DETAILS OF RESEARCH PAPERS

DETAILS OF RESEARCH PAPERS RESEARCH PAPER-I Title: A Comparative Study on Cash Flow Statements of Tata Chemicals Ltd. and Pidilite Chemicals Ltd. Author-1: Kalpesh B. Gelda (Assistant Professor, National College of Commerce, Ahmedabad) Author-2: Dr. Bhavsinh M. Dodiya (Assistant Professor, Smt. B.V. Dhanak Arts, Commerce, Science & Management College, Bagasara, Dist.-Amreli) Published in Paripex - Indian Journal of Research (Journal for all Subjects) Peer Reviewed & Referred International Journal Journal DOI: 10.15373/22501991 ISSN 2250-1991 Impact Factor 1.6714 Volume:3, Issue:6, June-2014 RESEARCH PAPER-II Title: Cash Flow Statement of State Bank of India and HDFC Bank: A Comparative Study Author-1: Dr. Bhavsinh M. Dodiya (Assistant Professor, Smt. B.V. Dhanak Arts, Commerce, Science & Management College, Bagasara, Dist.-Amreli) Author-2: Kalpesh B. Gelda (Assistant Professor, National College of Commerce, Ahmedabad) Published in Paripex - Indian Journal of Research (Journal for all Subjects) Peer Reviewed & Referred International Journal Journal DOI: 10.15373/22501991 ISSN 2250-1991 Impact Factor 1.6714 Volume:3, Issue:12, December-2014

A COMPARATIVE STUDY ON CASH FLOW STATEMENTS OF TATA CHEMICALS LTD. AND PIDILITE CHEMICALS LTD. (1) KALPESH GELDA (ASSISTANT PROFESSOR, NATIONAL COLLEGE OF COMMERCE, AHMEDABAD) (2) Dr. BHAVSINH M. DODIYA (ASSISTANT PROFESSOR, SMT. B.V. DHANAK ARTS, COMMERCE, SCIENCE AND MANAGEMENT COLLEGE, BAGASARA) ABSTRACT :- A cash flow statement is required as part of a complete set of financial statements prepared in conformity with Indian Accounting Standards. AS-3 lays down a formal structure for the cash flow statement. Cash flows should be classified under the following three standard headings: Operating activities, Investing activities, and Financing activities. The classification of cash flows among operating, investing and financing activities is essential to the analysis of cash flow data. Net cash flow (the change in cash and equivalents during the period) has little informational content by itself; it is the classification and individual components that are informative. Although the classification of cash flows into the three main categories is important, it should be mentioned that classification guidelines are arbitrary. Key Words: Cash, Cash equivalents, Operating, Investing, Financing INTRODUCTION :- The users of an enterprise s financial statements are interested in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise s activities and irrespective of whether cash can be viewed as the product of the enterprise, as may be the case with a financial enterprise. Enterprises need cash to conduct their operations, to pay their obligations and to provide returns to their investors.

Success of every business depends on its cash management. The supply of cash is frequently a limitation on the successful execution of many policies and programs. So it is necessary to study the composition of cash of company to know the impact of its cash flow decision on its liquidity, profitability and solvency. In this study, the matters relating to the cash flow statements, which normally forms a part of the financial statements of various enterprises to which the Accounting standard (AS) 3, Cash Flow Statements, become mandatory as given by ICAI, is discussed in the light of, and on the basis of, the said Accounting Standard. OBJECTIVES :- There are three important activities which are the significant parts of Cash Flow Statements. The analysis of all these activities is undertaken with the following objectives: (1) To undertake comparative study on Operating for the period of study of selected companies. (2) To undertake comparative study on Investing for the period of study of selected companies. (3) To undertake comparative study on financing for the period of study of selected companies. RESEARCH METHODOLOGY :- SAMPLE SELECTION For the purpose of the study two (2) companies from Chemical Industry i.e. Tata Chemicals Ltd. and Pidilite Chemicals Ltd. have been selected. PERIOD OF STUDY The study is conducted for a period of five (5) financial years i.e. from 2008 09 to 2012 13. DATA COLLECTION In this study, mainly secondary data is collected. Secondary data has been obtained from the following sources:

Published Annual Reports of the companies for the financial years 2008 09 to 2012 13. Directory of Mumbai Stock Exchange Websites of the selected companies Other related websites STATISTICAL TOOLS AND TECHNIQUES The statistical analysis technique is selected to analyze the Cash Flow Statements of the companies understudy. For this, following techniques are being used. (a) Mean (b) Standard Deviation (c) Co efficient of Variation COMPARATIVE STUDY (Rs. In crores) ACTIVITI ES TATA 2008-09 2009-10 2010-11 2011-12 2012-13 PIDILI TE TATA PIDILI TE TATA PIDILI TE TAT A PIDILI TE TAT A PIDILI TE Operating 1027. 87 260.23 843. 07 429.91 427.78 322.41 340. 73 506.91 223. 34 512.7 Investing -684. 93 Financing -91.55-53.72-227.99-48.35-337.46-248.19-37.06-7951. 51-186.56-15592. 78-245.86 89.2 9-231.52-336. 93-285.84-238. 74 130. 33-196.75-325.82

COMPARATIVE CHART FOR OPERATING ACTIVITIES 1100 1000 900 800 700 600 500 400 300 200 100 0 2008-09 2009-10 2010-11 2011-12 2012-13 OPERATING ACTIVITIES TATA OPERATING ACTIVITIES Pidilite COMPARATIVE CHART FOR INVESTING ACTIVITIES 200 0-200 2008-09 2009-10 2010-11 2011-12 2012-13 -400-600 -800 INVESTING ACTIVITIES TATA INVESTING ACTIVITIES Pidilite COMPARATIVE CHART FOR FINANCING ACTIVITIES 2000 0-2000 -4000-6000 -8000-10000 -12000-14000 -16000-18000 2008-09 2009-10 2010-11 2011-12 2012-13 FINANCING ACTIVITIES TATA FINANCING ACTIVITIES Pidilite

MEAN, STANDARD DEVIATION AND CO-VARIANCE OPERATING ACTIVITIES COMPANY Average (Mean) Rank Standard Deviation Rank Co- Variance Rank TATA 572.56 1 308.92 2 53.95 2 Pidilite 406.43 2 100.37 1 24.7 1 INVESTING ACTIVITIES COMPANY Average (Mean) Rank Standard Deviation Rank Co- Variance Rank TATA -226.18 2 261.63 1-115.67 1 Pidilite -206.16 1 97 2-47.05 2 FINANCING ACTIVITIES COMPANY Average (Mean) Rank Standard Deviation Rank Co- Variance Rank TATA -4768.49 2 6209.8 1-130.23 1 Pidilite -219.56 1 94.83 2-43.19 2

FINDINGS :- The Performance evaluation can be examined with the use of different techniques accounting as well as statistics. All these techniques have certain limitations and merits. To come to the reasonable conclusion apart from accounting analysis the use of statistics is also applied. By cash flow statement the trend and measurement of three activities to be done for evaluation purpose. And for all these activities comparison with other statistical techniques become necessary. Average is calculated to see the quantum of different companies for each company for given period of time. Subsequently ranks are allotted on the basis of their quantum. But this does not serve the complete purpose hence standard deviation is calculated and ranks are given to them on the basis of their results. This helps to know variation of respective activates for given period of time from its coverage. Theoretically higher the standard deviation, lower the rank and vice versa. Finally co efficient variation is also calculated to know the consistency level of each activity of each company and ranks are given accordingly. Theoretically higher the co efficient, lower the consistency. (1) Average : Theoretically higher the average, higher the rank and vice versa. For Operating activities, Average of TATA Co. (Rs. 572.56 crore) is greater than Pidilite Co. (Rs. 406.43 crore). Accordingly, TATA is given 1 st rank and Pidilite is given 2 nd rank. But, for investing activities and financing activities, Average of Pidilite Co. is greater than the TATA Co. So, Pidilite is given 1 st rank and TATA is given 2 nd rank. (2) Standard Deviation : Theoretically higher the Standard Deviation, lower the rank and vice versa. For Operating activities, Standard Deviation of TATA is 308.92 whereas for Pidilite Co. it is 100.37. It is lower in Pidilite Co. So, it is given 1 st rank and TATA Co. is given 2 nd rank. But, for Investing activities and Financing activities, Standard deviation of TATA Co. is lower than the Pidilite Co. So, TATA is given 1 st rank and Pidilite is given 2 nd rank.

(3) Co Efficient of Variation : Theoretically higher the Co-efficient of Variation, lower the rank and vice versa. For Operating activities, Co-efficient of Variation of for Pidilite Co. (24.70) is less than TATA Co. (53.95). Accordingly, Pidilite is given 1 st rank and TATA is given 2 nd rank. But, for Investing activities and Financing activities, Co-efficient of Variation of TATA Co. is lower than the Pidilite Co. So, TATA is given 1 st rank and Pidilite is given 2 nd rank. OVERALL CONCLUSION Level Operating Investing Financing Best PIDILITE TATA TATA Poorest TATA PIDILITE PIDILITE LIMITATIONS OF THE STUDY :- Every researcher tries to give justice to his research. Yet, there are some limitations to his findings because he has to depend on information given by some published or unpublished records and other sources. So, the further research can be carried out by considering the aspects given below. This study is entirely based on the published financial statements of the company and other information received from the company officials. So, all analysis is based on this data. So it can be reliable to that extent. (1) As the information is collected from limited sources, it is not possible to use different tools and techniques of statistical analysis. (2) The study is based on secondary data; the secondary data has its own limitation.

(3) Some external factors also could affect directly or indirectly to the companies efficiency. But it is not easy to judge completely right about them. (4) The entire study is limited to two companies only. It can be carried out by including Industry. CONCLUSION AND RECOMMENDATION :- A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample banks prepare cash flow statement according to Accounting Standard-3 (AS-3), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the banks should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing and financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study. Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. BIBLIOGRAPHY :- M. Y. Khan, P. K. Jain, Financial Management 2001, Third Edition, Tata McGraw Hill, Publishing Company Ltd., New Delhi. Dr. P. C. Tulsian Financial Management, 2009, First Edition, S. Chand & Co. Ltd., Ram Nagar, New Delhi 110 055. J. Made Gowda Accounting for Managers, 2009, First Edition, Himalaya Publishing House Pvt. Ltd., Ansari Road, Darya Ganj, New Delhi 110 002.

Dr. P. Periasamy A Textbook of Financial Cost and Management Accounting, 2009, First Edition, Himalaya Publishing House Pvt. Ltd. Ansari Road, Darya Ganj, New Delhi 110 002. C.R.Kothari, Research Methodology- Methods and Techniques. S.N. Maheshwari and S.K. Maheshwari A Textbook of Accounting for Management 2006 (1 st edition), Vikas Publishing House Pvt. Ltd., New Delhi- 110014. J. Made Gowda Accounting for Managers, 2009, First Edition, Himalaya Publishing House Pvt. Ltd., Ansari Road, Darya Ganj, New Delhi 110 002. Dr. P. Periasamy A Textbook of Financial Cost and Management Accounting, 2009, First Edition, Himalaya Publishing House Pvt. Ltd. Ansari Road, Darya Ganj, New Delhi 110 002. N Ramchandran, Ram Kumar Kakani How to Read a Cash Flow Statement 2010, The Mcgraw Hill Education Private Limited, West Patel Nagar, New Delhi 110008. Debarshi Bhattacharyya Management Accounting, 2010, Dorling Kindersley (India) Pvt. Ltd., Panchsheel Park, New Delhi - 110017.

CASH FLOW STATEMENTS OF STATE BANK OF INDIA AND HDFC BANK: A COMPARATIVE STUDY (1) Dr. BHAVSINH M. DODIYA (ASSISTANT PROFESSOR, B.V. DHANAK ARTS, COMMERCE, SCIENCE & MANAGEMENT COLLEGE, BAGASARA) (2) KALPESH GELDA (ASSISTANT PROFESSOR, NATIONAL COLLEGE OF COMMERCE, AHMEDABAD) ABSTRACT:- From the financial year 2004-05, it has become mandatory for all the Indian companies to present Cash Flow Statement in their Annual Reports. Institute of Chartered Accounts of India (ICAI) has issued Accounting Standard-3 (AS-3) for the cash flow statement. According to this, all the cash transactions of the company are divided in three activities i.e. Operating, Investing and Financing activities. Such classification helps the investors and other stakeholders in analyzing the cash flow data. In this paper, a comparative study has been undertaken between two banks: State Bank of India (a public sector bank) and HDFC Bank (a private sector bank). ------------------------------------------------------------------------------------------------------- Key Words: Cash, Cash equivalents, Operating, Investing, Financing ------------------------------------------------------------------------------------------------------- INTRODUCTION :- By studying cash flow statements, one can come to know about the capacity of the organizations to generate cash and cash equivalents. It helps the users in comparing the present value of the future cash flows of the different organizations. It removes the effects of using different accounting treatments for the repeated transactions and events. In this way, it improves the comparison of the various enterprises reporting about operating performance. To know about the amount, timing and surety of future cash flows, historical information about cash flow is used. It is also helpful in checking the correctness of the past judgments of future cash flows. It also helps in

determining the relationship between cash flow and profitability and the effect of inflation. Cash flow statements are provided with the other financial statements in the annual reports of the companies. The information provided in these statements helps the users To find out the changes in net assets of an organization To find out the changes in the financial structure of an organization To find out the liquidity and solvency position of an organization To know about the ability of an organization to make changes in time if the circumstances and opportunities are changing. In this paper, a comparative study has been undertaken about the cash flow statement between a public sector bank (State Bank of India) and a private sector bank (HDFC Bank). RESEARCH METHODOLOGY:- SAMPLE SELECTION For the purpose of the study two (2) banks State Bank of India and HDFC Bank have been selected. PERIOD OF STUDY The study is conducted for a period of five (5) financial years i.e. from 2009 10 to 2013 14. DATA COLLECTION In this study, mainly secondary data is collected. Secondary data has been obtained from the following sources : Published Annual Reports of the companies for the financial years 2009-10 to 2013 14. Directory of Mumbai Stock Exchange Websites of the selected companies Other related websites

OBJECTIVES There are three important activities which are the significant parts of Cash Flow Statements. The analysis of all these activities is undertaken with the following objectives: (1) To study the trend of various activities such as Operating, Investing and Financing of selected companies of chemical industry. (2) To analyze the variation amongst three activities i.e. Operating, Investing and Financing of the selected companies of chemical industry. (3) To provide suggestions for improvement in Cash Management. HYPOTHESES Considering the objectives of the study the following hypothesis were formed under investigation: (1) There is no significant difference between the trends of Operating activities of the selected banks. (2) There is no significant difference between the trends of Investing activities of the selected banks. (3) There is no significant difference between the trends of Financing activities of the selected banks. (4) There is no significant difference between the means of Operating activities of the selected banks. (5) There is no significant difference between the means of Investing activities of the selected banks. (6) There is no significant difference between the means of Financing activities of the selected banks. STATISTICAL TOOLS AND TECHNIQUES The statistical analysis technique is selected to analyze the Cash Flow Statements of the companies understudy. For this, following techniques are being used:

(1) Mean (2) Standard Deviation (3) Co efficient of Variation (4) T-Test STATISTICAL ANALYSIS MEAN, STANDARD DEVIATION AND CO-VARIANCE) YEAR OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES 2009-10 -1804.99 9389.89-1761.52-551.51-3359.67 3598.91 2010-11 34282.27-375.83-1245.28-1122.74 2057.11 1227.99 2011-12 -28468.59-11355.61-1648.56-686.85 2147.66 3286.19 2012-13 21661.23-1868.78-1999.41-858.88-3259.72 9065.84 2013-14 14,107.42 8363.6-3,105.67-1591.26 3,811.17 5562.98 TOTAL 39777.34 4153.27-9760.44-4811.24 1396.55 22741.91 AVERAGE 7955.47 830.65-1952.09-962.25 279.31 4548.38 RANK 1 2 2 1 2 1 S.D. 24190.77 8474.28 700.18 411.29 3350.08 2956.20 RANK 2 1 2 1 2 1 CO- VARIANCE 304.08 1020.19-35.87-42.74 1199.41 64.99 RANK 1 2 2 1 2 1

40000 30000 20000 10000-10000 Cash flow from Operating 0 0-500 -1000-1500 -2000-2500 Cash flow from Investing 2009-10 2010-11 2011-12 2012-13 2013-14 -20000-30000 2009-10 2010-11 2011-12 2012-13 2013-14 -3000-3500 Cash flow from Financing 12000 9000 6000 3000 0-3000 2009-10 2010-11 2011-12 2012-13 2013-14 -6000

TREND ANALYSIS OF AVERAGE, S.D. & CO-VARIANCE 26000.00 24000.00 22000.00 20000.00 18000.00 16000.00 14000.00 12000.00 10000.00 8000.00 6000.00 4000.00 2000.00 0.00-2000.00-4000.00 OPERATING ACTIVITIES INVESTING ACTIVITIES FINANCING ACTIVITIES AVERAGE S.D. CO-VARIANCE FINDINGS :- (1) From the table, it can be seen that the average of cash flow from operating activities of is higher than that of Theoretically, higher the average, higher will be the rank and vice versa. So, is given 1 st rank and is given 2 nd rank. But, the situation is totally different in investing and financing activities. Accordingly, is given 1 st rank and is given 2 nd rank. (2) In case of Standard Deviation, lower the value, higher will be the rank and vice versa. Considering this aspect, it is observed that the S.D. for all the three activities of bank is lower than the bank. So, for the three activities, bank obtained 1 st rank and obtained 2 nd rank. (3) In case of Co-variance also, lower the value, higher will be the rank and vice versa. Situation remains same in Co-variance also. Co-variance for all the three activities of bank is lower than the bank. So, for all the three activities, bank obtained 1 st rank and obtained 2 nd rank.

Level of Performance OVERALL CONCLUSION Operating Investing Financing Best Poor PAIRED T-TEST BETWEEN TWO MEANS t-test: Paired Two Sample for Means for Operating Mean 7955.468 830.654 Variance 585193367.6 71813343.55 Observations 5 5 Hypothesized Mean Difference 7124.82 df 4 t Stat -6.073E-07 t Critical two-tail 2.776445105 t-test: Paired Two Sample for Means for Investing Mean -1952.088-962.248 Variance 490253.44 169162.121 Observations 5 5 Hypothesized Mean Difference 989.84 df 4 t Stat -8.4438538 t Critical two-tail 2.77644511 t-test: Paired Two Sample for Means Financing Mean 279.31 4548.382 Variance 11223062.1 8739116.16 Observations 5 5 Hypothesized Mean Difference 4269.07 df 4 t Stat -3.572023598 t Critical two-tail 2.776445105

HYPOTHESIS ACCEPTED ACTIVITIES tc tt OR REJECTED OPERATING ACTIVITIES -6.07 2.78 ACCEPTED INVESTING ACTIVITIES -8.44 2.78 ACCEPTED FINANCING ACTIVITIES -3.57 2.78 ACCEPTED HYPOTHESIS TESTING :- (1) In case of operating activities, the trend for average, standard deviation and co-variance is different for both the banks. So, it can be said that the hypothesis is rejected. (2) But, for investing activities, the trend for average, standard deviation and covariance is equal for both the banks. So, it can be said that the hypothesis is accepted. (3) For financing activities also, the trend for average, standard deviation and covariance is equal for both the banks. So, it can be said that the hypothesis is accepted. (4) From the T-table, it is observed that the calculated value of t for operating activities (-6.07) is less than the table value (2.78), the hypothesis is accepted. It means that there is no significant difference between the means of operating activities of selected banks. (5) For Investing activities also, calculated value of t for operating activities (- 8.44) is less than the table value (2.78), the hypothesis is accepted. It means that there is no significant difference between the means of investing activities of selected banks. (6) For Financing activities also, calculated value of t for operating activities (- 3.57) is less than the table value (2.78), the hypothesis is accepted. It means that there is no significant difference between the means of financing activities of selected banks.

LIMITATIONS OF THE STUDY :- This study is entirely based on the published financial statements of the company and other information received from the company officials. So, all analysis is based on this data. So it can be reliable to that extent. (1) As the information is collected from limited sources, it is not possible to use different tools and techniques of statistical analysis. (2) The study is based on secondary data; the secondary data has its own limitation. (3) The entire study is limited to two banks only. It can be carried out by including Industry. BIBLIOGRAPHY :- C.R.Kothari, Research Methodology- Methods and Techniques. S.N. Maheshwari and S.K. Maheshwari A Textbook of Accounting for Management 2006 (1 st edition), Vikas Publishing House Pvt. Ltd., New Delhi- 110014. Dr. P. C. Tulsian Financial Management, 2009, First Edition, S. Chand & Co. Ltd., Ram Nagar, New Delhi 110 055. M. Y. Khan, P. K. Jain, Financial Management 2001, Third Edition, Tata McGraw Hill, Publishing Company Ltd., New Delhi. N Ramchandran, Ram Kumar Kakani How to Read a Cash Flow Statement 2010, The Mcgraw Hill Education Private Limited, West Patel Nagar, New Delhi 110008. Debarshi Bhattacharyya Management Accounting, 2010, Dorling Kindersley (India) Pvt. Ltd., Panchsheel Park, New Delhi - 110017.