60 <strong>Malaysian</strong> <strong>Biotechnology</strong> Corporation Sdn. Bhd. (Company No.691431-D) (Incorporated in Malaysia) Statement of changes in equity for the year ended <strong>2007</strong> Non-distributable Distributable Share Accumulated capital losses Total RM RM RM At 1 January 2006 25,000,002 (6,632,334) 18,367,668 Issue of shares during the year 45,000,000 - 45,000,000 Net loss for the year - (24,626,083) (24,626,083) At 31 December 2006 / 1 January <strong>2007</strong> 70,000,002 (31,258,417) 38,741,585 Net profit for the year - 360,877 360,877 At 31 December <strong>2007</strong> 70,000,002 (30,897,540) 39,102,462 The notes on pages 63 to 76 are an integral part of these financial statements. Note 8
<strong>Malaysian</strong> <strong>Biotechnology</strong> Corporation Sdn. Bhd. (Company No.691431-D) (Incorporated in Malaysia) Cash flow statement for the year ended 31 December <strong>2007</strong> <strong>2007</strong> 2006 RM RM Cash flows from operating activities Profit/(Loss) before taxation Adjustments for: 360,877 (24,626,083) Amortisation of government grants (36,661,743) (443,896) Depreciation 1,085,878 502,697 Interest income (1,341,905) (452,975) Interest expense 16,299 13,680 Loss from equipment written off - 715 Provision for accumulating compensated expenses (42,447) 186,330 Operating loss before working capital changes (36,583,041) (24,819,532) Changes in working capital: Other receivables, deposits and prepayments (2,890,453) (1,042,039) Other payables and accruals 1,713,703 2,758,597 Net cash used in operating activities (37,759,791) (23,102,974) Cash flows from investing activities Purchase of property, plant and equipment (4,253,086) (1,405,100) Acquisition of technology license (3,241,925) - Interest received 2,044,436 597,783 Insurance compensation from loss of equipment - 4,750 Net cash used in investing activities (5,450,575) (802,567) Cash flows from financing activities Proceeds from issuance of ordinary shares - 45,000,000 Developmental government grants received 108,255,000 20,000,000 Non-developmental government grants received 38,500,000 - Commercialisation grants disbursed (1,149,361) - Hire purchase repayments (101,853) (75,455) Interest paid (16,299) (13,680) Net cash generated from financing activities 145,487,487 64,910,865 Net increase in cash and cash equivalents 102,277,121 41,005,324 Cash and cash equivalents at beginning of year 57,655,091 16,649,767 Cash and cash equivalents at end of year 159,932,212 57,655,091 61