The following draft group financial statements relate to Andash, a public limited company: Draft Group Statement of Financial Position at October 31 2022 2021 TZS million TZS million ASSETS Non-current assets Property, plant and equipment 5,170 4,110 Goodwill 120 130 Investment in associate 60 5,350 4,240 Current assets Inventories 2,650 2,300 Trade receivables 2,400 1,500 Cash and cash equivalents 140 300 5,190 4,100 TOTAL ASSETS 10,540 8,340 EQUITY AND LIABILITIES Equity attributable to equity holders of parent Share capital 400 370 Other reserves 120 80 Retained earnings 1,250 1,100 1,770 1,550 Minority interest 200 180 Total equity 1,970 1,730 Non-current liabilities Long term borrowings 3,100 2,700 Deferred tax 400 300 Total non-current liabilities 3,500 3,000 Current liabilities Trade payables 4,700 2,800 Interest payable 70 40 Current tax payable 300 770 Total current liabilities 5,070 3,610 Total liabilities 8,570 6,610 TOTAL EQUITY AND LIABILITIES 10,540 8,340 IAA MAF-2023 CORPORATE REPORTING (AFG 09214) Page 14 of 16 IAA MAF-2023 Draft Group Statement of Profit or Loss for the year ended October 31, 2022 2022 TZS million Revenue 17,500 Cost of sales (14,600) Gross profit 2,900 Distribution costs (1,870) Administrative expenses (490) Finance costs interest payable (148) Gain on disposal of subsidiary . 8 Profit before tax 400 Income tax expense . (160) Profit after tax 240 Attributable to equity holders of parent 200 Attributable to minority interest . 40 . 240 Draft Statement of changes in equity of the parent for the year ended October 31, 2022 Share Capital Other reserves Retained earnings Total TZS million TZS million TZS million TZS million Balance at October 31, 2021 370 80 1,100 1,550 Profit for period 200 200 Dividends (50) (50) Issue of share capital 30 30 60 Share options issued . . . 10 . . . 10 Balance at October 31, 2022 400 120 1,250 1,770 The following information relates to the draft group financial statements of Andash: (i) There had been no disposal of property, plant and equipment during the year. The depreciation for the period included in cost of sales was TZS 260 million. Andash had issued share options on October 31, 2022 as consideration for the purchase of plant. The value of the plant purchased was TZS 9 million at October 31, 2022 and the share options issued had a market value of TZS 10 million. The market value had been used to account for the plant and share options. IAA MAF-2023 CORPORATE REPORTING (AFG 09214) Page 15 of 16 IAA MAF-2023 (ii) (ii) Andash had acquired 25 per cent of Joma on November 1, 2021. The purchase consideration was 25 million ordinary shares of Andash valued at TZS 50 million and cash of TZS 10 million. Andash has significant influence over Joma. The investment is stated at cost in the draft group balance sheet. The reserves of Joma at the date of acquisition were TZS 20 million and at October 31, 2022 were TZS 32 million. Joma had sold inventory in the period to Andash at a selling price of TZS 16 million. The cost of the inventory was TZS 8 million and the inventory was still held by Andash at October 31, 2022. There was no goodwill arising on the acquisition of Joma. (iii) Andash owns 60% of a subsidiary Broiler, a public limited company. The goodwill arising on acquisition was TZS 90 million. The carrying value of Broilers identifiable net assets (excluding goodwill arising on acquisition) in the group consolidated financial statements is TZS 240 million at October 31, 2022. The recoverable amount of Broiler is expected to be TZS 260 million and no impairment loss has been recorded up to October 31, 2021. (iv) On April 30, 2022 a wholly owned subsidiary, Chang, was disposed of. Chang prepared interim financial statements on that date which are as follows: 2022 TZS million Property, plant and equipment 10 Inventory 8 Trade receivables 4 Cash and cash equivalents . 5 . 27 Share capital 10 Retained earnings 4 Trade payables 6 Current tax payable 7 . 27 The consolidated carrying values of the assets and liabilities at that date were the same as above. The group received cash proceeds of TZS 32 million and the carrying amount of goodwill was TZS 10 million. (Ignore the taxation effects of any adjustments required to the group financial statements and round all calculations to the nearest TZS million). Required: Prepare a group cash flow statement using the indirect method for the Andash Group for the year ended October 31, 2022 in accordance with IAS7: Statements IAA MAF-2023 CORPORATE REPORTING (AFG 09214) Page 16 of 16 IAA MAF-2023 of Cash Flow after making any necessary adjustments required to the draft group financial statements of Andash as a result of the information above. (Candidates are not required to produce the adjusted group financial statements