Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
Q1 FY2024-25 (Apr-Jun 2024)
Consultant view — includes per-ledger inflows/outflows, voucher counts, skipped journals, per-ledger variance, and cross-checks.
The business generated ₹63,445 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 Statement
Full line-by-line build from PAT — including per-ledger detail for every working-capital and non-cash adjustment
Starts from PAT (from the P&L). Non-cash items are added back. WC deltas are computed from opening vs closing balances in the TB. Tax & interest paid come from the Payments Register (voucher-level).
| Profit After Tax (PAT) | ₹96,481.90 |
| = Operating profit before WC changes | ₹96,481.90 |
|
＋(Increase) / Decrease in Trade Receivables
Δ (TB opening→closing) = -59,000.00 across 1 ledger(s). Non-cash components excluded from working capital to avoid double counting (e.g. bad-debt write-offs reduce Debtors without affecting cash)
Ledgers: Sundry Debtors
|
₹59,000.00 |
|
＋Increase / (Decrease) in Trade Payables
Δ (TB opening→closing) = 27,348.00 across 3 ledger(s)
Ledgers: Provisions, Partner Reimbursement (Prateek), Partner Reimbursement (Rahul)
|
₹27,348.00 |
|
−(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax)
Δ = 23,000.00 across 2 ledger(s)
Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24
|
−₹23,000.00 |
|
＋Increase / (Decrease) in Duties & Taxes (aggregate)
Δ = 30,441.06 across 1 ledger(s)
Ledgers: Duties & Taxes
|
₹30,441.06 |
| = Cash generated from operations | ₹190,270.96 |
| Net Cash from Operating Activities | ₹190,270.96 |
| Net Cash from Investing Activities | ₹0.00 |
|
−Drawings / Capital withdrawn — Prateek Agrawal
Cr movement − Dr movement = -2,825.96
Ledgers: Prateek Agrawal
|
−₹2,825.96 |
|
−Profit & Loss A/c (current-year PAT sits here until appropriated)
Cr movement − Dr movement = -52,935.04
Ledgers: Profit & Loss A/c
|
−₹52,935.04 |
|
−Drawings / Capital withdrawn — Rahul Nathani
Cr movement − Dr movement = -124,000.00
Ledgers: Rahul Nathani
|
−₹124,000.00 |
|
＋(No PAT adjustment — profit not yet appropriated)
PAT of ₹96,481.90 is NOT reflected in any equity ledger Δ (P&L A/c / Reserves Δ ≈ 0 and partner capital net Δ is pure drawings). ΔEquity already equals −Drawings, so no PAT subtraction needed. If your firm DOES appropriate profit at year-end, post a journal: Dr P&L A/c, Cr Partner Capital — then re-run this report.
|
₹0.00 |
| Net Cash from Financing Activities | −₹179,761.00 |
| Net Increase / (Decrease) in Cash | ₹10,509.96 |
Direct ↔ Indirect reconciliation
Section-by-section — voucher-sourced Direct vs TB-Δ Indirect. Large variance ⇒ specific mapping/tagging gap
| Section | Direct (voucher) | Indirect (TB Δ) | Variance | Likely cause if variance ≠ 0 |
|---|---|---|---|---|
| Operating net | 189,965.50 | 190,270.96 | -305.46 | Residual of bank movement after Investing/Financing. Variance here usually means Investing or Financing vouchers are incomplete — fix those first. |
| Investing net | 0.00 | 0.00 | 0.00 | — reconciles cleanly |
| Financing net | -126,520.50 | -126,825.96 | 305.46 | Partner / capital / loan ledger not tagged equity (bs_bucket="Equity" or "Non-Current Liability") · P&L A/c closing entry missing · dividend / drawings voucher missing. |
| Net Cash Flow (all sections) | 63,445.00 | 63,445.00 | -0.00 | |
| TB Bank/Cash period movement (ground truth) | 63,445.00 | |||
Financing drill-down
| Partner / Capital outflow (Direct — from payment vouchers) | 126,520.50 |
| Partner / Capital inflow (Direct — contributions) | 0.00 |
| Direct net (Capital contributions − Drawings) | -126,520.50 |
| Loan taken (Direct) | 0.00 |
| Loan repaid (Direct) | 0.00 |
| Direct net (Borrowings) | 0.00 |
Operating reconciliation — line-by-line variance: 305 (Indirect too high)
(Indirect build vs Direct voucher breakdown) If Indirect Operating ≠ Direct Operating, the gap lives in exactly one (or two) of the lines below.
| Indirect Operating build | Amount |
|---|---|
| Profit After Tax (PAT) | 96,481.90 |
| = Operating profit before WC changes | 96,481.90 |
|
(Increase) / Decrease in Trade Receivables
Δ (TB opening→closing) = -59,000.00 across 1 ledger(s). Non-cash components excluded from working capital to avoid double counting (e.g. bad-debt write-offs reduce Debtors without affecting cash)
Ledgers: Sundry Debtors
|
59,000.00 |
|
Increase / (Decrease) in Trade Payables
Δ (TB opening→closing) = 27,348.00 across 3 ledger(s)
Ledgers: Provisions, Partner Reimbursement (Prateek), Partner Reimbursement (Rahul)
|
27,348.00 |
|
(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax)
Δ = 23,000.00 across 2 ledger(s)
Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24
|
-23,000.00 |
|
Increase / (Decrease) in Duties & Taxes (aggregate)
Δ = 30,441.06 across 1 ledger(s)
Ledgers: Duties & Taxes
|
30,441.06 |
| = Cash generated from operations | 190,270.96 |
| Net Cash from Operating Activities | 190,270.96 |
| Direct Operating (from vouchers) | Amount |
|---|---|
| Inflows | |
|
Trade Receivables
5 ledger(s): Ekadrisht Capital Private Limited, GA Design, S S M G & ASSOCIATES LLP, Savex Technologies Private Limited, …
|
445,067.06 |
| Outflows | |
|
Office & Admin
3 ledger(s): Office Expenses, Telephone Expenses, Website and Email (Subscription)
|
−113,883.54 |
|
Travel & Field
2 ledger(s): Business Meeting Expenses, Travelling Expense
|
−81,966.51 |
|
GST Payable
2 ledger(s): CGST, SGST
|
−31,959.00 |
|
Employee Cost
1 ledger(s): Staff Welfare Expenses
|
−25,062.67 |
|
office & Admin
1 ledger(s): PTEC for Partners
|
−2,229.77 |
|
Other / Unmapped
1 ledger(s): Round Off
|
−0.06 |
| Direct Operating Net | 189,965.50 |
How to use this: scan for the component on the
Indirect side whose sign/magnitude doesn't match a corresponding
category on the Direct side. Common suspects:
(a) a "Provisions / Bad Debts / Write-offs" add-back that's
larger than expected — means an expense got tagged non-cash
that actually hit the bank;
(b) a WC line whose Δ is big but the matching Direct category is
small (mis-tagged wc_component);
(c) "Income Tax paid" line smaller than the Direct "Tax Paid"
category — means some tax payments used ledger names the
Indirect regex doesn't catch (e.g. "TCS", "Professional Tax").
Per-ledger Operating variance 20 ledgers · every rupee traced
Sum of the Δ column equals the Operating variance between methods. Rows with Δ > 0 = Indirect over-counts; Δ < 0 = Indirect under-counts. Sort: biggest absolute variance first.
| Ledger | Nature | Category | Indirect Op | Direct Op | Δ (Ind − Dir) | Indirect classification rule applied |
|---|---|---|---|---|---|---|
| Professional Fees | income | Revenue | 346,667.00 | 0.00 | 346,667.00 | income (+Cr−Dr = 346,667.00−0.00) |
| Shreearth Financial (Debtor) | — | — | 0.00 | 196,667.06 | -196,667.06 | (ledger seen only in Direct) |
| S S M G & ASSOCIATES LLP | — | — | 0.00 | 118,800.00 | -118,800.00 | (ledger seen only in Direct) |
| GA Design | — | — | 0.00 | 81,000.00 | -81,000.00 | (ledger seen only in Direct) |
| Sundry Debtors | asset | Trade Receivables | 59,000.00 | 0.00 | 59,000.00 | asset Receivable — −(Dr−Cr) = −(409,067.06−468,067.06) |
| Savex Technologies Private Limited | — | — | 0.00 | 32,400.00 | -32,400.00 | (ledger seen only in Direct) |
| Duties & Taxes | liability | Duties & Taxes | 30,441.06 | 0.00 | 30,441.06 | liability nan — +(Cr−Dr) = +(62,400.06−31,959.00) |
| Partner Reimbursement (Rahul) | liability | Partner Reimbursement | 27,348.00 | 0.00 | 27,348.00 | liability Payable — +(Cr−Dr) = +(128,500.00−101,152.00) |
| TDS Receivable 24-25 | asset | TDS Receivable | -23,000.00 | 0.00 | -23,000.00 | asset nan — −(Dr−Cr) = −(23,000.00−0.00) |
| Ekadrisht Capital Private Limited | — | — | 0.00 | 16,200.00 | -16,200.00 | (ledger seen only in Direct) |
| SGST | — | — | 0.00 | -16,012.00 | 16,012.00 | (ledger seen only in Direct) |
| CGST | — | — | 0.00 | -15,947.00 | 15,947.00 | (ledger seen only in Direct) |
| Office Expenses | expense | Office & Admin | -113,500.00 | -101,231.77 | -12,268.23 | expense (−(Dr−Cr) = −(113,500.00−0.00)) |
| Travelling Expense | expense | Travel & Field | -72,400.00 | -64,574.27 | -7,825.73 | expense (−(Dr−Cr) = −(72,400.00−0.00)) |
| Staff Welfare Expenses | expense | Employee Cost | -28,100.00 | -25,062.67 | -3,037.33 | expense (−(Dr−Cr) = −(28,100.00−0.00)) |
| Business Meeting Expenses | expense | Travel & Field | -19,500.00 | -17,392.24 | -2,107.76 | expense (−(Dr−Cr) = −(19,500.00−0.00)) |
| Telephone Expenses | expense | Office & Admin | -12,500.00 | -11,148.87 | -1,351.13 | expense (−(Dr−Cr) = −(12,500.00−0.00)) |
| PTEC for Partners | expense | office & Admin | -2,500.00 | -2,229.77 | -270.23 | expense (−(Dr−Cr) = −(2,500.00−0.00)) |
| Website and Email (Subscription) | expense | Office & Admin | -1,685.04 | -1,502.90 | -182.14 | expense (−(Dr−Cr) = −(1,685.04−0.00)) |
| Round Off | expense | Other / Unmapped | -0.06 | -0.06 | 0.00 | expense (−(Dr−Cr) = −(0.06−0.00)) |
| Totals | 190,270.96 | 189,965.50 | 305.46 | |||
| Engine's Indirect Op (from `indirect_operating_net`) | 190,270.96 | 189,965.50 | 305.46 | Must match the Totals row above (within paisa of rounding). Any mismatch ⇒ attribution rule bug. | ||
How to read this: each ledger contributes a specific amount to Indirect Operating (per accrual rules: income ⇒ +Cr−Dr, expense ⇒ −(Dr−Cr), asset WC ⇒ −(Dr−Cr), liability WC ⇒ +(Cr−Dr)). Direct attributes cash flow per actual voucher processing. Where the two diverge by a non-trivial amount, it's a specific mapping / classification / treatment issue on that ledger — not "rounding". Click a row's ledger name in a future version to see every voucher that touched it.
Equity ledgers pulled into Indirect engine 4 ledger(s) · debug Financing variance
Everything here contributes to raw_eq_delta; PAT is subtracted at end. If your P&L A/c or Reserves ledger is missing from this list, that's why Financing variance = PAT — my mask didn't catch it.
| Ledger | Nature tag | Category | Δ (Cr − Dr) | Included because |
|---|---|---|---|---|
| Prateek Agrawal | equity | Partner's Capital | -2,825.96 | nature=equity |
| Rahul Nathani | equity | Partner's Capital | -124,000.00 | nature=equity |
| Sakshi Nathani Partner A/c | equity | Partner's Capital | 0.00 | nature=equity |
| Profit & Loss A/c | equity | Retained Earnings | -52,935.04 | nature=equity + name matches P&L/Reserves pattern + category='Retained Earnings' matches |
| raw_eq_delta (sum of above) | -179,761.00 | |||
If Direct's partner-drawings figure ≠ Indirect's equity Δ (after PAT
adjustment), that's a mapping/tagging problem. The Direct figure
comes from actual Dr <Partner> / Cr Bank voucher lines —
this is ground truth. If Indirect says something different,
investigate the partner-ledger TB classification or PAT value.