Balance sheet of a company as on 31-3-2008 and 31-3-2007 in Rupees(Rs) is

31-3-08 31-3-07
Sources of funds

Share capital 5000 4000
General reserve 1000 800
P&L A/c 400 200
Share premium 1000 500
Secured loans 4000 3000
Unsecured loans 3000 1000



Application of funds
Fixed assets-gross block 12000 10000
Less:accumulated depn 3000 2000
Net block 9000 8000
Capital work in progress 3000 -
Investments 2000 500
Current assets:
Inventories-raw material 700 600
Work in progress 250 300
Finished goods 150 200
Sundry debtors 1200 1300
Prepayments 200 150
Cash and bank 500 400
Loans & advances:
Advance tax 1400 900
Loans to employees(long term) 1000 500
Current liabilities:
Sundry creditors 800 950
Outstanding expenses 400 300
Provisions:
Provisions for retirement benefits 350 300
Tax provisions 1450 1000
Proposed dividend 1000 800

Additional information:
1) actual tax liability for 2006-07 was Rs 950
2) a piece of machinery costing Rs 500, accumulated depreciation Rs 200 was sold for Rs 250. The loss was charged to profit and loss account
3) a portion of secured loan as on 31-3-07 amounting to Rs 400 was converted into equity at premium Rs 200. There was also fresh issue of equity at 100% premium.
4) out of secured loans as on 31-3-08 Rs 500 were short term loans
5)out of unsecured loans short term loans were to the extent of Rs 400 and Rs 500 respectively as on 31-3-07 and 31-3-08.
6) out of investment Rs 200 were current investment as on 31-3-07 and Rs 500 were current investments as on 31-3-08
7) there was revaluation of fixed asset during 2007-08 and the revaluation profit Rs 500 was charged to capital reserve. Then you are required to prepare:

(a) statement showing changes in working capital
(b) fund flow statements

Please do not keep posting the same question over and over. It appears as though you are expecting someone to answer you in five minutes. Everyone here is volunteers with lives and families and they come give of their time when they can. You will have to wait and see if someone comes along who can help you with this. You won't get help faster by posting every 3 minutes.

Ashu1976. May I suggest that you refer to the solutions book of the text book you are studying from. It is a usual practice in India to have solutions given in a separate book. The following are the famous authors in India:
1. Shukla and Grewal
2. Mukherjee and Hanif
3. Tulsian
4. R L Gupta
5. Nirmal Gupta

However, just as a guidance, prepare T accounts that are affected. Post the transactions occurring during the period and work out the missing figures. That will be the information for preparing a funds flow statement.

I just do not understand why the Indians still continue with a funds flow statement when it has been replaced with a more meaningful cash flow statement by the International Accounting Standards Board.