Question
Statement of Cash flows Analysis
Analyze the statement of cash flows of the companies and find the answers of the followings
1. Are cash flows from operations positive? What is the trend for three years?
2. Is operating cash flows smaller or larger than net income?
Extracted text: Al Kout Industrial Projects Company K.P.S.C. and its Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2019 2019 KD 2018 Notes KD OPERATING ACTIVITIES Profit before tax and directors' remuneration 5,025,951 6,679,525 Adjustments to reconcile profit before tax to net cash flows: Depreciation of property, plant and equipment Depreciation on right-of-use assets Amortisation of an intangible asset Loss on sale of property, plant and equipment Impairment of an intangible asset Allowance for expected credit losses on trade receivables Share of results of an associate Impairment of investment in an associate Changes in fair value of financial assets at fair value through profit or loss Dividend income 8 3,247,976 254,720 70,800 3,175,711 35,400 1,745 13 10 10 247,800 38,110 (105,724) 892,555 109,016 (228,762) (220,133) (53,600) 308,210 73,273 17,917 529,686 (53,250) 299,225 191,202 Provision for employees' end of service benefits Finance costs 20 Interest expense on lease liabilities 9,797,855 10,739,498 Working capital adjustments: Inventories Trade receivables and contract assets (103,545) 297,751 616,828 241,804 (391,257) (68,429) (1,237,125) 1,223,639 Prepayments and other receivables Accounts payable and accruals Cash flows from operations Taxes paid Employees end of service benefits paid 10,850,693 (165,057) (317,673) 10,266,326 (268,633) (156,241) 20 Net cash flows from operating activities 10,367,963 9,841,452 INVESTING ACTIVITIES Purchase of property, plant and equipment Purchase of intangible asset Proceeds from disposal of property, plant and equipment Dividend income received (5,918,580) (2,373,119) (354,000) 26,920 53,250 (5,449,365) 8 53,600 Acquisition of a subsidiary, net of cash acquired 11 Net cash flows used in investing activities (5,864,980) (8,096,314) FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Finance costs paid Payment of principal portion of lease liabilities Dividends paid to equity holders of the Parent Company 500,000 6,000,000 (5,502,837) (191,202) (73,273) (262,998) (5,045,040) (5,045,040) Net cash used in financing activities (4,881,311) (4,739,079) NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at 1 January Net foreign exchange differences (378,328) (380,886) (2,310) (2,993,941) 2,608,676 4,379 CASH AND CASH EQUIVALENTS AT 31 DECEMBER 15 (761,524) (380,886) Non-cash items excluded from the statement of cash flows: Transitional adjustment to lease liabilities on adoption of IFRS 16 Transitional adjustment to property and equipment on adoption of IFRS 16 812,335 (812,335) Transitional adjustment to retained earnings on adoption of IFRS 9 Transitional adjustment to accounts receivable and other assets on adoption of 2,825,199 IFRS 9 (2,825,199)
Extracted text: QURAIN Qurain Petrochemical Industries Company K.S.C.P. and Subsidiaries CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2020 2020 2019 Notes KD KD OPERATING ACTIVITIES Profit before taxation and Board of Directors' remuneration 47,574,531 61,073,427 Adjustments to reconcile profit before taxation and Board of Directors' remuneration to net cash flows: Net unrealized / realised loss on financial assets at fair value through profit or loss Share of results of associates and joint venture (Gain) loss on sale of property, plant and equipment 357,897 (8,794,765) 11.650 (16,029,102) 2,035 38,931 9. Provision for slow moving and obsolete Inventory Impairment of property, plant and equipment 69,752 154,116 177,171 11 297.672 Write off of property, plant and equipment White Unwinding expense on contingent consideration payable 132.597 9,925 103,724 1,487,571 11,750,921 1,957,734 4,844,117 3,499,248 87,457 2.362,119 Unwinding Charge for expected credit losses on trade receivables 9,175 45.354 124,055 8,547,726 expense on non-controlling interest put option 6. Depreciation on Depreciation on right to use assets Amortisation fixed assets 11 10 6,049,441 2,512,975 75,807 2,122,531 Finance costs Share based payment expense Provision for employees' end of service benefits 23 65,641,518 65,014,274 Working capital adjustments: Trade and other receivables (26,647,562) (7,964,336) 748,353 5,178,060 1,677,235 8,499,830 Inventories Related party balances Trade and other payables 6,225,078 Cash from operations Taxation paid Board of Directors' remuneration paid Employees' end of service benefits paid Dividends received from associates 37,254,698 81,117,752 (1,251,908) (150,000) (2,539,760) (150,000) (1,399,698) 15,658,291 (1,659,997) 533,010 Net cash flows from operating activities 34,725,803 92,686,585 INVESTING ACTIVITIES Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Purchase Acquisition of subsidiary, net of cash acquired Investment in associate/ Joint venture (171,190) 6,535,443 (1,185,511) (3,025.664) 3,012,593 (455,785) 1,800,000 (950,415) (5,949,046) 260,852 (159,403) (39,765,300) (318,507) (13,497,574) 557,523 (3,212,000) e of additional interest in subsidiaries 25 9. Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net movement in time deposits 11 (16,220,314) 96,163 5 (7,400,000) Net cash flows used in investing activities (50,955,667) (29,092,468) FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Dividends Purchase of treasury shares Proceeds from issuance of treasury shares against ESOP Payment of finance costs Dividend paid to non-controlling interest of subsidiaries Payment of lease liabilities 50,135,000 (30,447,592) (15,664,189) 20,292,290 (31,173,249) (13,452,479) (1,179,140) 397.298 (2,512,975) (10,111,673) paid 14 (5,912,240) 239,308 (3,144,533) (11,047,107) (2,502,142) Net cash flows used in financing activities (18,343,495) (37,739,928) 1.014.097 (33,559,262) Effect of foreign currency translation (2,048.085) Net (decrease) increase in bank balances and cash 23,806,104 Bank balances and cash at 1 April 102,611,455 78,805,351 Bank balances and cash at 31 March 5 69,052,193 102,611,455