Cash Flow in Business

1111 Words Feb 19th, 2018 4 Pages
Cash flows from operating activities
Operating activities reflect the amounts of money coming into and leaving the business by means of ordinary company activities. They include various transactions like receipts from customers, payments to suppliers, dividends received, and employees, and tax and interest payments.
This section reflects the underlying health of the business thus making it the most important section of the cash-flow statement. The ability of a firm to fund its operating capability, repay loans, pay dividends etc are indicated by the cah flows arising from operating activities.
The total net profit before tax and before adjusting the non-operating expenses have increased from Rs 4,535 in the year 2012 to Rs 6,439 in 2013 which indicates the overall growth and success of the company. There has also been an increase in the depreciation and amortization expenses.

Depreciation and Amortisation Expenses(` in Lacs)
Particulars For the year ended 31st March 2013 For the year ended 31st March 2012
Depreciation Expenses 1958 1493
Leasehold Land Amortisation 34 34

Total 1992 1527
Table 4.1.3

As can be seen in the above table there has been no change in the leasehold land amortization in the two years. It is only the depreciation that has increased from Rs 1493 in 2012 to Rs 1,958 in 2013. This is due to the increase in fixed assets from Rs 22477 in 2012 to Rs 25,161 in2013.
The finance cost in the form of interest and bank charges form part of the…
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