What they are asking us is what would have been the effect on the operating cash flow if we do not consider the financial reporting treatment does not affect the 1) the income taxes and due to this what will be the effect on the capitalized interest.
Now, in this situation, if the interest wasn’t capitalized it would have been expensed in the P/L and due to which they have deducted it from the operating activity for calculating the effect on the operating cash flow if the interest was expensed and not capitalized.
I think here your doubt is about Q2)
What they are asking us is what would have been the effect on the operating cash flow if we do not consider the financial reporting treatment does not affect the 1) the income taxes and due to this what will be the effect on the capitalized interest.
Now, in this situation, if the interest wasn’t capitalized it would have been expensed in the P/L and due to which they have deducted it from the operating activity for calculating the effect on the operating cash flow if the interest was expensed and not capitalized.