Statement of Cash Flows for the year ended 31 December 2018Note 2018 2017 RM’000 RM’000Cash flows from operating activitiesCash receipts from customers and other receivables 1,057,1031,047,700Cash paid to suppliers and employees (896,760)(959,633)Cash generated from operations160,34388,067Income tax paid (39,893)(44,981)Net cash from operating activities120,450 43,086Cash flows from investing activitiesPurchase of property, plant and equipment 3 (34,263)(15,683)Purchase of intangible assets 4 (15)(597)Interest received 8573,109Net cash used in investing activities(33,421)(13,171)Cash flows from financing activitiesInterest paid (3,431)(2,995)Dividends paid 17 (128,000)(179,200)Net cash used in financing activities(131,431)(182,195)Net decrease in cash and cash equivalents (44,402)(152,280)Cash and cash equivalents at 1 January 61,339213,619Cash and cash equivalents at 31 December7 16,93761,339Note to the statement of cash flowsCash flows from financing activities mainly arose from interest paid to a licensed financial institution to enable certain trade customers to pay goods invoiced through a corporate Page 8
Financial Accounting IVpurchasing card issued by the financial institution, and dividends paid on ordinary shares. None of these relate to a change in liabilities.Explanation of the items and changes in the cash flow statement of the company selected. Dutch Lady Milk Industries Berhad is a public limited liability company, incorporated anddomiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad.1. Basis of Preparation(a) Statement of compliance.The financial statements of the Company have been prepared in accordance withMalaysian Financial Reporting Standards (“MFRSs”), International Financial ReportingStandards and the requirements of the Companies Act 2016 in Malaysia. The financialstatements have been prepared under the historical cost convention, as modified by thefair value through other comprehensive income financial assets, and financial assets andfinancial liabilities (including derivative instruments) at fair value through profit or loss.The Company has applied the following standards and amendments for the first time for thefinancial year beginning on 1 January 2018:MFRS 9, Financial InstrumentsoThe Company applied MFRS 9 ‘Financial Instruments’ for the first time in the2018 financial statements with the date of initial application of 1 January 2018.The standard is applied retrospectively. In accordance with the transitionalprovisions provided in MFRS 9, comparative information for 2017 was notrestated and continued to be reported under the previous accounting policiesgoverned under MFRS 139. The cumulative effects of initially applying MFRS 9were immaterial and hence no adjustment was made to the opening balance ofretained earnings as at 1 January 2018. The detailed impact of the change inaccounting policy on financial instruments is disclosed in Note 19.4 underChanges to Loss Allowance.