Cash Flow Statement

Hello,

1.
Voluntary Separation payments (shown in Assets side of B/S)
Year 2007 : Rs. 65000
Year 2008 : Rs. 125000

Adjustment: The separation cost have been adjusted through General Reserve.

2.
Genreal Reserve
Year 2007 : Rs. 250000
Year 2008 : Rs. 100000

Question: How will I adjust these in Cash Flow Statement?
a. Adjustment for Voluntary Separation Payment
b. Adjustment for decrease in General reserve apart from decrease due to voluntary separation costs.

Question with similar adjustment was asked in 2003, PCC, but i donot have solution available.

Regards
Shailender Bali