Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
March 2025
The business burned ₹181,449 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) | −₹867,016 |
| ＋Depreciation (non-cash) | +₹4,119 |
| ＋Interest / Finance Cost (reclassified to Financing) | +₹649 |
| = Operating profit before WC changes | −₹862,248 |
| ＋(Increase) / Decrease in Trade Receivables | ₹55,700 |
| ＋Increase / (Decrease) in Trade Payables | ₹377,211 |
| −(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) | −₹26,500 |
| ＋Increase / (Decrease) in Duties & Taxes (aggregate) | ₹25,200 |
| = Cash generated from operations | −₹430,637 |
| Net Cash from Operating Activities | −₹430,637 |
| Net Cash from Investing Activities | ₹0 |
| Capital introduced / PAT share — Prateek Agrawal | ₹107,996 |
| Profit & Loss A/c (current-year PAT sits here until appropriated) | −₹57,277 |
| Capital introduced / PAT share — Rahul Nathani | ₹149,313 |
| Capital introduced / PAT share — Sakshi Nathani Partner A/c | ₹49,806 |
| (No PAT adjustment — profit not yet appropriated) | ₹0 |
| − Interest on Borrowings paid | −₹649 |
| Net Cash from Financing Activities | ₹249,188 |
| Net Increase / (Decrease) in Cash | −₹181,449 |
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.