Page 100 - HRC_Annual_Report_2023

98 About HRC Value Creation Management Discussion Leadership
& Analysis

STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

Note 2023 2022
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation (499,960) (394,382)
Adjustments for:
Interest expense 110,488 53,526
Interest income (15,456) (20,471)
Depreciation of property, plant and equipment 134,761 102,809
Depreciation of right-of-use assets 6,540 7,466
Amortisation of intangible assets 2,605 2,723
Reversal of provision for obsolete inventories (171) -
Inventories (written back)/written down (19,698) 82,989
Impairment of receivables 169 -
Impairment of equipment - 12,108
Amortisation of upfront and commitment fees for borrowings 3,387 2,563
Gain on modification of lease contracts (15) -
Net fair value losses/(gains) on derivative financial instruments - unrealised 54,483 (75,665)
Net foreign exchange losses/(gains) - unrealised 75,918 (126,694)
Operating loss before changes in working capital (146,949) (353,028)
Changes in working capital:
Inventories 130,376 (12,286)
Trade and other receivables 457,347 (129,057)
Trade, other payables, contract liabilities and amounts due to penultimate
holding company, immediate holding company and related company (477,205) 502,633
Cash (used in)/generated from operations (36,431) 8,262
Interest received 15,456 20,471
Tax paid (4,311) (12,171)
Tax refund 174 -
Net cash flows (used in)/generated from operating activities (25,112) 16,562

CASH FLOWS FROM INVESTING ACTIVITIES
Additions of property, plant and equipment (244,612) (150,113)
Acquisitions of intangible assets - (290)
Net cash flows used in investing activities (244,612) (150,403)

The accompanying notes to the financial statements form an integral part of these financial statements.