Fraser & Neave Holdings Bhd Annual Report 2020

202 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 25. PROFIT FOR THE YEAR Group Company Note 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Profit for the year is arrived at after charging/(crediting): Auditors’ remunerations Audit fees: – KPMG PLT 480 461 90 90 – Overseas affiliates of KPMG PLT 256 240 – – – Other auditors 14 – – – Non-audit fees: – KPMG PLT 124 179 124 179 – Overseas affiliates of KPMG PLT 68 105 – – Material expenses/(income) Advertising and promotion expenses 174,125 208,698 – – Amortisation of intangible assets 7 1,799 2,353 – – Bad debts recovered (30) (64) – – Depreciation of property, plant and equipment 3 104,907 100,065 – – Depreciation of right-of-use assets 4 25,865 – – – Distributor incentives, discounts and rebates 713,683 744,967 – – Impairment loss: – Investments in subsidiaries 8 – – 1,380 – – Plant and equipment 3 582 363 – – – Trade receivables 513 511 – – Inventories written down 13 5,215 3,333 – – Inventories written off 13 6,498 8,485 – – Gain on disposal of intangible assets 7 (7,805) (5) – – Net fair value loss on derivatives 233 50 – – Net loss on disposal of plant and equipment 594 417 – – Net realised foreign exchange (gain)/loss (203) 1,734 149 14 Net unrealised foreign exchange loss/(gain) 843 (201) 23 18 Plant and equipment written off 458 3,298 – – Rental income from premises (999) (1,177) – – Reversal of impairment loss: – Plant and equipment 3 (538) (697) – – – Trade receivables (97) (199) – – Reversal of inventories written down 13 (298) (433) – – Royalties: – Holding company – 3,221 – – – Related companies 49,477 50,898 – – – Third parties 91,388 91,070 – – Personnel expenses (including compensation of key management personnel) – Contributions to state plans 25,963 26,698 – – – Expenses related to defined benefit plans 18 4,739 6,567 – – – Share-based payment expense 7,952 2,275 – – – Wages, salaries and others 258,749 270,184 – – – Restructuring costs – 2,109 – – Expenses arising from leases: Expenses relating to short-term leases a 3,136 – – – Expenses relating to leases of low-value assets a 1,643 – – – Expenses relating to variable lease payments not included in the measurement of lease liabilities 11,036 – – – Rental expense 306 43,616 – – Note a The Group leases photocopier and others with contract terms of 1 to 5 years. These leases are short-term and/or leases of low-value items. The Group has elected not to recognise right-of-use assets and lease liabilities for these leases.