Adcock Ingram Integrated Report 2018

ANNUAL FINANCIAL STATEMENTS Notes to the Group annual financial statements continued 78 ADCOCK INGRAM  Integrated Report 2018 6 TRADING PROFIT 2018 2017 R‘000 R‘000 6.1 TRADING PROFIT HAS BEEN ARRIVED AT AFTER CHARGING/ (CREDITING) THE FOLLOWING EXPENSES/(INCOME): External auditor‘s remuneration – Audit fees current year 9 955 8 391 – Audit fees under/(over)provision prior year 472 (185) – Taxation services 295 245 – Other services 122 338 Internal auditors‘ remuneration * 246 442 Depreciation – Freehold land and buildings 19 252 19 483 – Leasehold improvements 9 969 9 540 – Plant, equipment and vehicles 90 048 83 800 – Computer equipment 33 841 22 837 – Furniture and fittings 5 276 4 730 Amortisation of intangible assets 10 647 9 682 Inventories written off 94 854 66 215 Royalties paid 37 146 37 194 Operating lease charges – Equipment 2 923 2 506 – Property 43 143 38 451 Foreign exchange loss 4 850 13 199 Fees paid to related parties (refer to note 29) 56 747 42 481 Profit on disposal of property, plant and equipment (1 968) (194) 6.2 TOTAL STAFF COST ** 1 255 422 1 069 216 Included in cost of sales 580 823 486 755 Salaries and wages 518 393 423 077 Employers‘ contribution to: 62 430 63 678 Medical 15 664 17 035 Retirement 46 766 46 643 Included in operating expenses 674 599 582 461 Salaries and wages 586 410 502 128 Employers‘ contribution to: 88 189 80 333 Medical 17 103 15 482 Retirement 71 086 64 851 * Foreign operations ** Total staff costs include costs for executive directors and key management.