Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 114 The Group The Fund 2020 2019 2020 2019 RM RM RM RM Cash flows from operating activities Profit before tax 13,624,360 76,148,013 50,125,877 73,770,982 Adjustments for: Finance costs 35,254,090 32,324,390 35,254,091 32,324,390 Investment revenue (1,011,305) (1,655,201) (8,868,611) (10,550,265) Net amortisation of deferred income (832,523) - (832,523) - Allowance for impairment loss in investment in subsidiaries - - 4,000,000 4,000,000 Fair value adjustment of investment properties 47,772,461 (13,072,974) 5,423,801 (16,837,514) Unrealised (gain)/loss on foreign exchange (736,084) 333,951 (736,084) 333,951 Unbilled rental income (2,843,801) - (2,843,801) - Derecognition of past lease receivables 9,801,166 - 8,423,133 - Operating profit before working capital changes 101,028,364 94,078,179 89,945,883 83,041,544 Changes in working capital: Increase in trade receivables (24,343,284) (11,021,330) (10,443,992) (3,622,314) Decrease/(Increase) in other receivables and prepaid expenses 3,330,148 (2,345,246) 3,330,148 (2,355,998) Increase in other payables 2,610,999 2,987,728 2,713,434 2,867,071 Net changes in working capital (18,402,137) (10,378,848) (4,400,410) (3,111,241) Net cash generated from operating activities 82,626,227 83,699,331 85,545,473 79,930,303 Cash flows from investing activities Income received on investment 1,038,738 1,630,043 1,022,211 1,630,043 Profit sharing on advances from a subsidiary in Australia - - 785,731 10,668,629 Enhancement to investment properties (2,400,000) (1,262,486) (2,400,000) (1,262,486) Acquisition of investment properties - (78,000,000) - (78,000,000) Net cash used in investing activities (1,361,262) (77,632,443) (592,058) (66,963,814) Cash flows from financing activities Finance costs paid on Islamic financing (34,720,137) (31,194,287) (4,311,017) (1,607,418) Finance costs paid on amount due to a subsidiary - - (30,629,294) (28,961,350) Transaction costs paid (404,744) (660,000) (403,078) (660,000) Decrease in amount due to a subsidiary - - (344,359) (2,066,840) Income distributions (54,021,285) (57,186,006) (54,021,285) (57,186,006) Increase in restricted cash (1,245,005) (1,662,779) (771,438) (1,000,000) Net proceeds from Islamic financing 94,050 80,000,000 94,050 80,000,000 Net cash used in financing activities (90,297,121) (10,703,072) (90,386,421) (11,481,614) Net (decrease)/increase in cash and cash equivalents (9,032,156) (4,636,184) (5,433,006) 1,484,875 Effects of changes in exchange rates 1,970,082 (287,822) - - Effects of foreign currency translation on cash and cash equivalents 736,084 (333,951) 736,084 (333,951) Cash and cash equivalents at beginning of year 67,475,106 72,733,063 50,839,607 49,688,683 Cash and cash equivalents at end of year (Note 14) 61,149,116 67,475,106 46,142,685 50,839,607 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. Statements of Cash Flows For the Year Ended 31 December 2020