Corporate Finance

Exhibit 7.6

Pharmaceutical firms—statement of cash flows

Cash flow statement

Glaxo

Ranbaxy

Cipla

Sun

DRL

(Rs crore)

Dec-00

Dec-01

Dec-00

Dec-01

Mar-00

Mar-01

Mar-00

Mar-01

Mar-00

Mar-01

12

12

12

12

12

12

12

12

12

12

mths

mths

mths

mths

mths

mths

mths

mths

mths

mths

Sources of cash

Opening balance

19.75

45.82

48.81

84.31

3.54

4.27

8.5

4.35

18.88

29.54

Revenue inflow

108.64

146.95

247.65

345.25

169.94

234.99

115

158.91

91.91

245.41

Non-operating income

31.02

–86.22

38.06

1.7

14.83

13.3

–2

38.24

–3.95

2.43

Sale of fixed assets

1.14

40.98

3.23

0.53

3.29

2.75

1.97

1.16

0.17

7.09

Sale of investments

–3.99

–5.64

0.51

80.08

140.03

218.31

5.95

8.7

0

0

Capital proceeds

0

0

0

0

0

0

–0.61

0

0

0

Loan proceeds

14.15

0

0

0

0

4.48

0.84

0.66

63.7

20.81

Decrease in working capital

9.79

65.14

176.51

0

45.46

60.49

23.92

0

4.76

1.46

Trade receivables

0

32.96

0

0

0

60.49

23.92

0

0.62

0

Inventories

0

26.69

0

00000

4.14

0

Trade payables

9.79

5.49

176.51

0

45.46

0000

1.46

Total cash inflow

180.5

207.03

514.77

511.87

377.09

538.59

153.57

212.02

175.47

306.74

Application of cashPurchase of fixed assets

13.61

26.56

59.41

15.04

33.44

42.84

37.33

32.55

24.95

48.6

Purchase of investments

0

0

8.32

60

193.25

242.2

0

5.72

80.76

24.01

Repayment of loans

0

25.13

61.16

129.85

14.04

0

19.27

8.71

0

40.88

Loans to group companies

0

0

0

000000

–8.27

Loans to other companies

0

0

0

0

–17.8

0.42

0

0

0

0

Interest paid

11.52

10.44

63.01

48.93

1.14

0.83

10.41

7.66

14.07

41.84

Tax paid

35.16

42.61

24.12

21.27

56.73

66.01

5.36

10.25

10.28

27.23

Dividend paid

39.41

45.59

86.26

86.47

16.64

19.75

29.82

11.89

8.82

13.83

Other cash expenses

0

0

0

0

0

0

–0.15

16.35

4.64

0

Increase in working capital

64.64

0

128.18

93.09

75.38

160.73

47.18

108.33

10.04

99.19

Trade receivables

26.57

0

73.39

41.66

21.61

0

0

26.7

0

69.74

Inventories

38.07

0

54.79

42.25

53.77

63.16

22.27

75.59

0

29.45

Trade payables

0

0

0

9.18

0

97.57

24.91

6.04

10.04

0

Closing balance

16.16

56.7

84.31

57.22

4.27

5.81

4.35

10.56

21.91

19.43

Total cash outflow

180.5

207.03

514.77

511.87

377.09

538.59

153.57

212.02

175.47

306.74

Increase/decrease in cash balance

–3.59

10.88

35.5

–27.09

0.73

1.54

–4.15

6.21

3.03

–10.11

Cash flow before working capital charges

108.64

146.95

247.65

345.25

169.94

234.99

115

158.91

91.91

245.41

Cash flow from operations

53.79

212.09

295.98

252.16

140.02

134.75

91.74

50.58

86.63

147.68

Cash used in investing activity

16.46

–8.78

63.99

–5.57

65.57

64.4

29.26

44.76

110.18

57.25

Cash from financing activity

14.15

–25.13

–61.16

–129.85

–14.04

4.48

–19.04

–8.05

63.7

–20.07

Net increase in working capital

54.85

–65.14

–48.33

93.09

29.92

100.24

23.26

108.33

5.28

97.73