Sunny Tew

CONSOLIDATED CASH FLOW STATEMENTFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2007Note 2007 2006$ $Cash flows from operating activitiesProfit before income tax 22,538,858 16,347,895Adjustments for:Amortised discount 60,271 40,339Gain on disposal of other investments - (1,645,521)Adjustment to minority interest (71,302) -Depreciation of property, plant and equipment 1,528,260 1,217,693Gain on disposal of plant and equipment (74,154) (84,242)Intangible assets written off 61,128 -Allowance for impairment in value of other investments written back - (1,478,739)Interest expense 9,045,630 7,463,818Interest income (261,762) (175,575)Currency realignment 21,361 (144,522)Operating profit before working capital changes 32,848,290 21,541,146Working capital changes:Fixed deposits pledged (385,037) 3,249Inventories (80,795,647) 1,868,048Trade and other receivables (6,415,111) 310,889Trade and other payables 31,928,676 715,575Cash (absorbed by)/generated from operations (22,818,829) 24,438,907Interest received 261,762 175,575Interest paid (9,045,630) (7,463,818)Income tax paid (2,423,232) (2,431,416)Net cash (used in)/from operating activities (34,025,929) 14,719,248Cash flows from investing activitiesAcquisition of subsidiaries, net of cash acquired 6 - (81,358)Proceeds from disposal of other investments - 7,444,262Purchase of intangible assets (11,400) (61,128)Purchase of property, plant and equipment 4 (2,069,921) (2,080,433)Proceeds from disposal of plant and equipment 84,495 157,604Net cash (used in)/from investing activities (1,996,826) 5,378,94740 HG METAL MANUFACTURING LIMITED ANNUAL REPORT 2007