Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
December 2024
The business burned ₹38,874 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) | ₹166,250 |
| ＋Interest / Finance Cost (reclassified to Financing) | +₹100 |
| = Operating profit before WC changes | ₹166,350 |
| −(Increase) / Decrease in Trade Receivables | −₹153,400 |
| −Increase / (Decrease) in Trade Payables | −₹46,350 |
| −(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) | −₹8,500 |
| ＋Increase / (Decrease) in Duties & Taxes (aggregate) | ₹23,126 |
| = Cash generated from operations | −₹18,774 |
| Net Cash from Operating Activities | −₹18,774 |
| Net Cash from Investing Activities | ₹0 |
| Drawings / Capital withdrawn — Rahul Nathani | −₹20,000 |
| (No PAT adjustment — profit not yet appropriated) | ₹0 |
| − Interest on Borrowings paid | −₹100 |
| Net Cash from Financing Activities | −₹20,100 |
| Net Increase / (Decrease) in Cash | −₹38,874 |
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.