A Project Report On “Funds Flow Analysis” At “Hilton Tobacco’s Private Limited

Abstract

Funds Flow Analysis is a critical financial tool that helps organizations assess the movement of funds and understand the underlying financial dynamics. This study focuses on the funds flow at Hilton Tobacco Private Limited, aiming to evaluate the sources and applications of funds over a given accounting period to assess the company’s financial stability and operational efficiency. By preparing a funds flow statement using data from comparative balance sheets and profit & loss accounts, the study highlights significant trends in working capital changes, capital expenditures, and financing activities. The analysis shows that Hilton Tobacco Private Limited effectively generates internal funds through its core operations. However, a large share of these funds is utilized for acquiring fixed assets and repaying long-term liabilities. The company also exhibits partial dependence on external financing to support its investment needs. The study suggests that enhancing working capital management, streamlining cash flow planning, and exploring more cost-effective financing options can strengthen the company’s financial position. It concludes that a well-structured funds flow strategy at Hilton Tobacco Private Limited can contribute to better financial decision-making and long-term business sustainability.