annual report - Tenaga Nasional Berhad

5 OPERATING EXPENSES (CONT’D.)groupCompany2008 2007 2008 2007RM’million RM’million RM’million RM’millionAllowance for doubtful debts 33.5 66.6 26.5 52.0Amortisation of coal mining rights 0 10.7 0 0Depreciation 3,528.7 3,199.9 2,860.8 2,595.2Amortisation of prepaid operating leases 26.6 22.1 19.2 14.7Rental of land and buildings 63.4 51.5 39.2 39.0Rental of plant and machinery 19.2 22.2 19.1 21.9Research and development expenses 47.1 17.0 46.1 16.7Property, plant and equipment written off 45.3 5.3 29.9 0Inventories written off 23.5 34.3 23.2 33.9Allowance for/(write-back of) diminutionin value of marketable securities 2.1 (1.4) 2.1 (1.4)Allowance for diminution in valueof coal mining rights 0 200.0 0 0Allowance for/(write-back of) diminution invalue of amount due from subsidiaries 0 0 68.2 (13.6)(Write-back) of diminution in value of investment 0 (0.1) 0 (40.6)(Write-back) of allowance for doubtful debts (32.5) (213.4) (26.2) (207.7)Allowance for/(write-back of) inventoryobsolescence 0.2 5.9 (0.9) 5.9Receipt of Government subsidies* (535.3) (435.7) 0 0Staff cost (Note 6) 2,582.8 2,392.1 2,236.5 2,104.4* This represents the subsidies that Sabah Electricity Sdn Bhd (‘SESB’) received for diesel and medium fuel oil fromthe Government of Malaysia. The total amount credited in the current year was RM535.3 million (2007: RM435.7million) and it has been offset against energy cost.** This represents the audit fees for Liberty Power Ltd amounting to RM37,881 (2007: RM42,956).# PricewaterhouseCoopers Malaysia and other member firms of PricewaterhouseCoopers International Limited areseparate and independent legal entities.The estimated monetary value of benefits-in-kind received by the Directors was RM256,520 (2007: RM180,806) for theGroup and the Company.The estimated monetary value of amounts paid and payable to a firm, of which a Director is a partner, for professionalservices rendered to the Group and the Company was RM458,243 (2007: RM673,864).[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]201