Video narration
How can a company make ₹20,000 profit… and still go bankrupt? Let’s follow one simple timeline. Day 0: you make a sale of ₹1,00,000. On paper, that looks great. After costs, your profit is ₹20,000. But here’s the catch: the customer doesn’t pay today. You send an invoice, and the money is due in 60 days. Now look at your bank account on Day 0. You still have to pay ₹70,000 immediately—salaries, rent, and suppliers. Cash goes out right now. If your balance can’t cover it, the account drops to zero, bills bounce, and the business can’t operate—even though the profit number is positive. Day 60: the ₹1,00,000 finally arrives, but it’s too late if you ran out of cash earlier. Profit is an accounting result. Cash is what keeps the business alive.