Consolidated Cash Flow Statement

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Note 2018 2017
Restated
----------- (Rupees in '000) -----------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 25,387,483 40,889,407
Less: Dividend income (1,683,678) (1,733,757)
Less: Share of profit of associates (699,294) (459,702)
23,004,511 38,695,948
Adjustments:
Depreciation on fixed assets 2,466,344 2,151,157
Depreciation on Islamic financing against leased assets (Ijarah) 186,623 197,824
Amortization 562,568 436,392
Workers' Welfare Fund (2,163,314) 814,699
Provision for retirement benefits 7,461,772 820,115
Charge for compensated absences 141,698 24,687
Provision against loans and advances - net 10,652,370 1,877,257
Reversal of provision against lendings to financial institutions - net (57,600) (8,260)
Provision for diminution in value of investments - net 1,831,048 719,845
Reversal of provision in respect of investments disposed off during the year (599,110) (55,525)
Charge / (reversal) against off balance sheet items 463,300 (599,097)
Gain on sale of fixed assets - net (42,662) (57,983)
Gain on sale of ijarah assets - net (1,754) (96)
Bad debts written off directly 130,830 187,443
Unrealized gain on revaluation of investments classified as held for trading (8,524) (2,207)
Finance charges on leased assets - 570
Other provisions / write offs 75,072 147,954
Provision against other assets - net 6,523 303,659
21,105,184 6,958,434
44,109,695 45,654,382
(Increase) / decrease in operating assets
Lendings to financial institutions (22,191,674) (401,074)
Held for trading securities 3,514,443 (96,681,848)
Advances (100,284,394) (107,059,262)
Other assets (excluding advance taxation) (4,855,536) (2,680,271)
(123,817,161) (206,822,455)
Increase / (decrease) in operating liabilities
Bills payable (2,579,438) 1,633,966
Borrowings (237,164,034) 311,217,028
Deposits and other accounts 98,625,554 120,366,298
Other liabilities (excluding current taxation) 12,335,395 1,451,657
(128,782,523) 434,668,949
(208,489,989) 273,500,876
Payments on account of staff retirement benefits (6,418,588) (1,270,181)
Income taxes paid (18,947,962) (19,570,676)
Net cash flows (used in) / from operating activities (233,856,539) 252,660,019

CASH FLOW FROM INVESTING ACTIVITIES

Net investments in available for sale securities 233,876,065 (199,190,229)
Net investments in held to maturity securities 29,749,485 (8,969,936)
Net investments in associates (26,806) 4,193,675
Dividend income received 1,711,181 1,768,502
Investment in fixed assets (3,817,074) (6,398,011)
Investment in Intangible assets (1,253,605) (366,945)
Sale proceeds from disposal of fixed assets 128,578 81,186
Sale proceeds from disposal of ijarah assets 67,966 72,260
Exchange differences on translation of net investment in
foreign branches and subsidiaries attributable to:
- Equity holders of the Bank 11,379,285 2,031,733
- Non-controlling interest 831,443 668,725
Net cash flows from / (used in) investing activities 272,646,518 (206,109,040)

CASH FLOW FROM FINANCING ACTIVITIES

Payment in respect of leased obligation 5,625 (2,078)
Receipts of subordinated debts 9,000,000 -
Dividends paid to:
- Equity holders of the Bank (14,799,574) (15,479,932)
- Non-controlling interest (1,581) (135,493)
Net cash flows used in financing activities (5,795,530) (15,617,503)
Increase in cash and cash equivalents 32,994,449 30,933,476
Cash and cash equivalents at the beginning of the year 196,668,282 165,734,806
Cash and cash equivalents at the end of the year 39 229,662,731 196,668,282

The annexed notes 1 to 53 and annexures I, II and III form an integral part of these consolidated financial statements.

Aameer Karachiwalla Sima Kamil Amar Zafar Khan Arshad Ahmad Mir Sir Mohammed Anwar Pervez, OBE, HPk
            
  
   

168 United Bank Limited