Cash Flow Analysis

The highlights (in Rs. Lacs) from the cash flow statements from FY2012 to FY2016 are as
follows
2016 2015 2014 2013 2012
Net Cash Flow from Operating Activities 33,732 13,066 21,315 15,301 4856
Net Cash Flow from Investing Activities -52515 -18082 -10652 -80733 -10305
Net Cash Flow from Financing Activities 18511 4880 -11698 66124 35
Cash spent for Expansion and acquisition -23339 -20640 -12728 -77260 -11596
Net borrowings -8472 13367 -4321 32783 4271
Share Capital, issue and buyback 35416 1003 1210 38198 -660
Dividend Paid -459 -1217 -464 -603 -1504
Interest paid -7974 -8273 -8118 -4253 -2072
Cash and Cash Equivalents 1862 2134 2,270 3305 2039

PVR Ltd. has maintained Cash and Cash Equivalents around Rs.2000 Lacs consistently.
In FY2016 Net Cash Outflow in Investing Activities was Rs.52,515 Lacs, Rs.23,339 Lacs were
spent towards expansion and acquisitions, rest was invested in current non-trade investments.
Capital Expenditure was funded through Cash from Operating Activities Rs.33,732 Lacs. The
investments, repayment of borrowings, dividends and interest were financed through Issue of
Share Capital, Rs.35,416 Lacs.

In FY2015 Net Cash Outflow in Investing Activities was Rs.18,082 Lacs, Rs.20,640 Lacs were
spent towards expansion and acquisitions. This was funded through sale of current non-trade
investments of Rs.2,390 Lacs, Cash from Operating Activities Rs.13,066 Lacs, Issue of Share
Capital , Rs.1,003 Lacs and rest from borrowings. Total Borrowings were Rs.13,367 Lacs.
Dividends and Interest were thus paid from Borrowings.

In FY2014 Net Cash Outflow in Investing Activities was Rs.10,652 Lacs, Rs.12,728 Lacs were
spent towards expansion and acquisitions This was funded through sale of current non-trade
investments of Rs.2,017 Lacs, and rest from Cash from Operating Activities which was
Rs.21,315 Lacs. The repayment of borrowings, dividends and interest were financed through
Issue of Share Capital, Rs.1210 Lacs, cash balance and Cash from Operating Activities.

In FY2013 Net Cash Outflow in Investing Activities was Rs.80,733 Lacs, Rs.77,260 Lacs were
spent towards expansion and acquisitions, rest invested in current non trade investments.
Capital Expenditure was funded through Cash from Operating Activities Rs.15,301 Lacs, Issue
of Share Capital , Rs.38,198 Lacs and rest from borrowings. Total Borrowings were Rs.32,783
Lacs. Dividends and Interest were thus paid from Borrowings.
In FY2012 Net Cash Outflow in Investing Activities was Rs.10,305 Lacs, Rs.15,596 Lacs were
spent towards expansion and acquisitions. This was funded through sale of current non-trade
investments of Rs.607 Lacs, Cash from Operating Activities Rs.4,856 Lacs, and cash and cash
equivalents balance. Share Buyback, Dividends and Interest were also paid from Cash and
Cash equivalents balance.

From the point of view of the creditors of PVR Ltd, their interests are protected as net cash
from operating profit covers the interest payments at least 2 times in each of these fiscal years.

The dividends paid were less than 10% of net cash inflow from operating profit which is a good
sign showing that the company is not paying out based on accrual profits solely. There was one
exception in FY2012 when the dividends were 30% of the net cash from operating profits, this
could be to attract more investors, the company could afford it because of cash and cash
equivalent balance of Rs.7454 Lacs from previous year.