Reconciling free cash flow

A listed manufacturer reports for FY26 (₹ cr): EBIT 820, D&A 140, capex 410, increase in non-cash working capital 95, interest expense 60. Debt rose from 600 to 700; cash and liquid investments rose from 300 to 520. It paid dividends of 150; no buybacks or share issues.

(a) Compute NOPAT, FCFF and FCFE. (b) Compute the right-hand side of Proposition 6.2, $Int(1-\tau) - \Delta ND + d$. Show that it differs from FCFF. (c) Generalise Proposition 6.2 to a firm with pre-tax non-operating income $X$ (treasury income, say), so that $NI = (EBIT + X - Int)(1-\tau)$. Use your result to say what pre-tax non-operating income would explain the gap in (b), and what you would check in the annual report.