board of directors - Petron

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)(k)Foreign currencies3. REVENUESTransactions arising in foreign currencies are translated into Ringgit Malaysia at the approximaterates of exchange on the transaction dates. Transactions uncompleted at the balance sheet dateare translated at the closing exchange rates. Foreign currency exchange gains and lossesresulting from the translation and settlement of foreign currency transactions are included in theincome statement.The closing rate used in translation of foreign currency amounts is RM3.800 : 1 U.S. Dollar for theyear ended December 31, 2001 (2000 : RM3.825 : 1 U.S. Dollar).2001 2000RM'000 RM'000Related companies sales 1,320,557 746,399Third party sales 2,804,554 3,082,378Turnover 4,125,111 3,828,777Interest income 264 247Income from rent of land & buildings 8,987 9,8804,134,362 3,838,904Turnover represents the value of goods sold net of Government duties and taxes ofRM100,717,000 (2000: RM88,171,000).4. FINANCE COST2001 2000RM'000 RM'000Interest on bank borrowings 27,530 34,626Forex gain on bank borrowings - realised - (750)Other interest expense 76 235. PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX27,606 33,899ANNUAL REPORT & ACCOUNTS 2001The profit from ordinary activities before taxation isarrived at after charging / (crediting) the following items:2001 2000RM'000 RM'000Depreciation on property, plant and equipment 65,949 61,060Amortisation of intangible assets 827 -Directors' remuneration:Fees (Non-Executive Directors) 52 42Auditors’ remuneration 117 130Provision for retirement benefits 5,574 6,848Allowance and write-off for doubtful debts 1,561 77Forex (other than on bank borrowings)Realised forex (gain)/loss (550) 630Unrealised forex gain (1,717) (11)Rental of land and buildings 18,619 16,511Hire of plant and machinery 1,004 995Research and development expense 2,886 1,496(Gain)/Loss on disposal of property, plant and equipment (469) 1,479Staff costs 47,304 45,301ESSO MALAYSIA BERHAD30