Annexure XIV Continued… - Edelweiss

Provision for Tax
The provision for tax liabilities increased by ` 376.77 million, or 211.31%, to ` 555.07 million in Fiscal 2008
from ` 178.30 million in Fiscal 2007. The primary components of this increase were a deferred tax charge of `
207.21 million and current income tax of ` 167.53 million.
Profit after Tax
As a result of the foregoing, net profit after tax decreased by ` 35.39 million, or 5.93%, to ` 561.84 million in
Fiscal 2008 from ` 597.23 million in Fiscal 2007. This decrease is primarily due to an increase in provisions
for tax during Fiscal 2008.
Effect of Restatement
Our profit for Fiscal 2008 increased by ` 235.71 million and our profit for Fiscal 2007 decreased by ` 72.28
million as a result of adjustments for prior period items and restatements in accordance with ICDR
Regulations. For details of these adjustments, please see Annexure IV to our restated consolidated financial
information included on page F-17 of this Draft Red Herring Prospectus.
Liquidity and Capital Resources
The coal beneficiation and power generation businesses are capital intensive. Our plan to construct the coal
beneficiation plants and power projects that we currently intend to develop will require significant design,
development and construction capital and the funding of operating losses during the start-up phase of each
project.
Cash Flows
The table below sets forth selected data with respect to our cash flows for the periods presented:
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Nine
months
ended
December
31, 2010
(Amount in ` millions)
Net cash provided by operating activities .. 668.87 (38.04) 1,046.38 2060.75 1,775.29 2,205.46
Net cash used in investing activities ..........
(2,070.28
) (999.94)
(1,550.14
)
(3,873.43
)
(4,073.32
) (9,298.23)
Net cash from financing activities ............. 3,197.28 463.02 1,545.40 5,479.51 1,830.71 4,375.53
Net increase/(decrease) in cash and cash
equivalents ............................................. 1,795.87 (574.96) 1,041.64 3,666.83 (467.32) (2,717.24)
Cash and cash equivalents as of the end of
the year ................................................... 1,955.48 1,380.52 2,422.16 6,361.40 6,235.98 3,518.74
Cash flow from operating activities
The net cash provided by operating activities in the nine month period ended December 31, 2010 was
` 2,205.46 million, primarily due to operating profit before working capital changes of ` 2,704.23 million, an
increase in current liabilities and provisions of ` 876.92 million, a decrease in other current assets of ` 13.01
million, offset in part by an increase in inventories of ` 381.04 million, an increase in sundry debtors of `
108.18 million and an increase in loans and advances of ` 258.39 million.
The net cash provided by operating activities in Fiscal 2010 was ` 1,775.29 million, primarily due to operating
profit before working capital changes of ` 3,504.56 million, an increase in loans and advances of ` 457.42
million, an increase in inventories of ` 196.88 million, an increase in sundry debtors of ` 135.26 million, offset
in part by a decrease in other current assets of ` 0.72 million and an increase in current liabilities and
provisions of ` 88.60 million.
The net cash provided by operating activities in Fiscal 2009 was ` 2,060.75 million, primarily due to operating
profit before working capital changes of ` 3,811.99 million, a decrease in loans and advances of ` 215.16
million, offset in part by an increase in inventories of ` 522.23 million, an increase in sundry debtors of `
300