The difference between your company's stated profits and the actual profit you have made is the value of Depreciation.
Depreciation is shown on your Balance Sheet amongst the Fixed Assets and represents the change in value of some or all of your Fixed Assets.
Example:
Let's say that you spent R50,000 on equipment last year and its value today, because of wear and tear is now R40,000. In this instance, your new Balance Sheet would show your equipment at R40,000 and Depreciation at R10,000.
This is technically a loss of profit, and therefore your company does not pay tax on Depreciation; naturally, there are laws that stae how much Depreciation can be deducted on specific Assets.
Discussion:
Since Depreciation is a paper exercise that reduces your profits, Cash Profit adds back Depreciation to show your true level of profitability and it is this figure that is used to calculate other KPI such as the Loan Repayment %.