CITIZENS DEVELOPMENT BUSINESS FINANCE PLC
ANNUAL REPORT 2020/21
Statement of Cash Flows
ACCOUNTING POLICY
In accordance with LKAS 7 – “Statement of Cash Flows”. The Statement of cash flows has been prepared using the “Direct Method”. Cash and cash equivalents comprise short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
The cash and cash equivalents include cash in hand, balances with banks, money at call and money market funds.
| For the year ended 31 March | 2021 Rs. ’000 |
2020 Rs. ’000 *Restated |
| Cash flow from operating activities | ||
| Interest receipts | 12,529,193 | 14,726,601 |
| Commission receipts | 68,839 | 279,470 |
| Other income receipts | 1,606,503 | 2,001,955 |
| Interest payments | (7,479,942) | (8,885,054) |
| Fee and business promotion expenses | (387,487) | (402,989) |
| Employee related payments | (1,328,968) | (1,491,723) |
| Supplier payments | (2,979,723) | (2,439,758) |
| Financial expenses | (35,968) | (27,646) |
| Operating profit before changes in operating assets | 1,992,447 | 3,760,856 |
| (Increase)/Decrease in operating assets | ||
| Investments in financial institutions | 2,108,852 | 1,755,199 |
| Investments in Government securities | (102,320) | 137,437 |
| Net funds advanced to customers | (1,708,955) | (1,914,005) |
| Changes in other short-term assets | 1,326,438 | (804,725) |
| Changes in inventories | (170,055) | 1,748 |
| 1,453,960 | (824,346) | |
| Increase/(Decrease) in operating liabilities | ||
| Net borrowings | (6,366,190) | 75,239 |
| Net deposits from customers | 5,882,777 | (4,095,521) |
| (483,413) | (4,020,282) | |
| Net cash generated from/(used in) operating activities | 2,962,994 | (1,083,772) |
| Contribution to plan asset | (168,000) | (85,000) |
| Taxation | (1,105,094) | (15,968) |
| 1,689,900 | (1,184,740) | |
| Cash flow from investing activities | ||
| Dividend receipts | 31,548 | 28,525 |
| Proceed from the rights issue | – | 1,019,356 |
| Investment in other investment securities | (307,765) | 319,032 |
| Purchase of property, plant and equipment | (413,675) | (825,428) |
| Proceeds from sale of property, plant and equipment | 41,342 | 5 |
| Net cash from/(used in) investing activities | (648,550) | 541,490 |
| Cash flow from financing activities | ||
| Dividend paid | – | (193,461) |
| Payment to NCI on amalgamation | (42,645) | – |
| Net change in debentures | (2,257) | 1,111,613 |
| Net cash inflows/(outflows) from financing activities | (44,902) | 918,152 |
| Net increase/(decrease) in cash and cash equivalents | 996,448 | 274,902 |
| Cash and cash equivalents at the beginning of the year | 918,121 | 643,219 |
| Cash and cash equivalents at the end of the year | 1,914,569 | 918,121 |
| Cash and cash equivalents at the beginning of the year | ||
| Cash at bank and cash in hand | 1,391,919 | 1,189,251 |
| Bank overdrafts | (473,798) | (546,032) |
| 918,121 | 643,219 | |
| Cash and cash equivalents at the end of the year | ||
| Cash at bank and cash in hand (Refer Note 20) | 2,090,509 | 1,391,919 |
| Bank overdrafts (Refer Note 39) | (175,940) | (473,798) |
| 1,914,569 | 918,121 |
The Notes to the Financial Statements on pages 144 to 248 form an integral part of these Financial Statements.
Figures in brackets indicate deductions.
*Comparative information as at 31 March 2020 have been restated to reflect the effect of amalgamation. (Refer note 3)