Cash Flow

Consolidated Cash Flow

(Rs Crore) Current Year Previous Year
A Cashflow from Operating Activities    
a. Profit Before Tax after Exceptional Items and before Share in Profit/(Loss) of Equity Accounted Investees 5,204.32 6,362.18
  Adjustments for:    
  Exceptional Items (Note 3.10) 2,574.52 432.85
  Depreciation and Amortisation 3,260.45 2,724.36
  Finance Costs 1,780.56 1,363.98
  Interest Income (174.88) (122.21)
  Dividend Income (86.48) (58.43)
  Employee Stock Option and Stock Appreciation Right Expenses 117.50 78.71
  Loss Allowance (Net) 12.97 40.76
  Provision for Mines Restoration (6.69) 30.53
  Change in valuation of liabilities in respect of Insurance Policies in force 1,408.88 359.09
  Impairment on financial instruments including loss on derecognition of financial assets at amortised cost (Expected Credit Loss) 322.62 116.51
  Excess Provision written back (Net) (50.91) (136.88)
  (Profit)/Loss on Sale of Property, Plant & Equipment (Net) 12.95 17.79
  Profit on Sale of Investments (Net) (159.49) (130.05)
  Profit on Sale of Investments routed through OCI - 5.24
  Unrealised Gain and fair value adjustments on Investments measured at Fair Value through Profit and Loss (Net) (403.93) (563.82)
  Fair Value Movement in Derivative Instruments (30.07) (3.07)
  Fair value adjustments to Borrowings (52.50) (59.40)
  Other Non-Cash Items 24.17 (1.87)
b. Operating profit Before Working Capital Changes 13,753.99 10,456.27
  Adjustments for:    
  Trade Receivables (1,305.74) (757.86)
  Loans of Financing Business (11,643.53) (11,295.47)
  Financial and Other Assets (1,387.83) (655.62)
  Inventories (580.17) (751.26)
  Trade Payables and Other Liabilities 1,765.64 856.25
  Investment of Life Insurance Policy holders (1,183.65) (292.64)
c. Cash (Used in)/Generated from Operations (581.29) (2,440.33)
  Direct Taxes Paid (Net of Refund) (1,873.53) (1,699.57)
  Net Cash used in Operating Activities (2,454.82) (4,139.90)
B. Cash Flow from Investing Activities    
  Purchase of Property, Plant and Equipment (Note v below) (4,083.44) (3,288.71)
  Acquisition of Rights to manage and operate Century Rayon business - (903.31)
  Proceeds from Disposal of Property, Plant and Equipment 166.67 242.97
  Acquisition of Equity Shares in Subsidiaries (35.07)  
  Investments in Grasim Premium Fabrics Private Limited (earlier known as Soktas (India) Private Limited) (wholly owned Subsidiary) (123.98) -
  Investments in Joint Ventures and Associates (95.22) (138.48)
  Sale of Mutual Fund Units and Bonds (Non- Current) 4,458.56 5,721.12
  Purchase of Mutual Fund Units and Bonds (Non-Current) (2,007.42) (3,983.83)
  Proceeds from (Purchase)/Sale of Investments and Shareholders' Investment of Life Insurance Business(Current) {Net} (404.48) 645.09
  Proceeds from Sale of Non-Current Equity Investments (Subsidiary) 0.07 6.26
  Proceeds from sale of Non-Current Equity Investment (Joint Venture) 35.67 -
  Purchase of other Non-Current Investment (60.66) -
  Proceeds from Sale of other Non-Current Investment 81.34 -
  Investment in Treasury Shares held by ESOP Trust (187.99) -
  Investment in Other Bank Deposits (266.57) 2,018.34
  Expenditure for Cost of Assets Transferred (52.32) (143.13)
  Loans and Advances given to Joint Ventures and Associates (35.00) (55.15)
  Receipt against Loans and Advances given to Joint Ventures and Associates 35.00 85.85
  Inter-Corporate Deposits (31.88) 16.29
  Interest Received 202.69 123.11
  Dividend Received [includes dividend from Associate and Joint Venture ₹ 153 Crore (previous year ₹ 104.92 Crore)] 217.03 163.34
  Net Cash (used in)/from Investing Activities (2,187.00) 509.76
C. Cashflow from Financing Activities    
  Proceeds from Issue of Share Capital (including shares issued by Subsidiary Company to Non-controlling Interest) 180.19 85.98
  Transaction cost on cancellation of equity shares of a Subsidiary Company and share Issue Expenses (1.92) (3.29)
  Proceeds from Non-Current Borrowings 31,195.21 23,270.67
  Repayments of Non-Current Borrowings (21,016.02)  
  Proceeds/(Repayments) of Current Borrowings (Net) (3,137.44)  
  Repayment of Borrowings transferred from Jaiprakash Associates Limited (JAL) and Jaypee Cement Corporation Limited (JCCL), pursuant to pursuant to scheme of Arrangement - (10,686.55)
  Interest paid (1,715.01) (1,349.94)
  Dividend paid to Non-Controlling Interest (9.21) -
  Dividends Paid (including Corporate Dividend Tax) (625.60) (574.68)
  Net Cash from Financing Activities 4,870.20 3,449.07
D. Net Increase/(Decrease) in Cash and Cash Equivalents 228.38 (181.07)
  Cash and Cash Equivalents at the Beginning of the Year (Note 2.18) 949.32 93.82
  Add:    
  Effect of Exchange Rate on Consolidation of Foreign Subsidiaries 0.41 4.19
  Cash and Cash Equivalents Received on merger of erstwhile ABNL {Note 4.12(A)} - 1,032.61
  Cash and Cash Equivalents Received on acquisition of UNCL {Note 4.12 (D)} 38.52 -
  Cash and Cash Equivalents Received on acquisition of controlling Stake in ABREL and ABSL {Note 4.12 (F)} 7.31 -
  Cash and Cash Equivalents transferred on divestment of GBTL - (0.23)
  Cash and Cash Equivalents at the End of the Year (Note 2.18) 1,223.94 949.32

Notes:

  1. Cash Flow Statement has been prepared as per the indirect method set out in Ind AS 7 prescribed under the Companies Act (Indian Accounting Standard) Rules, 2015 under the Companies Act, 2013
  2. Change in liabilities arising from financing activities :
          Non-Cash Changes  
    Particulars As at 31st March 2019 31st March 2018 Cashflows Fair value adjustments (including foreign exchange rate movements) Others on account of acquisition and Divestment of Subsidiaries As at 31st March 2019
    Non-Current Borrowing (including current maturities of Non-Current Borrowing) 46,549.86 10,179.19 124.28 7,681.05 64,534.38
    Current Borrowing 20,519.95 (3,137.44) (6.30) 58.23 17,434.44
      67,069.81 7,041.75 117.98 7,739.28 81,968.82
               
  3. The Scheme of merger of Aditya Birla Nuvo Limited (ABNL) with the Company implemented w.e.f. 1st July 2017 did not involve any cash outlflow as the Company issued equity shares of the Company to the Shareholders of erstwhile ABNL in terms of the Scheme.
  4. The scheme of Arrangement between JAL, JCCL and the Company does not involve any cash outflow and the consideration has been discharged through issue of debentures and preference shares.
  5. Purchase of Property, Plant and Equipment includes movements of Capital work-in-progress (Including Capital Advances) and Capital Expenditure Creditors during the year.