Tropicana Corporation Berhad Annual Report 2017

SEC 1 • SEC 2 • SEC 3 • SEC 4 • SEC 5 > SEC 6 < SEC 1 • SEC 2 • SEC 3 • SEC 4 • SEC 5 > SEC 6 < FINANCIAL STATEMENTS FINANCIAL STATEMENTS 98 99 TROPICANA CORPORATION BERHAD / Annual Report 2017 TROPICANA CORPORATION BERHAD / Annual Report 2017 Note 2017 RM’000 2016 RM’000 Cash flows from operating activities Profit before tax 576,535 78,710 Adjustments for: Depreciation of property, plant and equipment 9 395 485 Finance income 7 (37,983) (41,376) Finance costs 8 45,136 38,169 Impairment loss on trade and other receivables 9 - 3,092 Impairment loss on investments in subsidiaries 9 184,898 80,306 Reversal of impairment loss on trade and other receivables 6 (108,780) - Waiver of debts to subsidiaries 9 1,893 - Waiver of debts from subsidiaries 6 (47,629) - Dividend income 4 (625,760) (180,001) Operating loss before working capital changes (11,295) (20,615) Changes in working capital: Receivables 16,960 (184,563) Payables (72,634) 139,547 Cash used in operations (66,969) (65,631) Finance costs paid (43,784) (38,278) Net tax paid (2,646) (1,736) Net cash used in operating activities (113,399) (105,645) Cash flows from investing activities Purchase of property, plant and equipment 15(d) (44) (265) Finance income received 32,894 36,167 Proceeds from additional subscription of shares in subsidiaries, net of expenses (4,562) (5,341) Net cash from investing activities 28,288 30,561 Cash flows from financing activities Drawdown from borrowings 95,172 119,317 Repayment of borrowings (111,189) (79,449) Placements of debt service reserve, escrow accounts and deposits with licensed banks not available for use (6,729) 218,621 Purchase of treasury shares (3,683) (8,150) Payment of borrowings costs (216) (4,686) Dividends paid to shareholders of the Company (42,716) (28,606) Net cash (used in)/from financing activities (69,361) 217,047 Net (decrease)/increase in cash and cash equivalents (154,472) 141,963 Cash and cash equivalents at beginning of financial year 159,172 17,209 Cash and cash equivalents at end of financial year 25 4,700 159,172 The accompanying accounting policies and explanatory information form an integral part of the financial statements. STATEMENT OF CASH FLOWS - COMPANY For the financial year ended 31 December 2017 NOTES TO THE FINANCIAL STATEMENTS As at 31 December 2017 1. CORPORATE INFORMATION Tropicana Corporation Berhad (“the Company”) is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office of the Company is located at LG-A1, Lower Ground Floor, Tropicana City Mall, No. 3 Jalan SS20/27, 47400 Petaling Jaya, Selangor Darul Ehsan. The principal place of business of the Company is located at Level 2, 7, 9, 10-12, Tropicana City Office Tower, No. 3, Jalan SS20/27, 47400 Petaling Jaya, Selangor Darul Ehsan. The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries, associate and joint ventures are disclosed in Notes 18, 19 and 20 respectively. There have been no significant changes in the nature of these principal activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 9 April 2018. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the Financial Reporting Standards (“FRSs”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. 2.2 Changes in accounting policies arising from adoption of new amendments to FRSs The accounting policies adopted by the Group and the Company are consistent with those of the previous financial year, except for the adoption of the following new amendments to FRSs which are mandatory for annual financial periods beginning on or after 1 January 2017. Effective for annual periods beginning on or after 1 January 2017: Amendment to FRS 12 Disclosure of Interests in Other Entities (Annual Improvements to FRSs 2014-2016 Cycle) Amendments to FRS 107 Disclosure Initiative Amendments to FRS 112 Recognition of Deferred Tax for Unrealised Losses The adoption of the above amendments to FRSs did not result in material impact to the financial statements of the Group and of the Company. 2.3 Malaysian Financial Reporting Standards (“MFRS”) The Group and the Company will be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 December 2018. In presenting its first MFRS financial statements, the Group and the Company will be required to restate the comparative financial statements to amounts reflecting the application of MFRS Framework. The majority of the adjustments required on transition will be made, retrospectively, against opening retained earnings. TROPICANA CORPORATION BERHAD Annual Report 2017 ABOUT TROPICANA STRATEGIC PERFORMANCE LEADERSHIP SUSTAINABILITY GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION