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98 Corporate Finance BRILLIANT’S

(v) Cash receipts and cash payments of an (v) EH$ ~r_m H$ånZr Ho$ àr{_`_, Šboåg, EÝ`wQ>r Ed§
insurance enterprise for premiums and AÝ` nm°{cgr cm^m| Ho$ {cE H¡$e [agrßQ²>g Ed§ H¡$e
claims, annuities and other policy benefits; no_|Q>,
(vi) Cash payments or refunds of income taxes (vi) BÝH$_ Q>¡Šg H$m H¡$e no_|Q> `m dmngr O~ VH$ {H$
unless they can be specifically identified CZH$s nhMmZ ñnï> ê$n go \$m`ZopÝg¨J VWm
with financing and investing activities and BÝdopñQ>¨J EpŠQ>{dQ>rO _| Z H$s Om`o; VWm
(vii)Cash receipts and payments relating to (vii)â`yMa H$m°ÝQ´>oŠQ²>g, \$m°adS>© H$m°ÝQ´>oŠQ²>g, Am°ßeZ
future contracts, forward contracts, H$m°ÝQ´>oŠQ²>g VWm ñd¡n H$m°ÝQ´>oŠQ²>g go g§~§{YV H¡$e
option contracts and swap contracts
when the contracts are hold for dealing or [agrßQ> Ed§ no_|Q²>g ~eV} {H$ `h H$m°ÝQ´>oŠQ> ì`mnm[aH$
trading purposes. H$m`m] go gå~§{YV hmoŸ&
Gross cash receipts and gross cash J«m°g H¡$e [a{gßQ> Am¡a J«m°g H¡$e no_|Q> H$mo `m Vmo
payments may be obtained either from B§Q>aàmBO Ho$ AH$mCpÝQ>¨J [aH$m°S²>©g go `m àm°{\$Q> Ed§ bm°g
accounting records of the enterprise or by
ñQ>oQ>_|Q> _| goëg, goëg H$s H$m°ñQ> VWm AÝ` Am`Q>åg H$mo
adjusting sales, cost of sales and other items in
the statement of profit and loss for: ES>OñQ> H$aHo$ {ZåZ Ho$ {cE àmá {H$`m Om gH$Vm h¡:
(a) changes during the period in inventories (a) Ad{Y Ho$ Xm¡amZ BÝdoÝQ>ar, Am°naoqQ>J [agrdo~ëg d
and operating receivables and payable; noE~ëg _| hþE n[adV©Z Ho$ {cE;
(b) other non-cash items; and (b) AÝ` Zm°Z-H¡$e Am`Q>åg Ho$ {cE; Am¡a
(c) other items for which the cash effects are (c) AÝ` Am`Q>åg {OZHo$ {cE H¡$e H$m à^md BÝdopñQ>¨J
investing or financing cash flow. `m \$m`ZopÝg§J H¡$e âbmo Ho$ ê$n _| hmoŸ&

Note: In case of direct method, adjustment for depreciation and amortisation of fictitious
and intangible assets such as goodwill, preliminary expenses, discount on issue of
shares and profit or loss on sale of assets etc. are not required because operating cash
receipts and payments are directly reported to the cash flow statement.
ZmoQ>: S>m`aoŠQ> _oWS> Ho$ Ho$g _|, S>o{à{gEeZ Ed§ AdmñV{dH$ g§n{Îm`m| H$mo An{b{IV H$aZo go g§~§{YV
ES>OñQ>_|Q> O¡go JwS>{db, àma§{^H$ ì``, eo`g© H$s Bí`y na {S>ñH$mCÝQ>, AgoQ> H$s gob na hmoZo dmbo
àm°{\$Q> `m bm°g Ho$ ES>OñQ>_|Q> H$s Amdí`H$Vm Zht hmoVr Š`m|{H$ Am°naoqQ>J H¡$e [a{gßQ> Ed§ no_oÝQ²>g
H$mo grYo H¡$e âbmo ñQ>oQ>_|Q> _| hr Xem©`m OmVm h¡Ÿ&
Cash Flow Statement of.........Co.
For the year ended................

Particulars (`) (`)
I. Cash Flows from Operating Activities:
Cash Receipts from:
Sales -----
Debtors -----
Commission -----