Directors - Boustead Holdings Berhad

5. OPERATING COST (cont’d.)
During the year, the Group reviewed the recoverable amounts of new plantation developments in Sabah,
Sarawak and Indonesia using discounted cash flow over one economic cycle at discount factors of
between 8.5% to 10%. Key assumptions used for prices were RM1,600 per MT for palm oil and RM900
per MT for palm kernel. FFB production was estimated at up to 26 MT per hectare for Sabah estates
and 24 MT per hectare for Sarawak and Indonesia estates. These key assumptions are highly variable
and will most likely fluctuate due to factors beyond the Group’s control. The review led to the recognition
of impairment of RM19 million for the year ended 31 December 2006, totalling RM9.50 million each for
biological assets and property, plant and equipment respectively.
The remuneration paid to Directors during the year analysed into bands of RM50,000 are as follows:
Number of Directors
Non-executive Executive
Up to RM50,000 2
From RM50,001 to RM100,000 2
From RM200,001 to RM250,000 1
From RM1,600,001 to RM1,650,000 1
6. INTEREST INCOME
Group Company
2006 2005 2006 2005
RM’000 RM’000 RM’000 RM’000
Interest income – Subsidiaries –– –– 29,523 9,788
– Associates 1,799 1,147 564 136
– others 2,181 3,040 52 581
3,980 4,187 30,139 10,505
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