MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 259 MISC BERHAD ANNUAL REPORT 2018 258 4. OTHER OPERATING INCOME Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Rental income 133 197 - - Exchange gain: Realised 1,266 36,887 1,452 33,938 Unrealised 21,885 15,297 13,941 26,585 Management services: Subsidiaries - - 3,537 15,844 Joint ventures 4,443 6,454 4,443 6,454 Gain on disposal of other property, plant and equipment 96 547 - 547 Gain on disposal of investments in a/an: Joint venture - 43,527 - 118,085 Associate - 1,593 - - Dividend income from equity investment: Subsidiaries - - 936,549 1,201,313 Joint ventures - - 214,800 257,875 Quoted equity investments 1,707 2,888 1,707 2,888 Unquoted equity investments 8 8 8 8 Writeback of impairment loss on: - Trade receivables (Note 22) 621 6,399 - 3,887 - Other receivables - 61,006 - 61,006 Compensation on termination of contracts - 113,014 - 113,014 Reversal of provision - 57,957 - 57,957 Student course fees 12,041 14,266 - - Miscellaneous income from: Subsidiaries - - 6,891 3,100 Fellow subsidiaries 10,432 61,209 61 6,676 Third Parties 75,975 86,280 29,810 32,304 128,607 507,529 1,213,199 1,941,481 5. PROFIT BEFORE TAXATION The following amounts have been included in arriving at profit before taxation: Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Amortisation of intangible assets (Note 15) 5,392 9,424 - - Intangible assets written off (Note 15) 721 - - - Amortisation of prepaid lease payments on land and buildings (Note 14) 7,216 7,223 121 129 Auditors' remuneration: Auditors of the Corporation: - Statutory audits 4,184 3,948 788 765 - Other services 1,465 1,290 1,283 1,060 Charter hire expenses 719,985 884,104 163 918 Provisions (Note 26(c)) - 45,512 - 45,512 Inventories used (Note 21) 1,099,323 932,475 - 68,819 Fair value movement in other investments 15,120 - 15,120 - Exchange loss: - Realised 16,066 11,482 4,992 14,666 - Unrealised 1,529 67,348 4,444 52,808 Impairment loss on: (Note 22) - Trade and other receivables 139,237 190,125 133,327 126,643 - Finance lease receivables 2,062 - 7,662 - Bad debts written off 10,426 17,805 - 17,805 Operating lease rental: - Equipment 32,931 20,671 3,694 2,974 - Land and buildings 71,877 61,077 17,644 24,093 Ships, offshore floating assets and other property, plant and equipment (Note 13): - Depreciation 1,891,896 2,055,653 348,426 400,366 - Written off 32,455 20,519 4,377 4,224 Impairment provisions (Note 5(a)) 99,036 687,493 91,591 359,564 Loss on liquidation of a subsidiary - 16,655 - - Staff costs (Note 6) 1,568,399 1,132,963 150,257 239,308 Non-executive directors' remuneration (Note 7) 1,511 1,274 993 630