Consolidated statements of cash flow

KBS Fashion Group Limited

Consolidated Statements of Cash Flows

For the years ended December 31, 2017, 2016, 2015

(Stated in U.S. Dollars)

Year ended December 31,
2017 2016 2015
OPERATING ACTIVITIES
(Loss)/profit for the year (14,815,596 ) (11,902,687 ) 1,243,670
Adjustments for:
Share-based payment 629,950 429,000 -
Finance cost 96,385 71,783 -
Change in fair value of warrant liabilities - (3,409 ) (11,978 )
Interest income (81,517 ) (85,482 ) (92,747 )
Depreciation of property, plant and equipment 1,510,213 1,942,735 2,015,437
Amortization of prepaid lease payments and trademark 14,307 19,009 17,061
Amortization of subsidies prepaid to distributors 401,259 910,537 1,093,036
Amortization of prepayments and premiums under operating leases 105,340 118,783 728,996
Provision/ (reversal) of inventory obsolescence 101,256 (1,667 ) 342
Bad debt provision of trade receivables - 331,196 1,028,439
Gain on disposal of property, plant and equipment 2,418 1,441 11,412
Provision of impairment loss in prepayments - 11,649,038 2,565,334
Operating cash flows before movements in working capital (12,035,985 ) 3,480,277 8,599,002
Decrease/ (increase) in trade and other receivables 13,983,781 7,265,940 (345,348 )
Decrease/ (increase) in inventories 669,923 889,384 (2,893,284 )
Increase /(decrease) in trade and other payables 522,839 (1,080,978 ) 101,240
(Decrease)/ increase in income tax payable (263,333 ) 155,632 1,236,921
Increase in deferred tax assets (4,598,061 ) (3,779,923 ) (908,889 )
Prepayments and premiums paid under operating leases 3,645,471 (1,761,155 ) (449,935 )
Subsidies prepaid to distributors - (910,537 ) (1,093,036 )
CASH GENERATED FROM OPERATING ACTIVITIES 1,924,635 4,258,640 4,246,671
Income tax paid (2,385 ) (1,064,351 ) (2,012,038 )
NET CASH FROM OPERATING ACTIVITIES 1,922,250 3,194,289 2,234,633
INVESTING ACTIVITIES
Interest received 81,517 85,482 92,747
Purchase of property, plant and equipment (946,882 ) (40,037 ) (1,020,623 )
NET CASH (USED IN)/FROM INVESTING ACTIVITIES (865,365 ) 45,445 (927,876 )


The accompanying notes are an integral part of these consolidated financial statements.