Cash Flow Statement for the year ended 31st March, 2010

(Figures for the previous year have been rearranged For the year ended For the year ended
to conform with the revised presentation) 31st March, 2010 31st March, 2009
(Rs. in Crores) (Rs. in Crores)

A. Cash Flow from Operating Activities

NET PROFIT BEFORE TAX 6015.31 4825.74
ADJUSTMENTS FOR :
Depreciation 608.71 549.41
Interest etc. – Net (65.93) (30.20)
Income from Long Term Investments (77.65) (97.91)
Income from Current Investments (135.68) (147.87)
Fixed Assets – Loss on Sale – Net 30.88 20.95
Profit on Sale of Current Investments – Net (11.24) (24.95)
Profit on Sale of Long Term Investments (31.70) (14.96)
Doubtful & Bad Debts 12.50 6.20
Doubtful & Bad Advances, Loans and Deposits 11.28 9.01
Excess of Cost of Current Investments over Fair Value, reversed (net) – (7.71)
Excess of Carrying Cost over Fair Value of Current Investments – Net 9.95 –
Unrealised Gain on Exchange – Net (0.27) (4.88)
Liability no longer required written back (36.93) 313.92 (74.57) 182.52
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 6329.23 5008.26
ADJUSTMENTS FOR :
Trade and Other Receivables (290.89) (102.80)
Inventories 50.65 (549.20)
Trade Payables 531.46 291.22 325.65 (326.35)
CASH GENERATED FROM OPERATIONS 6620.45 4681.91
Income Tax Paid (1989.80) (1440.18)
NET CASH FROM OPERATING ACTIVITIES 4630.65 3241.73
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (1094.47) (1699.70)
Sale of Fixed Assets 2.86 5.56
Purchase of Business [See Note 3 Below] – (38.84)
Purchase of Current Investments (57866.98) (43122.47)
Sale/Redemption of Current Investments 55449.27 43298.67
Purchase of Long Term Investments from Subsidiary (387.31) –
Investment in Subsidiary (147.00) (63.10)
Sale of Long Term Investments 66.47 31.32
Income from Long Term Investments Received 77.65 97.91
Income from Current Investments Received 133.80 147.58
Interest Received 140.26 59.16
Refund of Deposits towards Property Options – 49.00
Loans Given (811.33) (256.22)
Loans Realised 905.22 254.04
NET CASH USED IN INVESTING ACTIVITIES (3531.56) (1237.09)
C. Cash Flow from Financing Activities
Proceeds from issue of Share Capital 720.73 44.75
Proceeds from Long Term Borrowings 1.85 0.31
Repayments of Long Term Borrowings (10.06) (6.91)
Net decrease in Cash/ Export Credit Facilities
and other Short Term Loans (61.63) (30.28)
Interest Paid (33.52) (20.65)
Net increase in Statutory Restricted Accounts balances 6.04 4.34
Dividends Paid (1396.53) (1319.01)
Income Tax on Dividend Paid (236.74) (220.77)
NET CASH USED IN FINANCING ACTIVITIES (1009.86) (1548.22)
NET INCREASE IN CASH AND CASH EQUIVALENTS 89.23 456.42
OPENING CASH AND CASH EQUIVALENTS 993.70 537.28
CLOSING CASH AND CASH EQUIVALENTS 1082.93 993.70
Notes :
1. The above Cash Flow Statement has been prepared under the "Indirect Method"
as set out in Accounting Standard - 3 Cash Flow Statements.
2. CASH AND CASH EQUIVALENTS :
Cash and Cash Equivalents as above 1082.93 993.70
Balances in Statutory Restricted Accounts 43.35 37.31
Cash and Bank Balances (Schedule 10) 1126.28 1031.01
3. Purchase consideration of Rs. 232.99 Crores (net of liability of Rs. 15.03 Crores towards
sales tax deferment loans assumed) on acquisition of business in 2004, payable to
M/s BILT Industrial Packaging Company Limited. – 232.99
Cash paid [including Rs. Nil (2009 - Rs. 38.84 Crores) during the year as per scheme of repayment] – 232.99
Balance Payable – –

In terms of our report of even date

For DELOITTE HASKINS & SELLS On behalf of the Board
Chartered Accountants
Y. C. DEVESHWAR Chairman
P. R. RAMESH
K. VAIDYANATH Director
Partner
B. B. CHATTERJEE Secretary
Kolkata, 21st May, 2010

80 ITC Report and Accounts 2010