MISC Integrated Annual Report 2020

Corporation Note 2020 2019 RM’000 RM’000 CASH FLOWS FROM INVESTING ACTIVITIES Net cash generated from investing activities 31 1,889,820 1,958,663 CASH FLOWS FROM FINANCING ACTIVITIES Net cash used in financing activities 32 (1,917,700) (2,714,093) Net (decrease)/increase in cash and cash equivalents (1,196,650) 889,585 Cash and cash equivalents at beginning of financial year 2,817,049 1,957,819 Currency translation differences 548 (30,355) Cash and cash equivalents at end of financial year 1,620,947 2,817,049 Cash and cash equivalents comprise: Cash, deposits and bank balances 24 1,620,947 2,817,049 Total cash outflows for leases - Lease liabilities 13,896 13,288 - Short term leases and leases of low-value assets 5,632 4,335 19,528 17,623 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. For the year ended 31 December 2020 STATEMENTS OF CASH FLOWS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 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 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 40, 41 and 42 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 23 February 2021. 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. 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 2020 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: Effective for annual periods beginning on or after 1 January 2020 • Amendments to MFRS 3: Business Combinations (Definition of a Business) • Amendments to MFRS 7: Financial Instruments: Disclosures (Interest Rate Benchmark Reform) • Amendments to MFRS 9: Financial Instruments (Interest Rate Benchmark Reform) • Amendments to MFRS 16: Leases (COVID-19 Related Rent Concessions) • Amendments to MFRS 101: Presentation of Financial Statements (Definition of Material) • Amendments to MFRS 108: Accounting Policies, Changes in Accounting Estimates and Errors (Definition of Material) • Amendments to MFRS 139: Financial Instruments: Disclosure (Interest Rate Benchmark Reform) 10 330 10 331 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020