Trying to make sense of cash flow

Jun 03, 2009 2 Replies

The following consolidated cash flow statement is driving me nuts.



Operating profit before working capital changes 102,121,341 –––––––––––––––––––––––––– –––––––––––––––––––––––––– Adjustments for : (Increase)/ Decrease in Inventories (144,135,486) (Increase)/ Decrease in Receivables (59,034,626) (Increase)/ Decrease in Loans and advances (65,848,164) Increase/(Decrease) in Trade Creditors 164,134,037 Inc./ (Dec.) in Other current liabilities and provisions 127,337,146 Cash generated from/(used in) operations 124,574,248


In this case, shouldn't the eqn be Operating profit before working capital changes



- (Increase) in Inventories (144,135,486)



- (Increase) in Receivables (59,034,626)



- (Increase) in Loans and advances (65,848,164)



  • Increase in Trade Creditors 164,134,037
  • Inc. in Other current liabilities and provisions 127,337,146 = Cash generated from operations 124,574,248?

How has the operating profit of 102,121,341 changed to cash generated of 124,574,248? Because, no matter how many times I add up the numbers, they don't tally. :)



Thanks for any help and clarifications and sorry for the bother.



Consolidated cash flow can be seen on page 46 of the pdf

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It adds up for me.

"kk" wrote The following consolidated cash flow statement is driving me nuts.

Operating profit before working capital changes 102,121,341 ?????????????????????????? ?????????????????????????? Adjustments for : (Increase)/ Decrease in Inventories (144,135,486) (Increase)/ Decrease in Receivables (59,034,626) (Increase)/ Decrease in Loans and advances (65,848,164) Increase/(Decrease) in Trade Creditors 164,134,037 Inc./ (Dec.) in Other current liabilities and provisions 127,337,146 Cash generated from/(used in) operations 124,574,248

In this case, shouldn't the eqn be Operating profit before working capital changes

- (Increase) in Inventories (144,135,486)

- (Increase) in Receivables (59,034,626)

- (Increase) in Loans and advances (65,848,164)

  • Increase in Trade Creditors 164,134,037
  • Inc. in Other current liabilities and provisions 127,337,146 Cash generated from operations 124,574,248?

How has the operating profit of 102,121,341 changed to cash generated of 124,574,248? Because, no matter how many times I add up the numbers, they don't tally. :)

Thanks for any help and clarifications and sorry for the bother.

Consolidated cash flow can be seen on page 46 of the pdf

formatting link

Thanks and like I said sorry for the botheration. I suspected I was adding up wrong, but needed the external confirmation. Following a real balance sheet is different from an example balance sheet. Precisely because I wasn't sure that what I was doing was right surely contributed to my adding and getting the wrong total 3 times in a row. :)

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