INTEGRATED ANNUAL REPORT 2021-22

Standalone Statement of Cash Flows for the year ended March 31, 2022

(` in million)
Particulars Year ended March 31, 2022 Year ended March 31, 2021
i) CASH FLOWS FROM OPERATING ACTIVITIES:
Net Profit after tax 403,057.37 112,464.37
Adjustments For:
- Income tax expense 7,342.49 51,563.53
- Exceptional items - (13,750.34)
- Depreciation, depletion, amortisation and impairment 175,457.01 163,273.77
- Exploratory well costs written off 37,439.30 46,609.82
- Finance cost 23,598.62 22,145.41
- Unrealized foreign exchange loss/(gain) 3,823.01 (2,944.15)
- Other impairment and write offs 5,305.16 3,785.96
- Excess provision written back (780.67) (8,241.57)
- Interest income (11,753.89) (10,610.98)
- Loss / (gain) on fair valuation of financial instruments 1,820.54 1,479.86
- Amortization of financial guarantee (383.81) (419.18)
- Gain on revaluation / redemption of financial liability towards CCDs (1,439.34) (4,659.61)
- Re-measurement of defined benefit plans 1,708.08 (512.07)
- Liabilities no longer required written Back (1,783.08) (1,391.93)
- Amortization of government grant (21.91) (28.61)
- Loss / (profit) on sale of investment (49.44) 956.81
- Profit on sale of non-current assets - (1.04)
- Dividend income (42,519.48) 197,762.59 (30,630.05) 216,625.63
Operating profit before working capital changes 600,819.96 329,090.00
Adjustments for
- Receivables (39,751.72) (30,090.90)
- Loans and advances (3,306.72) (998.09)
- Other assets (9,793.28) (30,031.14)
- Inventories 5,430.43 (218.77)
- Trade payable and other liabilities 37,414.89 (10,006.40) 37,248.29 (24,090.61)
Cash generated from operations 590,813.56 304,999.39
Income taxes paid (Net of tax refund) (97,799.31) (28,348.45)
Net cash generated by operating activities “A” 493,014.25 276,650.94

ii) CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for property, plant and equipment (177,105.60) (152,537.96)
Proceeds from disposal of property, plant and equipment 493.43 1,580.20
Exploratory and development drilling (97,319.89) (93,952.77)
Investment in term deposits with maturity 3 to 12 months - 6,930.00
Redemption / investment in mutual funds (net) 49.44 -
Investment in joint ventures (1,070.00) (9,199.08)
Sale / (Investment) in subsidiaries - 12,163.03
Investment-others (208.46) (50.10)
Deposit in site restoration fund (12,718.89) (12,064.55)
Dividends received from subsidiaries, associates and joint ventures 26,518.42 15,500.24
Dividends received on other investments 16,001.06 15,129.81
Interest received 10,340.26 9,931.55
Net cash (used in)/generated by investing activities “B” (235,020.23) (206,569.63)

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ACHIEVING glorious heights

Particulars Year ended March 31, 2022 Year ended March 31, 2021
iii) CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from non-current borrowings - 41,396.40
Proceeds/repayment of current borrowings (net) (86,950.33) (28,536.21)
Payment of lease liabilities (net of interest) (50,914.63) (54,716.56)
Interest expense on lease liabilities (3,291.28) (3,808.25)
Dividends paid on equity shares (114,487.01) (22,053.19)
Interest paid (3,048.76) (2,124.71)
Net cash used in financing activities “C” (258,692.01) (69,842.52)
Net increase / (decrease) in cash and cash equivalents (A+B+C) (697.99) 238.79
Cash and cash equivalents at the beginning of the year 1,199.04 960.25
Cash and cash equivalents at the end of the year 501.05 1,199.04
(697.99) 238.79

a) Cash and cash equivalents comprises of:-

(` in million)
Particulars As at March 31, 2022 As at March 31, 2021
Balances with banks 498.84 1,197.84
Cash in hand 2.21 2.30
Cash and cash equivalents (Note No. 18) 501.05 1,200.14
Bank overdraft (Note No. 27) - (1.10)
Cash and cash equivalents in cash flows statement 501.05 1,199.04

b) Reconciliation of Liabilities arising from Financing Activities:-

For FY 2021-22

(` in million)
Financing Cash Flows
As at Non Cash Flows -Exchange Loss / As at
Particulars Proceeds
March 31, 2021 Repayment (Gain) & amortisation of discount March 31, 2022
Raised
Non-current borrowings
- Foreign Currency
Bond (Note No. 27.5) 21,878.45 - - 692.89 22,571.34
- Non-Convertible Debentures
(Note No. 27.4) 41,396.76 - - 0.92 41,397.68
Total 63,275.21 - - 693.81 63,969.02

As at Financing Cash Flows Non Cash Flows -Exchange As at

STANDLONE FINANCIAL

Particulars
March 31, 2021 Proceeds/repayment (net) Loss / (Gain) March 31, 2022
Current borrowings
- Foreign Currency Terms Loans 30,135.68 (30,135.68) - -
(Note No. 27.1 & 27.2)
- Working Capital Loans 39,368.10 (39,368.10) - -
(Note No. 27.3)
- Commercial Papers 17,446.55 (17,446.55) - -
(Note No. 27.6)
Total 86,950.33 (86,950.33) - -

184
 INTEGRATED ANNUAL REPORT 2021-22

For FY 2020-21
(` in million)
Financing Cash Flows
As at Non Cash Flows -Exchange Loss / As at
Particulars Proceeds
March 31, 2020 Repayment (Gain) & amortisation of discount March 31, 2021
Raised
Non-current borrowings
- Foreign Currency 22,450.97 - - (572.52) 21,878.45
Bond (Note No. 27.5)
- Non-Convertible Debentures - 41,396.40 - 0.36 41,396.76
(Note No. 27.4)
Total 22,450.97 41,396.40 - (572.16) 63,275.21

As at Financing Cash Flows Non Cash Flows -Exchange As at

Particulars
March 31, 2020 Proceeds/repayment (net) Loss / (Gain) March 31, 2021
Current borrowings
- Foreign Currency Terms Loans 84,990.35 (53,301.08) (1,553.59) 30,135.68
(Note No. 27.1 & 27.2)
- Working Capital Loans 22,140.00 17,228.10 - 39,368.10
(Note No. 27.3)
- Commercial Papers 9,909.78 7,536.77 - 17,446.55
(Note No. 27.6)
Total 117,040.13 (28,536.21) (1,553.59) 86,950.33

Cash flow analysis is a method for checking up on our firm's financial health. It is the study of the movement of cash through our
business, also called a cash budget, to determine patterns of how you take in and payout money.
In all, the company's net cash flows for FY22 were negative by Rs 697.77 million, meaning that cash and cash equivalents declined by Rs
697.99 million during the course of the year or that the closing amount was lower than the initial position by Rs 697.99 million. This
represents a significant decrease when compared to the prior year because there was an increase of Rs. 238.79 million in the prior year
as opposed to a decrease of Rs. 697.99 million in the current year. This negative balance is caused by greater cash outflows from
investing and financing activities than cash inflows from business operations.
Operating cash flow
 Comparing the present year to the prior year, the CFO has virtually doubled. The greater PAT for the present year, which is a
whopping Rs. 403,057.37 million as opposed to Rs. 112,464.37 million in 2021, is mostly responsible for this difference.
 Since both years' cash flow from operational activities is positive, the company clearly has a firm grasp on its core business
operations.

Investing cash flow

 CFI for the current year is negative Rs. 235,030.23, compared to negative Rs. 206,569.63 for the previous year. The main
outflow has been the purchase of new real estate, machinery, and equipment.
 As we can see, the company has been substantially spending in the acquisition of non-current assets, demonstrating its ability
to create more in the future. The cash flow from investment operations is negative for both years. Consequently, the firm has a
high chance for growth.

Financing cash flow

 CFF is negative Rs. 258,692.01 million for the current year, a significant increase in outflow from 2021. Dividend payments
account for a sizable share of the change. There have been an increase in dividend payments from Rs 22,053.19 million to Rs
258.692.01 million.
 We can see that the company has been paying off its debt for both of the years, which is a good indicator because after doing
so, the company won't have any external commitments, demonstrating a firm grip on its finances. Additionally, the increased
dividend payout would boost shareholder satisfaction and instil a sense of security in them.