200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 7. (Loss)/Profit before tax (cont'd) The following items have been included in arriving at (loss)/profit before tax (cont'd): 2022 2021 2022 2021 RM RM RM RM Gain on derecognition of right-of-use assets (2,177) (6,901) - - Short term leases: - equipment 7,974 - - - - land and building 263,019 169,952 - - - office equipment 148,905 159,229 - - Impairment loss on investment in subsidiary - - 42,704 21,264 Provision for obsolete inventories - 4,252 - - Reversal of provision for obsolete inventories (4,252) (209,116) - - Reversal of defect liability costs (Note 26) (5,196,000) (1,464,000) - - Foreign exchange (gain)/loss - realised 3,929,062 (6,819) - - - unrealised (6,699,759) (914,836) - - Company Group Included in the allowance for impairment on trade receivable and allowance for impairment on contract assets is the amount of RM18,128,174 (“Debt”) and RM25,391,137 (“Project HContract Asset”) respectively in relation to a hospital project which the Group completed in the last quarter of year 2020. The said project was awarded to Kimlun Sdn Bhd (“KLSB”), a subsidiary of the Company, by a company (“Debtor”) which is jointly owned by a body corporate (owned by a state government) and a public listed company. The Debtor is the concession holder in respect of a hospital (“Hospital”) granted by the Government of Malaysia (“Government”). The development of the Hospital is being undertaken through ‘public-private partnership’ on a build, lease, maintain and transfer concept, and a concession agreement in relation to the proposed development of the Hospital was signed between the Government, the Debtor and a public entity. The concession period is for a period of approximately 33 years, including 7 years of construction works and 25.5 years of asset management services (“Asset Management Services Period”). During the Asset Management Services Period, the Debtor will be paid the Availability Charges (for the availability of the Hospital and the supporting facilities and infrastructure) and the Asset Management Services Charges (for the provision of the maintenance services and asset replacement programme), aggregating approximately RM141 million per annum. The scope of the Debtor’s work under the Concession Agreement includes construction and completion of the Hospital and the supporting infrastructure and amenities, and to carry out the asset management services for the facilities and infrastructure of the Hospital. - 58 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 123
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