Provisions for Liabilities
|
Liquidated Damages |
Product Warranty |
Subsidiaries Restructuring Costs |
Total |
|
|
RM |
RM |
RM |
RM |
|
| At beginning of year |
12,000,000 |
6,000,000 |
– |
18,000,000 |
| Additions |
5,000,000 |
1,000,000 |
500,000 |
6,500,000 |
| Utilisation |
– |
(800,000) |
(400,000) |
(1,200,000) |
| Reversal |
(6,000,000) |
(100,000) |
(50,000) |
(6,150,000) |
| Exchange differences |
– |
(50,000) |
– |
(50,000) |
| At end of year |
11,000,000 |
6,050,000 |
50,000 |
17,100,000 |
| Year end balances analysed as follows:- |
|
|
|
|
| Current |
2,000,000 |
1,850,000 |
50,000 |
3,900,000 |
| Non-current |
9,000,000 |
4,200,000 |
– |
13,200,000 |
|
11,000,000 |
6,050,000 |
50,000 |
17,100,000 |
Liquidated Damages
Provision for liquidated damages is in respect of development projects undertaken by the Company. The provision is recognised for expected liquidated damages claims based on the terms of the applicable sale and purchase agreements.
Product Warranty
The Company gives three year warranties on certain products manufactured and sold. Such warranty is in respect of the Company’s undertaking to repair or replace those items that fail to perform satisfactorily upon meeting the terms and conditions set by the Company. A provision for warranty is calculated and recognised for each type of such product based on available past historical data on the levels of repairs and returns.
Subsidiaries Restructuring Costs
The restructuring costs are in respect of restructuring of the business and operations of the Company’s subsidiaries in Country X and Country Y during the financial year as disclosed in Note X. The major costs in this respect are employee termination benefits and penalties on the early termination of leases of office and warehouse.