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Note 25: Cash, cash equivalents and other current interest-bearing deposits

a  Cash and cash equivalents

  Group   Company
£ million 2009 2008   2009 2008
Cash at bank and in hand 247 180   219 175
Short-term deposits falling due within three months 155 503     258
Cash and cash equivalents 402 683   219 433
Other current interest-bearing deposits maturing after three months 979 1,181   43 399

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for periods up to three months depending on the cash requirements of the Group and earn interest based on the floating deposit rates. The fair value of cash and cash equivalents is £402 million for the Group (2008: £683 million) and for the Company £219 million (2008: £433 million).

At March 31, 2009, the Group and Company had no outstanding bank overdrafts (2008: £nil).

Other current interest-bearing deposits are made for periods in excess of three months with maturity typically within 12 months and earn interest based on the market rates available at the time the deposit was made.

b  Reconciliation of net cash flow to movement in net debt

  Group
£ million 2009 2008
Decrease in cash and cash equivalents during the period (289) (1)
Net cash outflow from decrease in debt and lease financing 468 424
Decrease in other current interest-bearing deposits (202) (458)
New loans and finance leases taken out and hire purchase arrangements made (377) (172)
Increase in net debt resulting from cash flow (400) (207)
Exchange movements and other non-cash movements (672) (112)
Increase in net debt during the period (1,072) (319)
Net debt at April 1 (1,310) (991)
Net debt at March 31 (2,382) (1,310)

c  Analysis of net debt

  Group
£ million Balance at
April 1
Net cash flow Other non-cash Exchange Balance at March 31
Cash and cash equivalents 713 (1)   (29) 683
Current interest-bearing deposits maturing after three months 1,642 (458)   (3) 1,181
Bank and other loans (946) 68   2 (876)
Finance leases and hire purchase arrangements (2,400) 184 (7) (75) (2,298)
Year to March 31, 2008 (991) (207) (7) (105) (1,310)

Cash and cash equivalents
683 (289)   8 402
Current interest-bearing deposits maturing after three months 1,181 (202)     979
Bank and other loans (876) 66   (38) (848)
Finance leases and hire purchase arrangements (2,298) 25 (126) (516) (2,915)
Year to March 31, 2009 (1,310) (400) (126) (546) (2,382)

Net debt comprises the current and non-current portions of long-term borrowings less cash, cash equivalents and other current interest-bearing deposits.

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