Cash Flow Statement

For the year ended For the year ended

All amounts are in million Indian H unless otherwise stated 31 March 2017 31 March 2016
A Cash flow from operating activities
Profit before tax 3,423 3,142
Adjustments for:
Depreciation and amortisation expense 565 537
Loss on write-off of property, plant and equipment 4 9
Exceptional Income (39) (99)
Gain on sale of beneficial interest in residential flats (35) (100)
Additional compensation received for land acquired by Karnataka Government - (10)
Provision / liabilities no longer required written back (87) (6)
Provision for inventory obsolescence 45 91
Provision for bad and doubtful debts/advances 45 71
Government grant income recognised (21) (21)
Unwinding of discount on financial assets (7) (7)
Interest income (103) -
Interest income from financial assets at amortised cost - Bonds (50) (46)
Net fair value gain/(loss) on investments measured at Fair Value Through Profit and Loss (FVTPL) 161 (118)
Net gain on sale of non-current investments (107) (86)
Net gain on sale of current investments (312) (145)
Finance costs (including fair value change in financial instruments) 32 22
Operating Profit / (Loss) before working capital changes 3,514 3,234
Movements in working capital:
Decrease / (increase) in inventories (490) (25)
Decrease / (increase) in trade receivables (647) (572)
(Increase) / decrease in loans 13 11
(Increase) / decrease in other financial assets 89 (40)
(Increase) / decrease in other assets (83) (273)
(Decrease) / increase in trade payables 407 1,332
(Decrease) / increase in other financial liabilities (61) 96
(Decrease) / increase in provisions (4) (145)
(Decrease) / increase in other liabilities (151) 141
Net cash generated from operations 2,587 3,759
Income tax (paid)/received (net) (1,124) (1,127)
Net cash from operating activities (A) 1,463 2,632

66 Financial Statements I Annual Report 2016-17

Cash Flow Statement (Contd...)
For the year ended For the year ended
All amounts are in million Indian H unless otherwise stated 31 March 2017 31 March 2016
B Cash flow from investing activities
Purchase of property, plant and equipment (789) (393)
Proceeds from sale of property, plant and equipment 5 -
Proceeds from sale of beneficial interest in residential flats 35 100
Additional compensation received for land acquired by Karnataka Government - 10
Payments for purchase of investments (15,270) (16,714)
Proceeds from sale of investments 18,226 15,430
Government Grant Received 19 13
Movement in other bank balances (30) (5)
Interest received 25 -
Net cash from/ (used in) investing activities (B) 2,221 (1,559)
C Cash flow from financing activities
Dividend paid (3,238) (928)
Dividend distribution tax paid (665) (187)
Interest paid (21) (13)
Net cash from/ (used in) financing activities (C) (3,924) (1,128)
Net increase/ (decrease) in cash and cash equivalents (A+B+C) (240) (55)
Cash and cash equivalents at the beginning of the year 407 462
Effect of Exchange Rate Changes on Cash and Cash Equivalents * *
Cash and cash equivalents at the end of the year 167 407
Non-cash financing activities
- Acquisition of property, plant and equipment by means of finance lease 29 29
* Amount is below rounding off norms
Notes:
(i) The cash flow statement has been prepared under the indirect method as set out in Ind AS 7 Cash Flow Statements.
(ii) Amounts in brackets represent a cash outflow or a loss.
(iii) Components of cash and cash equivalents are as under:
Balances with banks
- In current account 167 407
-Book overdraft in current accounts - -
-Deposits with original maturity of upto 3 months - -
Cash and cash equivalents (Refer Note 8.3) 167 407

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors of
Firm Registration No. : 012754N/N500016 Akzo Nobel India Limited
Chartered Accountants CIN : L24292WB1954PLC021516

Anurag Khandelwal Nihal Kaviratne CBE Jayakumar Krishnaswamy Pradip Menon Rajasekaran Guha
Partner Chairman Managing Director Wholetime Director and CFO Company Secretary
Membership No. : 078571 DIN : 00032473 DIN : 02099219 DIN : 07417530

Date : 18 May 2017 Date : 18 May 2017

Place : Mumbai Place : Mumbai

Akzo Nobel India Limited I Financial Statements 67