Page 83 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 81

stateMent of casH floWs

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

note 2020 2019
rM’000 rM’000
casH floWs froM operatinG actiVities
Profit before taxation 255,684 146,620
Adjustments for:
Interest expense 21,940 22,350
Interest income (6,217) (2,262)
Depreciation of property, plant and equipment 109,128 121,849
Depreciation of right-of-use assets 7,518 8,149
Amortisation of intangible assets 2,694 14,405
Write off of property, plant and equipment 80 2,879
Allowance for inventories, net - 369
Inventories written down 28,110 -
Provision for impairment of receivables 26,190 -
Amortisation of term loan commitment fees 177 166
Gain on modification of lease contract - (533)
Gain on disposal of property, plant and equipment - (33)
Net fair value (gains)/losses on derivative
financial instruments - unrealised (22,453) 48,590
Net foreign exchange losses/(gains) - unrealised 2,230 (1,914)
Reversal of impairment - (125,513)
Operating profit before changes in working capital 425,081 235,122
Changes in working capital:
Inventories 411,288 (263,079)
Trade and other receivables 159,285 398,641
Trade, other payables and amounts due to
immediate holding company and related company (566,945) 887,164*

Cash generated from operations 428,709 1,257,848
Interest received 6,217 2,262
Tax paid (161) (1,135)
Net cash flows generated from operating activities 434,765 1,258,975

casH floWs froM inVestinG actiVities
Additions of property, plant and equipment (208,739) (510,320)*
Acquisitions of intangible assets (1,068) (5,588)
Proceeds from disposal of property, plant and equipment - 33
Net cash flows used in investing activities (209,807) (515,875)

* An amount of RM58,008,000 relating to the movement of accruals for capital expenditure has been reclassified from
operating activities to investing activities to better reflect the nature of the expenditures.