Notes to Financial Statements

36Middle East Development Singapore Ltd.Annual Report 2008Consolidated Cash Flow StatementYear Ended 30 June 2008GroupNote 2008 2007$ $Operating activitiesLoss before tax (4,772,090) (141,094)Adjustments for:Bad debts written off 950 29Impairment loss on held-for-trading investment 58,397 –Depreciation expense 296,660 345,913Dividend income from held-for-trading investment (5,765) –Fixed assets written off 571 1,435Foreign exchange losses 5,453 6,121Gain on disposal of property, plant and equipment (15,665) (31,759)Impairment of goodwill 52,175 –Interest expense 36,786 69,410Interest income (185,739) (97,525)Inventory written off 1,545 –Loss on disposal of held-for-trading investment 304,241 –Allowances for doubtful debts written back (20,217) (264,220)Provision for impairment loss on project management 927,935 –Provision for warranties 128,254 107,416Allowances for doubtful debts 397,421 38,280Operating (loss) profi t before working capital changes (2,789,088) 34,006Trade and other receivables 1,027,870 (947,711)Amount due from/to contract customers (848,108) (247,318)Inventories (6,785) (181,177)Trade and other payables (68,025) 230,509Cash used in operations (2,684,136) (1,111,691)Interest paid (36,786) (69,410)Income tax paid (397,500) (296,533)Net cash used in operating activities (3,118,422) (1,477,634)Investing activitiesDividend income from held-for-trading investment 5,765 –Interest received 185,739 97,525Proceeds from disposal of held-for-trading investment 6,833,935 –Proceeds from disposal of property, plant and equipment 17,008 63,378Purchase of held-for-trading investment (7,690,573) –Purchase of property, plant and equipment (104,481) (347,415)Acquisition of additional interest in a subsidiary (52,175) –Net cash used in investing activities (804,782) (186,512)