Profit vs cash · default Cash in, cash out What can I spend
Cash flow · FY 2021-22 vs FY 2020-21

Where your cash came from, and where it went

The bank's version of the year.

Bank on 1 Apr 2021
₹7.50L
Bank on 31 Mar 2022
₹59.09L

Money that came in

Collected from customers
You invoiced ₹1.55Cr. ₹16.82L of it had not been paid by year end.
₹1.39CrFY21 ₹43.36L  ·  +₹95.18L
Invoiced ₹1.55Cr less the increase in unpaid invoices ₹16.82L gives cash actually banked of ₹1.39Cr.
Invoiced₹1.55Cr Still owed₹16.82L Banked₹1.39Cr
Total in₹1.39Cr

Money that went out

Paid to suppliers
Medicine purchases, less what you still owed them at year end.
₹36.56LFY21 ₹11.06L  ·  +₹25.50L
Bought ₹39.49L of stock. Suppliers were owed ₹2.93L more at year end than at the start, so that much stayed in your account.
Purchased₹39.49L Still owed₹2.93L Paid₹36.56L
Paid to run the business
Packing, freight, audit, professional fees and the rest.
₹8.61LFY21 ₹3.04L  ·  +₹5.57L
Operating expenses were ₹7.89L, of which ₹6,400 was depreciation and never left the bank. Other dues settled during the year added ₹78,397.
Packing₹5.08L Freight₹92,470 Everything else₹2.60L
Paid in tax
The single largest outflow of the year.
₹41.78LFY21 ₹0  ·  +₹41.78L
Income tax ₹39.98L plus advance tax ₹1.80L. This is 27% of revenue and it appeared for the first time this year.
Income tax₹39.98L Advance tax₹1.80L Share of revenue27%
Total out₹86.95L
What stayed in the business
₹51.60L

Nearly four times last year. Every rupee of it came from trading — you raised no loans and took no capital in.

FY 2020-21₹29.26L Change+₹22.33L
Worth acting on

Tax is now your biggest single payment, and it arrived all at once

₹41.78L left the business in tax this year against nothing last year. It is larger than everything you paid suppliers and larger than all your running costs put together. Because it was accounted as a lump sum rather than in instalments, it lands as one shock to the bank balance instead of four manageable ones.

Do this. Ask your CA to compute the FY23 advance tax liability now and schedule the four instalments — June, September, December and March. On this year's profit that is roughly ₹10L a quarter, which the business can absorb. One payment of ₹40L in Q4 is a different conversation.
Worth knowing

Collections improved sharply even as sales tripled

You collected ₹1.39Cr against ₹1.55Cr invoiced — 89% of what you billed. Last year customers took an average of 322 days to pay; this year 129. That is a real operational improvement and it is the reason the bank balance grew eightfold.

Protect it. The gain came from collecting faster, not from selling more. If debtor days drift back towards 200, roughly ₹30L of this year's cash gain disappears without anything else changing.
ParticularsFY 2021-22FY 2020-21Movement
Operating activities — indirect method
Net profit₹69.25L₹31.89L₹37.35L
Add: depreciation₹6,400₹4,000₹2,400
(Increase) in receivables-₹16.82L₹0-₹16.82L
(Increase) in inventory-₹3.04L-₹2.67L-₹37,127
Increase in payables₹2.93L-₹30,077₹3.23L
(Decrease) in other current liabilities-₹78,397₹30,077-₹1.08L
Net cash from operating activities₹51.60L₹29.26L₹22.33L
Investing and financing
Purchase of fixed assets₹0-₹4,000₹4,000
Capital introduced / (withdrawn)₹0-₹31.89L₹31.89L
Net increase in cash₹51.60L-₹2.67L₹54.27L
Opening cash and bank₹7.50L₹7.50L₹0
Closing cash and bank₹59.09L₹7.50L₹51.60L

The plain-language view above is derived from these same figures and reconciles to the same ₹51.60L. Collected from customers is revenue less the increase in receivables; paid to suppliers is purchases less the increase in payables. Nothing is estimated.

Model 1 of 3 · Interactive prototype for the FinLytTech cash flow redesign. Figures from the FY 2021-22 MIS report. Click any line to see how it was derived.