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CONSOLIDATED STATEMENT OF CASH FLOWS (cont’d)2000 1999NOTE $’000 $’000Cash flows before extraordinary item 607,060 371,723Income tax paid (87,633) (75,718)Exchange difference on operating activities (2,170) (1,198)Net cash from operating activities 517,257 294,807CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of fixed assets 1,543 1,029Proceeds from sale of associated companies 112,031 13,222Dividends from associated companies 3,838 12,600Dividends from investments 1,750 657Proceeds from sale and maturity of investments 22,692 6,785Capital contribution from minority shareholders of a subsidiary 2,726 –Purchase of fixed assets (56,664) (48,955)Purchase of investments (48,754) (12,029)Additional investment/acquisition of associated companies and joint ventures (61,045) (4,712)Acquisition of subsidiaries 200,723 (249)Loans to associated companies and joint ventures – 10,274Loans to staff and third parties 4,082 7,755Loans to minority shareholders 976 –Exchange difference on investing activities (3,063) 1,245Net cash from (used in) investing activities 180,835 (12,378)SUMMARY OF EFFECT OF CHANGES ON ACQUISITION OFSUBSIDIARIES:During the financial year, the Group acquired the entireissued and paid-up share capital of Founders IndustriesPte Ltd and its subsidiaries from Singapore TechnologiesPte Ltd for an aggregate cash consideration of $268 millionon the terms and conditions of the Sale and PurchaseAgreement dated 22 October 1999 through SingaporeTechnologies Kinetics Ltd (formerly known as SingaporeTechnologies Automotive Ltd).The acquisition in respect of prior year relates to STAerospace Engineering Pte Ltd acquiring a 100% equityinterest in Pacific Flight Services Pte Ltd for a considerationof $987,015.2000 1999$’000 $’000Net Assets acquired:Minority interest 38 –Goodwill on acquisition 23,883 –Fixed assets 57,485 73Long-term investments 144,639 –Associated companies and joint ventures 6,528 –Loan receivable, non-current 347 –Current assets 852,443 2,622Current liabilities (795,880) (1,708)Non-current liabilities (21,483) –Purchase consideration 268,000 987Less cash and cash equivalents acquired:Cash and bank balances, net of bank overdrafts (19,067) (312)Fixed deposits with financial institutions (59,144) (426)Floating rate notes (142,000) –Short-term loans to a related corporation (248,512) –Cash flow on acquisition, net of cash and cash equivalents acquired (200,723) 249CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of shares 18,397 6,781Proceeds from issue of shares to minority shareholders of a subsidiary – 350Repayment of long-term bank loan (6,182) (6,508)Repayment of lease obligations (25) (628)Proceeds from short-term bank loans, net of repayment (684) 11,703Dividend paid to shareholders of the Company (196,798) (142,590)Dividend paid to minority shareholders of subsidiaries (5,708) (1,496)Exchange difference on financing activities 746 –Net cash used in financing activities (190,254) (132,388)NET INCREASE IN CASH AND CASH EQUIVALENTS 507,838 150,041CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,107,786 1,957,368EXCHANGE DIFFERENCE ON CASH AND CASH EQUIVALENTSAT BEGINNING OF THE YEAR 1,018 377CASH AND CASH EQUIVALENTS AT END OF YEAR 42 2,616,642 2,107,786The accompanying notes are an integral part of the financial statements.124 • visionconsolidated statement of cash flows • 125