Is it mandatory to prepare cash flow statement?

Preparation of Cash Flows statements for all companies (except one person Company, Small Co and Dormant Co.) are mandatory as per Companies Act 2013. Earlier only listed companies covered under listing agreement of clause no 32 we required to prepare Cash Flow Statements.Click to see full answer. In this regard, which companies are not required to prepare cash flow statement?2(40) of the Companies Act, 2013, Cash Flow Statement is not applicable for One Person Company, Small Company, Dormant company and a private company which is a start up company. For this purpose, small company is a private company having paid up capital not exceeding 50 lacs or turnover not exceeding 2 cr.Subsequently, question is, when did cash flow statement become required? The balance sheet and income statement have been required statements for years, but the cash flow statement has been formally required in the United States only since 1988. Subsequently, question is, who should prepare cash flow statement? 1. Applicability of AS 3 Cash Flow Statements. Thus, cash flow statements are to be prepared by all companies but the act also specifies a certain category of companies which are exempted from preparing the same. Such companies are One Person Company (OPC), Small Company and Dormant Company.How do you prepare a cash flow statement? Here are four steps to help you create your own cash flow statement. Start with the Opening Balance. Calculate the Cash Coming in (Sources of Cash) Determine the Cash Going Out (Uses of Cash) Subtract Uses of Cash (Step 3) from your Cash Balance (sum of Steps 1 and 2) An Alternative Method.

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