Read the following hypothetical text and answer the given questions on its basis. Profit for the year ended 31st March, 2023 of iPay (a payment processing start up) was ₹ 15,00,000 after accounting the following:

Particulars ₹
Depreciation
Loss of Furniture due to Fire
Interest on Investment (Long-term)
Tax Refund		 1,00,000
10,000
25,000
10,000
Particulars 31st March,
2023 (₹)		 31st March,
2022 (₹)
Share Capital
Securities Premium
General Reserve
Machinery
Furniture
Marketable Securities
10% Non-Current Investment
Patents
Cash in Hand and at Bank
Bank overdraft
Provision for Tax		 20,00,000
15,00,000
2,50,000
5,00,000
80,000
1,00,000
3,00,000
50,000
50,000
5,00,000
1,00,000		 15,00,000
20,00,000
2,50,000
3,00,000
1,00,000
–
2,00,000
80,000
1,00,000
7,00,000
75,000

Additional Information:-

  • Patents purchased during the year was ₹ 50,000.
  • Proposed Dividend for the year ended 31st March, 2022 and 2023 was ₹ 1,50,000 and ₹ 2,00,000 respectively.
  • Interim Dividend during the year ended 31st March, 2022 and 2023 was ₹ 50,000 and ₹ 1,20,000 respectively.

You are required to:

  • Determine Net Profit before Tax and Extraordinary Items.
  • Determine Operating Profit before Working Capital Changes
  • Determine Cash Flow from Investing Activities.
  • Determine Cash Flow from Financing Activities
  • Determine Cash and Cash Equivalents.

Solution :