FRONTLINE COVER FA 070606 CR2.indd

50
frontline technologies corporation ltd
annual report 2006
> consolidated cash flow statement
for the financial year ended 31 march 2006
2006 2005
$ $
Cash flows from operating activities
Profit before tax 11,110,486 8,209,870
Adjustments for:
Impairment/amortisation of goodwill 36,231 1,444,062
Amortisation of intangible assets 428,352 333,307
Depreciation of property, plant and equipment 3,676,809 3,398,888
Allowance for impairment in value of other investments 44,741 854,868
Gain on disposal of property, plant and equipment – (28,057)
Property, plant and equipment written off 8,793 –
Interest income (1,215,561) (431,086)
Interest expense 2,071,335 2,349,292
Write-back of allowance for systems integration project – (400,000)
Gain on dilution of investment in associated company – (396,431)
Gain on acquisition of additional investment in subsidiary – (439,395)
Gain on acquisition of additional investment in associated company – (644,110)
Share of results of associated companies (3,132,223) (2,134,050)
Operating profit before working capital changes 13,028,963 12,117,158
Inventories 1,992,795 (709,248)
Trade and other receivables (11,766,372) (19,883,586)
Trade and other payables 7,568,260 7,543,768
Translation difference (858,117) (444,030)
Cash generated/(used in) from operations 9,965,529 (1,375,938)
Income taxes paid (2,015,426) (1,997,493)
Interest received 1,215,561 431,086
Interest paid (2,071,335) (2,349,292)
Net cash generated/(used in) from operating activities 7,094,329 (5,291,637)
The accompanying notes form an integral part of these financial statements.