Eng - IOI Group

6 OPERATING PROFITIn RM’000GroupCompany2003 2002 2003 2002aOperating profit has been arrived atafter charging:Allowance for diminution in value of otherlong term investments - 1,700 - 1,700Allowance for doubtful debts 863 1,578 - -Allowance for stock obsolescence 2,266 130 - -Amortisation of goodwill on consolidation 21,631 9,124 - -Amortisation of goodwill on acquisitionof associates - 1,050 - -Auditors’ remuneration- audit 1,315 580 70 59- non audit 164 120 - 10Depreciation of property, plant and equipment 123,678 77,236 5,007 4,747Hire of plant and machinery 5,981 2,358 - -Impairment loss on investment in an associate - 13,000 - -Impairment loss on investment in subsidiaries - - - 1,421Inventories written off 1,277 1,426 6 -Lease rentals 195 90 - -Loss on disposal of an associate 4,137 - 4,056 -Loss on disposal of shares in a subsidiary 782 - 30 -Property, plant and equipment written off 1,824 1,495 606 50Provision for retirement benefits 11,620 798 - -Provision for retrenchment benefits 1,526 - - -Remuneration of directors of the Company- fees 484 365 266 231- other emoluments 8,927 7,857 5,071 4,359Rental of premises 937 703 - -Replanting expenditure 10,139 8,580 5,132 3,796Research and development expenditure 11,225 5,317 6,034 5,317Revaluation deficit of an investment property 14,064 - - -Unrealised foreign exchange loss 40,723 - 40,118 -149IOI Corporation BerhadAnnual Report 2003