Notes to the Financial Statements 30 June 2008 - Abterra

Consolidated Cash Flow StatementFor the financial year ended 30 June 2008Group2008 2007$’000 $’000Cash flows from operating activitiesProfit from ordinary activities before taxation 15,644 920Adjustments for:Allowance for doubtful debts 51 150Doubtful debts recovered (3) -Allowance for inventories obsolescence - 15Inventories written off 201 19Property, plant and equipment written off 7 -Bad trade debts written off - 1Depreciation of property, plant and equipment 71 95Loss on disposal of property, plant and equipment - 28Gain on liquidation of a subsidiary company (110) -Loss on liquidation of subsidiary companies 138 222Impact on deconsolidation of a subsidiary company - (17)Waiver of debt by former holding company - (912)Interest income (5,066) (591)Interest expense 5,928 926Allowance for impairment of property, plant and equipment - 10Unrealised exchange loss 2,468 125Share of profit from an associated company (181) -Provision for unutilised leave 54 31Operating profit before working capital changes 19,202 1,022Increase in:Inventories (27,068) (39,109)Trade receivables (76,175) (41,855)Other receivables, deposits and prepayments (69,958) (236)Increase / (decrease) in:Trade payables (26,116) 30,338Bills payable 72,883 2,331Other payables and accruals 898 544Due to immediate holding company 746 460Translation of foreign subsidiaries (789) (6)Cash utilised in operations (106,377) (46,511)Interest income received 5,066 591Interest expense paid (2,570) (737)Net cash used in operating activities (103,881) (46,657)The accounting policies and explanatory notes form an integral part of the financial statements.44ABTERRAAnnual Report 2008