The following are the summarised Balance Sheets of Magenta Limited: Particulars 31 st March, 2024 (₹ in Lakhs) 31 st March, 2025 (₹ in Lakhs) Equity…

Assumption 1: There is no dividend on preference shares Cash Flow Statement from Operating Activities for the year ended 31 st March, 2025 Particulars Amount (₹ in Lakhs) Net Profit before Tax and Extraordinary Items (2.40 – 1.50) 0.90 Add: Transfer to General Reserve (6.00-4.10) 1.90 Add: Interim Dividend Paid 1.00 Adjustments for: Add: Depreciation on Land & Building 1.00 Depreciation on Plant & Machinery 0.50 Goodwill Written Off (5.75 – 4.50) 1.25 Provision for Income tax 2.25 Operating Profit before Working Capital Changes 8.80 Changes in Working Capital: Add: Decrease in Inventories 0.50 Increase in Trade Payables 1.40 Less: Increase in Trade Receivables (4.60) Decrease in Outstanding Expenses (0.20) Cash Generated from Operations 5.90 Less: Income Tax Paid (1.75) Net Cash Flow from Operating Activities 4.15 Working Note 1. Calculation of provision for taxation Amount (₹ in Lakhs) Amount (₹ in Lakhs) To Cash 1.75 By Income tax payable 2.00 To Income tax payable 2.50 By Profit & Loss A/c (Bal. fig.) 2.25 4.25 4.25 Assumption 2: Preference Shares redeemed at the end of the year Cash Flow Statement from Operating Activities for the year ended 31 st March, 2025 Particulars Amount (₹ in Lakhs) Net Profit before Tax and Extraordinary Items (2.40 – 1.50) 0.90 Add: Transfer to General Reserve (6.00 -4.10) 1.90 Add: Interim Dividend Paid 1.00 Add: Preference dividend* (7.50 x 12%) 0.90 Adjustments for: Add: Depreciation on Land & Building 1.00 Depreciation on Plant & Machinery 0.50 Goodwill Written Off (5.75 – 4.50) 1.25 Provision for Income tax 2.25 Operating Profit before Working Capital Changes 9.70 Changes in Working Capital: Add: Decrease in Inventories 0.50 Increase in Trade Payables 1.40 Less: Increase in Trade Receivables (4.60) Decrease in Outstanding Expenses (0.20) Cash Generated from Operations 6.80 Less: Income Tax Paid (1.75) Net Cash Flow from Operating Activities 5.05 *Assumption Preference shares are redeemed at the end of the year Working Note: 1. Calculation of provision for taxation Amount (₹ in Lakhs) Amount (₹ in Lakhs) To Cash 1.75 By Income tax payable 2.00 To Income tax payable 2.50 By Profit & Loss A/c (Bal. fig.) 2.25 4.25 4.25 Assumption 3: Preference Shares redeemed at the beginning of the year Cash Flow Statement from Operating Activities for the year ended 31 st March, 2025 Particulars Amount (₹ in Lakhs) Net Profit before Tax and Extraordinary Items (2.40 – 1.50) 0.90 Add: Transfer to General Reserve (6.00 - 4.10) 1.90 Add: Interim Dividend Paid 1.00 Add: Preference dividend* (5 x 12%) 0.60 Adjustments for: Add: Depreciation on Land & Building 1.00 Depreciation on Plant & Machinery 0.50 Goodwill Written Off (5.75 – 4.50) 1.25 Provision for Income tax 2.25 Operating Profit before Working Capital Changes 9.40 Changes in Working Capital: Add: Decrease in Inventories 0.50 Increase in Trade Payables 1.40 Less: Increase in Trade Receivables (4.60) Decrease in Outstanding Expenses (0.20) Cash Generated from Operations 6.50 Less: Income Tax Paid (1.75) Net Cash Flow from Operating Activities 4.75 *Assumption Preference shares are redeemed at the beginning of the year Working Note: 1. Calculation of provision for taxation Amount (₹ in Lakhs) Amount (₹ in Lakhs) To Cash 1.75 By Income tax payable 2.00 To Income tax payable 2.50 By Profit & Loss A/c (Bal. fig.) 2.25 4.25 4.25