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Notes To The
Financial Statements
As at 31 March 2019
31. Provisions
Group
Company
2019
2018
2019
2018
RM’000
RM’000
RM’000
RM’000
Provision for warranty
9,192
9,961
-
-
Provision for compensation claim
2,120
2,120
2,120
2,120
11,312
12,081
2,120
2,120
(a) Provision for warranty is based on current volumes of products sold still under warranty and on historic
quality rates as well as estimates and assumptions regarding future quality rates for new products.
(b) Provision for compensation claim is for a tenant’s renovation costs and general damages arising from an
early termination of a tenancy agreement by the Company. On 27 September 2011, the Court of Appeal
had allowed the Company’s appeal against the decision handed down by the High Court in favour of the
tenant and directed that the matter be remitted back to the High Court for a full trial. There has been no
development since then.
The movement of the provision for warranty is as follows:
Group
2019
2018
RM’000
RM’000
At 1 April 2018/2017
9,961
14,827
Reversal of provision (Note 6)
(2,558)
(6,138)
Charge for the year (Note 6)
1,789
1,272
At 31 March
9,192
9,961
32. Commitments
Group
Company
2019
2018
2019
2018
RM’000
RM’000
RM’000
RM’000
Capital expenditure:
Approved and contracted for:
Property, plant and equipment
2,970
2,010
-
-
Approved but not contracted for:
Property, plant and equipment
25,712
14,973
944
481
28,682
16,983
944
481
financial
statements
169