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    Liability Share Capital Loan Debentures Customer Advance Internal Funds

    Uploaded by

    Deepak Vindal
    The document discusses financial management in business projects. It outlines that projects receive funding from (1) investors/loans, customer advances, and internal funds. These funds are used for fixed assets like buildings and equipment, and working capital like inventory. Assets and capital are then used to generate project revenue through sales and services. Performance is shown through profit/loss statements which depict revenue minus expenses to give net profit or cash inflow. Cash flows are mapped over different years to analyze the project's discounted cash flows, cash outflows, payback period, and net present value.

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    © All Rights Reserved
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    Liability Share Capital Loan Debentures Customer Advance Internal Funds

    Uploaded by

    Deepak Vindal
    24 views1 page
    The document discusses financial management in business projects. It outlines that projects receive funding from (1) investors/loans, customer advances, and internal funds. These funds are used for fixed assets like buildings and equipment, and working capital like inventory. Assets and capital are then used to generate project revenue through sales and services. Performance is shown through profit/loss statements which depict revenue minus expenses to give net profit or cash inflow. Cash flows are mapped over different years to analyze the project's discounted cash flows, cash outflows, payback period, and net present value.

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    Finance_in_Projects

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    The document discusses financial management in business projects. It outlines that projects receive funding from (1) investors/loans, customer advances, and internal funds. These funds are used for fixed assets like buildings and equipment, and working capital like inventory. Assets and capital are then used to generate project revenue through sales and services. Performance is shown through profit/loss statements which depict revenue minus expenses to give net profit or cash inflow. Cash flows are mapped over different years to analyze the project's discounted cash flows, cash outflows, payback period, and net present value.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    24 views1 page

    Liability Share Capital Loan Debentures Customer Advance Internal Funds

    Uploaded by

    Deepak Vindal
    The document discusses financial management in business projects. It outlines that projects receive funding from (1) investors/loans, customer advances, and internal funds. These funds are used for fixed assets like buildings and equipment, and working capital like inventory. Assets and capital are then used to generate project revenue through sales and services. Performance is shown through profit/loss statements which depict revenue minus expenses to give net profit or cash inflow. Cash flows are mapped over different years to analyze the project's discounted cash flows, cash outflows, payback period, and net present value.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    A Bird’s eye of Financial Management in Business / Projects

    A) Project funding
    Money from Customer Advance Internal Funds
    Investors/Loan (Reserves & Surplus)

    …..…………….……………………………………………………………………………..………………
    Within the LIABILITY
    Organization Share Capital; Loan; Debentures; Customer
    Advance; Internal Funds
    (Receipt of Funds from various Sources)
    Money received from various sources for the project

    Current Assets
    Cash and Cash equivalents (Bank Balance)
    Funds are invested in Fixed Assets and Working Capital to generate Revenue/ Sales

    B) Project Cash outflow


    Fixed Assets (Capital Items) Working Capital
    Land; Bldg.; Plant & Mcry; Office
    Equipments; Furniture & Fixtures Inventory; Cash and Bank
    etc. Balance

    Utilization of fixed and current assets to generate Project Revenue

    Income/Revenue/ Expenditure Deferred Revenue


    Sales (Revenue Expenditure (DRE)
    i) Operational Expenditure) (Expenditures which
    Income Direct expenses: have been incurred in
    (thru core activities material; wages; an accounting period
    like Product Sales; factory overheads etc and their benefit is
    Service) spread in more then
    Indirect expenses:
    one accounting period)
    Administrative;
    Marketing;; Tax;
    Eg: R&D Expenses;
    Dividend etc
    ; Tooling etc

    C) Project Cash Inflow


    Performance for the accounting period is portrayed in
    Profit & Loss Account Statement – Profit / Loss
    Cash Inflow

    Balance Sheet
    Profit & Loss Statement (For the period) (As at)
    Revenue minus Expenditure = Net Profit
    Assets (Fixed; Current;
    (Cash Inflow)
    Investments & DRE) and
    Liabilities (Share capital;
    Loan; Short term liabilities)

    Discdtd. Cash Inflows D. Cash Outflows


    Year 1 Year 0
    Break
    Year 2 Year 1 Even;
    . Minus . Payback
    . . Period; 1
    . Net Present
    Year n Year n Value

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