question : Refer to page 227 on Notes to the Financial Statement of the 2019 Annual Report of AirAsia Group Berhad (AAGB) and read the General Information of AAGB. Explain what you have learned about AAGB from this note and relate it to the main features of companies that you have examined in this week topic.

this week topic :

-Part 1 - Business Organisations Lesson

-Part 2 - Sources of funds for companies

Page 227:

STATEMENTS OF CASH FLOW For the financial year ended 31 December 2019 Group Company Note 2019 2018 2019 2018 RM'000 RM'000 RM'000 RM'000 Cash flows from operating activities (Loss)/profit before taxation (521,660) 1,335,233 2,937,876 3,075,893 Adjustments for: Property, plant and equipment - Depreciation 11 221,502 584,748 Gain on disposals 4 (b ) (101,544) (298,816) - Write off 11 879 31,836 Right-of-use assets - Depreciation 30 1,241,749 - Gain on derecognition 4 (b ) (22,458) Amortisation of intangible assets 16 471 611 Impairment of: - trade receivables 6 5,415 70,325 - related parties 6 28,133 - investment in a joint venture 13 5,596 - investment securities 15 5,438 Dividend income from: - investment securities 4(b) (6,330) (3,078) (3,253) - a subsidiary 4(b) (3,007,776) (3,128,025) Share of results of - joint vent (11,083) - associates 39 448,874 115,610 Gain on disposal of investment in: - a subsidiary 4(b) (350,317) - an associate 14 (181,914) Gain on remeasurement of: - retained interest in a former subsidiary 13 (534,712) Provision for retirement benefits 16,343 17,725 Aircraft maintenance provisions 28 608,692 539,728 Fair value losses on derivatives 8(d) 247,593 200,173 Net unrealised foreign exchange (gain)/loss (125,146) (138,704) 2,359 549 Interest expense 8 (b) 272,640 474,761 Interest expense - Lease liabilities 8(b) 503,093 Interest income 8(a) (58,588) (63,333) (18,733) Interest income - Finance lease receivables 8(a) (61,402) 2,670,123 1,827,960 (89,527) (51,583) Changes in working capital: Inventories (38,547) (38,843) Receivables and prepayments 154,254 (949,355) (2,677) (47) Payables and provisions (167,507) 39,074 1,067 765 Sales in advance 41,555 164,144 Amounts due from/to subsidiaries, associates, MORE THAN JUST AN AIRLINE joint venture and related parties 15,918 (396,831) (651,531) 50,775 Cash generated from/(used in) operations carried forward 2,675,796 646,149 (742,668) (90) 224FINANCIAL STATEMENTS Group Company Note 2019 2018 2019 2018 RM'000 RM'000 RM'000 RM'000 Cash flows from operating activities (cont'd.) Cash generated from/(used in) operations brought forward 2,675,796 646,149 (742,668) (90) Interest paid (192,968) (323,126) Interest paid - Lease liabilities (503,093) Interest received 37,348 78,431 18,233 Interest received - Finance lease receivables 61,402 Taxes refunded/(paid) 9,741 (44,988) Retirement benefits paid (7,099) (3,385) Net cash from/(used in) operating activities 2,081,127 353,081 (724,435) (90) Cash flows from investing activities Property, plant and equipment - Additions (295,686) (1,123,720) - Proceeds from disposals 4,799,035 9,815,005 Addition in intangible assets 16 (10,278) (6,695) Net cash inflow from partial disposal of interest in a subsidiary 13 352,695 Additional deposit for aircraft purchases (39,287) (41,426) Refund of deposit for aircraft purchases 417,900 Proceeds from disposal of: - an associate 14 245,754 Net changes: - Deposits pledged as securities and restricted cash (70,539) (150) - Deposits with licensed banks with maturity period of more than 3 months 8,625 (19,143) - Investment securities (8,821) (41,405) 8,966 Dividend received from: estment securities 4(b) 6,330 3,078 3,253 - subsidiary 3,007,776 3,128,025 - associates 167,918 Acquisition of: - subsidiaries net of cash acquired 12 (3,415) (32,570) - other investments (34,482) (26,217) - non-controlling interest in subsidiaries 12 (77,944) Additional subscription of shares in - subsidiaries 12 (202,878) - associate 14 (280,482) (175,246) - joint venture 13 (23,200) Loans to an associate (165,376) Receipt of principal portion of finance lease receivables 336,920 Net cash from investing activities 4,660,444 9,049,304 2,817,117 3,095,455 AIRASIA GROUP BERHAD ANNUAL REPORT 2019 225NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS For the financial year ended 31 December 2019 1. General information AirAsia Group Berhad ("AAGB" or "the Company") is a public limited liability company incorporated and domiciled in Malaysia, and is listed on the Bursa Malaysia Securities Berhad. On 16 April 2018, the Company completed the internal reorganisation by way of Members' Scheme of Arrangement under Section 366 of the Companies Act 2016 in Malaysia. This involves the exchange of 3,341,974,080 ordinary shares in AirAsia Berhad ("AAB") representing the entire issued and share capital of AAB with 3,341,974,080 new ordinary shares in the Company on the basis of 1 new Company share for every 1 existing AAB shares held. Accordingly, AAGB is the new holding company of AAB and its subsidiaries ("AAB Group") and assumed the listing status of AAB on the Main Market of Bursa Securities. The address of the registered office of the Company is as follows: Unit 30-01, Level 30, Tower A, Vertical Business Suite Avenue 3, Bangsar South No. 8 Jalan Kerinchi, 59200 Kuala Lumpur, Wilayah Persekutuan, Malaysia. The address of the principal place of business of the Company is as follows: RedQ Jalan Pekeliling 5, Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA2), 64000 KLIA, Selangor Darul Ehsan, Malaysia. The principal activity of the Company is that of investment holding company. The principal activities of the subsidiaries are described in Note 12. There were no significant changes in the nature of these activities during the financial year. The financial statements were authorised for issue by the board of directors in accordance with resolution of the directors on 6 July 2020. 2. Summary of significant accounting policies 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards ("MFRS"), International Financial Reporting Standards ("IFRS") and the requirements of the Companies Act, 2016 in Malaysia. AIRASIA GROUP BERHAD ANNUAL REPORT 2019 227