Notes to the Financial Statements - Kenford.com.hk

Notes to the Financial Statements
For the year ended 31 March 2006
7. PROFIT FROM OPERATIONS
Profit from operations is stated after charging/(crediting):
2006 2005
HK$’000 HK$’000
(Restated)
Auditors’ remuneration 475 300
Cost of inventories recognised as an expense 356,874 370,729
Depreciation of property, plant and equipment
– Owned 11,701 10,282
– Held under finance leases 410 1,829
Exchange losses, net 1,344 1,521
Staff costs (note 8)
– Basic salaries, bonuses, allowances and benefits in kind 58,015 50,569
Less: Amount paid under PRC sub-processing agreements (37,175) (32,616)
20,840 17,953
Research and development costs (note (i)) 4,361 4,532
Amortisation on interests in leasehold land held for
own use under operating leases 71 44
Operating lease expenses 268 42
Impairment of trade receivables 199 5
Impairment/(reversal) of obsolete inventories 443 (104)
Note:
(i)
Research and development costs comprised of mainly salaries to engineers who are responsible for the research and development
functions. The amounts were also included in staff costs.
8. STAFF COSTS
2006 2005
HK$’000 HK$’000
Staff costs (including directors’ emoluments) comprise:
Salaries and welfare 56,548 50,121
Retirement benefits scheme contributions 467 448
Share-based payment expenses (note 26) 1,000 –
58,015 50,569
Annual Report 2006
47