Reporting Date 31.03.

2021
12

10

Reporting Date 31.03.2021

0
Ind As 7 - Cash Flow Statement (CFS)

CFS is a statement which provides details about how the cash is generated by an entity & how it is applie

Cash flow from operating activity Principal revenue producing activity

Cash flow from investing activity acquisition & disposal of long term assets
Cash flow from finance activity changes in size & composition of equity & borrowi

Cash cash in hand, Bank Balances & demand deposits

Cash equivalent Short term & highly liquid invetsments that are readily convertible

Cash Flows Inflow or outflow of cash & cash equivalents

Objective To assess the ability to generate cash

To understand the timing & certainity of generation

Benefit enabling evaluation of change in net asset & financial structure

assess ability to manage - source of generation of cash & how , where it is used
compares efficiency of different entity
by an entity & how it is applied

oducing activity
al of long term assets
mposition of equity & borrowing

short maturity, three months or less from date of acquisition

excludes movement between cash & cash equivalents Cash 10 Cash

Bank 20 Bank
Bank FDR 0 Bank FDR
Total 30 Total

where it is used

Reporting Date
31.03.2021
it will be excluded from cash & Cash equivalent
it will be excluded from cash & Cash equivalent

considered as cash & cash equivalent

considered as cash & cash equivalent

considered as cash & cash equivalent
considered as cash & cash equivalent
considered as cash & cash equivalent
considered as cash & cash equivalent
10
10
10
30
Operating Activity / Event

Investing Activity Inflow Outflow

From sales of property cash payment to acquire pro
From sales of plant & equipment cash payment to acquire plan
From sales of other long term assets cash payment to acquire oth
includes relating to capitalise

sales of equity or debt instruments of other entities payment to acquire equity or

(other than those considered to be cash equivalents) (other than those considered

cash receipts from repayment of advances and loans cash advance and loan made
made to other parties other than loans & advances
Financing Activity
Inflow Outflow
cash proceeds from issuing shares or instruments
cash proceeds from issuing debentures, loan, bonds etc
short term - long term borrowings

from operating activities, unless they can be classified as Investing / financing activity

Cash flow from operating Activity

 1 Operating
2 Operating
3 Operating
4 Operating $ Exch Rate Total
5 Purchase 20 75 1500 ### ###
6 Payment 20 76 1520 ###
-20
7 will not be considered
8 operating Euro Exch Amt
9 Purchase 10,000.00 70.00 700,000.00 January Jan Purchase A/c Dr
To Creditor
10 Reporting 10,000.00 65.00 650,000.00 3/31/2021
11 Payment May Mar Creditor
12 will be considered - operating To Gain on foreign currency
13 will be considered - operating 50,000.00

cash payment to acquire property

cash payment to acquire plant & equipment
cash payment to acquire other long term assets
ncludes relating to capitalised development

payment to acquire equity or debt instruments of other entities

other than those considered to be cash equivalents)

cash advance and loan made to other parties

other than loans & advances made by financial institution

1 Operating activity - main activity of revenue

2 Operating activity - main expenditure
3 Operating activity
4 Operating activity - in case of financial institution

5 Operating activity - in case of financial institution

6 Operating activity - in case of financial institution
7 Operating activity - in case of financial institution
8 Operating activity -
 9 Operating activity -

10 Investing activity
11 Investing activity
12 Investing activity

cash payment to owners to acquire or redeem entity's share

cash repayment of amounts borrowed
cash payment by lessee for the reduction of outstanding liability

1 Financing Activity
2 Investing Activity
3 Investing Activity

4 Investing Activity
5 Not considred - no cash flow
6 Investing activity
7 Operating

8 Investing activity
9 Investing activity
10 Financing activity
11 Financing activity

12 Investing activity
13 no involvement of cash - not considered
14 Financing activity

15 Investing activity

Cash flow from operating activity - Direct Method Cash flow from operating activity - Indirect
Cash Sales 497000 Profit after tax
Less Cash Purchases 345000 Add Depreciation
Overheads 52000 Add Loss on sale of asset
Interest finacing 0 Add Interest paid
Depreciation non 0 Increase / decrease in inventory
Loss on sale of assets investing 0 Increase / decrease in Trade Recv
Increase / decrease in Trade Paya
Cash Profit 100000 Increase / decrease in Payable fo
Less Tax -30000 Total Cash Flow After Tax
Cash profit after tax 70000

Cash Receipts from sale & trade receivables

Sales 500000
Add Opening trade receivable 7000
Less Closing trade receivable -10000
Reliasation from Debtor 497000

Payment to trade payable for purchases / Cash Purchase

Cost of goods sold 350000
Add Closing Inventory 12000
Less Opening Inventory -13000
Purchases 349000
Add Opening trade payable 8000
Less Closing trade payable -12000
Payment to creditors 345000

Overheads (Exp Payable) 55000

Add : Op Payable 7000
Less : Cl Payable -10000
Cash paid for exp 52000
 700000
700000

50000
n foreign currency 50000
ating activity - Indirect Method
53000
7000
2000
3000
decrease in inventory 1000
decrease in Trade Recvbl -3000
decrease in Trade Payable 4000
decrease in Payable for exp 3000
70000
Foreign Currency Cash Flows

1 Apply exchange rate to the foreign currency to convert it into functional currency

2 cash flow of a foreign subsidiary shall be translated at the exchange rate between
functional currency & foreign currency at the dates of cash flow

3 Any other transaction (unreliased gain / losses)

This amount is presented separately, operating, investing & financing activities
cash flows been reported at the exchange rate of end of reporting period

4 Foreign exchnage difference arising from unsettled transactions relating to operating

Interest & Dividends
 $ Exch Rate Total
Purchase 20 75 1500 15-Jan 31-Mar
Payment 20 76 1520 15-Apr
-20

Euro Exch Amt

Purchase 10,000.00 70.00 700,000.00 January Jan Purchase A/c Dr
To Creditor
Reporting 10,000.00 65.00 650,000.00 31-Mar
Payment May Mar Creditor
To Gain on foreign currency
50,000.00
0
Cash Flow After Tax
 700000
700000

50000
n foreign currency 50000
53000
7000
2000
3000
1000
-3000
4000
 3000
70000
Taxes on Income

Cash flows arisig from taxes on income shall be separatley disclosed & classified as cash flows
from operating activities, unless they can be classified as Investing / financing activity

Investment in subsidiaries, associates & joint ventures

Changes in ownership interest in subsidiaries & other business

When there is change / loss of control Classified as investing activity

Entity shall disclose

total consideration paid / received
portion of the consideration consisting of cash & cash equivalent
amount of cash / cash equivalent in the subsidiary or other business over which control obtain
asset / liability other than cash & cash equivalent

When there is no change / loss of control Classified as financing activity

Non Cash Transactions

sified as cash flows

Advance Tax 530000

LTCG 30000 Investing activity
Basic 500000 Operating Activity

ness over which control obtained/ lost