Wah Seong Corporation Berhad Annual Report 2020

169 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 32 (LOSS)/PROFIT FROM OPERATIONS (CONTINUED) Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 and crediting: Gain on disposal of: - property, plant and equipment 7,298 973 - - - subsidiaries (Note 37) 19,203 - - - - investment properties - 6,961 - - Gain on foreign exchange: - realised 7,135 3,844 89 574 - unrealised 7,288 5,195 2,323 - Interest income 4,246 4,992 8,884 12,274 Reversal of impairment loss on: - trade receivables 786 3,213 - - Reversal of allowance on slow moving and obsolete inventories 18 4,105 - - Government grants relating to income** 8,802 - - - ** Government grants were introduced by the local government in various countries of which the Group operates from. This is a government subsidy granted to assist corporations who are economically impacted by the Covid-19 pandemic, with certain criteria to be met. 33 FINANCE COSTS Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Interest expense on: - loans and borrowings 32,537 42,900 6,081 9,070 - lease liabilities 10,854 11,752 - - 43,391 54,652 6,081 9,070 34 TAX EXPENSE/(CREDIT) Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Current tax: - Malaysian income tax 6,235 12,066 2,090 2,277 - Foreign taxation 13,467 (8,735) - - 19,702 3,331 2,090 2,277 Deferred taxation (Note 8) 18,976 (11,336) (1,150) (32) 38,678 (8,005) 940 2,245