Serba Dinamik Annual Report 2021

Section 5 | Management Discussion & Analysis 160 COST OF SALES Our cost of sales stood at RM7.18 billion in FPE2021. Our cost of sales comprises: Parts consumables and manpower, which refers to the essential machine and equipment, spare parts, bolts & nuts, tools, lubricants, and the manpower required for the installation of the above-mentioned items. This is the major component of our cost of sales accounted for 91.73% of the total cost of sales for the period. Depreciation of plants, machinery, tools and equipment which are our second largest component in the cost of sales and accounts for 4.39% of the total cost of sales for FPE2021. Personnel expenses refer to wages, benefits and compensations paid to our technical staff that perform the services provided to our clients. These expenses amounted to 2.05% of our total cost of sales for the period. Professional fees paid to third party service providers for services outsourced made up 0.9% of the costs of sales for the period. These services are technical consultancy, analysis and testing services amongst others. Other expenses comprise various costs such as levies, hiring charges, other payments to regulatory authorities amongst others. These costs amounted to RM64.85 million or 0.90% of the total costs of sales for the period. FINANCIAL PERFORMANCE 1 2 3 4 5 Parts, Consumables & Manpower Depreciation Personnel Expenses Professional Fees Others