SUBSIDIARY COMPANIES - ITC Ltd

RUSSELL CREDIT LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2012
For the year ended For the year ended
31st March, 2012 31st March, 2011
(`) (`)
A. Cash flow from operating activities
Profit before tax
Adjustments for:
37,34,51,860 22,59,80,993
Depreciation 1,23,81,897 1,20,83,725
Interest expense on income tax 806 40,41,236
Liabilities no longer required written back (14,018) —
Provision on standard assets created/(released) during the year (5,39,420) 8,54,154
Unrealised exchange gain — (24,72,500)
Interest on Fixed Deposit (7,94,01,558) —
Interest on Loans (2,02,11,743) (76,31,922)
Dividend income from mutual funds held as stock-in-trade (16,67,85,437) (13,58,33,914)
Dividend income from investment in equity instruments (4,34,70,632) (3,16,05,338)
Proift on sale of fixed assets (469) (93,693)
Operating profit before working capital changes
Changes in working capital:
7,54,11,286 6,53,22,741
(Increase)/Decrease in stock-in-trade (285,01,46,713) 115,24,82,403
(Increase)/Decrease in short term loans and advances 11,91,81,360 (9,42,25,615)
(Increase)/Decrease in long term loans and advances 10,69,00,295 2,32,58,877
(Increase)/Decrease in trade receivables 1,83,50,933 (1,37,08,494)
(Increase)/Decrease in other current assets 22,776 20,214
Increase/(Decrease) in other current liabilities 16,94,470 (2,46,471)
Increase/(Decrease) in long term provisions (9,30,768) 2,79,753
Increase/(Decrease) in short term provisions 27,54,924 (1,69,45,395)
(260,21,72,723) 105,09,15,272
Cash generated from operations before interest and dividend (252,67,61,437) 111,62,38,013
Interest on Fixed Deposit 7,94,01,558 —
Interest on Loans 2,02,11,743 76,31,922
Dividend income from mutual funds held as stock-in-trade 16,67,85,437 13,58,33,914
Dividend income from investment in equity instruments 4,34,70,632 3,16,05,338
Cash generated from operations (221,68,92,067) 129,13,09,187
Income tax (paid) / refunded during the year (3,92,91,188) 38,76,437
Net cash (used in) / generated from operating activities (225,61,83,255) 129,51,85,624
B. Cash flow from investing activities
Purchase of fixed assets (8,14,20,128) (26,300)
Sale of fixed assets
Fixed deposit not considered as cash and cash equivalents
56,64,310 33,09,995
– placed (107,14,61,402) —
Purchase of long term investments (11,59,58,219) (132,20,88,797)
Sale of long term investments - subsidiaries 213,75,06,241 —
Sale of long term investments - others 83,40,98,160 —
Redemption of preference shares 55,00,00,000 —
Net cash generated from / (used in) investing activities 225,84,28,962 (131,88,05,102)
C. Cash flow from financing activities
Interest expense on income tax (806) (40,41,236)
Net cash flow used in financing activities (806) (40,41,236)
Net increase/(decrease) in cash and cash equivalents 22,44,901 (2,76,60,714)
Opening cash and cash equivalents 32,37,843 3,08,98,557
Closing cash and cash equivalents 54,82,744 32,37,843
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 Since the Company is an investment company, purchase and sale of investments and investment in fixed deposits have been considered as part
of “Cash flow from investing activities” and dividend earned and interest earned on the same have been considered as part of “Cash flow from
operating activities”
3 Reconciliation of cash and cash equivalents with the Balance Sheet As at As at
31st March, 2012 31st March, 2011
(`) (`)
Cash and cash equivalents as above 54,82,744 32,37,843
Add: Bank balances not considered as cash and cash equivalents 107,14,61,402 —
Cash and cash equivalents as per balance sheet (refer note 15) 107,69,44,146 32,37,843
The accompanying notes 1 to 24 are an integral part of the financial statements
In terms of our report of even date
For A. F. Ferguson & Co.
Chartered Accountants
Shyamak R. Tata
Partner
Kolkata, 10th May, 2012
On behalf of the Board
R. Tandon Director
S. Dutta Director
S. Jain Manager & Secretary
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