Presented By: Japa Vaidya Liza Shakya Madhupriya Dugar Manish Shankar Shrestha Meera Khadgi Ravi Keyal

Keyal Rikesh Shakya

A financial statement that shows how changes in Balance Sheet accounts and Income affect cash and cash equivalents. It breaks the analysis down to Cash flow from direct operations, changes in working capital, investments, activities

The cash flow statement is concerned with the flow of cash in and cash out of the business.

In many situations cash flow is more important than simple profits Profits may have many components where cash gets locked in and is not available for use when required. Companies usually get into trouble when inadequate cash to conduct operations

 Usually cash flow from direct operation is

added to cash flow from changes in working capital

Total of these two classified as cash flow from operation Cash flow from operation needs some adjustments to determine genuine operating cash flow

Net income is the profit to a company after all costs are deducted from sales Net income includes all non -operating gains or losses such as sale of property Net income also obtained from deducting non operating financial costs as interest costs

Increase or decrease in A/R Increase or decrease in inventory Increase or decrease in other current assets except cash and cash equivalents Increase or decrease in A/P Increase or decrease in CL excluding debt

Cash paid for capital expenditures Cash paid for acquisitions Cash from sale of long term assets Cash paid for investments such as investment in bonds

Financing activities involves provisions of financial resources to company Cash raised from (or paid to) shareholders Cash raised from or paid to debt holders Cash raised means issuance of new debt or equity Cash paid means installment payment or interest payment

Several factors affect a firms ability to generate positive cash flow from operations Growing firms invest cash on R&D, marketing promotion, or building an organization to sustain future growth Result could be negative cash flow despite attractive performance

Free cash flow to firm (FCFF) indicates companys ability to make interest and principal payments Free cash flow to equity (FCFE) indicates financial ability to sustain dividend policy

Unilever Nepal Limited is a part of Unilever with operations in more than 150 countries globally. One of the largest multinational FMCG Company successfully operating in Nepal from the past 15 years.

In market with various products like Lux, Sunsilk, Close Up and Fair & Lovely to the Nepali people.

A CASHFLOW
NET INCOME (loss) prior to income tax and Extraordinary expenses Adjustments:

2057/58
68,043,503.00

Cash flow shows that its cash inflow from operations (regular business) is negative which can seriously hinder sustainability of company if not looked after timely Done adequate investment in fixed assets which shows it has potential to get returns in future In this fiscal year company seems to have negative gross change in cash Company may have liquidity problem as a result

Add:

Depreciation
Interest Provisions (increase) Loss on sale of Fixed Asset

22,817,745.00
14,211,924.00 15,897,799.00 55,974.00 121,026,945.00 (208,528,025.00) (26,822,173.00) (25,500,000.00) (260,850,198.00) (139,823,253.00)

Cash Flow prior to changes in Working Capital Changes in Working Capital Decrease (Increase) in Current Assets
Increase (Decrease) in Current Liabilities Advance Income Tax Paid

Net changes in Working Capital Net Cash Flow from Operation B CASH FLOW FROM INVESTMENTS
Interest/Dividend Receipt Sale/(Purchase) of Fixed Asset / Investment

232,322.00 (38,077,609.00) (37,845,287.00)

Net Cash Flow from Investment C CASH FLOW FROM Financing Activites
Interest Payments
Dividend Distribution Increase/Decrease in ST Loan (Bank OD)

(14,211,924.00)
(46,035,000.00) 145,081,998.00 84,835,074.00 (92,833,466.00) 99,105,101.00 6,271,635.00

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C) Opening Cash and Bank Balance Closing Cash and Bank Balance

A CASHFLOW
NET INCOME (loss) prior to income tax and Extraordinary expenses

2058/59
42,606,160.00

Cash flow prior to change in working capital has decreased compared to 2057/58 being interest and provision is less Net changes in WC have significantly increased
Company may have increased its sales and there is surplus cash from its regular business Positive indication for the organization Company seems to have positive change in cash this fiscal year Improved than previous year

Adjustments: Add: Depreciation Interest Provisions (increase) Loss on sale of Fixed Asset 29,210,136.00 12,614,336.00 10,796,053.00 95,226,685.00

Cash Flow prior to changes in Working Capital Changes in Working Capital

Decrease (Increase) in Current Assets Increase (Decrease) in Current Liabilities Advance Income Tax Paid

224,502,193.00 (32,761,826.00) (14,000,000.00) 177,740,367.00 272,967,052.00

Net changes in Working Capital Net Cash Flow from Operation

B CASH FLOW FROM INVESTMENTS

Interest/Dividend Receipt

Sale/(Purchase) of Fixed Asset / Investment

(8,568,874.00)
(8,568,874.00)

Net Cash Flow from Investment

C CASH FLOW FROM Financing Activites

Interest Payments Dividend Distribution (12,614,336.00) (50,638,500.00) (145,081,998.00) (208,334,834.00) 56,063,344.00 6,271,635.00 62,334,979.00

Increase/Decrease in ST Loan (Bank OD)

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C)
Opening Cash and Bank Balance Closing Cash and Bank Balance

A CASHFLOW
NET INCOME (loss) prior to income tax and Extraordinary expenses Adjustments:

2059/60
93,167,104.00

Internal position this year seems to be satisfying Company has collected its current assets It is also using others money The overall condition of company does not seems to be good as compared to last year

Add: Depreciation 24,038,196.00

Interest
Provisions (increase) Loss on sale of Fixed Asset

2,602,127.00
36,790,775.00 253,095.00 156,851,297.00 15,484,149.00 150,414,454.00

Cash Flow prior to changes in Working Capital Changes in Working Capital Decrease (Increase) in Current Assets
Increase (Decrease) in Current Liabilities

Advance Income Tax Paid

(30,000,000.00)
135,898,603.00 292,749,900.00

Net changes in Working Capital Net Cash Flow from Operation B CASH FLOW FROM INVESTMENTS Interest/Dividend Receipt Sale/(Purchase) of Fixed Asset / Investment Net Cash Flow from Investment C CASH FLOW FROM Financing Activites
Interest Payments Dividend Distribution Increase/Decrease in ST Loan (Bank OD)

1,749,429.00 1,749,429.00

(2,602,127.00) (36,828,000.00)

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C) Opening Cash and Bank Balance
Closing Cash and Bank Balance

(39,430,127.00) 255,069,202.00 62,334,979.00 317,404,181.00

A CASHFLOW
NET INCOME (loss) prior to income tax and Extraordinary expenses Adjustments: Add: Depreciation Interest Provisions (increase) Loss on sale of Fixed Asset

2060/61
140,782,744.00

Cash inflow from operations has significantly decreased this year as compared to previous year, this may be due to decrease in current assets
Net cash flow form investment is negative in this fiscal year, this may be the result of higher cash out flow in purchase of fixed assets Has made significantly high interest and dividend payments Its gross change in cash is positive but the cash surplus is significantly lower than the previous year

19,761,682.00 1,787,341.00 55,961,244.00 771,767.00 219,064,778.00 (91,160,083.00) 88,707,924.00 (47,749,000.00) (50,201,159.00) 168,863,619.00

Cash Flow prior to changes in Working Capital Changes in Working Capital

Decrease (Increase) in Current Assets Increase (Decrease) in Current Liabilities Advance Income Tax Paid

Net changes in Working Capital Net Cash Flow from Operation B CASH FLOW FROM INVESTMENTS Interest/Dividend Receipt
Sale/(Purchase) of Fixed Asset / Investment

(10,085,767.00) (10,085,767.00) (1,787,341.00) (82,863,000.00) (84,650,341.00) 74,127,511.00 317,404,181.00 391,531,692.00

Net Cash Flow from Investment C CASH FLOW FROM Financing Activites
Interest Payments Dividend Distribution Increase/Decrease in ST Loan (Bank OD)

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C)
Opening Cash and Bank Balance Closing Cash and Bank Balance

A CASHFLOW
NET INCOME (loss) prior to income tax and Extraordinary expenses

2061/62
189,199,474.00

There is 34% increase in profit as compared to previous year WC has also increased Change in WC has resulted in less cash flow from operations than the profit of the year Though positive cash flow has been maintained there is high interest and dividend payment Higher purchase of fixed assets as well

Adjustments: Add: Depreciation Interest Provisions (increase) Loss on sale of Fixed Asset 17,430,497.00 1,765,167.00 92,166,244.00 5,203,181.00 305,764,563.00 (115,390,338.00) 34,521,290.00 (64,580,765.00) (145,449,813.00) 160,314,750.00

Cash Flow prior to changes in Working Capital Changes in Working Capital Decrease (Increase) in Current Assets Increase (Decrease) in Current Liabilities
Advance Income Tax Paid

Net changes in Working Capital Net Cash Flow from Operation B CASH FLOW FROM INVESTMENTS Interest/Dividend Receipt
Sale/(Purchase) of Fixed Asset / Investment

(14,700,057.00) (14,700,057.00)

Net Cash Flow from Investment C CASH FLOW FROM Financing Activites
Interest Payments Dividend Distribution Increase/Decrease in ST Loan (Bank OD)

(1,765,167.00) (92,070,000.00)

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C)
Opening Cash and Bank Balance Closing Cash and Bank Balance

(93,835,167.00) 51,779,526.00 391,531,692.00 443,311,218.00

CASHFLOW

2061/62

2060/61

2059/60

2058/59

2057/58

NET INCOME (loss) prior to income tax and Extraordinary expenses Adjustments: Add:

189,199,474.00 17,430,497.00 1,765,167.00 92,166,244.00 5,203,181.00 305,764,563.00

140,782,744.00 19,761,682.00 1,787,341.00 55,961,244.00 771,767.00 219,064,778.00

93,167,104.00 24,038,196.00 2,602,127.00 36,790,775.00 253,095.00 156,851,297.00

42,606,160.00 29,210,136.00 12,614,336.00 10,796,053.00

68,043,503.00 22,817,745.00 14,211,924.00 15,897,799.00 55,974.00

Depreciation Interest Provisions (increase) Loss on sale of Fixed Asset Cash Flow prior to changes in Working Capital Changes in Working Capital Decrease (Increase) in Current Assets Increase (Decrease) in Current Liabilities Advance Income Tax Paid Net changes in Working Capital Net Cash Flow from Operation B CASH FLOW FROM INVESTMENTS Interest/Dividend Receipt Sale/(Purchase) of Fixed Asset / Investment Net Cash Flow from Investment
C CASH FLOW FROM Financing Activites

95,226,685.00

121,026,945.00

(115,390,338.00) 34,521,290.00 (64,580,765.00) (145,449,813.00) 160,314,750.00

(91,160,083.00) 88,707,924.00 (47,749,000.00) (50,201,159.00) 168,863,619.00

15,484,149.00 150,414,454.00 (30,000,000.00) 135,898,603.00 292,749,900.00

224,502,193.00 (32,761,826.00) (14,000,000.00) 177,740,367.00 272,967,052.00

(208,528,025.00) (26,822,173.00) (25,500,000.00) (260,850,198.00) (139,823,253.00) 232,322.00

(14,700,057.00) (14,700,057.00)

(10,085,767.00) (10,085,767.00)

1,749,429.00 1,749,429.00

(8,568,874.00) (8,568,874.00)

(38,077,609.00) (37,845,287.00)

Interest Payments Dividend Distribution

(1,765,167.00) (92,070,000.00)

(1,787,341.00) (82,863,000.00)

(2,602,127.00) (36,828,000.00)

(12,614,336.00) (50,638,500.00) (145,081,998.00)

(14,211,924.00) (46,035,000.00) 145,081,998.00 84,835,074.00 (92,833,466.00) 99,105,101.00 6,271,635.00

Increase/Decrease in ST Loan (Bank OD)

Net Cash Flow From Financial Activites Gross Increase/Decrease in Cash (A+B+C) Opening Cash and Bank Balance Closing Cash and Bank Balance
(93,835,167.00) 51,779,526.00 391,531,692.00 443,311,218.00 (84,650,341.00) 74,127,511.00 317,404,181.00 391,531,692.00 (39,430,127.00) 255,069,202.00 62,334,979.00 317,404,181.00

(208,334,834.00) 56,063,344.00 6,271,635.00 62,334,979.00

Chart Title

2057/58 2058/59 2059/60 2060/61 2061/62