KUB Malaysia Berhad Annual Report 2021

8. FINANCE COSTS Group Company 1.1.2020 to 1.1.2019 to 1.1.2020 to 1.1.2019 to 30.6.2021 31.12.2019 30.6.2021 31.12.2019 (18 months) (12 months) (18 months) (12 months) RM’000 RM’000 RM’000 RM’000 Finance costs on: - bank borrowings 4,957 7,042 - 56 - lease liabilities (Note 17) 214 167 17 - - obligations under hire purchase 30 33 4 8 - intercompany advances - - - 808 5,201 7,242 21 872 9. PROFIT BEFORE ZAKAT AND TAXATION The profit before zakat and taxation has been arrived at after charging the following expenses: Group Company 1.1.2020 to 1.1.2019 to 1.1.2020 to 1.1.2019 to 30.6.2021 31.12.2019 30.6.2021 31.12.2019 (18 months) (12 months) (18 months) (12 months) RM’000 RM’000 RM’000 RM’000 Employee benefits expense (a) 25,867 33,454 6,746 10,187 Depreciation of: - property, plant and equipment (Note 15) 25,385 15,512 1,205 1,056 - investment properties (Note 16) 757 424 207 73 - right-of-use assets (Note 17) 1,227 703 151 - Loss on disposal of a subsidiary (Note 18(d)(iii)) 18,815 - 26,649 - Provision for liquidated ascertained damages (Note 26(c)) 2,356 - - - Non-executive Directors’ remuneration (Note 11) 1,032 770 986 698 Auditor’s remuneration (Note 10) 780 652 317 209 Allowance for impairment: - trade and other receivables (Note 24) 6,481 567 - - - property, plant and equipment (Note 15) 116 7,147 116 - - contract assets (Note 24) 111 - - - - investment in subsidiaries (Note 18 (b)) - - 27,360 - - advance to subsidiaries (Note 18 (c)) - - 40 46 - amount due from subsidiaries (Note 23) - - - 1,249 - financial guarantee (Note 18(f)) - - 781 - Property, plant and equipment written off 522 1,634 188 - Reduction in unguaranteed residual value (Note 17) 285 - - - Unrealised loss on foreign exchange 246 108 - - Loss on fair value changes in investment unquoted share 228 17 228 17 Inventories written down 97 632 - - Realised loss on foreign exchange 41 4 - - Loss on fair value changes of derivatives instruments 18 21 - - 85 ANNUAL REPORT 2021 FINANCIAL STATEMENTS