (74.04) 4279.12

(4732.23) (5017.57) 9909.43 (1124.09) 4438.75 4.56 (392.65) (1370.14) 4046.10 (2329.75) (1781.67) (24636.17) (2384.48) 7043.49) 2087.13 74.04 (795.24) 186.90 220.57 (7470.86) (31.385.05) 863.96 3429.78 (360.20) 150.15 (11.52) (344.73) 3727.44 3084.98 630.98 3715.96 12185.99 2836.79 15700.97 (787.58) 29936.17 2597.22 413.57 3010.79

18.91 36.25 0.21 55.37 15.68 15.68 170.68 (243.81) (5.25) 0.73 (750.58) 1335.36 336.45 507.13 40.00 0.24 466.89

212.72 409.48 480.37 1102.57 769.35 27.36 204.30 1001.01 1045.71 (1066.35) 1126.24 (1014.56) 192.26 (726.41) 283.30 226.00 57.30

230.16 525.45 124.35 0.21 880.45 191.20 6.73 197.92 1273.69 714.59 (706.95) 51.73 (2265.43) (2206.06) 932.37 193.25 (1125.62) (15.25) 485.35 (3675.78) 19.10 191.20 (2995.38) (525.45) (331.35) 653.17 (222.00) 2048.17 2000.00 38.68 3583.86 (343.90) 1754.96 1217.81

(12.82) 0.11 (657.96) 33.28 (637.39)

(5.93) 672.07 (870.50) 3063.49 769.35 3629.07 (409.48) 319.01 (883.89) (190.34) 205.84 (797.00) (1755.86) 1930.52 1217.81 3148.33

220.00 (6.07) (24.39) 1.86 (36.25) 155.15 (15.35) 314.83 299.48

INTERPRETATION:
 Net cash from opearations activities increased 1125.62 of 2005, 25.03 of 2006, 125.38 of 2007, 2792.37 of 2008, to 6828.40 of 2009.



Net cash from investing activities also increased 2995.38 of 2005 to 3629.07 of 2006, decreased 285.97 of 2006 to 637.39 of 2007, decreased 525.43 of 2007 to 3138.05 of 2008, increased 15519.00 of 2008 to 7470.86 of 2009.



Net cash from financing activities decreased 3583.86 of 2005 to 1755.86 of 2006, increased 117.95 of 2006 to 155.15 of 2007, increased 705.27 of 2007 to 29936.17 of 2008, decreased 13058.13 of 2008 to 3727.44 of 2009.

In the 2005-09 cash in flows are increased than the cash out flows.

GRAPHICAL REPRESENTATION:

CASH FLOW STATEMENT GRAPH
3500 3000 NET CASH VALUES 2500 2000 1500 1000 500 0 2006 2007 2008 2009

INTERPRETATION FOR ABOVE GRAPH:
2006 net cash is 1930.50, 2007 net cash is (15.35), 2008 net cash is 2597.22, 2009 net cash is 3084.98. In the 2005 year cash flow showing the positive cash flows but in the 2006 is showing the negative cash flows but 2007-08 it shows the positive cash flows. Overall cash flow position of the company is satisfactory. Even though it got negative cash flow in 2006 company recovered very easily in the years 2007-08.

CHAPTER –VI

FINDINGS
        In 2006 operating activities and investing activities net increased but financial activities net decrease .Even though net cash flow increased. In 2007 operating activities net increased but investing activities net and financial activities net decreased .Net cash flow is decreased. In 2008 operating and investing activities net increased but financing activities net decreased.Net cash flow is decreased. In 2009 operating, financing and investing activities net increased when compared to the last 3 years.Net cash flow is increased. In 2006 the growth of the company is 1930.52 millions .There is no loss incurred in that year. In 2007 the company faced the loss of Rs.15.35 millions .It decreased the cash flow of the lanco. In 2008 the lanco growth is Rs.2597.22 millions net increased when compared to the 2006. In 2009 growth was Rs.3084.98 Company is in good position.

SUGGESTIONS AND RECOMMONDATIONS



Concentrate on 2006 financial activities because it incurred loss in that financial year. It mostly affected the other activities l operating and investing activities.



In 2007 the investing & financial activities incurred the loss it mostly affected the operating activities.



In 2008 mostly concentrate on the investing activities & financial activities. It mostly affected the operating activities.



In 2009 financial activities incurred the loss .It mostly affected the operating and investing activities.

CONCLUSION
The project study includes a keen analysis of Cash Management with the LANCO INFRA. To understand the cash management in LANCO, two parameters one Cash Flow Statement and another Ratio Analysis are taken. The study includes even a deep understanding of complete LANCO group, specialized revision on LANCO INFRA. I want to conclude that financial position of the company is satisfactory .It maintaining the good cash managing system .It managing the cash inflow and cash outflows very good manner.

BIBILOGRAPHY
Books referred:  Financial Management: M.Y. Khan & Jain, 4th Edition Published by TATA Mc. Graw Hill.  Financial Management: M.Y. Khan & Jain, 2nd Edition Published by TATA Mc. Graw Hill.  Financial Management: Prasanna Chandra, 6th Edition Published by TATA Mc. Graw Hill.  Financial Management: I.M. Panedey, 4th Edition Published by Vikas Publishers..

Internet sites:  www.lancogroup.com  www.gmail.com  www. Power generation.com