APR Constructions Limited - Saffron Capital

Interest & Finance Charges
Interest & Finance Charges increased from `298.60 lakhs for the fiscal year 2007 to ` 450.16 lakhs for the fiscal year
2008 showing an increase of 50.76%. The increase in Interest & Finance Charges is mainly due to increase inSecured
loans which increased from ` 3854 lakhs in 2007 to ` 5765 lakhs in 2008.
Depreciation
The depreciation has increased from `214.36 lakhs for the fiscal year 2007 to ` 282.21 lakhs for the fiscal year 2008
showing an increase of 31.65%.this is as a result of an increase in fixed assets from ` 3054 lakhs to ` 3707 lakhs.
Net Profit after tax
As a result of foregoing, the net profit after tax of our company has reduced from ` 1116.40 lakhs for the fiscal year
2007 to ` 1025.47 lakhs for the fiscal the year 2008 showing reduction of 8.15%. This has been to increase in work
expenditure, depreciation and interest expenses.
Cash Flow Statement
Set forth below is a table of selected, standalone restated cash flow statement data for the eight months period ended
November 30, 2010 and for financial year 2010, 2009 and 2008:
(`Lakhs)
Eight months
Year ended March 31,
period ended
November 30, 2010 2010 2009 2008
Cash generated from/(used in) Operations 384.79 1,011.21 (2,552.08) 634.41
Cash flow from / (used in) Investing Activities 43.16 109.63 (2,360.68) (520.35)
Cash flow From / (used in) Financing Activities (980.70) (1,977.04) 4,605.24 1,461.23
Net increase / (decrease) in Cash and Cash Equivalents (552.75) (856.19) (307.52) 1,575.29
The industry in which we operate is highly capital intensive. Our Company requires long term funds as well as funds
to meet working capital requirements. Long term funds are required for investment in capital equipment. Our
Company undertakes various infrastructure projects which entails huge requirement of working capital.
In our business, working capital management is very important. Our net cash generated from operating activities is
affected in each period mainly on account of increase/decrease in working capital items like Inventories, Receivable,
Loans & Advances etc. Major portion of our Contract Revenue as well as order book position pertains to
government/government aided projects, wherein the recovery period is generally high.
Operating Activities
Net cash used in operating activities for the eight months period ended November 30, 2010 was ` 384.79 lakhs. Our
Company was able to generate positive cash flow from operating activity in this period due to reduction in the trade
receivable.
In financial year 2010, our net cash generated from operating activities was ` 1011.21 lakhs. Our net profit before
taxation was ` 2334.11 lakhs in financial year 2010, which was mainly utilised for working capital requirement.
In fiscal 2009, we had negative cash flow from operating activities amounting to ` 2552.08 lakhs. Our net profit
before taxation was ` 1610.33 lakhs in fiscal 2009. Certain adjustments have been made to the net profit before
taxation. These include working capital adjustments such as an increase in trade receivable of ` 1,398.96 lakhs, loans
& advances to ` 1,487.88 lakhs and inventory to ` 1,526.87.
In financial year 2008, our net cash generated from operating activities was ` 634.41 lakhs. Our net profit before
taxation was ` 1576.68 lakhs in financial year 2008. Certain adjustments have been made to the net profit before
taxation. These include working capital adjustments such as an increase in inventory of ` 1,335.90 lakhs, an increase
in loan and advances of ` 479.04 lakhs and an increase in the trade payable of `534.73 lakhs.
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