1. K.P.B. HINDUJA
COLLEGE
SUBJECT : MANAGEMENT ACCOUNTING
CASH FLOW STATEMENT
NAMES ROLL NO.
CAROLINE MISQUITTA 19
JAGANNATH SETHI 17
HARSHI CHAUDHARY 38
RUSHABH CHANDAN 28
RUTUJA CHUDNAIK 08
POULAMI SARKAR 22
01/15/13 1
CASH FLOW STATEMENT

2. Transactions and other events characteristic of each
kind of activity are as follows:
CASH FLOW STATEMENT 01/15/13 2

3. Distinction between Cash flow Statement
and Funds Flow Statement
Basis Of Difference
Basis Of Difference Cash Flow Funds Flow
Basis of
Basis of Cash basis
Cash basis Accrual
Accrual
Accounting
Accounting Basis of accounting
Basis of accounting
Short Term financial
Short Term financial Long term
Long term
Significance
Significance planning
planning Financial planning
Financial planning
Schedule of
Schedule of Not Prepared Prepared separately
Not Prepared Prepared separately
Changes in
Changes in
Working Capital
Working Capital
Causes of
Causes of Cash
Cash Change in working
Change in working
Variation
Variation variation
variation capital
capital
01/15/13 3
CASH FLOW STATEMENT

4. SIGNIFICANCE
01/15/13 CASH FLOW STATEMENT 4

5. TYPICAL RECEIPTS AND PAYMENTS
CLASSIFIED BY ACTIVITY
CASH FLOW STATEMENT
01/15/13 5

6. 6
01/15/13 CASH FLOW STATEMENT

7. Preparing a Statement of Cash Flows
se net operating income as the starting point to get net
operating cash flow
dd back any non-cash expense
(Example - Depreciation)
Net Cash Flow = Cash Inflow - Cash Outflow
Net Operating Cash Flow = Income after Taxes
+ Depreciation

8. Preparing a Statement of Cash Flows
Order of Presentation:
Direct Method
1. Operating activities.
2. Investing activities. Indirect Method
3. Financing activities.
Three Sources of Information:
1. Comparative balance sheets
2. Current income statement
3. Additional information
CASH FLOW STATEMENT 8
01/15/13

9. Book Approach
Income Statement Cash Flow Statement
+Net Income
Net Income
+Depreciation
+Depreciation Operating
Revenues
Revenues
Expenses
Expenses -Capital Investment
-Capital Investment +
Cost of Goods Sold
Cost of Goods Sold +Salvage Proceeds
+Salvage Proceeds
Depreciation*
Depreciation* -Gain Tax
-Gain Tax Investing
Operating Expenses
Operating Expenses -Working Inv Cap
-Working Inv Cap
Taxable Income
Taxable Income +Working Cap Recovery
+Working Cap Recovery
Income Taxes
+
Income Taxes
Net Income
Net Income +Borrowed Funds
+Borrowed Funds
-Repayment of Principal Financing
-Repayment of Principal
*Assumes Tax Depreciation = Book
Depreciation
Thus, no deferred taxes CASH FLOW STATEMENT 01/15/13 9

10. CASH FLOW STATEMENT
01/15/13 10

11. Production of raw coal during 2011-12 was 435.84
Production of raw coal during 2011-12 was 435.84
million tonnes
million tonnes
Total of 72 projects
Total of 72 projects
59 identified plans
59 identified plans
01/15/13
179 forestry proposals
179 forestry proposals
CASH FLOW STATEMENT 11

12. the cash flow statement (indirect
method)
( in cr.)
For the year ended 31st March, 2012
For the year ended For the year
PARTICULARS
31.03.12 ended 31.03.11
CASH FLOW FROM OPERATING
ACTIVITIES
Net profit before tax 21272.65 16463.23
Adjustment for :
Depreciation/ Impairment of fixed assets 1969.22 1765.4
Interest (5049.11) (2659.12)
Finance cost related to financing activity 53.98 73.7
Interest /dividend from investment (120.76) (104.33)
Profit /loss on sale of fixed assets (2.99) (12.06)
Provisions made & write off during the year 1469.84 578.84
Liability write back during the year (259.19) (68.43)
OBR Adjustment made 3693.89 2618.47
Operating Profit before current / non current
assets and liabilities 23027.53 18655.7
CASH FLOW STATEMENT
01/15/13 12

13. Adjustment for :
Trade receivables (2249.15) (856.91)
Inventories (485.67) (1183.87)
Short/ Long Term Loans/ Advances &
Other Current Assets (824.45) (1205.64)
Short/ Long Term Liabilities and
Provisions 7123.98 (1082)
Cash generated from Operation 26592.24 14327.28
Income Tax Paid (6704.37) (5622.8)
Net Cash Flow from Operating
Activities (A) 19887.87 8704.48
CASH FLOW STATEMENT
01/15/13 13

14. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (3409.43) (2568.2)
Change in non current Investments (96.03) 218.45
Interest pertaining to Investing Activities 4096.98 3285.68
interest /dividend from investments 120.76 104.33
Investment in Mutual Fund (821.68) -
Net Cash Flow from investing Activities (B) (109.4) 1040.26
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of borrowings (247.39) (503.53)
Interest & Finance cost pertaining to Financing
(53.98) (73.7)
Activities
Receipt of Shifting & Rehabilitation Fund from
348.32 143.94
Subsidiaries
Dividend & Dividend Tax (7429.08) (2583.22)
Net Cash used in Financing Activities (C) (7382.13) (3016.51)
01/15/13 CASH FLOW STATEMENT 14

15. Net Increase/ (Decrease) in Cash & Cash
equivalents(A+B+C) 12396.34 6728.23
Cash & Cash equivalent (Opening Balance) 45806.44 39078.21
Cash & Cash equivalent (Closing Balance) 58202.78 45806.44
01/15/13 CASH FLOW STATEMENT 15

16. CASH FLOW STATEMENT
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