Annual Report 2012 - IOI Group

8. OPERATING PROFITGroupCompany2012RM’0002011RM’0002012RM’0002011RM’000(a)Other than those disclosed in Note 7, operatingprofit has been arrived at after charging:Amortisation of prepaid lease payments (Note 15) 2,826 2,824 – –Auditors’ remunerationBDO and affiliatesStatutory audit 1,182 1,182 125 125Non-statutory audit– tax compliance and advisory services 243 464 – –– others 144 178 23 173Member firms of BDO InternationalStatutory audit 1,190 1,182 – –Non-statutory audit– tax compliance and advisory services 46 39 – –Other auditorsStatutory audit 601 508 – –Bad debts written off 90 3,300 – –Depreciation of property, plant and equipment(Note 14) 252,482 243,480 4,093 4,016Direct operating expenses of investment properties 28,112 30,037 – –Expenses for retirement benefits (Note 35.1) 25,032 21,497 101 98Hire of plant and machinery 11,609 7,549 – –Rental of premises 778 955 1,299 1,274Lease of land 1,559 1,559 – –Inventories written down to net realisable values 39,261 8,064 – –Share option expenses (Note 8(b)) 4,330 11,656 4,330 11,656and crediting:Impairment losses on receivables written back 521 9,677 – –Gross dividends received from:– short term funds quoted in Malaysia 51,731 37,534 33,256 37,534– other quoted investments in Malaysia 5,066 1,034 270 73– other unquoted investments in Malaysia 17 56 – –– unquoted subsidiaries – – 927,563 1,653,944– unquoted associates – – 12,000 9,000Rental income from plant and machinery 6,694 8,077 – –Rental income from:– investment properties 95,312 95,653 – –– rendering of services 7,524 8,339 – –– others 2,919 2,785 127 101Cost of inventories of the Group and of the Company recognised as an expense during the financial year amounted toRM8,536,804,000 (2011 – RM9,535,453,000) and RM15,390,000 (2011 – RM22,883,000) respectively.Annual Report 2012IOI CORPORATION BERHAD 157