It is free because if yo pay them off you can get more creditors by that time so if yo have that cycle where you pay Rs 100 after getting another Rs 100 as credit it is free.

But if you can't do that jig then it will still be a part of free but one has to take another look.

Originally posted by prabhakarkudva Basantji, Some doubts,pardon me if they are stupid.Just trying to get a hang of accounting. I was just reading up about Sundry Creditors.So here the idea is that you are just postponing paying the money and hence increasing your cash flow.If this is the case the money needs to paid out sometime in the future.Hence should it really be classified as free cash? Also logically shouldn't this be a part of cash flow from financing?

Edited by basant - 16/Jun/2010 at 9:29am

For that we will have need to wait for the Hawkins AR. But to my knowledge Hawkins does not discount its products to sell more.

bravo. basanthi, chinki, subu. Thank you for sharing the excellant analysis

Originally posted by hawakeye bravo. basanthi, chinki, subu. Thank you for sharing the excellant analysis

Expect you all to do it for the other companies also