Hi Harsh,
I agree with you that they might not be faking the earnings and they are paying the correct Tax. But my point is the company’s receivables days have been decreasing over then past decade, if you see the past 5 years its single digit. This means they are getting instant cash for the products sold.
So going with this approach for the last 5 years its CFO must be greater than Net Profit. But that is not the case. I am still not clear on this aspect of the business.
Ravi