Managing Financial Resources and Decisions: M.A.M Sadiq Batch No Ct/Hndbm/60/02

Managing Financial Resources & Decisions
Individual Assignment
MANAGING FINANCIAL RESOURCES AND DECISIONS

M.A.M SADIQ BATCH NO CT/HNDBM/60/02
ACKNOWLEDGEMENT
Firstly I would like to thank our lecturer Ms.Chameera Wijayathunga who gave me full support on the
assignment from the day he presented to us. She never made us bored and all of his classes were full of
joy and pleasure, therefore as an individual I have gained a good knowledge about the module which is
Managing Financial Resources & Decisions. The subject has designed in a way that provides the current
issues and opportunities an organization could face in a Managing Financial Resources & Decisions
Secondly my sincere thanks to the management of ICBT who gave me the opportunity to follow HND in
business management and for giving such an excellent experience to do an assignment that I had on this
particular subject. Thank you to all my colleagues who gave thoughtful ideas to carry out the assignment
and gave to critics to improve my writing skills in an effective way. I could confidently say that the
support from everyone had helped me do this particular assignment without any hassles.
Executive Summary
This report is prepared to provide information about the importance of investment techniques and
investment appraisals for managing financial resources and decisions based on financial information of a
business. The main purpose of this report is to provide information about the sources of finance available
to a business and analysing & evaluating the financial performance of a business.
The report covers the importance of publishing financial statements and how it helps various
stakeholders in making investment decisions. The financial statements of Ceylon Cold Stores PVT LTD
Company. Has been used in this section to analyse whether it is according to the Sri Lanka Accounting
Standards. It is also used in the investment appraisals to evaluate the financial performance and
condition of that particular business.
Table of Contents
ACKNOWLEDGEMENT...........................................................................................................................2
Executive Summary.....................................................................................................................................3
Introduction..................................................................................................................................................1
SWOT Analysis of Bata...............................................................................................................................2
Project Premium statement of financial position as year zero.....................................................................3
Source of finance.........................................................................................................................................9
Documents needed to get a loan from bank...............................................................................................10
Impact of financing sources on previously derived financial statement....................................................11
Financial statements...................................................................................................................................11
Standards requested by SLAS to publish financial statements..................................................................12
Conclusion.................................................................................................................................................17
Appendix19
Introduction
Hence a young entrepreneur was searching for professional advice on staring his own firm. This report
would like to advise him to open BATA retail shop. Reason is its very less investment and good profit
margin. BATA sales 1 million products per day around the globe, and BATA having around 70 retail
showrooms around Sri Lanka. There is no any BATA showroom in Mount Lavinia, so am suggesting this
young entrepreneur to choose Mount Lavinia location to consider to open his retail showroom.
Bata Corporation
Bata Corporation was found in August 24 th 1894 in Czechoslovakia by Thomas Bata in partnership with
his siblings Antonin and Anna Bata. Currently its headquarters is located in Lausanne, Switzerland. Bata
has been in the forefront of shoe making industry with its innovative production; design of new styles
and in the creation of new business models in order to respond to dynamic changes of needs and wants
of the customers.
At present Bata have become a leading manufacturer and retailer of quality footwear under four regional
commercial market units. They are able to
Serve 1 million customers per day within 5,000 retail shops, 10,000 franchises and thousands of
wholesalers all over the world in 70 countries.
There 30,000 of employees working in Batas factories, tanneries, engineering plants, quality
control laboratories, product developments and research centres and retail shops all around the
globe.
Bata Shoe Company of Ceylon Limited

Since Bata was incorporated in Sri Lanka in 1950, it has been the pioneer of shoe industry in Sri Lanka,
manufacturing and marketing quality footwear. Bata has gained a good brand image within Sri Lankan
market by providing highly fashionable at the same time highly affordable footwear products with a high
quality design with a strict quality control.
SWOT Analysis of Bata

Strengths
Company image
Quality products
Competitive price
range
Competitive price
range
Strong distributional
channel spreded
throughout the world.
Weaknesses
Insufficient promotinal
activities
VAT and other tariff
barriers
Inability to catch the
present trend
Threats
Opportunities
Counterfieting of Bata
products
changes in economy
affects the supply of
raw material adn
distribution of
produscts
High competition from
global brands
Franchise marketing
opportunities with
global brands like Nike,
Reebok and Hush
Puppies
Dynamic fashion
trends in shoe industry
Figure no 1
Strength - Bata company image is published worldwide and especially in Sri Lanka.bata has a good
quality product. They have a reasonable price range compare with competitors. Bata company has a
good distributional channel in Sri Lanka and worldwide.
Weakness-Insufficient promotional activities. VAT and other tariff barriers. Inability to catch the present
trend
Opportunity - Franchise marketing opportunities with global brands like Nike, Reebok and Hush
Puppies. Dynamic fashion trends in shoe industry
2
Threats- Counterfeiting of Bata products. Changes in economy affects the supply of raw material and
distribution of products. High competition from global brands.
Project Premium statement of financial position as year zero

(LKR)
(LKR)
Non-current asset
Property
7,000.0
Machineries
0
5,000.0
12,000.
00
Current Assets
Inventory
3,000.00
Trade receivables
2,000.00
Cash in Bank
7,00.00
Cash in hand
5,00.00
Other current asset
4,000.00
10,200.
00
22,200.
00
Equity & Liabilities

Equity
Share capital
Share premium
Retained earnings
Total equity
Non-current liability
Long term debt
Employee benefits
Other non-current liability
6,000.0
Total non-current liability
Current liability
4,000.0
Trade payables
13,000.
Short term borrowings
3,000.0
00
Overdraft
Other current liability

Income tax
Total current liability
1,000.0
Total equity & liability
0
500.00
700.00
9,200.0
1,000.0
22,200.
6,000.0
00
Working Capital = Current asset Current liability

= 10,200 9,200
= 1000
Cash flow zero
= Fixed asset + working capital

4
= 12,000 + 1,000
= 13,000
= Operating income of the 1st year + cash sales
Cash flow1
= 3,000 + 4,000
= 7,000
Cash flow 2
= 7,000 + (7,000*20/100)
= 8400
Cash flow 3
= 8400 + (8400*20/100)
= 10,080
Time line
Initial
1st
2nd
3rd
(13,000)
7,000
8,400
10,080
This time line has done for 3 years. The initial investment is 13000 and cash flow is increasing every
year.
Time line for 5% cost of capital

Initial
1st
2nd
3rd
(13,000.00) 13,650
14,333
15,049
This time line has done for 3 years. This time line assumed there is a market growth of 5derived by
assuming there is a market growth of 5%.
Investment Appraisal
There are two types of investment appraisal techniques. They are;
1)
Traditional methods
Payback Period
Return on capital employed (ROCE)
2)
Non- Traditional Methods

Discounted Payback Period
Net Present Value (NPV)
Profitability Index (PI)
Net Present Value (NPV)

To this question I have taken r = 5%
Initial
1st
2nd
3rd
(13,000)
7,000
8,400
10,080
1st year = 7000 / (1+0.05)1

=
6667 (round figure)
2nd year = 8400 / (1+0.05)2

=
3rd year
7619 (round figure)

= 10080 /
(1+0.05)3
= 8707 (round figure)

6
Sum of PV = 6667 + 7619 + 8707

= 22993
NPV = Present value of the future cash flow Investment

= 22,993 13,000
NPV = 9,993
NPV is the best technique to measure the short term cash flow and its standard method of using long
term time value.
Discounted Payback period

Year
1
2
3
4
cash flows
amount to be recovered
(13000)
6667
7619
8707
(6333)
1286
Discounted payback period = 1 years + (6,333 / 7,619)

= 1.83 years
Discounted Payback period is 1 year and 0.83 months its around 1year and 8 months. Can get the
investment which spent within 1 year and 8 months.
Payback Period
Year
cash flow
1
2
3
4
amount to be recovered
(13000)
7000
8400
10080
(6000)
2400
Standard payback period = 1year + 6,000/8,400

= 1 year + 0.71
Standard payback period is 1 years and 0.71 months.
Profitability Index (PI)

PI = Sum of the PV of future cash flow x 100%
Investment
= 6,667 + 7,619 + 8,707
13,000
= 1.768
Evaluates a period based on calculation of value per unit of investment.
Investment appraisal technique is a ratio of amount money invested to profit or pay or pay off the
project.
Internal rate of return (IRR)

Initial
1st
2nd
3rd

(13,000)
7,000
R=40%
5,000
8,400
4,286
10,080
3,673
To calculate IRR more accurate, calculated the NPV under the rate of 40%.
r1 = 5%
r2 = 40%
NPV1 = 9,993
NPV2 = (-40.82)
IRR = 0.05+[9,993.2/9,993.2-(-40.80)*(0.40-0.05)]
= 40%
The investment will generate an internal return of around 35%. To get negative IRR (r 2) have to keep 40%.
If select less than 40% cant get negative answer.
Source of finance
Internal
Personnel Savings
Retained Profit
Working Capital
External
Ordinary Shares
Preference Shares
Debentures
9
Bank loans
Over drafts
Bank loan
Cost of obtaining a bank loan maybe high. We should repay the loan with an interest. If the business is
continue for a longer period then the loan can be obtain for long term.
Debentures
A note given by the firm to a barer promising a certain amount of money in an agreed pattern
Ordinary Shares
Form of right to its owner to share in the profit of the company (dividends) and to vote at general
meetings of the company. Since the sole proprietorship and partnerships businesses cannot issue ordinary
shares, it should be a large scale business to issue ordinary shares.
Documents needed to get a loan from bank

Personal Background
Resumes
Business Plan
Personal Credit Report
Income Tax Returns:
Bank Statements
Legal Documents:
1. Photocopy of National ID of the applicant
2. Business licenses and registrations required for you to conduct business
3. Copies of contracts you have with any third parties
4. Franchise agreements
5. Commercial leases
6. Salary slips
7. Guarantors statements & salary slips.
Impact of financing sources on previously derived financial statement

According to previously derived answer from Statement Company having huge amount of liabilities.
Also having huge amount of loan to payback. So company have to reduce the bank loan soon as
possible. And the company having very less amount of receivables and cash in hand and cash in bank.
Company have to give more attention to increase the current asset. If they increase the assets more than
liabilities it will be good for the company. To that they can give attention to avoid taking loans.
10
Financial statements
The objective of making financial statements to provide information to shareholders about financial
performance of the organization.
Income statement.
This measured the financial performance of the organization and which includes income and expense
including gain and losses.
Statement of profit & loss.
This measured financial position of the organization which includes elements such as Asset, Liability
and Equity.
Statement of cash flow.
This measured equity position of organization which includes inflow and outflow of cash and cash
equivalents.
Statement of changes in equity.
This includes the summary of significant accounting policies and explanatory notes.
Standards requested by SLAS to publish financial statements.

This report has done considering the Sri Lanka Accounting Standard SLAS 26 (Revised 2005)
Consolidated and Separate Financial Statements, according to this standard company has made financial
statements. Also the content of this report has also considered the requirements of the Companies Act, no
7 of 2007, and the relevant listing Rules of the Colombo Stock exchange and recommended best
reporting practices.
Ceylon Cold Store PVT LTD ratios (in 000)
Liquidity ratio
1] Current ratio = current asset / current liability
2014
= 2,151,166 / 1,232,826
= 1.74
2015
= 2,821,927 / 1,509,265
= 1.86
11
In 2014 the current ratio of Ceylon cold store pvt ltd was 1.74. In 2015 the current ratio of Ceylon cold
store pvt ltd was 1.86 therefore compare to 2014 the current ratio of 2015 is increased so this good to run
the company.
2] Quick ratio = quick asset / current liabilities
2014
= 2,151,166 528,676 / 1,232,826

= 1.316
2015
= 2,821,927 647,564 / 1,509,265

= 1.44
Ceylon cold store pvt ltd Liquidity ratios are higher than 1, it means that the company is in a good
financial position and has lower risk of being financially stable. Liquidity ratios are mostly used by
creditors to make decisions regarding providing loans to an organization and seeking payment.
3] NCI
2014
= quick asset current liabilities / daily operating expense

= (2,151,166 528,676) - 1,232,826 / 4,721.94
= 82.522
2015
= (2,821,927 647,564) - 1,509,265 / 4,910.24

= 135.45
Efficiency Ratio
4] Inventory turnover = COS / inventory
2014
= 6,198,615 / 528,676
= 11.72
2015
Inventory days = 31.14
= 6,495,652 / 647,564
= 10.03
Inventory days = 36.39
12
In 2014 the stock turnover ratio of cold store was 11.72 showing effective management. In 2015, the
stock turnover ratio has decreased to 10.32 implying a decrease in the inventory management of Ceylon
cold store
5] Receivable turnover = sales / receivables

2014
= 8,860,019 / 1,082,438
= 8.18
2015
Receivables days = 44.62
= 9,768,129 / 1,253,607
= 7.79
Receivable days = 46.85
Receivables turnover ratio is an Actions Syndicates efficiency in collecting its sales on credit and
collection policies. This ratio takes in reflection ONLY the credit sales. If the cash sales are included, the
ratio will be affected and may lose its implication.
6] Payables turnover = COS / payables
2014
= 6,198,615 / 637,572
= 9.72
2015
Payables days = 37.55
= 6,495,652 / 645,002
= 10.07
Payables days = 36.24
8] Cash conversion cycle = inventory period + receivable period payable period

2014
= 31.14 + 44.62 37.55

= 38.21
2013
= 36.39 + 46.85 36.24

= 47
7] Asset turnover = sales / asset

2014
= 8,860,019/ 12,729,315
13
= 0.696
2015
= 9,768,129 / 13,142,698
= 0.743
Total assets ratio indicates how an organization uses its assets to generate sales. Higher total assets ratio
is preferable since an organization generates more sales through its assets. In 2014, the total assets ratio
of cold store was 0.696.In 2015 the total assets ratio has to 0.743 implying that cold store failed to
generate more sales using the assets than the year 2014.
8] Fixed asset ratio = sales / total fixed asset
2015
= 9,768,129 / 10,320,771
= 0.946
2014
= 8,860,019 / 10,578,149
= 0.837
9] Current asset ratio = sales / total current asset

2015
= 9,768,129 / 2,821,927
= 3.461
2014
= 8,860,019 / 2,151,166
= 4.118
10] ROCE
2014
= profit / capital employed

= 1,493,512 / 12,729,315
= 0.117
2015
= 1,628,403 / 13,142,698
= 0.123
11] Gross margin = (gross profit / sales turnover)*100

2014
= (2,661,404/ 8,860,019)*100
14
= 30%
2015
= (3,272,477 / 9,768,129)*100
= 33.5%
In 2014 the gross margin of Ceylon cold store pvt ltd was 30%. In 2015 the gross margin of Ceylon cold
store pvt ltd was 33.5%. Gross profit margin is the percentage of each sales dollar that a company keeps
in the form of profit.
12] Net margin
2014
= (net profit / sales turnover)*100
= (1,254,131/ 8,860,019)*100
= 14.1%
2015
= (1,176,398 / 9,768,129)*100
= 12%
Higher net profit ratio indicates higher profitability. In 2014, the net profit margin was 14.1 %. In 2015,
the net profit margin has decreased to 12 % comparing to the year 2013. Therefore, profitability is
decreasing of Ceylon cold store.
Leverage
2014
= debt / equity
= 1,064,121+ 1,232,826 / 10,432,368
= 0.220
2015
= 1,014,787 + 1,509,265 / 10,618,646

= 0.237
Interest expenses = EBIT / interest expenses

2014
=1,493,512 + 56,035 / 56,035

= 27.65
2015
= 1,628,403 + 23,620 / 23,620

= 69.94
15
This ratio shows how many times interest can be paid in compared to profit. In 2015 Ceylon Cold store
ltd. It shows a 69.94. Which means company can pay interest 70 times approximately after paying tax.
Conclusion
To become a leading company in the market, companies should do financial statements to understand
their financial capabilities of assets and liabilities. Also important to measure cash inflows and outflows
to understand the how much cash came inside the organization and how much went out of the
organization. If company can understand where they standing and what are the amount they had profit
and loss, they can take action according to that to become a successful in future.
SWOT and PEST analysis are positively support for the MK cola company. That means the company
have lots of Strengths, and Opportunities, Less Weaknesses and Threats. PEST analyses are also like
that.
To face unexpected financial problems in present or future, company have to know what are the
alternatives ways they have, whether they going to issue share or they going to take loan. If taking loan
is lower and beneficial to Company more than issuing shares, then company have to take suitable
decisions. If company already having huge amount of liabilities or payables, then company have to take
decision to issue share to market. And company have to keep much as possible liabilities lower than the
asset or at least balance level.
In the last question the report included some ratios for Ceylon cold store pvt ltd. After finding the ratios
we identified the company growth is going good.
16
References
Ross, S, Waterfield, R, Jordan, B (2003) Fundamentals of Corporate Finance, McGraw Hill,
New York
ICBT lecture notes
Business
dictionary
[online]
sources
from:
http://www.businessdictionary.com/definition/investment.html
Overdraft
facility
[online]
DATE:
19/9/2015
from
https://www.iod.com/Mainwebsite/Resources/Document/Fi1overd.pdf
ratio
builder.
(2013).
Profitability
ratios.
http://www.readyratios.com/reference/profitability/return_on_capital_employed.html.
accessed 16/10 2015.
17
Available:
Last
Appendix
Income Statement
For the year ended 31st March
In Rs.'000s
Note
Sale of goods
Revenue
Cost of sales
Gross profit
Other operating income
Selling and distribution expenses
Administrative expenses
Other operating expenses
2015
Group
2014
Company
2015
2014
27,699,059
23,613,690
9,768,129
8,860,019
27,699,059 23,613,690
(24,028,703) (20,796,940)
9,768,129
8,860,019
(6,495,652) (6,198,615)
3,670,356
1,196,696
(1,311,669)
(886,201)
(508,738)
2,816,750
1,163,609
(1,222,460)
(794,180)
(422,474)
3,272,477
97,132
(1,097,523)
(415,549)
(255,547)
2,661,404
456,457
(1,070,935)
(377,096)
(219,441)
Results from operating activities

Finance cost
Finance income
Net finance (cost)/income
5
6
2,160,444
(60,519)
55,676
(4,843)
1,541,245
(119,745)
33,561
(86,184)
1,600,990
(23,620)
42,058
18,438
1,450,389
(56,035)
27,362
(28,673)
Change in fair value of investment property

Share of results of equity accounted investees
15
17.3
8,975
(17,911)
71,796
18,331
8,975
-
71,796
-
Profit before tax

Tax expense
Profit for the year
Attributable to:
Equity holders of the parent
7
8
2,146,665
(621,170)
1,525,495
1,545,188
(327,471)
1,217,717
1,628,403
(452,005)
1,176,398
1,493,512
(239,381)
1,254,131
1,525,495
1,217,717
Rs.
Rs.
Earnings per share

Basic
16.05
12.81
Dividend per share
10
11.00
4.00
18
Figures in brackets indicate deductions.
The accounting policies and notes as set out on pages 148 to 194 form an integral part of these Financial Statements
19
Statement of Comprehensive Income

In Rs.'000s
Note
2015
Group
2014
Company
2015
2014
Profit for the year
1,525,495
1,217,717
1,176,398
1,254,131
Other comprehensive income

Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Share of other comprehensive income of equity accounted investments 17.1
111,459
19,486
4,133
(6,540)
(20,922)
-
22,510
(6,229)
(22,893)
-
17,079
(20,922)
16,281
(22,893)
128,538
1,654,033
(20,922)
1,196,795
16,281
1,192,679
(22,893)
1,231,238
1,654,033
1,196,795
Other comprehensive income not to be reclassified to

Actuarial gain/(loss) on employee benefit liabilities
Revaluation of land and buildings
Income tax on other comprehensive income
Net other comprehensive income not to be reclassified to
30
13
8.4
Other comprehensive income/(loss) for the year, net of tax

Total comprehensive income for the year, net of tax
Attributable to:
Equity holders of the parent
The accounting policies and notes as set out on pages 148 to 194 form an integral part of these Financial Statements.
20
Statement of Financial Position

As at 31st March
In Rs.'000s
ASSETS
Non-current assets
Property, plant and equipment
Intangible assets
Investment property
Investment in subsidiary
Investment in associate
Deferred tax asset
Non-current financial assets
Other non-current assets
Current assets
Inventories
Trade and other receivables
Amounts due from related parties
Tax recoverable
Other current assets
Short term investments
Cash in hand and at bank
2015
Group
2014
Company
Note
2015
2014
13
14
15
16
17
29
18
19
5,365,259
152,595
94,457
5,362,161
92,790
287,360
11,354,622
5,446,846
161,976
85,482
5,262,414
37,140
76,323
284,572
11,354,753
3,520,467
10,596
94,457
1,222,892
5,392,863
64,517
14,979
10,320,771
3,801,361
13,846
85,482
1,222,892
5,392,863
47,053
14,652
10,578,149
20
21
36
34
22
23
2,382,830
1,481,088
7,073
41,382
253,509
730,256
244,351
5,140,489
16,495,111
2,065,391
1,348,016
3,928
110,674
151,099
181,245
381,833
4,242,186
15,596,939
647,564
1,253,607
34,594
113,039
730,256
42,867
2,821,927
13,142,698
528,676
1,082,438
49,054
62,887
181,245
246,866
2,151,166
12,729,315
24
25
26
918,200
8,763,741
974,395
10,656,336
918,200
8,286,317
795,699
10,000,216
918,200
8,886,028
814,418
10,618,646
918,200
8,738,803
775,365
10,432,368
28
29
30
31
32
84,073
565,756
376,358
118,440
24,908
1,169,535
185,337
439,033
365,385
143,084
20,464
1,153,303
84,073
514,002
298,272
118,440
1,014,787
185,337
439,033
296,667
143,084
1,064,121
33
36
34
28
35
3,120,502
126,411
330,001
101,264
467,465
523,597
4,669,240
16,495,111
2,566,964
115,794
34,619
139,598
460,910
1,125,535
4,443,420
15,596,939
645,002
8,099
321,194
101,264
328,160
105,546
1,509,265
13,142,698
637,572
13,014
34,166
139,598
319,170
89,306
1,232,826
12,729,315
Total assets
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Stated capital
Revenue reserves
Other components of equity
Total equity
Non-current liabilities
Borrowings
Deferred tax liabilities
Employee benefit liabilities
Other non-current liabilities
Other deferred liabilities
Current liabilities
Trade and other payables
Amounts due to related parties
Income tax liabilities
Current portion of borrowings
Other current liabilities
Bank overdrafts
Total equity and liabilities
I certify that the Financial Statements comply with the requirements of the Companies Act, No. 7 of 2007.
S. R. Jayaweera
Chief Financial Officer
The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
21
J. R Gunaratne
Director
J. R. F Peiris
Director
26th May 2015
22
Statement of Changes in Equity
For the year ended 31 March 2015

Attributable to equity holders of the parent
Revaluation Foreign
General
Revenue
reserve
currency
reserve
reserves
translation
reserve
Stated
capital
ESOP
reserve
Group
As at 1 April 2013
918,200
3,252,326
646,000
4,358,961
9,175,487
Profit for the year

Total comprehensive income
Transfer
Impairment of assets
Direct cost on issue of shares by subsidiary
Share based payments
First and final dividend paid - 2012/13
Preference share dividend paid - 2012/13
As at 31 March 2014
918,200
38,897
38,897
(2,464,129)
(31,395)
756,802
646,000
1,217,717
(20,922)
1,196,795
2,464,129
1,606
(1,000)
(380,160)
(14)
7,640,317
1,217,717
(20,922)
1,196,795
(29,789)
(1,000)
38,897
(380,160)
(14)
10,000,216
Profit for the year

Interim dividend paid 2014/15
Changes of holding in associate
Net consideration transferred on
business combination
As at 31 March 2015
65,618
-
2,976
2,976
(1,357)
-
111,459
111,459
-
1,525,495
14,103
1,539,598
(570,240)
(14)
(475,200)
(94)
1,525,495
128,538
1,654,033
(1,357)
65,618
(570,240)
(14)
(475,200)
(94)
918,200
104,515
758,421
111,459
646,000
(16,626)
8,117,741
(16,626)
10,656,336
Company
As at 1 April 2013
918,200
3,247,527
646,000
4,776,004
9,587,731
Profit for the year

Transfer
As at 31 March 2014
918,200
23,362
23,362
(2,464,129)
(31,395)
752,003
646,000
1,254,131
(22,893)
1,231,238
2,464,129
1,606
(380,160)
(14)
8,092,803
1,254,131
(22,893)
1,231,238
(29,789)
23,362
(380,160)
(14)
10,432,368
Profit for the year

1,176,398
16,281
1,192,679
1,176,398
16,281
1,192,679
In Rs.'000s
23
Total
equity

Interim dividend paid 2014/15
As at 31 March 2015
918,200
39,053
62,415
752,003
646,000
(570,240)
(14)
(475,200)
8,240,028
24
39,053
(570,240)
(14)
(475,200)
10,618,646
Statement of Cash Flows
Note
2015
Group
2014
Company
2015
2014
3,020,738
2,127,365
2,153,927
1,614,946
(Increase) / decrease in inventories

(Increase) / decrease in trade and other receivables
(Increase) / decrease in amounts due from related parties
(Increase) / decrease in other current assets
(Increase) / decrease in non current financial assets
(Increase) / decrease in other non-current assets
Increase / (decrease) in trade and other payables
Increase / (decrease) in amounts due to related parties
Increase / (decrease) in other current liabilities
Increase / (decrease) in other deffered liabilities
Increase / (decrease) in other non-current liabilities
Cash generated from operations
(311,176)
(121,834)
3,354
(99,967)
(15,579)
(2,724)
376,988
4,728
5,464
4,444
(24,644)
2,839,792
36,532
(93,775)
5,493
(54,202)
9,017
(75,179)
(141,957)
5,624
66,858
5,234
(55,328)
1,835,682
(118,888)
(171,169)
14,460
(50,152)
(17,464)
(327)
7,430
(4,915)
8,990
(24,644)
1,797,248
94,966
(135,339)
16,393
(9,551)
14,931
(8,842)
(6,609)
2,992
29,127
(55,328)
1,557,686
Finance income received

Finance expenses paid
Tax paid
Gratuity paid
Net cash flow from operating activities
55,676
(60,519)
(101,463)
(33,142)
2,700,344
33,561
(119,745)
(178,544)
(38,235)
1,532,719
42,058
(23,620)
(96,237)
(24,407)
1,695,042
27,362
(56,035)
(138,420)
(31,187)
1,359,406
(648,315)
(1,244)
5,448
26
142,260
(501,825)
(1,012,299)
(3,628)
19,977
(995,950)
(182,468)
(453)
1,703
(181,218)
(519,445)
(3,295)
11,463
(200,000)
(711,277)
(1,045,440)
(14)
(139,598)
(1,185,052)
(380,160)
(14)
(139,598)
(93,000)
(1,000)
(613,772)
(1,045,440)
(14)
(139,598)
(1,185,052)
(380,160)
(14)
(139,598)
(519,772)
1,013,467
(562,457)
451,010
(77,003)
(485,454)
(562,457)
328,772
338,805
667,577
128,357
210,448
338,805

In Rs.'000s
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before working capital changes
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES

Purchase and construction of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of property plant and equipment
Proceeds from sale of intangible assets
Investment in preference share of the subsidiary
Acquisition of subsidiary, net of cash acquired
Net cash flow used in investing activities
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Dividend paid to equity holders of parent
Dividend paid to preference shareholders
Proceeds from/(repayment of) borrowings (net)
Proceeds from/(repayment of) short term borrowings (net)
Direct cost on issue of preference shares of the subsidiary
Net cash flow used in financing activities
13
14
40
10
28
28
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
ANALYSIS OF CASH AND CASH EQUIVALENTS
Favourable balances
25

Short term investments
Cash in hand and at bank
Unfavourable balances
Bank overdrafts
Total cash and cash equivalents
23
730,256
244,351
181,245
381,833
730,256
42,867
181,245
246,866
(523,597)
451,010
(1,125,535)
(562,457)
(105,546)
667,577
(89,306)
338,805
Company
2015
2014
Statement of Cash Flows
A-Profit before working capital changes

In Rs.'000s
Profit before tax
Adjustments for:
Finance income
Finance cost
Share of results of equity accounted investees
Change in fair value of investment property
Depreciation of property, plant and equipment
Amortisation of intangible assets
Loss on sale of property, plant and equipment
Share based payment expense
Gain on lease rights forgone
Gratuity provision and related costs
Note
2015
6
5
17.3
15
13
14
4
27
3
Group
2014
2,146,665
1,545,188
1,628,403
1,493,512
(55,676)
60,519
17,911
(8,975)
693,406
10,659
29,309
4,326
65,618
(6,293)
63,269
3,020,738
(33,561)
119,745
(18,331)
(71,796)
665,148
10,296
30,694
38,897
(216,845)
57,930
2,127,365
(42,058)
23,620
(8,975)
457,042
3,703
4,617
39,053
48,522
2,153,927
(27,362)
56,035
(71,796)
439,523
3,399
19,117
23,362
(365,625)
44,781
1,614,946
The accounting policies and notes as set out on pages 148 to 194 form an integral part of these Financial Statements
26

Managing Financial Resources and Decisions: M.A.M Sadiq Batch No Ct/Hndbm/60/02

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