Cash Flow

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2006     Rs. in Million     2006 2005 A. CASH FLOW FROM OPERATING ACTIVITIES   Net profit before exceptional items and minority interests 6510.34 1,611.70   Adjustments for :   Depreciation, amortization & impairment 1,842.88 1,444.52   Assets written off 10.04 33.31   Deferred employees' compensation 26.35 32.68   Unrealised exchange gain (270.74) (221.54)   Dividend income (1.01) (0.26)   Profit on disposal of investments (12.89) –   (Profit) / Loss on sale of fixed assets (Net) (41.12) 26.62   Provision for diminution in value of current investments (2.36) (11.07)   Interest expense 1,036.32 671.16   Interest income (211.22) (180.62)   Amounts written off 60.48 82.07   Provision for doubtful debts and advances 142.50 (223.09)     2,579.23 1,653.78   Operating profit before working capital changes 9,089.57 3,265.48   Adjustments for :   Inventories (2,491.50) 504.23   Sundry debtors / receivables (4,667.75) 342.82   Loans and advances (537.58) 160.00   Trade / Other payables 150.07 (1,135.05)   Other current assets 3,055.00 (618.18)     (4,491.76) (746.18)   Net cash generated from operating activities before exceptional items 4,597.81 2,519.30   Exceptional item : Interest in Joint venture written off – (121.80)   Direct taxes paid (Net of refunds) 694.56 (360.27)   Net cash from operating activities after exceptional items 5,292.37 2,037.23 B. CASH FLOW FROM INVESTING ACTIVITIES   Purchase of fixed assets / capital works-in-progress (4,358.14) (9,274.60)   Consideration received from discontinued business - 1,236.10   Sale of fixed assets 156.18 197.73   Purchase of investments (202.76) –   Sale proceeds of investments 27.38 –   Investment in Subsidiary Company (15,784.01) (622.70)   Investment in Joint Ventures – (99.08)   Short term deposit / secured loans 16.35 5.68   Interest received 213.08 175.92   Dividend received 1.01 0.26   Net cash used in investing activities (19,930.91) (8,380.69) C. CASH FLOW FROM FINANCING ACTIVITIES   Proceeds from issue of capital (including premium) 63.32 135.53   Minority interest 168.52 (14.57)   Proceeds from bank and other borrowings (net) 217.90 11,622.30   Proceeds from FCCB 19,553.60 –   FCCB issue expenses (227.50) –   Interest paid (1,036.32) (671.16)   Dividend paid (3,167.27) (3,164.26)   Tax on dividend (444.20) (447.52)   Net cash from financing activities 15,128.05 7,460.32   INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 489.51 1,116.86   Cash and cash equivalents at the beginning 2,373.71 1,256.85   Cash and cash equivalents at the end 2,863.22 2,373.71 Notes :   Cash and cash equivalents include :   Cash and cheques in hand and remittances in transit 170.04 313.18   With banks in :   Current accounts [Net of dividend accounts Rs. 87.06 million (Previous year Rs. 55.27 million)] 1,122.68 809.91   Deposit accounts [Net of pledged Rs. 0.88 million (Previous year Rs. 1.05 million)] 1,570.50 1,250.62     2,863.22 2,373.71 This is the consolidated cash flow statement referred to in our report of even date   On behalf of the  Board of Directors   For WALKER, CHANDIOK & CO Chartered Accountants TEJENDRA KHANNA Chairman VINOD CHANDIOK Partner Membership No. 10093 DR. BRIAN W. TEMPEST Chief Mentor & Executive Vice Chairman MALVINDER MOHAN SINGH CEO & Managing Director   ATUL SOBTI Chief Operating Officer & Whole-time Director   RAM S. RAMASUNDAR President & CFO Place : Gurgaon Dated : March 29, 2007 SUSHIL K. PATAWARI Secretary