Understanding Cash

Flow Statement
Session 11
UPL

Line Item FY 2014-15 FY 2015-16

Profits after Tax 46,333 70,571
Other Income 26,030 45,875
Tech Mahindra

Line Item FY 2014-15 FY 2015-16

Profits after Tax 26585 31567
Other Income 1065 5566
Forex Gain/ Loss -2234 1390
Calculating Cash from Operations from Income Statement –
Reversing Non-Operating Incomes
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
 Tata Motors

Line Item FY 2016-17 FY 2017-18

Profits Before Tax - 2,353 - 946.92
Gain/(Loss) on Sale of Assets -180 - 1,650 .00
IL&FS Transportation Network Ltd. &
NCC Ltd.
Line Item IL&FS TNL NCC Ltd.
Profits After Tax 173.49 222.85
Interest 1110.87 507.60
Calculating Cash from Operations from Income Statement –
Reversing Non-Operating Expenses and Losses
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
 Tata Motors & Ashok Leyland

Line Item Tata Motors Ashok Leyland

Profits Before Tax 234.23 1169.20
Depreciation 2453.75 443.67
Calculating Cash from Operations from Income Statement –
Reversing Depreciation, Amortizations and Provisions
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Aurobindo Pharma Ltd (2014-15)

Line Item FY 2014-15

Profits Before Tax 1940.35
Increase in Credit Sales 666.54
Calculating Cash from Operations from Income Statement –
Reversing Increase in Credit Sales
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Aurobindo Pharma Ltd (2014-15)

Line Item FY 2014-15

Profits Before Tax 1940.35
Increase in Credit Sales 666.54
Increase in Inventory 433.24
Calculating Cash from Operations from Income Statement –
Reversing Increase in Inventory
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory (Opening – Closing) (If Closing > Opening)
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Calculating Cash from Operations from Income Statement –
Reversing Outstanding Expenses
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory (Opening – Closing)
Employee Benefit Expenses (IF OUTSTANDING)
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Calculating Cash from Operations from Income Statement –
Reversing Prepaid Expenses
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory (Opening – Closing)
Employee Benefit Expenses (IF PREPAID)
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Calculating Cash from Operations from Income Statement –
Reversing Credit Purchases
Particulars Note Details
Revenue from Operations
Other Incomes
Total Revenues (A)
Cost of Material and Components Consumed
Purchase of Traded Goods
Change in Inventory (Opening – Closing)
Employee Benefit Expenses
Finance Costs
Depreciation and Amortization
Other Expenses
Total Expenditure (B)
Profits Before Taxes (A – B = C)
Less: Provision for Taxes
Profits After Taxes
Calculating Cash from Operations
Profit Before Less Non-
Taxes Operating Incomes
• Dividends Received
• Interest Received
• Gain on Sale of Assets
• Other Incomes
Add Non-Operating Add Non-Cash
Expenses Expenses
• Loss on Sale of Assets • Depreciation & Amortization
• Interest/ Finance Costs • Provisions created (except
provision for taxes)

Cash from Operations Before Adjust Working

Taxes Capital Items
• Deduct:
Increase in Current Assets
Decrease in Current Liabilities
Deduct: Tax PAID
• Add:
Decrease in Current Assets
Increase in Current Liabilities

CASH FROM OPERATIONS

Cash from Investment Activities

Resources generated from disposal of assets not covered in CFO

Cash Incomes generated from assets (Interest, Dividends, etc.)

Resources consumed in acquiring assets not covered in CFO

Cash from Investment Activities

Resources generated from raising of liabilities/ equity not

covered in CFO

Cash expenses incurred on liabilities/ equity (Interest Paid,

Dividends Paid)

Resources consumed in settling liabilities/ buying back equity,

not covered in CFO