ST Engineering Annual Report 2020

Cash and cash equivalents comprise cash balances and fixed deposits. Cash equivalents are short-term and highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of changes in value. Group 2020 2019 $’000 $’000 Cash flows from operating activities Profit before taxation 534,402 695,244 Adjustments: Share of results of associates and joint ventures, net of tax (30,389) (38,983) Share-based payment expense 21,716 24,354 Depreciation charge 297,620 275,632 Property, plant and equipment written off 874 1,408 Amortisation of other intangible assets 81,011 92,620 Impairment of property, plant and equipment 1,617 2,786 Impairment of right-of-use assets 2,397 – Impairment of goodwill and other intangible assets 45,766 23,227 Impairment of an associate 4,000 4,000 Gain on disposal of property, plant and equipment (16) (9,029) Gain on disposal of associates, net – (1,723) Loss on disposal of right-of-use assets 77 – Loss on disposal of subsidiaries 43 925 Changes in fair value of associates 5,285 1,978 Changes in fair value of financial instruments and hedged items (1,333) 2,731 Interest expense 49,583 44,753 Interest income (5,743) (9,487) Amortisation of deferred income (6) (272) Operating profit before working capital changes 1,006,904 1,110,164 Changes in: Inventories 52,955 46,216 Contract assets 96,917 (34,001) Trade receivables 196,681 13,174 Advance payments to suppliers 20,137 (48,201) Other receivables, deposits and prepayments (13,625) (55,260) Amounts due from related parties 410 3,175 Amounts due to related parties (2,038) (924) Amounts due from associates (4,671) 2,889 Amounts due from joint ventures (35,438) (36,508) Contract liabilities 468,804 (374,285) Trade payables (166,540) (10,031) Deposits from customers 5,367 (1,504) Other payables, accruals and provisions (103,809) 61,226 Deferred income 86,515 (1,111) Foreign currency translation of foreign operations (4,139) (4,046) Cash generated from operations 1,604,430 670,973 Interest received 6,393 9,459 Income tax paid (78,007) (90,470) Net cash from operating activities 1,532,816 589,962 The accompanying notes are an integral part of the financial statements. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS) / ST ENG I NEER I NG 156