A) I- Goodwill - Bursin Consideration transferred (+) Non-Controlling Interest-20% (-) FVNA RM'000 RM'000 11,170 2,672 Ordinary share 12,000 Retained earning 800 Revaluation reserves 500 Goodwill @acquisition (-) Impairment -50% Goodwill @ consolidate (13,360) 482 (241) 241 Adjustment worksheet RM'000 Working NCI @ acquisition RM'000 NCI 2,672 RM'000 RM'000 GRE GRR Bursin post RE (1370-860) 510 (-) URP inventory (113.2) OS dividend payable (10) 386.8 77.36 309.44 Ercel post RE 700 (-) OS dividend payable (100) 600 240 Kerem RE 5,880 OS dividend payable (780) PS dividend payable (100) OS dividend receivable Bursin goodwill 8 (241) 4,767 4,767 Bursin post RR Kerem RR TOTAL 200 40 160 1,760 2,789.36 5,316.44 1,920 Kerem's Group Group Statement Of Financial Position for year ended 2021 RM'000 NON-CURRENT ASSET Investment in Associates [3,200 - (100 x 0.4)+280] Land (10,500+ 5,600) Property, plant and equipment (8,850 +4,770) Intangible assets Goodwill CURRENT ASSET Inventory (5,660 +3340-113.2) Trade receivable (5,980 + 3,116) Bank (4,830 +2,270 +50) EQUITY Ordinary shares 5% preference share Group revaluation reserve Group retained earnings Non-controlling interest NON-CURRENT LIABILITY 8% debenture Long term loan CURRENT LIABILITY Trade payables (6,120+ 3,510) Tax payables (1,900 +86) Bursin OS dividend payables (10-8) Kerem OS dividend payables Kerem PS dividend payables + RM'000 RM'000 3,440 16,100 13,620 120 241 33,521 8,886.8 9,096 7,150 25,132.8 58,653.8 32,830 2,000 1920 5316.44 2789.36 44,855.8 300 1,000 1,300 9,630 1,986 2 780 100 12,498 58,653.8 Group Statement of Comprehensive Income for the Year ended 2021 Sales (25300+12900-i/co 800) RM'000 37400 PAT attributable to RM '000 RM '000 Shareholder of Kareem (3845.8-79.36) 3,766.44 NCI: (-) Cost of sales (13800+8440-i/co 800+ URP 113.2) (21553.2) Bursin PAT www. Gross profit 15846.8 (-) Administrative Expenses (4590+2830) (7420) (-) URP Inventory (-) Other expenses( 1860+920+ GW Impairment 241) (3021) 510 (113.2) 79.36 (+)Gain from sales PPE Share of profit in Associate 200 240 5845.8 Profit before tax Taxation (1800+200) Profit after tax Other Comprehensive Income Total Comprehensive Income Profit after tax attributable to: Shareholders of Kerem (3845.8-79.36) Non-controlling Interest: Bursin PAT (-) URP Inventory *Share of profit in Ercel: www Ercel PAT 600,000*40% (-) Impairment 510 (113.2) 396.8*20% * URP Inventory =25/125* (10%*5660) = 113.2 RM'000 240 240 (2000) 3845.8 0 3845.8 GROUP STATEMENT OF CHANGE IN EQUITY + NCI GRE GRR RM '000 RM '000 RM '000 Balance @ 01.10.2020 +) Profit for the years 2,672 2,430 1,760 79.36 3,766.44 (2) (880) 40 160 Balance @30.09.2021 22.789.36 2430 1960 + 3766.44 -) Dividends +) Reserve 79.36 3845.8 IV- Group Statement of Cash Flow for the Year Ended 2021 Cash flows from operating activities Net profit before taxation Adjustment for: Depreciation Goodwill impairment Share of profits of associate Gains on disposal of PPE Operating profit before working capital changes RM'000 3,046.44 Net cash flow from financing activities 3,910.00 RM'000 5,845.20 2,400.00 241.00 (240.00) (200.00) 2,201.00 8,046.20 (increase) in receivables (8,114-9,096) (982.00) (increase) in inventories (8,652-8,886.2) (234.20) (decrease) in trade payables (10,250-9,630) (620.00) Cash generated operations (1,836.20) Income taxes paid (2,000-2580) (580.00) Net cash flow from operating activities 5,630.00 Cash flow from investing activities Acquisition subsidiary (4,070.00) Acquisition of associate (only cash payment) (3,440.00) Dividend from associate (2,000.00) (9,510.00) Net cash flow from investing activities (3,880.00) Cash flow from financing activities Dividends paid to members (8,510-3,766.44) Dividends paid to NCI 4,743.56 (b) You are assessing this group's financial health for investment purposes. Based on the group's financial statements, provide your analysis on following: i. ii. == Gearing ratio (total liabilities/total assets) Net operating cashflow and liquidity ratio Improvements on cash management, supported by your analysis of investing and financing cash flows