NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the period ended 28 July 2018 D. NET DEBT This section provides additional information regarding lines in the financial statements that are most relevant to explaining the net debt position and structure of the Group's borrowings for the period, which are key to financing the Group's activities both now and for the future. The net debt of the Group as at 28 July 2018 and 29 July 2017 is as follows: 2018 2017 $'000 $'000 Total borrowings 149,165 143,367 Less: cash and cash equivalents (41,793) (30,591) Net debt 107,372 112,776 The movement in net debt of the Group is as follows: Opening balance 112,776 102,066 Cash (inflows)/outflows from activities (11,202) 14,616 Proceeds from/(repayment of) borrowings, net of transaction costs 5,000 (5,000) Other non-cash movements 798 1,094 Closing balance 107,372 112,776 D1 CASH AND CASH EQUIVALENTS 2018 2017 $'000 $'000 Cash on hand 2,745 2,824 Cash at bank 39,048 27,767 41,793 30,591 Accounting policy For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. D2 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES 2018 2017 52 weeks 52 weeks $'000 $'000 Profit/(loss) for the period (486,002) 11,939 Depreciation, amortisation and impairment, including lease incentives and contributions 611,526 133,853 Interest income (397) (436) Interest expense 798 1,094 Share-based payments expense 982 1,782 Share of net (profit)/loss of equity-accounted associate - 1,176 Dilution of investment in equity-accounted associate - 1,338 Net exchange differences (439) 329 Change in operating assets and liabilities (Increase)/decrease in trade and other receivables 976 5,720 (Increase)/decrease in inventories 8,004 28,449 (Decrease)/increase in deferred tax liabilities (23,829) (4,079) Decrease/(increase) in derivative financial instruments (5,076) 2,281 (Decrease)/increase in trade and other payables 9,936 (15,880) (Decrease)/increase in current tax payable 2,694 (5,406) (Decrease)/increase in provisions (9,853) (12,679) (Decrease)/increase in other liabilities (119) (203) Net cash inflow from operating activities 109,201 149,278 Myer Annual Report 2018 65