depreciation of property, plant and equipment and (ii) amortization of right-of-use assets, which are attributable to the growth
of our store network in the financial year 2020.

Net loss on fair value changes. We recorded a net loss on fair value changes of %322.97 million for the financial year 2020
relating to our repurchase of shares of our Company pursuant to obligations under a shareholders’ agreement between us and
certain of our shareholders.

Profit before tax. As a result of the foregoing, our profit before tax increased by 29.05% to %293.59 million for the financial
year 2020 from 2227.51 million for the financial year 2019.

Tax expenses. Our total tax expense increased significantly to 3275.65 million for the financial year 2020 from 2108.29 million
for the financial year 2019, primarily due to the increase in our profit before tax for the financial year 2020.

Profit for the year. As a result of the foregoing, our profit for the year decreased significantly to 217.94 million for the financial
year 2020 from 2119.22 million for the financial year 2020.

Liquidity and Capital Resources Based on Our Restated Financial Information

Our primary sources of liquidity include cash generated from operations and from short-term debt borrowings, including cash
credit from banks and loans from other companies. As of September 30, 2021, we had (i) cash and cash equivalents of = 256.78
million, (ii) bank balances (other than cash and cash equivalents) of = 703.7 million, and (iii) and undrawn facilities of =
1,282.52 million.

Our financing requirements are primarily for working capital. We expect that cash flow from revenue from operations and debt
borrowings will continue to be our principal sources of funds in the long-term. We evaluate our funding requirements
periodically in light of our net cash flow from operating activities, the requirements of our business operations and expansion
plans, and market conditions.

Cash Flows

The following table summarizes our cash flows data for the periods indicated:

 

 

 

 
  

 

  

 

 

 

 

For the Six Months For the Financial Year Ended
Ended September 30, March 31,
2021 2020 2021 2020 2019
(2 in millions)

Net cash generated from/(used in) operating activities 1,565.28 55.81 28.91 (65.89) 1,466.84
Net cash used in investing activities (985.48) (112.89) (345.49) (275.54) ~—(193.35)
Net cash (used in)/from financing activitie: (606.31) (476.94) (56.26) 898.27 __ (828.41)
Net increase/(decrease) in cash and cash equivalents .. (26.51) (534.02) (372.84) 556.84 445.08
Cash and cash equivalents at the beginning of the period/year... (284.19) 88.65 88.65 (468.20) __ (913.28)
Cash and cash equivalents at the end of the period/year........ (310.70) (445.37) __ (284.19) 88.64 (468.20)

 

 

Net cash generated from/used in operating activities

Net cash generated from operating activities was %1,565.28 million in the six months ended September 30, 2021. We had profit
before tax of 3835.55 million for the six months ended September 30, 2021, which was primarily adjusted for depreciation and
amortisation expense, interest on lease liability, provision for gratuity and leave benefits, and interest income, and working
capital adjustments. Our changes in working capital primarily consisted of an increase in inventories of 7600.53 million.

Net cash generated from operating activities was 755.81 million in the six months ended September 30, 2020. We had profit
before tax of 372.75 million for the six months ended September 30, 2020, which was primarily adjusted for depreciation and
amortisation expense, employee stock option compensation expenses, interest on lease liability and provision for gratuity and
leave benefits, and working capital adjustments. Our changes in working capital primarily consisted of an increase in inventories
of 2417.71 million and a decrease in trade payables and other financial liabilities.

Net cash generated from operating activities was 228.91 million in the financial year 2021. We had profit before tax of
2950.98 million for the financial year 2021, which was primarily adjusted for depreciation of property, plant and equipment,
amortization on right-of-use assets, provision for gratuity and leave benefits, interest on lease liability and employee stock
option compensation expenses, and working capital adjustments. Our changes in working capital primarily consisted of an
increase in inventories of %1,064.02 million and decrease in current financial liabilities of 911.1 million, comprising mainly
of trade payables.

Net cash used in operating activities was 765.89 million in the financial year 2020. We had profit before tax of 2293.59 million
for the financial year 2020, which was primarily adjusted for depreciation of property, plant and equipment, amortization on
right-of-use assets, provision for gratuity and leave benefits, interest on lease liability and net loss on fair value changes, and
working capital adjustments. Our changes in working capital primarily consisted of an increase in inventories of
22,494.89 million.

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