interpretations
(In rupees) 2020
Cash flows from operating activities
Cash generated form Operations
income Tax paid
Net increase in long term deposits
Finance cost paid
Net cash used in operating activities
Cashflow from Investing activities
Capital expenditure on property, plant and
equipment
Proceeds from disposal of Operating fixed
assets
Proceeds from disposal of investment property
Dividend received
Net Cash used in Investing activities
2019
It tell us how much cash is generated from
the business operation. It is increasing so
2,233,681,592 356,368,988 we add them in the cash flow statements.
Income tax paid is expense which is
treated in operating activity. Because
company paid taxes on cash generated
from operation. All expenses are deduct
in operating activities. We deduct income
tax paid from cash generate from
(143,595,154) (143,097,562) operation.
Long term deposits are the type of assets.
If the assets value is increased we
subtract it in operational activities.
Company asset increased in both year so
(6,960,00) (666,200) we subtract it from operating cash.
It is the expense on the long term
borrowing. It is the expense on company
account to so subtract it in operating
332,245,846 (347,176,241) activity.
This is the cash amount from operating
activities of company. In 2019, its value is
negative which shows that company
generate high expenses than it revenue.
Which is shows shortage of cash from
operating activities. But in 2020 it shows
a positive sign which is good for
1,750,880,592 (134,571,015) company.
Fixed assets are the part of investing
activities. When the fixed assets
increased it will be subtracted. Here the
company fixed assets increased from
previous year so we deduct it in investing
(418,113,503) (264,341,221) activity
It is the amount which is received from
the sale of asset. The disposal amount
decreased from the previous years so we
8,479,840 34,537,889 add them in investing activity.
We can also it in investing activity
because it increased in each year. In 2020
there is no sale of investment property so
- 5,000,000 we will left it blank?
When the company received dividend
from the investment. So the dividend is
added un investing activities. Company
2,735,589 2,976,953 get from in both years so we add it.
(406,898,074) (176,826,379) This is total cash amount in investing
activity. In both year, the value is
negative which means that company is

Cash flows from Financing activities
Long term finance obtained
Repayment of Long-term financing
Ex- Sponsor Loan repaid
Short term borrowing – net ( more than 1
year)
Dividend Paid
Net Cash from financing activities
Net Increase in Cash and Cash equivalent
Cash and Cash equivalent at the beginning of
the year
Cash and Cash equivalent at the end of year
Kohinoor Textile Mill
Statement of Cash flows for the year ended 30 June 2020
using more cash than generating in
investing activity.
It the part of liability. Liability is the part
of financing activity. Because we borrow
money for financing our company. If the
company liability increased we add them
in financing activities. In both year
118,565,192 88,640,000 liabilities are increased so we add them.
Company settle down it liability by
paying of cash. Liability is decreased so
(190,488,999) (262,452,687) we subtract it.
Again company settle down it liability so
the liability amount decreased so we
subtract it. But company pay it in 2020 so
(210,257,600) - we only subtract it from 2020
Short term is also part of liability. In
2019 liability is increased so we add then
in 2019 where as liability is decreased in
(571,399,999) 877,688,840 2020 so we subtract it from 2020 year.
Dividend paid to stockholder are part of
financing activity. It decreased our cash.
(151,328,624) (60,592,087) So we subtract it from financing activity.
It is the total cash generate from
financing activity. In 2019 it shows a
positive amount which is good for
company. It means that company finance
more cash for company. Where as in
2020 it is negative amount which means
that company has shortage of money for
financing and this is because company
(1,004,910,030) 643,284,066 settle most of it liability in 2020.
It is the total cash from three activities of
cash flow. It is given in positive amount.
So its means that company is performing
339,072,488 331,886,672 well.
It shows the available cash amount at the
426,876,902 94,990,230 start of new year.
It shows the available cash amount at the
end of the year. In 2019 at the end of the
year there high cash amount than
beginning which means that company
generate high cash this year same in the
2020 company have high cash value at
the end of year which is god sign for the
company. It means that company have
enough cash for operation and company
765,949,390 426,876,902 is performing well.
 interpretation
(In rupees) 2019 2018
Cash flows from
operating activities
It tell us how much cash is generated from the business
Cash generated from operation. It is increasing so we add them in the cash
Operations 356,368,988 309,477,627 flow statements
Income tax paid is expense which is treated in
operating activity. Because company paid taxes on
cash generated from operation. All expenses are
deduct in operating activities. We deduct income tax
Income tax paid (143,097,562) (94,086,703) paid from cash generate from operation.
Long term deposits are the type of assets. If the
assets value is increased we subtract it in
Net increase in long term operational activities. Company asset increased in
deposits (666,200) (214,270) both year so we subtract it from operating cash.
It is the expense on the long term borrowing. It is
the expense on company account to so subtract it in
Finance cost paid (347,176,241) (263,186,815) operating activity.
This is the cash amount from operating activities of
company. In 2018, its value is negative which shows
that company generate high expenses than it
revenue. Which is shows shortage of cash from
Net cash used in operating activities. But in 2019 it shows a negative
operating activities (134,571,015) (48,010,161) sign which is bad for company.
Cashflow from Investing
activities
Fixed assets are the part of investing activities.
When the fixed assets increased it will be
Capital expenditure on subtracted. Here the company fixed assets
property, plant and decreased from previous year so we deduct it in
equipment (264,341,221) (720,845,360) investing activity
It is the amount which is received from the sale of
Proceeds from disposal of asset. The disposal amount increase from the
Operating fixed assets 34,537,889 11,966,680 previous years so we add them in investing activity.
These are short term capital gains which are held only
Proceeds from disposal of for a year as we can see that the outcome is 5,000,000
investment property 5,000,000 gain.
The dividend given by the company has increased form
last year due to increase in profits as stated in income
Dividend received 2,976,953 1,609,653 statement
This is total cash amount in investing activity. In
both year, the value is negative which means that
Net Cash used in company is using more cash than generating in
Investing activities (176,826,379) (707,269,027) investing activity.
Cashflows from
Financing activities
It the part of liability. Liability is the part of
financing activity. Because we borrow money for
financing our company. If the company liability
Long term finance decrease we add them in financing activities. In last
obtained 88,640,000 415,700,000 year liabilities are increased so we add them.
Repayment of Long-term Company settle down it liability by paying of cash.
financing (262,452,687) (212,838,766) Liability is decreased so we subtract it.
 Short term is also part of liability. In 2019 liability is
Short term borrowing - increased so we add them in 2019 where as liability
net 877,688,840 633,562,000 is also in positive so we addt it from 2019 year.
Dividend paid to stockholder are part of financing
activity. It decreased our cash. So we subtract it
Dividend Paid (60,592,087) (55,519,568) from financing activity.
It is the total cash generate from financing activity.
In 2019 it shows a positive amount which is good for
company but it is low then 2018 as there was a
project of BMR which was a huge investment It
means that company finance more cash for
company. Where as in 2018 it is positive amount
which means that company has ecess of money for
Net Cash from financing financing and this is because company settle most of
activities 643,284,066 780,903,666 it liability in 2018
It is the total cash from three activities of cash flow.
Net Increase in Cash and It is given in positive amount. So its means that
Cash equivalent 331,886,672 25,624,478 company is performing well.
Cash and Cash It shows the available cash amount at the start of
equivalent at the new year.
beginning of the year 94,990,230 69,365,752
It shows the available cash amount at the end of the
year. In 2019 at the end of the year there high cash
amount than beginning which means that company
generate high cash this year same in the 2018
company have high cash value at the end of year
Cash and Cash which is god sign for the company. It means that
equivalent at the end of company have enough cash for operation and
year 426,876,902 94,990,230 company is performing well.