Abridged financial statements

Abridged Cash Flow statement

For the year ended March 31,

in crore

	2011	2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax and exceptional item	8,821	7,472
Adjustments to reconcile net profit before tax to cash provided by operating activities
Provision for investments	–	(9)
Depreciation and amortization	740	807
Interest and dividend income	(1,086)	(844)
Effect of exchange differences on translation of deferred tax liabilities	(6)	–
Effect of exchange differences on translation of foreign currency cash and cash equivalents	(5)	68
Changes in current assets and liabilities
Sundry debtors	(968)	146
Loans and advances	(704)	(368)
Current liabilities and provisions	234	236
	7,026	7,508
Income taxes paid	(2,756)	(1,653)
NET CASH GENERATED BY OPERATING ACTIVITIES	4,270	5,855
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets and change in capital work-in-progress	(1,152)	(565)
Investments in subsidiaries	(77)	(120)
Investments in other securities	3,378	(3,497)
Interest and dividend received	1,086	831
CASH FLOWS FROM INVESTING ACTIVITIES BEFORE EXCEPTIONAL ITEM	3,235	(3,351)
Proceeds on sale of long-term investments, net of taxes	–	53
NET CASH USED IN INVESTING ACTIVITIES	3,235	(3,298)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital on exercise of stock options	24	88
Repayment of loan given to subsidiary	14	5
Dividends paid including residual dividend	(3,156)	(1,346)
Dividend tax paid	(524)	(228)
NET CASH USED IN FINANCING ACTIVITIES	(3,642)	(1,481)
Effect of exchange differences on translation of foreign currency cash and cash equivalents	5	(68)
NET INCREASE IN CASH AND CASH EQUIVALENTS	3,868	1,008
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	11,297	10,289
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	15,165	11,297

As per our report attached

for B S R & Co.
Chartered Accountants

Firm’s registration number : 101248W

Natrajh Ramakrishna Partner Membership No. 32815	N. R. Narayana Murthy Chairman and Chief Mentor	S. Gopalakrishnan Chief Executive Officer and Managing Director	S. D. Shibulal Chief Operating Officer and Director	Deepak M. Satwalekar Director
	Prof. Marti G. Subrahmanyam Director	Dr. Omkar Goswami Director	Sridar A. Iyengar Director	David L. Boyles Director
	Prof. Jeffrey S. Lehman Director	K. V. Kamath Director	R. Seshasayee Director	K. Dinesh Director
Bangalore April 15, 2011	T. V. Mohandas Pai Director	Srinath Batni Director	V. Balakrishnan Chief Financial Officer	K. Parvatheesam Company Secretary