MAGNUM BERHAD (24217-M) Annual Report 2017 91

Consolidated statement of
cash flows
For the financial year ended 31 December 2017

2017 2016
Group RM’000 RM’000

Operating activities
Profit before tax 306,626 284,490
Adjustments for:
Depreciation of property, plant and equipment 7,213 6,392
Depreciation of investment property 27 -
Finance costs 49,399 51,822
Amortisation of intangible assets 15 15
Gain on disposal of:
- property, plant and equipment (138) (237)
- investment securities - (237)
Interest income (15,197) (15,778)
Dividend income (533) (542)
Property, plant and equipment written off 34 194
Impairment loss of property, plant and equipment 303 -
Reversal of provision for defined benefit plan - (1,085)
(Reversal)/allowance for impairment loss:
- trade receivables (179) 302
- other receivables 166 -
Bad debts written off - 3
Realisation of fair value loss on AFS investments
upon maturity 284 -
Unrealised loss/(gain) on foreign exchange 1,361 (1,009)
Net loss/(gain) arising from fair value change in
investment securities 4,914 (519)

Operating cash flows before changes in working capital 354,295 323,811

Changes in working capital:
Decrease in inventories 128 52
(Increase)/decrease in receivables (1,808) 5,896
Increase in payables 7,823 12,510

Cash flows generated from operations 360,438 342,269

Net income tax paid (63,455) (103,214)
Real Property Gains Tax paid - (124)

Net cash flows generated from operating activities 296,983 238,931

92 MAGNUM BERHAD (24217-M) Annual Report 2017

Consolidated Statement Of
Cash Flows (cont’d.)
For The Financial Year Ended 31 December 2017

2017 2016
Group RM’000 RM’000

Investing activities
Proceeds from disposals of:
- property, plant and equipment 155 344
- investment securities 13,000 46,763
Purchase of:
- additional shares in a subsidiary from
non-controlling interests (211) -
- property, plant and equipment (11,206) (11,161)
- investment securities (13,089) (1,172)
Dividend received from quoted shares 533 542
Interest received 13,895 14,409
Movement in fixed deposits with licensed bank (8) (8)
Movement in cash deposits pledged (480) (603)

Net cash flows generated from investing activities 2,589 49,114

Financing activities
Net repayment of medium term notes (175,000) -
Dividends paid to:
- shareholders (142,296) (192,104)
- non-controlling interests (2,303) (3,606)
Purchase of own shares (17) (322)
Interest paid (49,899) (49,715)

Net cash flows used in financing activities (369,515) (245,747)

Net (decrease)/increase in cash and cash equivalents (69,943) 42,298
Cash and cash equivalents at 1 January 377,362 335,064

Cash and cash equivalents at 31 December (Note 19) 307,419 377,362

The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
 MAGNUM BERHAD (24217-M) Annual Report 2017 93

statement of
cash flows
For the financial year ended 31 December 2017

2017 2016
Company RM’000 RM’000

Operating activities
Profit before tax 134,688 190,296
Adjustments for:
Loss/(gain) arising from fair value change in
investment securities 4,914 (519)
Unrealised loss/(gain) on foreign exchange 697 (997)
Allowance for impairment loss:
- other receivables 166 -
- subsidiaries 341 -
Dividend income (143,233) (190,542)
Investment cost in a subsidiary written off - 2
Gain on disposal of investment securities - (12)
Finance costs 544 544
Interest income (1,512) (1,583)

Operating cash flows before changes in working capital (3,395) (2,811)

Changes in working capital :
Decrease in receivables 249 27
Increase/(decrease) in payables 39 (147)
Inter-company balances (405) 2,442

Cash flows used in operations (3,512) (489)

Net tax paid (373) (545)

Net cash flows used in operating activities (3,885) (1,034)

Investing activities
Additional investment in a subsidiary - (784)
Proceeds from disposal of investments securities - 647
Dividends received 143,233 190,542
Interest received 152 223

Net cash flows generated from investing activities 143,385 190,628

Financing activities
Dividends paid (142,296) (192,104)
Purchase of own shares (17) (322)

Net cash flows used in financing activities (142,313) (192,426)

Net decrease in cash and cash equivalents (2,813) (2,832)
Cash and cash equivalents at 1 January 3,864 6,696

Cash and cash equivalents at 31 December (Note 19) 1,051 3,864

The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.