minimum 350 words

Analyse the following Cash Flow Statement of a company to see if there are any risks to this company's operation in next year. (6.0 pts.). XYZ co. Ltd. Cash Flow Statement (all numbers in millions of Rs.) Period ending 03/31/2010 03/31/2009 03/31/2008 Net income 21,538 24,589 17,046 Operating activities, cash flows provided by or used in: Depreciation and amortization 2,790 2,592 2,747 Adjustments to net income 4.617 621 2,910 Decrease (increase) in accounts receivable 12,503 17,236 Increase (decrease) in liabilities (A/P, taxes payable) 131,622 19,822 37,856 Decrease (increase) in inventories Increase (decrease) in other operating activities (173,057) (33,061) (62,963) Net cash flow from operating activities 13 31.799 (2,404) Investing activities, cash flows provided by or used in: Capital expenditures (4,035) (3,724) (3,011) Investments (201.777) (71.710) (75,649) Other cash flows from investing activities 1,606 17,009 (571) Net cash flows from investing activities (204,206) (58,425) (79,231) Financing activities, cash flows provided by or used in: Dividends paid (9,826) (9,188) (8,375) Sale (repurchase) of stock (5,327) (12,090) 133 Increase (decrease) in debt 101,122 26,651 21,204 Other cash flows from financing activities 120,461 27,910 70,349 Net cash flows from financing activities 206,430 33,283 83,311 Effect of exchange rate changes 645 (1,840) 731 Net Increase (decrease) in cash and cash equivalents 2,882 4,817 2,407