Statement of Cash Flows

		GROUP		BANK
For the year ended December 31,		2017	2016	2017	2016
	Note	Rs. ’000	Rs. ’000	Rs. ’000	Rs. ’000
Cash flows from operating activities
Profit before income tax		23,280,324	20,114,584	23,182,944	20,051,183
Adjustments for:
Non-cash items included in profit before tax	65	2,315,139	2,754,851	1,882,763	2,588,922
Change in operating assets	66	(126,726,469)	(131,928,935)	(121,579,535)	(126,756,110)
Change in operating liabilities	67	100,265,879	117,122,450	97,246,867	111,259,187
(Gains)/losses on sale of property, plant and equipment	17	18,774	(10,395)	35,018	(1,705)
Share of profits in associates, net of tax	38.1	(3,678)	(6,454)	–	–
Dividend income from subsidiaries and associates	17	–	–	(100,443)	(85,579)
Interest expense on subordinated liabilities	13.2	2,377,694	1,535,349	2,377,694	1,533,934
Net unrealised gains/(losses) arising from translating the Financial Statements of foreign operations	57.4	(503,140)	438,565	(525,093)	414,578
Profit due to change in ownership	17	–	–	(5,262)	(3,047)
Benefits paid on defined benefit plans		(184,464)	(110,800)	(179,855)	(109,329)
Income tax paid	47	(3,810,701)	(4,014,741)	(3,753,679)	(3,966,831)
Net cash from (used in) operating activities		(2,970,642)	5,894,474	(1,418,581)	4,925,203
Cash flows from investing activities
Net purchase of property, plant and equipment		(2,163,733)	(1,501,070)	(1,959,075)	(1,369,729)
Proceeds from sale of property, plant and equipment		58,032	32,168	41,408	11,958
Purchase of financial investments		(179,751)	(514,043)	(179,751)	(514,043)
Proceeds from sale and maturity of financial investments		3,530,785	1,628,487	3,530,785	1,628,487
Net purchase of intangible assets		(352,329)	(422,175)	(346,360)	(340,351)
Proceeds due to change in ownership		7,803	4,294	7,803	4,294
Net cash flow from investment in subsidiaries and associates		–	–	(564,253)	(1,184,707)
Dividends received from investments in subsidiaries and associates	17	4,111	5,808	100,443	85,579
Net cash from (used in) investing activities		904,918	(766,531)	631,000	(1,678,512)
Cash flows from financing activities
Proceeds from rights issue of ordinary shares	53	10,143,872	–	10,143,872	–
Net proceeds from issue of ordinary voting shares		386,311	135,582	386,311	135,582
Proceeds from issue of subordinated liabilities	52	–	13,179,430	–	13,179,430
Redemption of subordinated liabilities	52	–	(987,660)	–	(972,660)
Interest paid on subordinated liabilities		(2,362,270)	(1,298,062)	(2,362,270)	(1,296,647)
Dividend paid to non-controlling interest	58	(3,690)	(3,432)	–	–
Capital contribution from non-controlling interest of a newly incorporated subsidiary	58	–	805,669	–	–
Dividend paid to shareholders of the Bank		(4,349,302)	(4,142,319)	(4,349,302)	(4,142,319)
Net cash from/(used in) financing activities		3,814,921	7,689,208	3,818,611	6,903,386
Net increase/(decrease) in cash and cash equivalents		1,749,197	12,817,151	3,031,030	10,150,077
Cash and cash equivalents as at January 1,		32,924,227	20,107,076	30,193,589	20,043,512
Cash and cash equivalents as at December 31,	27	34,673,424	32,924,227	33,224,619	30,193,589

The Notes appearing on this Annual Report form an integral part of these Financial Statements.