Page 130 - HRC_Annual_Report_2023

128 About HRC Value Creation Management Discussion Leadership
& Analysis

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

8 FINANCE COST
2023 2022
RM’000 RM’000
Interest expense:
- borrowings 93,188 41,647
- amortisation of upfront and commitment fees for borrowings 3,387 2,563
- lease liabilities 68 359
- factoring agreement 17,232 11,520

113,875 56,089

9 LOSS BEFORE TAXATION

2023 2022
RM’000 RM’000
The loss before taxation is arrived at after charging/(crediting):
Auditors’ remuneration:
- statutory audit fees 391 391
- audit-related fees 74 74
- fees for non-audit services** 27 77
Cost of inventories 14,478,851 19,110,830
Staff cost:
- salaries, bonus and allowances 68,418 65,773
- defined contribution plan 10,231 9,471
- other employee benefits 6,375 5,056
Foreign exchange (gains)/losses:
- realised (10,333) 240,628
- unrealised 75,918 (126,694)
Net fair value losses/(gains) on derivative financial instruments:
- included in purchases (Note 23) 711,882 1,459,890
- included in other operating gains/(losses) (204,442) 237,583
Depreciation of property, plant and equipment 134,761 102,809
Depreciation of right-of-use assets 6,540 7,466
Amortisation of intangible assets 2,605 2,723
Inventories (written back)/written down - net (19,698) 82,989
Reversal of provision for obsolete inventories (171) -
Impairment of receivables 169 -
Impairment of equipment (Note 13) - 12,108

** Non-audit services comprising of tax related and other advisory services provided by the member firms of the Company’s
auditors.