Cash Flow statement

For the year ended March 31,

in crore

	Schedule	2011	2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax		8,821	7,472
Adjustments to reconcile net profit before tax to cash provided by operating activities
Depreciation		740	807
Provision for investments		–	(9)
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	16	(704)	(368)
Current liabilities and provisions	17	234	236
		7,026	7,508
Income taxes paid	18	(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	19	(1,152)	(565)
Investments in subsidiaries	20 (a)	(77)	(120)
Investment / (Disposal) of other securities	20 (b)	3,378	(3,497)
Interest and dividend received	21	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 (refer to note 23.2.25)		–	53
NET CASH PROVIDED BY / (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	20 (c)	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 / (DECREASE) IN CASH AND CASH EQUIVALENTS		3,868	1,008
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD		11,297	10,289
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	22	15,165	11,297
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS	23

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

As per our report attached

for B S R & Co.
Chartered Accountants
Firm’s Reg No : 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