Cash Flow Statement Maker (Indirect Method)

Enter profit before tax, non-cash items, opening and closing working capital balances, and investing and financing figures. The statement is built in the standard format with operating, investing and financing activities.

कैश फ्लो स्टेटमेंट बनाएं — ऑपरेटिंग, इन्वेस्टिंग और फाइनेंसिंग गतिविधियों का कैश अलग-अलग देखें।

For education and quick estimates only. Banks and NBFCs use their own rules, rounding and charges, so confirm the exact figures with the lender. Nothing you type here is saved to the server.

Inputs (₹ in lakhs)

Business name

Year / period

A. Profit and non-cash items

Profit before tax

Depreciation & amortisation

Interest expense (in P&L)

Interest income (in P&L)

Loss on sale of assetsEnter a profit as negative

Income tax paid

Working capital (balance at start and end of the year)

Trade receivables (debtors)

Inventories

Other current assets

Trade payables (creditors)

Other current liabilities

B. Investing activities

Purchase of fixed assets

Sale of fixed assets (amount received)

Investments bought

Investments sold

Interest / dividend received

C. Financing activities

Loans taken (term + working capital)

Loans repaid

Capital introduced

Interest paid

Dividend / drawings

Cash

Cash & bank at the beginning

Cash flow statement · FY 2025-26

A. Cash flow from operating activities
Profit before tax	72.00
Add: Depreciation & amortisation	9.00
Add: Interest expense	13.00
Less: Interest income	(1.00)
Add: Loss / (profit) on sale of assets	0.00
Operating profit before working capital changes	93.00
Increase in trade receivables (debtors)	(25.00)
Increase in inventories	(15.00)
Increase in other current assets	(5.00)
Increase in trade payables (creditors)	8.00
Increase in other current liabilities	2.00
Cash generated from operations	58.00
Less: Income tax paid	(14.00)
Net cash from operating activities (A)	44.00
B. Cash flow from investing activities
Purchase of fixed assets	(10.00)
Sale of fixed assets	0.00
Investments bought	0.00
Investments sold	0.00
Interest / dividend received	1.00
Net cash from investing activities (B)	(9.00)
C. Cash flow from financing activities
Loans taken	15.00
Loans repaid	(8.00)
Capital introduced	0.00
Interest paid	(13.00)
Dividend / drawings	(19.00)
Net cash from financing activities (C)	(25.00)
Net increase / (decrease) in cash (A + B + C)	10.00
Cash & bank at the beginning	10.00
Cash & bank at the end	20.00

Figures in brackets are cash going out. Check that "Cash & bank at the end" matches the closing balance sheet; if it doesn't, an item is missing or entered twice.

Reading a cash flow statement

Operating cash shows whether the business itself generates cash. Profit with negative operating cash usually means money is stuck in debtors or stock.
An increase in debtors or stock uses cash (shown as a minus); an increase in creditors frees cash (a plus).
Investing is usually negative for a growing business (buying assets). Financing shows how the gap was funded: loans, capital, or repayments.
Lenders like steady positive operating cash flow that comfortably covers loan repayments and interest.

Format of a cash flow statement

A. Cash flow from operating activities — cash generated by the business itself.
B. Cash flow from investing activities — buying and selling fixed assets and investments.
C. Cash flow from financing activities — loans taken or repaid, capital, interest and dividends paid.
A + B + C = net change in cash; added to opening cash, it gives closing cash.

Indirect method, step by step

Start with profit before tax. Add back non-cash expenses such as depreciation, and remove items that belong to investing or financing (interest expense and interest income, profit or loss on sale of assets). Then adjust for working capital: an increase in debtors or stock uses cash, an increase in creditors frees cash. Finally deduct the income tax paid.

Example (the one loaded in the calculator): profit before tax ₹72 lakh, plus depreciation ₹9 lakh and interest expense ₹13 lakh, less interest income ₹1 lakh, gives ₹93 lakh before working capital changes. Debtors, stock and other current assets went up by ₹45 lakh and creditors and other liabilities by ₹10 lakh, and ₹14 lakh of tax was paid — leaving ₹44 lakh of cash from operations. After investing and financing, cash rises from ₹10 lakh to ₹20 lakh.

Common questions

Cash flow statement kya hota hai?

It shows where a business's cash came from and where it went during a year, split into operating, investing and financing activities.

What is the difference between the direct and indirect method?

The direct method lists actual cash received and paid. The indirect method starts from profit and adjusts it for non-cash items and working capital changes. Most businesses in India use the indirect method.

Why is profit different from cash?

Profit counts sales and expenses when they are earned or incurred, not when cash moves. Money stuck in unpaid customer bills or extra stock reduces cash even when the business is profitable.

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