Consolidated Statement of Cash Flows

PwC Holdings Ltd and its Subsidiaries

For the nancial year ended 31 December 2011

Note 2011 2010

$’000 $’000

Cash ows from operating activities

Total prot 31,995 18,114

Adjustments for:

- Income tax expense 14,939 7,437

- Employee share option expense 690 622

- Amortisation, depreciation and impairment

23,204 10,097

- Gain on disposal of property, plant and equipment (17) (8)

- Impairment loss on available-for-sale nancial assets 575 –

- Net gain on disposal of available-for-sale nancial assets (200) –

- Reclassication adjustments from hedging reserve to prot or loss (230) (354)

- Loss on disposal of a subsidiary 945 –

- Fair value loss/(gain) on investment property 123 (50)

- Interest income

(1,180) (620)

- Dividend income

(2,230) (400)

- Finance expenses

9,812 7,884

- Share of loss/(prot) of associated companies 174 (145)

- Unrealised currency translation losses/(gains)

6.7

970 1,001

79,570 43,578

Change in working capital, net of effects from

acquisition and disposal of subsidiaries:

- Inventories and construction work-in-progress (7,887) 1,031

- Trade and other receivables (6,986) 1,117

- Financial assets, at fair value through prot or loss (2,651) (500)

- Trade and other payables (8,527) 526

- Provisions for liabilities and other charges (308) 39

Cash generated from operations

53,211 45,791

Interest received

35 13

Interest paid

(5,789) (9,574)

Income tax paid (15,504) (10,974)

Net cash provided by operating activities 31,953 25,256

Cash ows from investing activities

Acquisition of a subsidiary, net of cash acquired 47 (13,400) –

Additions to property, plant and equipment

(9,565) (6,042)

Additions to investment property (288) (2,040)

Additions of intangible assets (2,813) (700)

Purchases of available-for-sale nancial assets (3,956) (691)

Purchases of held-to-maturity nancial assets (472) (372)

Disposal of a subsidiary, net of cash disposed of 13 179 –

Disposal of property, plant and equipment 4,974 2,995

Disposal of investment property 70 –

Disposal of available-for-sale nancial assets 300 –

Loans to an associated company (1,455) (547)

Repayment of loans by an associated company 63 98

Dividends received

2,230 396

Interest received

2,290 346

Net cash used in investing activities (21,843) (6,557)

Reference

FRS 7(1)

SGX 1207(5)(c)

FRS 7(10,18(b))

FRS 7(20)(b-c)

FRS 7(31-34)

FRS 7(25,26)

FRS 7(20)(a)

FRS 7(31)

FRS 7(35)

FRS 7(21)

FRS 7(39,42)

FRS 7(16(a),43)

FRS 7(16)(a)

FRS 7(16)(c)

FRS 7(39,42)

FRS 7(16)(b)

FRS 7(16)(d)

FRS 7(16)(e)

FRS 7(16)(f)

FRS 7(31)

Theaccompanyingnotesformanintegralpartofthesenancialstatements.

Statement of Cash Flows

Illustrative Annual Report 2011 73

Statement of Cash Flows

PwC Holdings Ltd and its Subsidiaries

Consolidated Statement of Cash Flows

For the nancial year ended 31 December 2011

Note 2011 2010

$’000 $’000

Cash ows from nancing activities

Proceeds from issuance of ordinary shares 9,884 –

Proceeds from re-issuance of treasury shares 983 –

Share issue expense

(414) –

Proceeds from issuance of convertible bond 50,000 –

Proceeds from issuance of redeemable preference

shares to immediate holding corporation – 30,000

Proceeds from borrowings 8,500 18,000

Purchase of treasury shares (2,072) (900)

Repayment of borrowings (71,434) (36,745)

Repayment of lease liabilities (165) (93)

Interest

(3,180) (450)

Dividends paid to equity holders of the Company (10,102) (15,736)

Dividends paid to non-controlling interests (1,920) (550)

Net cash used in nancing activities (19,920) (6,474)

Net (decrease)/increase in cash and cash equivalents (9,810) 12,225

Cash and cash equivalents

Beginning of nancial year 13 29,548 17,387

Effects of currency translation on cash and

cash equivalents

(578) (64)

End of nancial year 13 19,160 29,548

Reference

FRS 7(21)

FRS 7(17)(a)

FRS 7(17)(a,c)

FRS 7(17)(c)

FRS 7(17)(b)

FRS 7(17)(d)

FRS 7(17)(e)

FRS 7(31)

FRS 7(45)

FRS 7(28)

FRS 7(45)

Theaccompanyingnotesformanintegralpartofthesenancialstatements.

PwC Holdings Ltd and its Subsidiaries

Consolidated Statement of Cash Flows

For the nancial year ended 31 December 2011

Guidance notes

Consolidated statement of cash ows

Direct method

1. An entity can present its statement of cash ows using the direct or indirect method;

the latter is illustrated in this publication. When the direct method is used, the cash

ows from operating activities shall be presented as follows:

2011 2010

$’000 $’000

Cash ows from operating activities

Cash receipts from customers 205,483 143,507

Cash paid to suppliers and employees (152,272) (97,716)

Cash generated from operations 53,211 45,791

Interest received 35 13

Interest paid (5,789) (9,574)

Income taxes paid (15,504) (10,974)

Net cash provided by operating activities 31,953 25,256

The rest of the “direct method” consolidated statement of cash ows is similar to that

of the indirect method.

Discontinued operations

2. Non-cash items excluded from prot for purposes of the statement of cash ows

should include those non-cash items attributed to discontinued operations.

Dividends and interest

3. Cash ows from interest received and paid and dividends received shall each be

disclosed separately, and classied consistently period to period.

The interest amounts to be adjusted against prot after tax are the amounts charged

or credited to prot or loss. The amounts to be shown under nancing or investing

cash ows shall be strictly cash paid or received during the period; differences will be

reected in the changes in operating assets and liabilities or as additions to qualifying

assets if interest has been capitalised in the cost of these assets.

Reference

FRS 7(18)(a)

FRS 7 App A

FRS 7(19)

FRS 7(31-34)

Additions to property, plant and equipment

4. Additions to property, plant and equipment in the statement of cash ows should be

net of hedging gains/losses transferred from hedging reserve.

Reconciliation from prot after tax to cash generated from operations

5. As an alternative, an entity can present the reconciliation in the notes to the nanc

ial

statements.

Statement of Cash Flows

Illustrative Annual Report 2011 75

PwC Holdings Ltd and its Subsidiaries

Consolidated Statement of Cash Flows

For the nancial year ended 31 December 2011

Guidance notes

Currency translation differences

6. The adjustment of total prot for unrealised currency translation losses/(gains)

usually includes currency translation differences on monetary items that form part of

investing or nancing activities such as long term loans. This is because these currency

translation differences are included as a part of prot or loss for the nancial year and

need to be eliminated in arriving at the net cash ows from operating activities, as

they do not relate to operating activities.

On the other hand, unrealised currency translation differences on monetary items that

form part of operating activities, such as trade receivables or payables, do not usually

require such adjustment, as they are already adjusted through the change in working

capital lines.

7. Currency translation differences that arise on the translation of foreign currency

cash and cash equivalents should be reported in the statement of cash ows in order

to reconcile opening and closing balances of cash and cash equivalents, separately

from operating, nancing and investing cash ows.

Proceeds from share/treasury share issuance

8. Major classes of cash receipts and cash payments arising from investing and nancing

activities should be reported on a gross basis, except for the cash ows described in

FRS 7(22) and FRS 7(24) which are reported on a net basis.

Under FRS 7(22), cash ows arising from the following operating,investing or nancing

activities may be reported on a net basis:

(a) Cash receipts and payments on behalf of customers when the cash ows reect the

activities of the customer rather than those of the entity; and

(b) Cash receipts and payments for items in which the turnover is quick, the amounts are

large, and maturities are short.

Reference

FRS 7(28)

FRS 7(21)

FRS 7(22)

Under FRS 7(24), cash ows arising from the following activities of a nancial

institution may be reported on a net basis:

(a) Cash receipts and payments for the acceptance and repayment of deposits within a

xed maturity date;

(b) The placement of deposits with and withdrawal of deposits from other nancial

institutions; and

and loans.

FRS 7(24)

Statement of Cash Flows