GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 73 Group Company 2017 2016 2017 2016 Note RM RM RM RM CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 25,409,775 24,762,562 497,558 4,127,739 Adjustments for: Amortisation of: - intangible assets 12 325,657 697,042 87,233 452,483 - deferred income 25 (1,855,282) (1,147,354) (918,492) (687,799) Bad debts written off 223,794 23,032 12,000 20,800 Depreciation of property, plant and equipment 11 20,382,340 18,518,472 604,665 603,317 Dividend income - - (2,800,000) (3,500,000) Impairment losses on: - trade and other receivables 1,410,478 1,811,492 831,254 5,070,709 - investment in a subsidiary 14 - - 2,400,000 - Intangible assets written off 12 - 314,249 - 222,228 Interest expense 1,710,205 1,771,247 118,529 72,874 Interest income (899,936) (359,800) (124,944) (76,950) Inventories written off 18 122,759 473,428 - 364,890 Inventories written back (19,357) - - - Gain on disposal of property, plant and equipment (216,568) (144,171) (210,917) (49,742) Loss on de-registration of a subsidiary 14(e) 110,613 - - - Unrealised loss/(gain) on foreign exchange 3,708,218 (1,365,394) 3,921,811 (2,234,840) Property, plant and equipment written off 11 12,145 584,115 1,714 2 Reversal of impairment losses on: - trade and other receivables 19 (869,279) (187,459) (2,400,000) (119,657) - investment in a joint venture - (38,400) - - - investments in subsidiaries 14 - - - (3,576,426) Share options granted under ESS 7 18,962 400,408 18,962 93,217 Share of (gain)/loss of joint ventures (18,253) 142,889 - - Operating profit before changes in working capital 49,556,271 46,256,358 2,039,373 782,845 Decrease/(Increase) in inventories 19,316,166 (40,713,508) 256,801 (10,460) (Increase)/Decrease in trade and other receivables (22,989,601) 15,791,563 (221,953) (474,379) Increase/(Decrease) in trade and other payables 16,468,136 17,149,416 (1,128,742) 1,288,379 Advance receipts for deferred income 25 2,068,818 1,327,264 1,511,817 859,699 Cash generated from operations 64,419,790 39,811,093 2,457,296 2,446,084 STATEMENTS OF CASH FLOWS for the financial year ended 31 December 2017