Page 58 - ar2012

Year ended 31 December 2012
CONSOLIDATED STATEMENT OF CASH FLOWS
See accompanying notes to the fnancial statements.
54 GEO ENERGY RESOURCES LIMITED | Annual Report 2012
Notes to consolidated statement of cash fows:
A) During the year, the Group capitalised US$199,065 as deferred mining evaluation assets which pertained to capitalisation of
depreciation on property, plant and equipment.
B) During the year, the Group capitalised US$1,282,206 as deferred expenditure of which US$171,597 pertained to capitalisation of
depreciation on property, plant and equipment and US$59,705 pertained to retirement beneft obligations and US$1,050,904 was
settled in cash.
C) During the year, the Group acquired property, plant and equipment amounting to US$5,724,635 (2011 : US$50,444,181) of
which US$3,114,697 (2011 : US$5,882,894) were acquired under fnance lease arrangements and US$280,532 (2011 : US$Nil)
pertained to the provision for rehabilitation. As at 31 December 2011, US$20,035,292 remained unpaid and was included in the
amount due to a related party (Note 19).
In addition, the Group utilised its advance payment of US$730,895 (2011 : US$932,508) which was paid in prior year (Note 10)
to purchase property, plant and equipment. Cash payments of US$1,598,511 (2011 : US$23,593,487) was made to purchase the
property, plant and equipment.
D) In prior year, PT Geo Energy Coalindo (“ GEC”) acquired its share of the paid-up capital of PT Mitra Riau Pratama and
subsequently, the Company acquired its share of the paid-up capital of GEC and Geo Coal International Pte. Ltd., pursuant to the
Restructuring Exercise.
E) During the year, convertible loans of US$15,815,214 were converted into 98,702,639 ordinary shares. In addition, convertible
loans reserve of US$832,253 was reclassifed to share capital [Note 24(b)].