Prhatin Bhd Group: Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March

Revenue Cost of sales Gross profit Operating expenses Gains on revaluation of financial assets Finance costs Profit/(loss) before taxation Income tax expenses Profit for the year Profit for the year attributable to: Owners of the parent Non-controlling interests Profit for the year

2021 RM’Million 18,410 (15,200) ------------- 3,210 (3,750) 20 (49) ------------- (569) (80) ------------- (649) ------------ (654) 5 ------------ (649) ------------

2020 RM’Million 16,200 (11,100) ------------- 5,100 (3,600) 40 (33) ------------- 1,507 (180) ------------- 1,327 ------------ 1,327 - ------------ 1,327 ------------

Non-current assets Property, plant & equipment Intangible assets Goodwill Financial assets Current assets Inventory Trade receivables Bank Total assets Equity: Equity shares Retained earnings Non-controlling interest Non-current liabilities 6% Bonds 2025 Current liabilities Trade payables and provision Bank overdraft Current tax payable Total equity and liabilities

2021 RM’Million 2,360 350 60 210 ------------- 2,980 400 460 - ------------- 860 ------------- 3,840 ======== 1,400 504 -------------1,904 50 ------------- 1,954 1,180 466 160 80 ------------- 706 ------------- 3,840 ========

2020 RM’Million 2,400 350 - 180 ------------- 2,930 275 340 230 ------------- 845 ------------- 3,775 ======== 1,300 1,205 -------------2,505 - ------------- 2,505 900 280 - 90 ------------- 370 ------------- 3,775 ========

1. The number of shares issued and fully paid of Prihatin Group is 1,400,000 shares and 1,300,000 shares as at 31^st March 2021 and 31^st March 2020 respectively.
2. On 1 April 2020, Prihatin bought an 80% stake in another entity, Sempurna Bhd. The cost of this stake was RM200 million satisfied by Prihatin issuing 48 million equity shares valued at RM1.00 each and RM152 million in cash. The fair value of the net assets acquired on the acquisition date was RM180 million, consisting of the following:

RM’Million

Property, plant & equipment 120

Intangible assets 30

Inventory 25

Cash 20

Trade payables (15)

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180

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3. The fair value of the non-controlling interest at the acquisition date was RM47 million. Prihatin Bhd uses the full goodwill method in all acquisitions. Goodwill was impairment tested at 31 March 2021 and any impairment loss was correctly accounted for through operating expenses.
4. There were no disposals of non-current assets during the period. No intangible assets were acquired through the acquisition of Sempurna Bhd. Depreciation of property, plant & equipment amounted to RM207 million, charged to operating expenses. Amortisation of intangible assets was also charged to operating expenses.
5. There were no non-cash adjustments to the 6% Bonds.
6. Included in the figure for trade payables and provisions at 31 March 2021 is a provision for warranty claims amounting to RM27 million (2020: RM14 million).
7. Equity dividends were paid during the period by Prihatin and Sempurna.

Required:

Prepare Prihatin Group’s Consolidated Statement of Cash Flows for the period ending 31 March 2021. All relevant and supporting workings have to be shown.

Answer rating: 100% (QA)

Prihatin Group Consolidated Statement of Cash Flows For the year ended 31 March 2021 RMMillion Cash ... View the full answer