MKH Annual Report 2017

6. PROFIT BEFORE TAX The Group The Company 2017 2016 2017 2016 RM RM RM RM Profit before tax is arrived at after charging: Amortisation of prepaid lease payments 1,530,438 992,441 - - Amortisation of biological assets 16,719,899 13,830,066 - - Auditors’ remuneration: Audit services 527,426 497,785 53,000 50,000 Other services by auditors of the Company 37,000 19,250 18,000 16,600 Bad debts written off - 42,031 - - Biological assets written off 4,775,926 1,574,617 - - Deposits written off 5,600 1,514,040 - - Depreciation of property, plant and equipment 20,055,373 18,797,489 19,573 19,757 Interest expense: Loans and borrowings 40,573,385 39,822,260 4,656,946 3,268,766 Unwinding of discount 6,991,161 12,370,606 - - Inventories written off 161,778 - - - Impairment loss on: Trade receivables 59,906 108,808 - - Other receivables 2,000 190,992 - - Land held for property development written off - 184,174 - - Net losses on foreign exchange: Realised 6,717,756 - - - Unrealised 7,180,903 - - - Personnel expenses (including key management personnel): Contributions to Employees Provident Fund 6,338,677 6,238,091 - - Provision for post-employment benefit obligations 832,705 2,357,525 - - Provision for retirement gratuity 587,866 - - - Wages, salaries and others 56,314,358 56,117,840 319,082 304,013 Property, plant and equipment written off 23,660 34,788 1 1 Rental of motor vehicles, equipment and machinery 733,137 678,576 - - Rental of premises 54,332 44,485 - - and after crediting: Dividend income (gross) - - 44,370,000 65,644,900 Gain on bargain purchase on acquisition of subsidiaries - 5,085,683 - - Gain arising from derivative financial assets - 42,350 - - Gain on disposal of property, plant and equipment 7,735 122,609 - - Changes in fair value of investment properties 2,987,901 - - - Interest income: Advances to subsidiaries - - 14,885,396 11,287,799 Bank balances, term deposits and fixed income funds 6,012,785 5,804,605 146,211 30,061 Accretion of interest 119,151 5,704 - - Notes to the Financial Statements For the Financial Year ended 30 September 2017 121 MKH Berhad • Annual Report 2017