Corporate Finance

Financial Statements and Firm Value 
 129

Exhibit 5.6(a) Cash flow statement of Company-1
(Rs crore)
Company-1
1999 2000 2001
Opening balance 4.06 6.84 378.66
Revenue inflow 50.63 73.59 81.98
Non-operating income 1.7 2.63 19.45
Sale of fixed assets 0.12 0.53 28.73
Sale of investments 0 0 7.99
Capital proceeds 0 372.15 0
Loan proceeds 57.93 88.92 0
Decrease in working capital 8.58 33.95 0
Trade receivables 4.24 0 0
Inventories 0 0 0
Trade payables 4.34 33.95 0
Total cash inflow 123.02 578.61 516.81
Application of cash
Purchase of fixed assets 72.45 95.7 59.36
Purchase of investments 6.53 2.04 172.74
Repayment of loans 0 0 176.85
Loans to group companies 0 0 0
Loans to other companies 0 0 0
Interest paid 6.69 17.45 14.27
Tax paid 2.87 6.77 6.58
Dividends 12.69 1.45 15.57
Other cash expense 0.03 13.27 0
Increase in working capital 14.92 63.27 29.57
Trade receivables 0 55.17 7.58
Inventories 14.92 8.1 13.04
Trade payables 0 0 8.95
Closing balance 6.84 378.66 41.87
Total cash outflow 123.02 578.61 516.81
Increase/decrease in cash 2.78 371.82 –336.79
Balance

Exhibit 5.6(b) Cash flow statement of Company-2
(Rs crore)
Company-2
1999 2000 2001
Opening balance 51.14 416.65 508.37
Revenue inflow 194.74 335.9 785.65
Non-operating income 10.73 36.62 38.47
Sale of fixed assets 0.02 0.1 0.23
Sale of investments 6.06 0 0
Capital proceeds 279.53 1.76 2.38
Loan proceeds 0 0 0
Decrease in working capital 33.82 42.26 60.93
Trade receivables 0 0 0
Inventories 0 0 0
Trade payables 33.82 42.26 60.93

Exhibit 5.6(b) contd.