Business Bureau :
Cash flow statement is financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company
Dr Satish Shrivastav, renowned Financial Consultant, while addressing the session on topic ‘Yardstick on Financial Health of Business’ organised by the Vidarbha Management Association (VMA) under its weekly wisdom hour initiative, asked the participants to keep their cash flow statements strong and avoid leakages. Cash flow statement is financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. Cash flow talks about the share value of business. It further helps in judging performance of the company. It talks about how well the company manages its cash position. Dr Shrivastav, who is also a visiting faculty at Harvard Business School Boston US and IMF Washington DC, suggested maintaining cash flow statement as it can be asked by concerned Government department to produce as and when required.
It is a must for financial health of business. While explaining leakage in cash flow, Dr Shrivastav said that if someone is routing the cash and there is no record of the same, which directly tamper cash management is called leakage. For better cash flow management, he stressed upon measuring business cash flow by looking at three major resources of cash that are Operations, Investments and Finances as these three sources correspond to major sections in company’s cash flow statement, he added. Members and guests attended this session in large numbers. Vidarbha Management Association is based at Nagpur and meets every Sunday at 10:30am. VMA is dedicated to impart learning related to Management and Leadership Skills to its members. VMA is a non-profit organization and is currently in its 17th year of operation. All the VMA members are business owners and professionals from different domains and currently the membership drive is in progress.