Mahindra Automotive Steels Private Limited
Cash Flow Statement for the year ended 31st March 2006
 2006
 Rs. Lakhs
Profit/(Loss)  before tax               (1,182.40)
Add : Adjustment for
Depreciation / Amortisation                   534.67
Amortization of expenses - DRE
Bad Debts  /  Provision for doubtful debts/ Write off's/ Write back (Net)                   386.67
Interest (Expenses)                   841.49
Leave encashment                      4.32
Gratuity                      7.97
Diminution in value of investment
Loss on impairment of asset
Diminution Provision for Long Term Investments
Contingency                   919.23
Misc Expenses Write Off                     20.91
Sub-Total                1,532.86
Less : Adjustments for
Interest / Dividend Income                   377.93
Profit / Loss on sale of investment                   116.77
Payment towards DRE
(Profit) / Loss on sale of Assets
Provision for longterm Investment written back
Lease Rentals (Income)                          -  
Sub-Total                   494.70
Operating Profit before Working Capital changes               1,038.16
Adjustments for
Trade & Other receivables                  (386.84)
Inventories                   646.47
Trade Payables                   966.94
Other Liabilities                   157.42
Loans & advances                  (468.26)
Cash generated from Operations                  915.73
Adjustment for extra Ordinary Items
Payment towards major repairs                          -  
Cash Generated from Operations after extra ordinary Items    353,231,484.99
Direct Taxes Paid                    (97.00)
Net cash from Operating Activities               1,856.89
Cash flow from Investing Activities
Purchase of Fixed Assets               (4,614.20)
Purchase of Investments                  (275.73)
Advances to subsidiaries
Profit / Loss on sale of investment                   116.77
Interest Dividend received                   377.93
Lease Rentals Received                          -  
Net Cash from investing Activities              (4,395.23)
Cash Flow from Financing Activities
Additional Capital Mobilized                          -  
Cash flow from Financing Activities
Repayment of Term Loans                  (294.75)
Issue of Share Capital              12,849.99
Repayment of Working Capital Loan                  (370.24)
Repayment of Unsecured Loans                  (240.64)
Lease Rentals paid
Interest Paid                  (841.49)
Net Cash from Financing Activities.             11,102.87
Net ((Decrease)/Increase ) in Cash & Cash equivalents               8,564.54
Opening Cash / Bank Balances                  152.27
Closing Cash / Bank Balances               8,716.80
Difference                      0.00
Notes :
1.  The Cash Flow has  been  prepared under  the  "Indirect method "  as set out in
Accounting Standard 3 on  Cash Flow statement issued by Institute of Chartered
Accountants of India.
2. Cash and cash equivalents represents cash and bank balances only
3.  In absence of operations in Previous Year, there were no significant cash flow movements.
4. Opening balances of demerged undertaking at Chakan Unit of Amforge Industries Ltd
taken over by the Company as per Scheme of Arrangement approved by the Honourable
High Court, Mumbai are considered for Cash Flow Statement.
As per our Report of even date                           For & on behalf of Board of Directors
For B K Khare & Company
Chartered Accountants                      sd/-  sd/-
                           Hemant Luthra       V.K.Chanana
                sd/-
Padmini Khare Kaicker                      sd/-  sd/-
Partner                            R. R.Krishnan        Romesh Kaul
Membership No. 44784
Mumbai, April 28, 2006.                      sd/-  sd/-
                          Nikhilesh Panchal        Fali Mama
                     sd/-  sd/-
                          Manoj Jain          Payal Vyas
Chief Financial Officer Company Secretary
                           Mumbai, April 28, 2006