Wah Seong Corporation Berhad Annual Report 2018

32 COST OF SALES Group 2018 2017 RM’000 RM’000 Contract costs 1,930,280 1,443,661 Cost of goods sold 646,980 705,935 Direct operating costs relating to rental income 48,020 32,832 2,625,280 2,182,428 33 OTHER GAINS/(LOSSES) - NET Group 2018 2017 RM’000 RM’000 Fair value gains/(losses) arising from fair value changes of: - Derivative financial instruments - Forward currency contracts 48 (487) - Investment in equity instruments (4) - 44 (487) 34 PROFIT FROM OPERATIONS Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Profit from operations is stated after charging: Staff costs (Note 41) 494,370 334,866 6,848 4,371 Auditors’ remuneration: Fees for statutory audits - PricewaterhouseCoopers PLT 1,068 1,077 88 88 - member firms of PricewaterhouseCoopers International Limited 2,176 1,497 - - - others 629 590 - - Fees for non-audit services* - PricewaterhouseCoopers PLT 692 577 14 14 - member firms of PricewaterhouseCoopers International Limited 2,082 2,802 - - Depreciation of property, plant and equipment 188,091 144,713 100 237 Impairment loss on: - property, plant and equipment 48 72,842 - - - investment in an associate - 271 - - Loss on foreign currency exchange: - realised 14,058 13,313 4,619 5,545 - unrealised 11,392 29,104 - - Loss on disposal on a subsidiary - 8,363 - - and crediting: Gain on disposal of property, plant and equipment 5,439 36,662 3 98 Gain on disposal of non-current asset held for sale 4,534 - - - Gain on disposal of prepaid lease payments - 64,071 - - Gain on disposal of a subsidiary - - - 12,235 Gain on foreign exchange: - realised 6,604 14,342 - - - unrealised 11,086 24,748 2,338 4,276 Interest income 6,687 7,660 8,839 11,319 Reversal of impairment loss on property, plant and equipment 4,904 - - - * Included in fees for non-audit services are fees payable to PricewaterhouseCoopers PLT and its local affiliates for the Group and the Company of RM692,000 (2017: RM577,000) and RM14,000 (2017: RM14,000) respectively. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 158