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Cash Flow and Fund Flow Statement

Diwakar Mishra (Accountant) (136 Points)

13 August 2008

Making of Cash Flow and Fund Flow Statement are compulsory under the income tax or company act ?

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13 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 13 August 2008

Cash flow statement compulsory under Companies Act

Pooja Chopda (Practising Chartered Accountant) (931 Points)
Replied 13 August 2008

compulsory under companies act for companies having turnover of atleast 50 crores.

Murali (CA final cleared and CS final) (102 Points)
Replied 13 August 2008

Under section 211(3C) of companies act, every company is required to comply with Accounting Standards. AS 3 requires CFS to be prepared by Level I enterprises.

FFS is not required under companies act or income tax act.

chintan patel (Chartered Accountant) (211 Points)
Replied 13 August 2008

CA SURAJIT KASHYAPI (Service) (25 Points)
Replied 19 August 2008

Accounting Standard need to be followed as per section 211 Companies Act. AS 3 is on Cash Flow so as per Companies act Cash Flow is compulsory. As we dont hava any AS on Fund flow so Fund flow is not compulsory as per the same section. There are no other section in Companies Act by which Fund flow is compulsory and we will not see any fund flow statement in the final accounts of any company.

Cash flow is compulsory for below mentioned catagories of organisation:-

1. Organisation whose Equity or Debt securities are listed in India or abroad.

2. Co operative banks & other banks, Financial enterprises & Insurence Companies.

3. Organisation whose turnover (except other income) exceeds Rs 50 crore.

4. Organisation having borrowings exceeds Rs 10 crore.

5. Holding or Subsidiary of above organisations.

Sagar Bandarkar.. (CA Student / Article Assistant) (106 Points)
Replied 26 August 2008

I wants to learn 'How to prepare Fund Flow? '

Please, give some hints through e-mail

sagarbandarkar @ ymail.com

can anybody help me?

Sagar Bandarkar.. (CA Student / Article Assistant) (106 Points)
Replied 26 August 2008

I am preparing for PCC. I wants to bought book on Financial Management. Which author's book will help me to study enthusiasticlly and deeply FM.

Please reply through e-mail

sagarbandarkar @ ymail.com

(Guest)

Originally posted by :Diwakar Mishra
"	Making of Cash Flow and Fund Flow Statement are compulsory under the income tax or company act ?	"

Sonam Bidasaria (CA) (770 Points)
Replied 28 August 2008

Hi Sagar...

For PCC and PE 2 level, RAVI.M.KISHORE's book is vry good.

You can rely on this book.

Ritesh khemka (Article assisstants) (35 Points)
Replied 31 August 2008

we should understand fund flow first & then cash flow

both r interlink between them

Deepesh Jain (C.A (May 11 Batch)) (104 Points)
Replied 09 January 2009

Can any conferm whether fund flow is in pcc syllabus because it is not in module i beg u 2 reply at djtauraus @ yahoo.com

HARSHIT KABRA (STUDENT) (81 Points)
Replied 09 January 2009

Preparation of cash flow and fund flow is necessary under companies act since it clears the picture of true financial position. It explains the proper sources of funds and its application in a proper manner.