Statement of Cash Flows
| GROUP | Bank | ||||
| For the year ended December 31, | 2018 | 2017 | 2018 | 2017 | |
| Note | Rs. ’000 | Rs. ’000 | Rs. ’000 | Rs. ’000 | |
| Cash flows from operating activities | |||||
| Profit before income tax | 26,098,548 | 23,280,324 | 25,591,208 | 23,182,944 | |
| Adjustments for: | |||||
| Non-cash items included in profit before tax | 65 | 12,380,685 | 1,078,540 | 12,056,211 | 646,164 |
| Change in operating assets | 66 | (169,379,105) | (125,489,870) | (167,137,925) | (120,342,936) |
| Change in operating liabilities | 67 | 138,876,499 | 100,265,879 | 135,473,881 | 97,246,867 |
| (Gains)/losses on sale of property, plant and equipment | 18 | (9,311) | 18,774 | 3,633 | 35,018 |
| Share of profits in associates, net of tax | 39.1 | (6,048) | (3,678) | – | – |
| Dividend income from subsidiaries and associates | 18 | – | – | (80,575) | (100,443) |
| Interest expense on subordinated liabilities | 14.2 | 3,105,553 | 2,377,694 | 3,105,553 | 2,377,694 |
| Net unrealised gains/(losses) arising from translating the Financial Statements of foreign operations | 57.5 | 3,003,952 | (503,140) | 2,557,517 | (525,093) |
| Profit due to change in ownership | 18 | – | – | (3,344) | (5,262) |
| Benefits paid on defined benefit plans | (382,409) | (184,464) | (376,995) | (179,855) | |
| Income tax paid | 49 | (5,971,026) | (3,810,701) | (5,856,270) | (3,753,679) |
| Net cash from (used in) operating activities | 7,717,338 | (2,970,642) | 5,332,894 | (1,418,581) | |
| Cash flows from investing activities | |||||
| Net purchase of property, plant and equipment | 40.1 to 40.4 | (2,079,875) | (2,163,733) | (1,936,205) | (1,959,075) |
| Proceeds from sale of property, plant and equipment | 53,314 | 58,032 | 18,954 | 41,408 | |
| Purchase of financial investments | (697,591) | (179,751) | (697,591) | (179,751) | |
| Proceeds from sale and maturity of financial investments | 2,096,712 | 3,530,785 | 2,096,712 | 3,530,785 | |
| Net purchase of intangible assets | 41.1 & 41.2 | (406,641) | (352,329) | (333,181) | (346,360) |
| Proceeds due to change in ownership | 4,962 | 7,803 | 4,962 | 7,803 | |
| Net cash flow from investment in subsidiaries and associates | – | – | (1,255,800) | (564,253) | |
| Dividends received from investments in subsidiaries and associates | 18 | – | 4,111 | 80,575 | 100,443 |
| Net cash from (used in) investing activities | (1,029,119) | 904,918 | (2,021,574) | 631,000 | |
| 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 | 53 | 203,083 | 386,311 | 203,083 | 386,311 |
| Proceeds from issue of subordinated liabilities | 52 | 10,000,000 | – | 10,000,000 | – |
| Interest paid on subordinated liabilities | (2,496,230) | (2,362,270) | (2,496,230) | (2,362,270) | |
| Dividend paid to non-controlling interest | 58 | (4,218) | (3,690) | – | – |
| Dividend paid to shareholders of the Bank | (4,703,903) | (4,349,302) | (4,703,903) | (4,349,302) | |
| Net cash from/(used in) financing activities | 2,998,732 | 3,814,921 | 3,002,950 | 3,818,611 | |
| Net increase/(decrease) in cash and cash equivalents | 9,686,951 | 1,749,197 | 6,314,270 | 3,031,030 | |
| Cash and cash equivalents as at January 1, | 34,673,424 | 32,924,227 | 33,224,619 | 30,193,589 | |
| Gross cash and cash equivalents as at December 31, | 29 | 44,360,375 | 34,673,424 | 39,538,889 | 33,224,619 |
| Less: Impairment charges | (4,413) | – | (4,413) | – | |
| Cash and cash equivalents as per Statement of Financial Position | 44,355,962 | 34,673,424 | 39,534,476 | 33,224,619 | |
The Notes appearing on this Annual Report form an integral part of these Financial Statements.