2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 200315. EMPLOYEE INFORMATIONGroupCompany2003 2003 2002RM’000 RM’000 RM’000Staff costs 12,952 265 –Staff costs include contributions to Employees Provident Fund of RM1,108,000 for the Group and RM29,000(2002 – Nil) for the Company.The number of employees of the Group and of the Company at the end of the year was 512 and 6 (2002 – Nil).16. FINANCING COSTSGroup2003RM’000Interest payable on:Bank overdrafts 629Term loan 502Hire purchase 2971,428Bank and other charges 121,44017. TAX EXPENSEGroupCompany2003 2003 2002RM’000 RM’000 RM’000Income tax expense – current year 2,887 15 –Deferred tax expenseOrigination of temporary differences 593 – –3,480 15 –Reconciliation of effective tax expenseProfit/(Loss) before tax 29,055 2,806 (3)Income tax using Malaysian tax rate (28%) 8,135 786 (1)Non-deductible expenses 998 69 1Tax exempt income – (840) –Tax incentive (460) – –Effect of tax loss not recognised 639 – –Negative goodwill (5,832) – –3,480 15 –2003 ANNUAL REPORT49