S TATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER <strong>2007</strong> Unappropriated Share Capital Profit / Ordinary Financial (Accumulated Shares Instruments* Loss) Total RM RM RM RM Group Balance as at 1 January <strong>2007</strong> 32,300,000 19,000,000 ( 2,625,014 ) 48,674,986 Issuance of shares 9,000,000 - - 9,000,000 Converted during the year 19,000,000 (19,000,000 ) - - Net profit for the financial year - - 18,851,521 18,851,521 Balance as at 31 December <strong>2007</strong> 60,300,000 - 16,226,507 76,526,507 Unappropriated Share Capital Profit / Ordinary Financial (Accumulated Shares Instruments* Loss) Total RM RM RM RM Company Balance as at 1 January 2006 2 - ( 8,266,347 ) ( 8,266,345 ) Issuance of shares 32,299,998 19,000,000 - 51,299,998 Net profit for the financial year - - 5,641,333 5,641,333 Balance as at 31 December 2006 32,300,000 19,000,000 ( 2,625,014 ) 48,674,986 Issuance of shares 9,000,000 - - 9,000,000 Converted during the year 19,000,000 ( 19,000,000 ) - - Net profit for the financial year - - 18,895,256 18,895,256 Balance as at 31 December <strong>2007</strong> 60,300,000 - 16,270,242 76,570,242 * Par value of Irredeemable Convertible Preference shares The above statements of changes in equity are to be read in conjunction with the accompanying notes to the financial statements. 23
C ASH FLOW STATEMENTS FOR THE YEAR ENDED 31 DECEMBER <strong>2007</strong> Group Company <strong>2007</strong> <strong>2007</strong> 2006 RM RM RM CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 19,026,182 19,080,563 5,653,907 Adjustments for : Amortisation of intangible assets 637,500 637,500 - Depreciation of property, plant and equipment 92,468 92,468 38,819 Deposits written off - - 2,125 Interest income ( 686,323) ( 686,323) ( 81,190) Operating profit before working capital changes 19,069,827 19,124,208 5,613,661 Changes in working capital : Increase in trade receivables ( 14,872,758) ( 7,060,220) ( 7,109,068) (Increase) / Decrease in other receivables and prepaid expenses ( 1,692,102) ( 1,692,102) 9,121,354 Increase in trade payables 11,382,312 3,328,560 - Increase / (Decrease) in other payables and accrued expenses 174,772 114,922 ( 9,378,284) Increase / (Decrease) in amount owing to holding company ( 33,950) ( 33,950) 69,840 Increase / (Decrease) in amount owing to related company ( 192,480) ( 192,480) 3,454,016 Increase in amount owing to subsidiary - 246,685 - Cash Generated From Operations 13,835,621 13,835,623 1,771,519 Interest income received 686,323 686,323 81,190 Development costs incurred ( 1,068,132) ( 1,068,132) ( 829,473) Tax paid ( 16,238) ( 16,238) - Net cash from operating activities 13,437,574 13,437,576 1,023,236 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment ( 708,183) ( 708,183) ( 755,484) Purchase of intangible assets ( 18,385,000) ( 18,385,000) - Purchase of investment in subsidiary (Note.11) - ( 2) - Net cash used in investing activities ( 19,093,183) ( 19,093,185) ( 755,484) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of shares 9,000,000 9,000,000 - Proceeds from issuance of preference shares - - 19,000,000 Net cash from financing activities 9,000,000 9,000,000 19,000,000 Net increase in cash and cash equivalents 3,344,391 3,344,391 19,267,752 Cash and cash equivalents brought forward 19,498,265 19,498,265 230,513 Cash and cash equivalents carried forward 22,842,656 22,842,656 19,498,265 Cash and cash equivalents carried forward cosist of : Fixed deposits with licensed banks 12,114,981 12,114,981 19,492,075 Cash and bank balances 10,727,675 10,727,675 6,190 22,842,656 22,842,656 19,498,265 Note : In 2006, the issued and paid-up ordinary share capital of the Company was increased from RM2 to RM32,300,000 by the allotment of 32,299,998 new ordinary shares of RM1 each at par through capitalisation of amount owing to holding company of RM32,299,998. The above cash flow statements are to be read in conjunction with the accompanying notes to the financial statements. 24