2.

4 INTERPRETATION According to the format of cash flow statement its first item is cash flow from Operating activites. In cash flow statement net profit before tax is taken this is difference between 2008-09 and 2007-08. Following items are added in net profit before tax: 973.40 6.43 0.10 1489.50 222.34 1.00 Depreciation Loss on sale of assets Provision for diminution in Value of investment Interest charged to profit-loss Account Amortisation of employee Separation compensation Provision for Wealth tax Exchange (gain)/ loss on revaluation of foreign currency loans Amortisation fo long term loan expenses (profit)/loss on sale of other investment (Gain)/loss on cancellation of forwards covers/options Income from other investment changes which is 9457.49. Now items which increase assets will deduct from above figure and items which decrease assets and increase debts will add. Trade payables are added which is 1772.03. (26.62) (101.62) Interest and income from current investment (336.81) Now the difference is known as operating profit before working capital 32.71 (186.46) Following items are deducted from net profit before tax: 67.91

Following items ard deducted Trade & other Receivables Inventories Taxes paid (159.25) (875.49) (2797.56)

Now the figure is known as Net cash from operating Activities which is 7397.22.

Second item according to cash flow format is cash flow from investing activities: In this transactions which create cash inflow will added and transactions which create cash outflow are deducted. Following items are added: Sale of fixed assets 15.18 Inter-corporate depositis90.73 Sale of investments 57181.61 Interest and income from current investments 312.12 Dividend received 101.62 Following items are deducted: Purchase of fixed assets (2786.29) Purchase of investments (59903.25) Purchase of investments in subsidiaries (4439.80) Final figure known as Net Cash used for investing activities which is 9428.08 Third item according to cash flow format is cash flow from financing activities. Following items are added: Issue of equity share capital 0.25 Issue of cumulative convertible preference shares 0.14 Proceeds from borrowings 6494.43 Following items are deducted: Repayment of borrowings (894.39) Amount received on cancellation of forward covers/options (10.17) Long term loan expenses (1213.96)

Dividend paid (1187.37) Final will called as Net cash from financing activities which is 3156.42 crores. At last three added together which called net increase in cash and cash equivalents which is 1125.56. In this figure opening balance of cash or cash equivalent added which are 465.04 crore. At the end answer came 1590.60 crore which called Closing Balance of Cash or Cash Equivalents.