Kimlun Corporation Berhad Annual Report 2017

Kimlun Corporation Berhad 88 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 5. Other operating income Group 2017 2016 RM RM Interest income from loans and receivables 1,696,001 1,379,505 Amortisation of retention sum due from customers 4,244,818 4,990,279 Rental income from machineries 464,085 1,148,877 Rental income from premises 211,049 186,736 Gain on disposal of plant and equipment 1,409,142 91,740 Miscellaneous income 794,404 1,684,077 8,819,499 9,481,214 6. Finance costs Group 2017 2016 RM RM Interest expense on: - bank loan, bank overdrafts, invoice financing and bankers’ acceptance 4,281,294 6,097,382 - obligations under finance leases 2,169,763 961,480 Unwinding of discount on payables 30,306 32,411 Amortisation of retention sum due to creditors 2,881,070 3,077,485 9,362,433 10,168,758 Less : Interest expenses capitalised in property development costs (Note 18) (2,224,142) (2,337,383) 7,138,291 7,831,375 7. Profit before tax The following items have been included in arriving at profit before tax: Group Company 2017 2016 2017 2016 RM RM RM RM Auditors’ remuneration - statutory audits 131,604 132,002 33,000 30,000 - other services 5,000 5,000 5,000 5,000 Allowance for impairment on trade receivables (Note 20) 11,635,078 1,439,576 - - Reversal of allowance for impairment on trade receivables (Note 20) (809,370) (608,042) - - Employee benefits expense (Note 8) 59,987,101 53,486,374 - - Non-executive directors’ remuneration (Note 9) 233,100 221,450 233,100 221,450 Hire of plant and machinery 16,241,928 23,929,588 - - Depreciation of property, plant and equipment (Note 12) 26,647,705 19,450,874 - - Gain on disposal of land held for property development 10,621 - - - Gain on disposal of plant and equipment (1,409,142) (91,740) - - Plant and equipment written off Operating leases: 50,666 30,569 - - - minimum lease payments on land and building 3,760,023 2,828,319 - - - minimum lease payments on office equipment 114,265 71,680 - - Fair value (gain)/ loss on other investments (115,603) 211,938 - - Impairment loss on investment in subsidiary - - 323,871 - Impairment loss on investment properties 210,120 - - - Foreign exchange (gain)/loss - realised (6,030,825) (15,210) - - - unrealised 7,258,000 (1,171,763) - -