Annual Report 2005 - Leeden Limited

Consolidated Statement of Cash Flowsfor the financial year ended 31 December 20052005 2004$’000 $’000Cash flow from financing activities :Proceed from issuance of ordinary shares – 1,133Payments of loans and amounts due to bankers (excluding bank overdrafts) (940) (418)Net decrease in hire purchase creditors (760) (459)Net cash (used in)/provided by financing activities (1,700) 256Net increase in cash and cash equivalents 2,813 2,535Cash and cash equivalents at beginning of year 1,849 (686)Cash and cash equivalents at end of year (Note 25) 4,662 1,849Note AOn 1 May 2005, the fair values of net assets assumed of a subsidiary company that was previously an associated company arising from thecontrol over the board of directors and management control, and the cash fl ow effect was as follows :$’000Development property completed for safe 32,861Debtors 203Cash and bank balances 448Amount due to corporate shareholders (9,927)Amount due to bankers (13,279)Creditors (8,841)1,46550% minority interests 733Add : Contribution to the Group’s NTA (732)–Cash and bank balances acquired 448Net cash infl ow on acquisition 44827ACE DYNAMICS LIMITEDOn 22 July 2005, the Group paid $1 to acquire the remaining 50% of the minority interest. Arising from the acquisition, managementassessed that a further $1,098,000 was required to be provided as foreseeable losses on the development property completed for sale.Consequently, the negative goodwill of $184,000 is taken directly to capital reserve based on the entity concept.The effect of the consolidation of a subsidiary company on the fi nancial position of the Group at31 December 2005 and its results for the year is shown below:Total assets at 31 December 2005 9,211Total liabilities at 31 December 2005 8,845Contribution to the Group for the year :- turnover 5,549- profi t before tax (1,098)If the consolidation had occurred on 1 January 2005, the contribution to the Group’s turnover and profi t before tax would have been$9.5 million and ($1.1) million respectively.Note BThe disposal of a subsidiary company has been shown in the statement as a single item. The effect on the individual assets and liabilities isset out below :Disposal$’000Debtors 68Cash and bank balances 6Creditors (9)Amount due to related companies (107)(42)Gain on disposal of subsidiary company 47Sales consideration settled by cash 5Less : Cash disposed (6)Net cash outfl ow on disposal (1)The accompanying accounting policies and explanatory notes form an integral part of the financial statements.ANNUAL REPORT 2005