Tropicana Corporation Berhad Annual Report 2020

7. FINANCE INCOME Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Finance income from: - deposits with licensed banks 10,259 9,059 907 1,144 - Housing Development Accounts 3,165 8,299 – – - amounts due from subsidiaries (Note 37(a)) – – 67,511 30,834 - others 4,356 1,110 – – 17,780 18,468 68,418 31,978 8. FINANCE COSTS Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Finance costs on: - amounts due to subsidiaries (Note 37(a)) – – 36,152 12,236 - borrowings 137,449 65,426 49,405 23,254 - unwinding of discount on trade and other payables 389 9 – – - amortisation of borrowing costs (Note 32) 10,916 10,055 655 726 - accretion of interest on ICPS (Note 30) 15,118 – 15,118 – - accretion of lease liabilities interest (Note 35(b)) 415 360 59 116 164,287 75,850 101,389 36,332 9. PROFIT/(LOSS) BEFORE TAX The following amounts have been included in arriving at profit/(loss) before tax: Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Employee benefits expenses (Note 10) 173,503 167,897 18,402 23,513 Auditors' remuneration: - audit fee 1,332 1,212 383 335 - non-audit fee 24 23 8 7 Depreciation of property, plant and equipment (Note 15) 28,252 27,168 470 548 Depreciation of right-of-use assets (Note 35) 6,296 9,606 1,102 1,671 Amortisation of intangible assets (Note 22) 342 271 – – Amortisation of deferred license fees (Note 34(a)) (4,586) (4,466) – – Amortisation of security retainers accumulation fund (Note 23(b)(i)) 11 11 – – Unrealised returns on security retainers accumulation fund (Note 23(b)(i)) (98) (216) – – Net fair value loss on investment properties (Note 17) – 674 – – Fair value loss on quoted shares 9,162 – – – Impairment loss on: - property, plant and equipment (Note 15) 33,650 50,767 – – - trade and other receivables 2,718 1,588 – – - investments in subsidiaries (Note 18) – – 16,895 62,916 - intangible assets (Note 22) – 25,643 – – Property, plant and equipment written off 77 4,976 – – Loss on disposal of: - investment properties – 3,255 – – - assets classified as held for sale 1,538 538 – – Loss on foreign exchange: - realised 89 131 – – - unrealised 27 5 – – Inventories written down – 56,314 – – Bad debts written off 49 839 – – Direct operating expenses arising from investment properties 11,490 7,216 – – Management fees charged by a subsidiary (Note 37(a)) – – 7,898 6,398 Property development costs written off (Note 16(b)) – 16,996 – – Liquidated ascertained damages to purchasers – 3,401 Liquidated ascertained damages from contractors – (12,860) – – Expenses relating to short-term leases 319 515 – – Expenses relating to low-value assets 240 287 – – Included in auditors' remuneration of the Company amounting to RM245,000 (2019: RM197,300) is borne and paid by the Company on behalf of its subsidiaries. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 204 205