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

You made ₹69.25L. Only ₹51.60L reached the bank.

Five places it went. One of them matters.

Profit you earned
₹69.25L
but only
Cash you actually banked
₹51.60L
The difference is not lost. It is money you have earned that is sitting somewhere other than your bank account — and most of it is recoverable.
₹17.65L

Where the ₹17.65L went

Click any line to see the working and what you can do about it.

1
Sitting with customers who have not paid
Invoices raised and earned, cash not received
−₹16.82L95% of the gap
Total owed to you₹55.08L
Past 30 days₹34.38L
Debtor days129
One group's share64.8%

Nearly the whole gap is this one line. You are owed ₹55.08L, of which ₹34.38L has already been outstanding more than a month, and 64.8% of the book sits with a single customer group across CBE, TPR and Kochi.

Do this Issue formal demand notices to CBE (₹25.41L) and TPR (₹6.51L) with a 30-day cure period. Cap further credit to the group at 50% of current outstanding until the overdue clears. Collecting even half of the ₹34.38L overdue would put ₹17L into the bank — more than the entire profit-to-cash gap.
2
Sitting on the shelf as stock
Bought and paid for, not yet sold
−₹3.04L17% of the gap
Closing stock₹5.71L
Stock turns8.7×
Days of cover42
Stock as % of revenue3.7%

Stock grew ₹3.04L to fund a business that tripled in size. At 8.7 turns and 42 days of cover this is a reasonable level, not a problem. It is working capital doing its job.

No action needed Stock is proportionate to the growth. Worth watching if turns fall below 6, but nothing to do this quarter.
3
Held back from suppliers
Bought on credit, not yet paid — this helps you
+₹2.93Lreduces the gap
Owed to suppliers₹4.33L
Creditor days43
One supplier's share98.7%
Change on last year−20 days

Supplier credit put ₹2.93L back in your pocket. But note the shape of it: you pay in 43 days and collect in 129. You are funding your customers for 86 days out of your own bank balance.

Do this Look at the 86-day gap before you look at anything else. Northwell Pharma is 98.7% of your payables — a single relationship. Ask them for 60-day terms rather than 43. That alone releases roughly ₹2L, and it costs you nothing but the conversation.
4
Other dues settled during the year
Statutory and miscellaneous balances paid down
−₹78,3974% of the gap

Small balances carried from last year that were cleared this year. Nothing structural.

No action needed Routine settlement of prior-year balances.
5
Depreciation added back
A cost in the P&L that never left the bank
+₹6,400negligible

Your entire fixed asset base is ₹9,600 of computer software against ₹1.55Cr of revenue. Depreciation is therefore almost nothing, and the profit-to-cash gap has essentially no non-cash element.

Worth thinking about A business turning over ₹1.55Cr with ₹9,600 of assets owns nothing — no warehouse, no vehicles, no equipment. That is why packing and freight together cost ₹6L, or 3.9% of revenue. A small central facility might pay for itself, and it is worth pricing.
The point of all this

₹16.82L of the ₹17.65L gap is one problem, and it is collectable

Stock is fine. Supplier credit is helping. Depreciation is irrelevant. Strip those away and the profit-to-cash gap is almost entirely money your customers are holding.

If nothing changes ₹17.65L

stays out of the bank, and grows with revenue. At this year's rate a doubling of sales locks up another ₹17L.

If you collect the overdue half +₹17.19L

lands in the bank within the cure period, which closes the entire gap and needs no change to how you trade.

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 highlighted row is the one that matters. Everything above reorders these same lines by how much of the gap each explains, and attaches an action to each. No figure is restated.

Model 2 of 3 · Interactive prototype for the FinLytTech cash flow redesign. Figures from the FY 2021-22 MIS report.