Consolidated Statement of Cash Flows for the year ended 31 December 2011
Thousands of Russian Roubles, unless otherwise stated
| Note | Year ended 31 December 2011 |
Year ended 31 December 2010 |
|
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Profit before income tax | 7,375,517 | 6,389,779 | |
| Adjustments for: | |||
| Depreciation and amortization | 8 | 6,284,802 | 5,011,364 |
| Allowance for impairment of accounts receivable | 8 | 477,586 | 272,690 |
| Net finance costs | 10 | 1,556,289 | 1,506,882 |
| Provision for inventory obsolescence | (26,990) | (97,515) | |
| Loss on disposal of property, plant and equipment | 162,888 | 101,084 | |
| Bad debts written-off | 8 | 21,237 | 6,120 |
| Gain on bargain purchase on acquisition of subsidiary | 5 | — | (448,521) |
| Adjustment for other non-cash transactions | (47,299) | (259,508) | |
| Cash flows from operating activities before changes in working capital | 15,804,030 | 12,482,375 | |
| Change in trade and other receivables | (1,707,913) | (2,293,630) | |
| Change in inventories | (68,305) | 24,993 | |
| Change in other assets | 14,408 | 355,305 | |
| Change in trade and other payables | 805,716 | 83,123 | |
| Change in employee payables | 119,146 | 346,393 | |
| Change in employee benefits | 99,145 | 245,549 | |
| Change in other liabilities | 121,888 | (238,422) | |
| Change in other taxes payable | 98,601 | (494,039) | |
| Cash flows from operations before income taxes and interest paid | 15,286,716 | 10,511,647 | |
| Interest paid | (1,487,730) | (1,609,008) | |
| Income tax paid | (981,244) | (576,812) | |
| Cash flows from operating activities | 12,817,742 | 8,325,827 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Acquisition of property, plant and equipment and intangible assets | (15,716,156) | (10,497,661) | |
| Proceeds from disposal of property, plant and equipment | 56,893 | 43,386 | |
| Acquisition of subsidiaries, net of cash acquired | 5 | — | (1,075,117) |
| Interest received | 10 | 117,763 | 35,512 |
| Cash flows used in investing activities | (15,541,500) | (11,493,880) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from loans and borrowings | 7,611,836 | 9,858,996 | |
| Repayment of loans and borrowings | (1,340,629) | (6,038,549) | |
| Dividends paid | (579,203) | — | |
| Repayment of finance lease liabilities | (580,983) | (761,676) | |
| Cash flows from financing activities | 5,111,021 | 3,058,771 | |
| Net increase/(decrease) in cash and cash equivalents | 2,387,263 | (109,282) | |
| Cash and cash equivalents at beginning of year | 258,889 | 368,171 | |
| Cash and cash equivalents at end of year | 17 | 2,646,152 | 258,889 |
| General Director: |  | D.O. Gudzhoyan | Chief accountant: |  | M.V. Danilova |
| 6 April 2012 |
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of, the consolidated financial statements.