Cash Flow Statement for the year ended 31st March, 2009

(Figures for the previous year have been rearranged For the year ended For the year ended
to conform with the revised presentation) 31st March, 2009 31st March, 2008
(Rs. in Crores) (Rs. in Crores)

A. Net Profit Before Tax 4825.74 4571.77

ADJUSTMENTS FOR :
Depreciation 549.41 438.46
Interest etc. – Net (20.14) (101.80)
Income from Long Term Investments (97.91) (93.73)
Income from Current Investments (147.87) (141.95)
Fixed Assets – Loss on Sale/ Write off – Net 20.89 17.97
Profit on Sale of Current Investments – Net (24.95) (15.22)
Profit on Sale of Long Term Investments (14.96) –
Excess of Fair Value over Carrying Cost of Current Investments (7.71) (23.36)
Unrealised (Gain)/ Loss on Exchange – Net (4.87) 3.89
Liability no longer required written back (74.57) 177.32 (88.11) (3.85)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 5003.06 4567.92
ADJUSTMENTS FOR :
Trade and Other Receivables (81.82) (194.35)
Inventories (549.20) (696.49)
Trade Payables 333.55 (297.47) 459.34 (431.50)
CASH GENERATED FROM OPERATIONS 4705.59 4136.42
Income Tax Paid (1426.56) (1413.46)
NET CASH FROM OPERATING ACTIVITIES 3279.03 2722.96
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (1699.70) (2246.06)
Sale of Fixed Assets 5.56 3.63
Purchase of Business [See Note 1 Below] (38.84) (38.83)
Purchase of Current Investments (43122.47) (27558.99)
Sale/Redemption of Current Investments 43298.67 27741.01
Purchase of Long Term Investments (63.10) (10.22)
Sale of Long Term Investments 31.32 –
Income from Long Term Investments Received 94.37 92.24
Income from Current Investments Received 147.58 143.43
Interest Received 39.05 97.87
Refund of Deposits towards Property Options 49.00 91.19
Loans Given (256.12) (246.79)
Loans Realised 253.94 194.74
NET CASH USED IN INVESTING ACTIVITIES (1260.74) (1736.78)
C. Cash Flow from Financing Activities
Proceeds from issue of Share Capital 44.75 44.63
Repayments of Long Term Borrowings (10.85) (5.85)
Net increase/(decrease) in Cash/ Export Credit Facilities
and other Short Term Loans (26.03) 19.40
Interest etc. Paid (28.58) (17.08)
Dividend Paid (1314.67) (1158.98)
Income Tax on Dividend Paid (220.77) (198.21)
NET CASH FLOW USED IN FINANCING ACTIVITIES (1556.15) (1316.09)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS 462.14 (329.91)
OPENING CASH AND CASH EQUIVALENTS 570.25 900.16
CLOSING CASH AND CASH EQUIVALENTS 1032.39 570.25
CASH AND CASH EQUIVALENTS COMPRISE :
Cash and Bank Balances 1032.39 570.25
Note :
1. 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. 232.99 232.99
Cash paid [including Rs. 38.84 Crores (2008 - Rs. 38.83 Crores) during the year
as per scheme of repayment] 232.99 194.15
Balance Payable – 38.84

Per our Report attached to the Balance Sheet On behalf of the Board
For A. F. FERGUSON & CO.
Chartered Accountants Y. C. DEVESHWAR Chairman
M. S. DHARMADHIKARI K. VAIDYANATH Director
Partner B. B. CHATTERJEE Secretary
Kolkata, 22nd May, 2009

80 ITC Report and Accounts 2009