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The cash receipts from rents and subsequent sales of such belongings are also money flows from working actions. Nevertheless, cash funds to fabricate or acquire property held for rental to others and subsequently held on the market as described in paragraph 68A of Ind AS sixteen, Property, Plant and Gear, are money flows from working actions. Money flows from operating activities are primarily derived from the principal revenue-producing activities of the entity. The amount of cash flows arising from operating actions is a key indicator of the extent to which the operations of the entity have generated enough cash flows to repay loans, keep the working capability of the entity, pay dividends and make new investments without recourse to exterior sources of financing. The statement of money flows shall report cash flows through the interval categorized by operating, investing and financing activities. Nevertheless, the place financial institution overdrafts which are repayable on demand form an integral part of an entity’s money administration, bank overdrafts are included as a part of money and money equivalents.

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