Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
January 2026
The business generated ₹72,668 of cash this period — bank + petty cash grew 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) | ₹62,719 |
|
＋Provisions / Bad Debts / Write-offs (non-cash)
(Of which bad-debt/receivable write-off: 74,201.00 — subtracted from ΔReceivables below to avoid double-counting the Debtor-side reduction.)
|
+₹74,201 |
| = Operating profit before WC changes | ₹136,920 |
| ＋(Increase) / Decrease in Trade Receivables | ₹47,200 |
| −(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) | −₹15,250 |
| −Increase / (Decrease) in Duties & Taxes (aggregate) | −₹4,702 |
| = Cash generated from operations | ₹164,168 |
| Net Cash from Operating Activities | ₹164,168 |
| Net Cash from Investing Activities | ₹0 |
| Drawings / Capital withdrawn — Rahul Nathani | −₹91,500 |
| (No PAT adjustment — profit not yet appropriated) | ₹0 |
| Net Cash from Financing Activities | −₹91,500 |
| Net Increase / (Decrease) in Cash | ₹72,668 |
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.