Identify the amount of net cash flow from financing activities on the basis of following Information :

Bank loan raised during the year ₹2,00,000

₹2,00,000 inflow

The correct answer is Option (1) - ₹2,00,000 inflow.

Equity share capital increased means it is a cash inflow.
Cash inflow from equity share capital = 35,00,000 - 28,00,000
                                                      = 700000

Bank loan at start = 1250000
Bank loan at end = 550000
Bank loan paid during the year means cash outflow = (1250000 - 550000)
                                                                           = 700000

Bank loan raised during the year = 200000 means cash inflow
Net cash outflow from bank loan = 700000 - 200000
                                               = 500000

Cash flow from financing activity = Cash inflow from equity - Cash outflow from bank loan
                                                = 700000 - 500000
                                                = 200000 (inflow)