2019 UEM Edgenta Annual Report

186 187 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 7. PROFIT BEFORE TAX The following amounts have been charged/(credited) in arriving at profit before tax: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Employee benefits expense (Note 8) 856,882 751,342 71,584 54,671 Non-executive directors’ remuneration excluding benefits-in-kind (Note 9) 1,287 1,323 1,243 1,188 Auditors’ remuneration: - statutory 1,247 1,236 148 138 - others 1,055 340 37 340 Depreciation of right-of-use assets (Note 37) 10,050 - 8,351 - Operating leases: - minimum lease payments of premises - 14,605 - 1,883 - minimum lease payments of motor vehicles - 1,461 - - - minimum lease payments of plant and machineries - 736 - 96 Expense relating to: - short-term leases (Note 37) 3,797 - 384 - - leases of low-value assets (Note 37) 349 - 83 - Amortisation of: - prepaid land lease payments (Note 15) - 87 - - - intangible assets (Note 16) 23,557 22,353 476 183 Depreciation of property, plant and equipment (Note 13) 48,750 45,001 3,346 3,225 Net (gain)/loss on disposal of plant and equipment (34) (658) - 633 Property, plant and equipment written off (Note 13) 42 9 - - (Gain)/loss on disposal of asset held for sale (Note 25) (647) - 132 - Intangible asset written off (Note 16) 4 - - - Provision for ECL on trade and other receivables (Note 21) 6,214 9,935 7,105 - Bad debts written off 200 - - - Impairment loss on investment in subsidiary (Note 17(a)) - - 81,430 129,000 Net foreign exchange loss: - realised 237 32 - - - unrealised 9 24 - - 8. EMPLOYEE BENEFITS EXPENSE Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Wages and salaries 660,822 581,246 56,142 41,292 Contributions to statutory Employees Provident Fund (“EPF”) 61,368 54,174 5,830 4,930 Social security contributions 3,029 2,951 354 324 Defined retirement benefit obligations (Note 26) 231 273 - - Decrease in liability for defined benefit pension plan (Note 27) (725) (29) - - Employees’ service entitlements (Note 28(a)) 530 532 - - Other benefits 131,627 112,195 9,258 8,125 Total employee benefits recognised in profit or loss (Note 7) 856,882 751,342 71,584 54,671 Included in employee benefits expense of the Group and of the Company are executive directors’ remuneration excluding benefits-in-kind amounting to RM1.8 million (2018: RM1.3 million) as further disclosed in Note 9.