FORMAT OF CASH FLOW FROM OPERATING ACTIVITIES

 FORMAT OF CASH FLOW FROM OPERATING ACTIVITIES

INDIRECT METHOD

 

Particulars	Rs.	Rs.
CASH FLOW FROM OPERATING ACTIVITIES: Net profit before tax and Extraordinary item (or) Closing balance of profit& loss a/c Less: Opening Balance of P/L   Add: Transfer red. to Reserve           Provision for Taxation made during the current year           Proposed dividend made during the current year           Interim dividend paid during the year           Any Extraordinary expenses debited to P/L   Less: Refund of Tax          Any extraordinary income credited to P/L	XXX XXX	XXX (or)   XXX
	XXX XXX	XXX XXX XXX XXX XXX     XXX
Add: Non-Operating expenses/items:          Depreciation on Fixed Assets          Loss on sale of Fixed Assets          Preliminary expenses, discount on issue of                                              shares and debentures (written off)          Goodwill, Patent, Trademark Amortised (written off)          Interest on Long term borrowing       Less: Non-Operating Incomes/items:          Interest and dividends received          Profit on sale of Fixed Assets          Rental Income	XXX XXX XXX	XXX   XXX XXX   XXX XXX XXX
		XXX         XXX
Operating Profit before adjustments for working capital  changes   Add: Decrease in Current Assets          Increase in Current Liabilities       Less: Increase in Current Assets          Decrease in Current Liabilities   Operating Profit after charging working capital changes Less: Income tax paid (Net of capital tax refund received)   Operating profit before charging extraordinary items Add/Less: Extraordinary items   Net cash flow from operating activities (A)	XXX XXX	XXX   XXX XXX
		XXX     XXX
		XXX XXX
		XXX XXX   XXX

 

 

Particulars	Rs	Rs
CASH FLOW FROM  INVESTING ACTIVITIES:   Add: Proceeds from the sale of fixed asset           (Including Intangible assets/Goodwill)            Dividend & Interest received                           (non-financial companies)     Less: Purchase of Fixed assets (including intangible assets)           Purchase of Investments           Loan to subsidiaries	XXX XXX XXX	XXX   XXX
		XXX     XXX
Net Cash From Investing Activities (B)		XXX
CASH FLOW FROM  FINANCE ACTIVITIES:   Add: Proceeds from the issue of shares and debentures          Proceeds from other Long-term Borrowings       Less: Final Dividend Paid           Interim Dividend Paid           Interest on debenture and long-term loans paid           Redemption of shares and debentures           Repayment of other long-term loans	XXX XXX XXX XXX XXX	XXX XXX
		XXX           XXX
Net Cash From Financing  Activities (C)		XXX
Net Increase/Decrease in cash & Cash equivalents(A+B+C)   Add: Opening cash and Cash equivalents           Cash in hand           Cash at bank           Short-term deposits           Marketable Securities     Less: Bank O/D		XXX     XXX XXX XXX XXX
		XXX XXX
*Closing Cash and Cash Equivalents		XXXX

 

CORPORATE ACCOUNTING

 UNDERWRITTING

UNDERWRITING OF SHARES AND DEBENTURES

1) Meaning of underwriting

Underwriting is an agreement whereby the underwriter ensures the Company that in case the shares and debentures- offered to the public are not subscribed by the public to the taken up by the underwriter.

2) Underwriter

The person or Institution who underwrites the issue are known as underwriter

3) Underwriting commission

For this service, the underwriter charges an agreed commission calculated on the issue price of shares and debentures

Conditions (Sec.76)

a) The articles must permit the payment of underwriting commission

b) The rate of commission should not exceed 5% on issue price of shares or ate authorised by articles whichever is less.

c) The commission paid or agreed to be paid must be shown in the prospectus.

4) Marked Applications

            When the public get the application form through underwriters, they put a seal(their name) on the application form, such stamped application when received are called marked application.

5) Unmarked Applications

            When the public do not get the application form through underwriters but they send them directly to the company such forms do not bear any seal, (their name) and are called unmarked applications.

6) Types of underwriting:

        A) Pure underwriting

               Under this type of contract, underwriters under take to subscribe for shares and debentures which are not fully subscribed by the public.

       B) Firm Underwriting

               Under firm underwriting contract, underwriter agrees to buy a outright purchase of shares and debentures whether the issue will be Oversubscribed or under subscribed. They will get priorities over the general public. If shares and debentures are oversubscribed.

 

 

ABRAHAM MASLOW'S HIERARCHY THEORY

ABRAHAM MASLOW'S HIERARCHY THEORY