Directors' report

Consolidated Cash Flow statement

For the year ended March 31,

in crore

	Schedule	2011	2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax, minority interest and exceptional item		9,325	7,899
Adjustments to reconcile net profit before tax to cash provided by operating activities
(Profit) / loss on sale of fixed assets		–	(2)
Provision for investments		–	(9)
Depreciation		854	905
Interest and dividend income		(1,154)	(881)
Effect of exchange differences on translation of deferred tax liability		(8)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		(45)	31
Effect of exchange differences on translation of subsidiaries		54	54
Changes in current assets and liabilities
Sundry debtors	16	(1,159)	194
Loans and advances	17	(758)	(438)
Current liabilities and provisions	18	489	187
		7,598	7,940
Income taxes paid	19	(2,846)	(1,753)
NET CASH GENERATED BY OPERATING ACTIVITIES		4,752	6,187
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of fixed assets and change in capital work-in-progress	20	(1,305)	(658)
Payment for acquisition of business, net of cash acquired		(3)	(173)
Investments in / (disposal) of securities	21	3,558	(3,698)
Proceeds from disposal of fixed assets		–	2
Interest and dividend received	22	1,148	871
Cash flow from investing activities before exceptional item		3,398	(3,656)
Proceeds on sale of long-term investments, net of taxes (refer to note 24.2.22)		–	53
NET CASH USED IN INVESTING ACTIVITIES		3,398	(3,603)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital on exercise of stock options		24	89
Dividends paid including net of intercompany dividend		(3,140)	(1,346)
Dividend tax paid		(524)	(228)
NET CASH USED IN FINANCING ACTIVITIES		(3,640)	(1,485)
Effect of exchange differences on translation of foreign currency cash and cash equivalents		45	(31)
NET INCREASE IN CASH AND CASH EQUIVALENTS		4,555	1,068
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		12,111	10,993
Add : Opening balance of cash and cash equivalents arising on consolidation of controlled trusts		–	50
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	23	16,666	12,111
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS	24

Note : The schedules referred to above form an integral part of the consolidated Cash Flow statement.

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