MISC Annual Report 2019

Corporation Note 2019 2018 RM’000 RM’000 CASH FLOWS FROM INVESTING ACTIVITIES Net cash generated from/(used in) investing activities 30 1,958,663 (609,617) CASH FLOWS FROM FINANCING ACTIVITIES Net cash used in financing activities 31 (2,714,093) (2,590,475) Net increase/(decrease) in cash and cash equivalents 889,585 (656,073) Cash and cash equivalents at beginning of financial year 1,957,819 2,577,773 Currency translation differences (30,355) 36,119 Cash and cash equivalents at end of financial year 2,817,049 1,957,819 Cash and cash equivalents comprise: Cash, deposits and bank balances 23 2,817,049 1,957,819 2019 RM’000 Total cash outflows for leases - Lease liabilities 13,288 - Short term leases and leases of low-value assets 4,335 17,623 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2019 31 December 2019 1. CORPORATE INFORMATION The Corporation is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”). The registered office of the Corporation is located at Level 25, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur. The immediate and ultimate holding company of the Corporation is Petroliam Nasional Berhad (“PETRONAS”), a company incorporated and domiciled in Malaysia. The principal activities of the Corporation consist of shipowning, ship operating and other activities related to shipping services and operating offshore floating terminals. The principal activities of the subsidiaries, associates and joint arrangements are described in Notes 39, 40 and 41 respectively. There have been no significant changes in the nature of the principal activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 26 February 2020. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group and of the Corporation comply with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. These financial statements also comply with the applicable disclosure provisions of the Listing Requirements of the Bursa Malaysia Securities Berhad. The financial statements of the Group and of the Corporation have been prepared on a historical cost basis unless otherwise indicated in the accounting policies below. The functional currency of the Corporation is United States Dollar (“USD”). The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The Group’s and the Corporation’s financial statements are presented in Ringgit Malaysia (“RM”). 2.2 Changes in accounting policies and effects arising from the adoption of new and revised MFRSs The Group and the Corporation had on 1 January 2019 adopted new MFRSs, amendments to MFRS and IC Interpretation (collectively referred to as “pronouncements”) that have been issued by the Malaysian Accounting Standards Board (“MASB”) as follows: • MFRS 16: Leases • Annual Improvements to MFRS Standards 2015 - 2017 Cycle • IC Interpretation 23: Uncertainty over Tax Treatments FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 252 253