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Note 24: Cash, cash equivalents and other current interest-bearing deposits

a  Cash and cash equivalents

  Group   Company
£ million 2010 2009   2010 2009
Cash at bank and in hand 562 247 535 219
Short-term deposits falling due within three months 224 155   221  
Cash and cash equivalents 786 402   756 219
Other current interest-bearing deposits maturing after three months 928 979   908 43

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 £786 million for the Group (2009: £402 million) and for the Company £756 million (2009: £219 million).

At 31 March 2010, the Group and Company had no outstanding bank overdrafts (2009: £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 2010 2009
Increase/(decrease) in cash and cash equivalents during the year 344 (289)
Net cash outflow from decrease in debt and lease financing 769 468
Decrease in other current interest-bearing deposits (51) (202)
New loans and finance leases taken out and hire purchase arrangements made (1,053) (377)
Decrease/(increase) in net debt resulting from cash flow 9 (400)
Exchange movements and other non-cash movements 85 (672)
Decrease/(increase) in net debt during the year 94 (1,072)
Net debt at 1 April (2,382) (1,310)
Net debt at 31 March (2,288) (2,382)

c  Analysis of net debt

  Group
£ million Balance at
1 April
Net
cash flow
Other
non-cash
Exchange Balance at
31 March
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)
At 31 March 2009 (1,310) (400) (126) (546) (2,382)
Cash and cash equivalents 402 344 40 786
Current interest-bearing deposits maturing after three months 979 (51) 928
Bank and other loans (848) (625) (11) (1,484)
Finance leases and hire purchase arrangements (2,915) 341 (24) 80 (2,518)
At 31 March 2010 (2,382) 9 (24) 109 (2,288)

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

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