15 July 2008
Operating Profit is the profit earned during a period from Operations Activities while cash profit is the profit from activities where cash has actually flown. Or in other words the it(Cash Profit) is the net profit arrived at before adjusting non cash charges like Depreciations, Provisions w.off, provision of taxes.
Guest
Guest
(Querist)
15 July 2008
Ramesh you r right, but I have seen in Annual Report of Public Ltd. Co., they are not deduction Tax Provision to arrive at Cash profit. They only add Depreciation in PAT.
15 July 2008
Taxes should be added back to arrive at Cash Profits. Otherwise, think How the deferred Tax or provision for taxes can effect the cash profit