Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
September 2024
The business burned ₹9,140 of cash this period — bank + petty cash shrank by this amount.
Cash Reconciliation
Opening + Net CF = Closing · the identity that proves every ₹ is accounted for
Indirect Cash Flow — build-up from PAT
PAT → add back non-cash items → adjust for working capital → Net Cash from Operating
| Profit After Tax (PAT) | ₹105,462 |
| = Operating profit before WC changes | ₹105,462 |
| −(Increase) / Decrease in Trade Receivables | −₹64,900 |
| ＋Increase / (Decrease) in Trade Payables | ₹32,138 |
| −(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) | −₹5,500 |
| −Increase / (Decrease) in Duties & Taxes (aggregate) | −₹41,340 |
| = Cash generated from operations | ₹25,860 |
| Net Cash from Operating Activities | ₹25,860 |
| Net Cash from Investing Activities | ₹0 |
| Drawings / Capital withdrawn — Rahul Nathani | −₹35,000 |
| (No PAT adjustment — profit not yet appropriated) | ₹0 |
| Net Cash from Financing Activities | −₹35,000 |
| Net Increase / (Decrease) in Cash | −₹9,140 |
Depreciation & other non-cash items are added back to PAT because they reduced profit on paper but never moved cash. Working-capital changes adjust for accruals — receivables increasing = cash we've billed but not received yet. Click Consultant view for per-ledger WC detail and Direct ↔ Indirect reconciliation.