CASH FLOW STATEMENT
A cash flow statement is a financial statement that
summarizes the amount of cash and cash equivalents
entering and leaving a company. The cash flow
statement measures how well a company manages
its cash position, meaning how well the company
generates cash to pay its debt obligations and fund
its operating expenses. The cash flow statement
complements the balance sheet and income
statement and is a mandatory part of a company's
financial reports since 1987.The main components
of the cash flow statement are cash from operating
activities, cash from investing activities, and cash
from financing activities .The two methods of
calculating cash flow are the direct method and the
indirect method.
INTERPRETATION OF THREE
COMPANIES CASH FLOW
STATEMENT :
Gujarat State Fertilizers & Chemicals Ltd.
Gujarat State Fertilizers & Chemicals Limited is an Indian
manufacturer of fertilizers and Industrial Chemicals. GSFC was
founded in 1962. Oil and gas discovered in Bombay High and
South Basin triggered the birth of 8 new generation fertilizer
plants to fulfill the growing food needs of India these company
have maintained cash flow statement where it as mentioned
accordingly net profit before tax It is a measure of a company's
profitability before it pays its income tax hence the net profit
before tax for the year 2016 is 498.72 then in 2017 there is a
slight increase to 609.6 from here there is a increase in flow of
the profit before tax such as in 2018 is 670.13, 2019 882.25 and
in 2020 its 948.5 hence the company have maintained net profit
and we can see a increasing pattern of the profit. Coming to
CFO of the company we can see that in 2016 its 462.2 ,2017
512.6, 2018 548.07 ,2019 728.73 and in 2020 its 719.3 from
these netCFO in the year 2019 have highest . company
maintained CIO in every year its like In 2016( -205.66),2017
(-424.13), 2018( -273.66) ,2019 (-201.67) and in 2020( -93.13).
Investing activities include any sources and uses of cash from a
company's investments here higher value for the year Mar 2020
(-93.13) compared to all the years and the every is having
negative values. While going through CFA of the company here
also every values are negative we can see that in 2016 is (-
83.28 )which is the highest compare to others such as in 2017 it
is( -137.6), 2018 (-147.92),2019 (-140.81)and in 2020 (-167.26).
next we can go through net increase and decrease of cash and
cash equivalence its shown that in 2016 its 173.16 and there is a
large fall or decrease in 2017 to (-49.13) after company made a
increasing flow to 2020 its 458.91. so there is a good cash flow
from 2018 which is 126.49 and in 2019 386.25 for the company.
Indraprastha Gas Ltd.
Indraprastha Gas Limited is one of India's leading natural gas
distribution companies. IGL supplies natural gas as cooking and
vehicular fuel. Established in 1998, the company operates
primarily in the Indian state of Delhi.These company have
maintained cash flow statement where it as mentioned
accordingly net profit before tax It is a measure of a company's
profitability before it pays its income tax hence the net profit
before tax for the year 2016 (-50.36),2017 18.22, 2018 (-
6.64),2019 (-50.52) and in 2020 (-45.97) only in 2017 the net
profit is in positive and others are in negative value which
means company is in loss. While coming to CFO of the
company in 2016 (-84.22) ,2017 (-120.47) , in 2018 CFO of the
company is showin in positive which is 49.61 after that in 2019
there is an increase to 331.3 and in 2020 net CFO of the
company is again going back to negative value which is
(-25.56).company is maintaining CIO of every year which is
44.43 in 2016 ,in 2017 its (-0.58) ,in 2018 its (-17.25),2019 (-
598.04) and 2020 (-1.6) from these we can see that CIO of the
company is decreasing from the year 2017 . Coming to the CFA
of the company in 2016 it was 26.88 then it increase to 179.51 in
2017 after that it become so low to (-28.05) then again it rise to
624.84 in 2019 and in 2020 again it fall to (-389.44).now we
can go through increase & decrease of cash & cash equivalence
of the company in 2016 cash & cash equivalence of the
company was too low which is (-12.81) ,in 2017 there is a
increase in flow of cash& cash equivalence to 58.46, then in
2018 it decreased to 4.31 then again increased to 358.13 and in
2020 again falls to (-416.6).
Mahanagar Gas Ltd .
Mahanagar Gas Limited is an Indian natural gas
distribution company, incorporated on 8 May 1995. MGL
is an enterprise of GAIL Limited and Government of
Maharashtra. These company have maintained cash flow
statement where it as mentioned accordingly net profit
before tax It is a measure of a company's profitability
before it pays its income tax hence the net profit before tax
for the year 2016 is 257.13 ,2017 212 .59 ,2018 215.67 ,
2019 241.46 and in 2020 its 242.07 so here we can see that
from 2016 there is decrease of profit on 2017 and slightly
they are rising till 2020.while going through the CFO of the
company in the year 2016 it was 459.5 then in 2017 it
decrease to 128.9 after we can see a slight rise to 171.6 in
2018 it will fall to negative value in 2019 which (-72.92)
and rise in 2020 to 137.8.company is maintaining CIO in
every year its showing negative value in this company in
2016 its -22.6,in 2017 -135.45,in 2018 -118.04,in 2019 -
172.27 and in 2020 -472 .Coming to CFA of the company
in 2016 (-424) in 2017 its increasing 31 ,then it fall to
(-42) after there is a increase to 409 and 159 in 2019 and
2020. Next we can go through increase and decrease of
cash and cash equivalence in 2016 it was 13.22,in 2017 it
was increasing to 24.37 then it is falling to 12.03 after that
cash & cash equivalence is increasing highly to 163.97 and
decrease in 2020 to (-181.23) hence they were maintained
different cash flows as per the particular years in different
methods these is about the cash flow.
