Although business activities throughout the region were affected, the effects were especially severe in Indonesia and the group decided to provide for the diminution in value of its full investment there amounting to RM48.9 million.
42.
As a result of provision for a diminution in value of investments and an unrealised exchange loss totalling RM110 . 99 million, the division's pre-tax profit fell by 49 per cent to RM64 . 58 million.
43.
The overall improvement in the trust's earnings was attributed to higher investment income, as well as write backs made for the provision for diminution in value of investments and overprovision for taxation in the previous year.
44.
"' Diminished value "', Diminution in Value, or commonly referred to as " DV " are the terms generally used to describe the economic loss in a property's value as a result of having been damaged.
45.
Although business activities throughout the region were affected, the effects were especially severe in Indonesia and the group decided to provide for the diminution in value of its full investment there amounting to RM48 . 9 million.
46.
However, after taking into account a provision for diminution in value of investments and an unrealised exchange loss totalling RM437 . 43 million, the division's pre-tax profit fell from RM472 . 01 million to RM110 . 1 million.
47.
`While the diminution in value of quoted investments has to some extentaffected the asset position of insurers, the insurance industry as a wholeremains viable and has been able to meet claims as and when they falldue,'the report states.
48.
"The major impact of the loss is largely attributed to the loss in provisions for diminution in value of investments, assets write-down and unrealised foreign exchange losses arising on translation of foreign loans taken by the company, " added Azmi.
49.
The provision for diminution in value of investment in Roasters, in which BGroup has 73 per cent equity interest, follows the company's inability to sustain its operations due to the competitive trading environment and recurring losses over the past years.
50.
For the period reviewed, pre-tax profit of Southern Bank declined by 29.7 per cent to RM12.2 million from RM173.7 million previously due mainly to changes in loan classification, increased provision for doubtful debts and provision for diminution in value of assets.
