FRONTLINE COVER FA 070606 CR2.indd

64
frontline technologies corporation ltd
annual report 2006
> notes to the financial statement
for the year ended 31 march 2006
8. Profit from operations before tax
This is determined after charging/(crediting) the following:
Group
2006 2005
$ $
Amortisation of goodwill on acquisition – 1,444,062
Amortisation of intangible assets 428,352 333,307
Auditors’ remuneration
– auditors of the Company, non-audit services 20,400 3,000
Bad debts recovered (143,050) (39,476)
Bad trade debts written off 360,366 526,795
Depreciation of property, plant and equipment 3,676,809 3,398,888
Fees payable to directors of the Company 84,188 30,000
Directors’ remuneration
– of the Company 1,011,090 934,707
– of the subsidiaries 757,559 558,714
Gain on acquisition of additional investment in:
– subsidiary – (439,395)
– associated company – (644,110)
Gain on dilution of investment in associated company – (396,431)
Impairment of goodwill on acquisition 36,231 –
Operating lease expenses 2,681,342 2,943,279
Personnel expenses * (Note 9) 32,194,753 24,082,047
Property, plant and equipment written off 8,793 –
Allowance for impairment in value of other investment 44,741 854,868
Allowance for doubtful receivables
– trade receivables 735,476 1,224,604
– non-trade receivables – 227,278
Allowance for inventory obsolescence 21,219 177,602
Inventories written off 29,336 67,170
Write-back of allowance for doubtful trade receivables (88,200) (234,180)
Write-back of allowance for inventory obsolescence – (258,685)
Write-back of allowance for systems integration project – (400,000)
* These expenses include directors’ fees and remuneration as disclosed in Note 9.