Suzlon energy Limited, founded in the year 1995, is a leading wind power company in

India. It has presence in 21 countries in the world and has emerged as the third largest
wind power supplier. The year 2009-10 proved to be a disappointing year for Suzlon as
it suffered its first full year loss. The economic downturn had a significant impact on
lowering demand and therefore the relative price of energy. The cash flow statements
for the year 2008-09 and 2009-10 are provided to you.
Questions for Discussion
a) For the year 2009, the company earned a profit before tax of Rs. 432.96 crore but its
cash flow from operating activities was negative (-Rs. 391.17 crore). In the next year,
the company suffered a loss (-Rs. 799.67 crore) but the cash flow from operating
activities was positive (Rs. 2423.62 crore). Identify and discuss the main reasons for
the same.
b) Identify and analyse the major changes in investing and financing activities during
the two years.
c) Based on your findings of a) and b) explain if the company has witnessed an
improvement or deterioration its performance.