8. (LOSS)/GAIN FROM DECONSOLIDATION OF A SUBSIDIARY During the financial year, the Corporation had completed the disposal of 3,795,200 ordinary shares representing approximately 31% of the total issued share capital of FPSO Ventures Sdn. Bhd. (“FVSB”), a partially-owned subsidiary of the Group, for a total consideration of RM26,923,000. As a result, the Group and the Corporation recognised a loss and a gain on the disposal of RM2,241,000 and RM25,025,000 respectively in the current financial year. Accordingly, FVSB ceased to be a subsidiary of the Corporation from the said date. Details of the disposal are disclosed in Note 17(c). 9. WRITE OFF OF TRADE RECEIVABLES AND LOSS ON RE-MEASUREMENT OF FINANCE LEASE RECEIVABLES AND PROVISION FOR LITIGATION CLAIMS In the previous financial year, the Group had written off its trade receivables and accounted for the loss on re-measurement of finance lease receivables amounting to RM846,229,000 following the decision by the Arbitral Tribunal on 8 April 2020 as disclosed in Note 43(a)(i). Additionally, based on legal opinion obtained from the Group’s legal counsel, the Group has also recognised a provision for litigation claims amounting to RM1,049,248,000, representing an estimate of the outcome arising from the Awards issued by the Arbitral Tribunal and the Group’s action to file and pursue an application to set aside a substantial portion of the Award. 10. (a) FINANCE INCOME Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Interest income: Subsidiaries – – 41,538 64,128 Joint ventures 2,280 – – – Third party 6,411 9,505 6,411 9,505 Deposits 25,893 84,286 4,355 29,005 Unwinding of discount on trade receivables 13,666 18,821 13,666 18,821 Total finance income 48,250 112,612 65,970 121,459 (b) FINANCE COSTS Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Interest expense on loans and borrowings from: Subsidiaries – – 18,777 15,263 Banks and financial institutions 374,969 323,177 5,691 14,249 Interest on lease liabilities (Note 20(c)) 15,364 23,376 1,688 1,312 Total interest expense 390,333 346,553 26,156 30,824 Amortisation of upfront fees for borrowings 27,010 21,531 – – Total finance costs 417,343 368,084 26,156 30,824 11. TAXATION Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Current income tax: Malaysian income tax 28,940 41,199 3,009 6,214 Foreign tax 18,644 17,999 – – (Over)/under provision in prior year: Malaysian income tax (7,378) 11,075 (1,376) – Foreign tax (938) 163 – – 39,268 70,436 1,633 6,214 Deferred tax (Note 29): Relating to origination and reversal of temporary differences 34,973 (38,005) – – (Over)/under provision in prior year (33,166) 13,816 – – 1,807 (24,189) – – Taxation for the year 41,075 46,247 1,633 6,214 Domestic income tax is calculated at the statutory tax rate of 24% of the estimated assessable profit for the financial year. A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Corporation is as follows: Group Corporation 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Profit/(loss) before taxation 1,774,622 (123,584) 1,770,889 1,918,550 Taxation at Malaysian statutory tax rate of 24% 425,909 (29,660) 425,013 460,452 Effect of different tax rates in other countries/jurisdictions (81,876) 363,681 – – Income not subject to tax: Tax exempt shipping income (928,835) (528,894) (126,347) (135,908) Others (35,490) (10,717) (386,379) (406,620) Expenses not deductible for tax purposes 725,466 293,261 132,309 116,982 Effect of share of results of associates and joint ventures (72,264) (102,966) – – Utilisation of previously unrecognised tax losses – (28,004) – (28,692) Deferred tax assets recognised on unutilised investment tax allowances – (102,743) – – Deferred tax assets not recognised during the year 49,647 167,235 (41,587) – Deferred tax (over)/under provided in prior year (33,166) 13,816 – – Income tax (over)/under provided in prior year (8,316) 11,238 (1,376) – Taxation for the year 41,075 46,247 1,633 6,214 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 348 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 349 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NDgzMzc=