Page 100 - Corporate Finance PDF Final new link

100 Corporate Finance BRILLIANT’S

V. Cash and cash equivalents at the beginning of the
period -----
Cash-in-hand -----
Cash-at-bank -----
Short-term Deposits -----
Marketable Securities -----
Less : Bank Overdraft/Cash Credit (-----) -----
VI. Cash and Cash Equivalents at the end of the period
(IV + V)
Cash-in-hand -----
Cash-at-bank -----
Short-term Deposits -----
Marketable Securities -----
Less : Bank Overdraft/Cash Credit (-----) -----

2. Indirect Method NPP 2. BZS>m`aoŠQ> _oWS>
Under the indirect method, the net cash BZS>m`aoŠQ> _oWS> Ho$ AÝVJ©V Am°naoqQ>J EpŠQ>{dQ>rO
flow from operating activities is determined go ZoQ> H¡$e âbmo H$m {ZYm©aU ZoQ> àm°{\$Q> `m bm°g H$mo ES>OñQ>
by adjusting net profit or loss for the following
H$aHo$ {ZåZ{c{IV Am`Q>åg Ho$ {bE {H$`m OmVm h¡:
items:
(a) Non-cash items such as depreciation, (a) Zm°Z-H¡$e Am`Q>åg O¡go S>o{à{gEeZ, àmopìhOZ,
provisions, deferred taxes and unrealized S>o\$S>© Q>¡Šgog Ed§ \$m°aoZ EŠgM|O JoÝg ({Ogo dgyb
foreign exchange gains and losses; Zht {H$`m J`m h¡) d bm°gog Ho$ {bEŸ&
(b) Changes during the period in inventories (b) Cg Ad{Y _| BÝdoÝQ>arO Ed§ Am°naoqQ>J go [agrdo~ëg
and operating receivables and payable; Ed§ noE~b _| n[adV©ZŸ&
and
(c) All other items for which the cash effects (c) AÝ` Eogr g^r Am`Q>åg {OZHo$ {bE H¡$e BÝdopñQ>¨J
are investing or financing cash flows. `m \$m`ZopÝg¨J H¡$e âbmo h¡Ÿ&
The indirect method is also known as BZS>m`aoŠQ> _oWS> H$mo '[aH$pÝg{bEeZ _oWS>' ^r
'reconciliation method' because it reconciles H$hm OmVm h¡ Š`m|{H$ Bg_| àm°{\$Q>-bm°g AH$mCÝQ> Ûmam
the net profit or loss as shown in the profit and Xem©E JE ZoQ> àm°{\$Q> `m bm°g H$m Am°naoqQ>J EpŠQ>{dQ>rO
loss account with the net cash flow from
operating activities as shown in the cash flow go hmoZo dmco ZoQ> H¡$e âbmo go {_cmZ {H$`m OmVm h¡Ÿ&
statement.
Cash Flow Statement of.........Co.
For the year ended................

Particulars (`) (`)
I. Cash Flows from Operating Activities:
A. Net Profit as per Profit & Loss A/c