Page 172 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 8: Cash Flow Statement

AS-3 (Revised) is mandatory in nature in respect of accounting periods commencing on or after Notes
1-4-2001 for the following:
1. Enterprises whose equity or debt securities are listed on a recognised stock exchange in
India, and enterprises that are in the process of issuing equity or debt securities that will
be listed on a recognised stock exchange in India as evidenced by the board of directors'
resolution in this regard.
2. All other commercial, industrial and business reporting enterprises, whose turnover for
the accounting period exceeds 50 crores.
Cash flow Statement (Indirect Method) (Accounting Standard-3 (Revised) ( )
Cash flow from Operating activities
Net profit before tax and extraordinary items xxx
Adjustments for:
-Depreciation xxx
-Foreign exchange xxx
-Investments xxx
-Gain or loss on sale of fixed assets (xxx)
-Interest/dividend xxx
Operating Profit Before Working Capital Changes xxx
Adjustment for:
-Trade and other receivables xxx
-Inventories (xxx)
-Trade payables xxx
Cash Generated from Operations xxx
-Interest paid (xxx)
-Direct taxes (xxx)
Cash before Extraordinary Items xxx
Deferred revenue xxx
Net cashflow from operating activities (a) xxx
Cashflow from Investing activities
Purchase of fixed assets (xxx)
Sale of fixed assets xxx
Sale of investments xxx
Purchase of investments (xxx)
Interest received xxx
Dividend received xxx
Loans to subsidiaries xxx
Net cashflow from investing activities (b) xxx
Cashflow from Financing Activities
Proceeds from issue of share capital xxx
Proceeds from long term borrowings xxx
Repayment to finance/lease liabilities (xxx)
Dividend paid (xxx)
Net cashflow from financing activities (c) xxx
Net Increase (decrease) in cash and cash equivalents during the period (a+b+c) xxx
Cash and cash equivalents at the beginning of the year xxx
Cash and cash equivalents at the end of the year xxx

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