Calculate net cash flows from operating …

(A) Net Profit Before Tax and Extra – Ordinary Items

Adjustment for Non-cash and Non-Operating items

Add :

i. Depreciation charged during the current year

ii. Preliminary expenses, Discount on issue of  debentures, share issue expenses etc. written off

iii. Goodwill, Patents and Trademark amortized/written off

iv. Interest on Long term borrowing and Debentures

v. Loss on Sales of Fixed Assets/Investments

Less :

i.  Interest income

ii.  Dividend Income

iii.  Rental income

iv.  Profit on sale of Fixed Assets/Investment

Operating Profit before Working Capital changes

Adjustment for changes in Working Capital:

Add : Increase in Current Liabilities and Decrease in Current Assets (other than cash and cash equivalent)

Less : Increases in Current Assets (other than cash and cash equivalent) and Decrease in Current Liabilities

Cash Generated from operations before tax and extraordinary items.

Less : Income tax paid (Net of Refund received)

Cash flow before Extraordinary item

Extraordinary items +/-

Net cash from (or used in) Operating Activities

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(———-)

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(———-)

(———-)

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(———-)

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To Balance c/d

………

By Balance in Statement of P&L A/c

(Proposed dividend during the current year)

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To Balance c/d

………

By Statement of P& L A/c

(Proposed for taxation made  during the current year)

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