Notes to the Cash Flow Statement (direct method and indirect method)

1. Acquisition of Subsidiary

   During the period the group acquired subsidiary X. The fair value of assets acquired and liabilities assumed were as follows:

(RM) Cash 40 Inventories 100 Accounts receivable 100 Property, plant and equipment 650 Trade payables (100) Long-term debt (200) Total purchase price ------------- 590 Less: Cash of X (40) Cash flow on acquisition net of cash acquired ------------- 550 =====

1. Property, Plant and Equipment

   During the period, the Group acquired property, plant and equipment with an aggregate cost of RM1,250 of which RM900 was acquired by means of finance leases. Cash payments of RM350 were made to purchase property, plant and equipment.

2. Cash and Cash Equivalents

   Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:

20-00 20-01   (RM) (RM) Cash on hand and balances with banks 40 25 Short-term investments 370 135 Cash and cash equivalents as previously reported ------------- 410 ------------- 160 Effect of exchange rate changes - (40) Cash and cash equivalents as restated ------------- 410 ===== ============ ------------- 120 ===== ============

Cash and cash equivalents at the end of the period include deposits with banks of RM100 held by a subsidiary which are not freely remissible to the holding company because of currency exchange restrictions.

The Group has undrawn borrowing facilities of RM2,000 of which RM700 may be used only for future expansion.

3. Segment Information
   
   

   Segment Segment Total   A B     (RM) (RM) (RM) Cash flows from: ========== ========== ========== Operating activities 1,700 (140) 1,560 Investing activities (640) 160 (480) Financing activities (570) (220) (790)   ------------ 490 ------------ ------------ (200) ------------ ------------ 290 ------------

   Alternative Presentation (indirect method)

   As an alternative, in an indirect method cash flow statement, operating profit before working capital changes is sometimes presented as follows:

   (RM) Revenues excluding investment income 30,650 Operating expense excluding depreciation (26,910) Operating profit before working capital changes ------------ 3,740 ------------ ==========

   
   

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