Format of Cash Flow Statement (Indirect Method)

CASH FLOW STATEMENT

for the year ended …..

Particulars  Amount
(A)Cash From Operating Activities

Net profit as per Profit and Loss account

Add:

Transfer to Reserves

Interim dividend paid during the year

Proposed dividend for the current year

Provision for tax made during the year

Extra ordinary items debited to profit and loss account (if any)

Less:

Tax refund

Extraordinary items credited to profit and loss account (if any)

 

=Net Cash Before Tax and Extraordinary Items

 

Adjustment for non cash and non operating items:

Add:

Depreciation

Goodwill, patents, trademarks etc written off

Discount on issue of shares, debentures or loss on issue of debentures written off

Preliminary expenses written off

Interest on debentures or other borrowings

Loss on sale of fixed assets

Less:Dividend earned during the year

Interest earned during the year

Rent earned during the year

Profit on sale of Fixed Assets

=Operating Profit before Working Capital Changes

 

Add: Decrease in Current Assets

Increase In Currentb Liabilities

Less: Increase in Current Assets

Decrease in Current Liabilities

=Cash Generated from Operations

Less: Income Tax paid (Less refund if any)

=Cash Flow before Extraordinary Items

Add/Less: Extraordinary Items

=Net Cash from/used in Operating activities (A)

(B) Cash Flow From Investing Activities

Add:

Proceeds from sale of Fixed Assets

Proceeds from sale of long term investments

Proceeds from sale of Goodwill/Patents/Trademarks etc

Rent received

Interest/Dividend received (in case of non financial companies)

Less:Purchase of Fixed Assets

Purchase of Long Term Investments

Purchase of Goodwill/Patents/Trademarks etc

=Net Cash From/used in Investing Activities (B)

 

(C) Cash Flow from Financing Activities

Add:

Proceeds from Issue of Shares and Debentures

Proceeds from Long term loans and other

borrowings

Less:Repayment of Long term Loans and Borrowing

Redemption of Debentures/Preference Shares

Interest On Debentures and Loans Paid

Final Dividend Paid

Interim Dividend Paid

=Net Cash from/used in Financing Activities (C)

 

Net Increase/Decrease in Cash and Cash

Equivalents(A+B+C)

Add: Cash and cash equivalents in the beginning of the year

-Cash in hand/at bank

-Marketable Investments

-Short term deposits

=Cash and Cash Equivalents at the end of the Year

 

 

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