Consolidated Statement of Cash Flows

History

  2011,
‘000 rubles
2010,
‘000 rubles
Cash flows from operating activities
Profit before income tax 23,444,592 21,590,383
Adjustments for:
Depreciation and amortisation 16,538,863 13,339,559
(Gain)/loss on disposal of property, plant and equipment (122,266) 4,153
Impairment losses on property, plant and equipment 4,780 34,574
Provisions for legal claims 347,281 533,437
Finance income (124,081) (253,957)
Finance costs 1,789,226 2,490,394
Allowance for impairment of accounts receivable 3,637,112 268,967
Allowance for impairment of non-current assets - 4,993
Gain on disposal of inventory (73,643) -
Other non-cash items (60,453) (548,294)
Cash from operating activities before changes in working capital 45,381,411 37,464,209
Change in inventories (356,795) 535,023
Change in trade and other receivables, non-current advances given for connection services (1,807,859) (2,027,906)
Change in retirement benefit obligations and related assets (350,253) 791,529
Change in trade and other payables (8,400,100) (1,773,222)
Change in taxes payable, other than income tax (650,291) 476,026
Cash flows from operations before income taxes 33,816,113 35,465,658
Income taxes paid (4,391,486) (5,015,516)
Net cash from operating activities 29,424,627 30,450,142
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment 5,608 1,417
Proceeds from disposal of short-term investments 1,187 452,407
Acquisition of property plant and equipment (29,322,009) (18,925,850)
Acquisition of intangible assets (447,640) (49,553)
Acquisition of short-term investments - (578,594)
Interest received 37,086 60,587
Bank deposits (50,000) -
Net cash used in investing activities (29,775,768) (19,039,586)
Cash flows from financing activities
Proceeds from borrowings 42,596,456 33,839,085
Repayment of borrowings (33,091,329) (37,561,065)
Payment of finance lease liabilities (4,025,077) (5,818,938)
Dividends paid (1,200,001) (450,000)
Interest paid (2,915,270) (3,590,286)
Net cash from/(used in) financing activities 1,364,779 (13,581,204)
Net increase/(decrease) in cash and cash equivalents 1,013,638 (2,170,648)
Cash and cash equivalents at beginning of year 2,931,237 5,094,383
Effect of exchange rate fluctuations on cash and cash equivalents   7,502
Cash and cash equivalents at end of year (Note 19) 3,944,875 2,931,237

The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements set out on pages 11 to 55.