EXCEL FORCE MSC BERHAD Annual Report 2017

93 22. Profit before Tax Profit before tax is derived after charging/(crediting): Group Company 2017 2016 2017 2016 RM RM RM RM Auditors’ remuneration - statutory audit 53,500 53,500 50,500 50,500 - non-statutory audit 9,500 4,500 9,500 4,500 Impairment loss on trade receivables 12,208 16,117 - - Depreciation of property, plant and equipment 968,452 1,280,898 949,317 1,214,076 Non-executive Directors’ fee 144,000 144,000 144,000 144,000 Property, plant and equipment written off - 96,282 - 96,282 Rental of premises 30,256 - 30,256 - Interest income from: - deposits with licensed banks (30,513) (1,453) (30,513) (1,453) - short term funds (531,957) (468,573) (531,957) (455,944) - amount due from a subsidiary company - - (88,429) (102,391) Rental income (35,000) (67,500) (35,000) (67,500) Loss/(Gain) on disposal of: - property, plant and equipment 30,610 (22,669) 30,610 (22,669) - subsidiary companies - (68,938) - (46,738) (Gain)/Loss on foreign exchange - realised (44,605) 34,520 (44,605) 34,520 - unrealised 89,134 (34,204) 89,134 (34,204) 23. Taxation Group Company 2017 2016 2017 2016 RM RM RM RM Tax expenses recognised in profit or loss: Current tax provision 1,749,881 1,660,867 1,749,881 1,660,867 Under/(Over) provision in prior years 65,350 (66,537) 64,909 (72,102) 1,815,231 1,594,330 1,814,790 1,588,765 Deferred tax: Relating to reversal of temporary differences (8,592) (56,211) (8,592) (56,211) (Over)/Under provision in prior years (17,379) 42,553 (17,379) 42,553 (25,971) (13,658) (25,971) (13,658) Tax expense for the financial year 1,789,260 1,580,672 1,788,819 1,575,107 The subsidiary company, Insage (MSC) Sdn. Bhd. (“Insage”) was awarded with the Multimedia Super Corridor (“MSC”) status by the Government of Malaysia. The financial incentive awarded to Insage under the MSC status is “Pioneer Status” under Section 4A of the Promotion of Investment Act, 1986. Insage has been granted the Pioneer Status by the Ministry of International Trade and Industry for services under the Promotion Investment Act, 1986 in which the statutory income is exempted from tax for a period of 5 years from 23 March 2014 to 22 March 2019. Notes To The Financial Statements 31 December 2017 (cont’d)