ANNUAL REPORT 2014
83
NOTES TO THE
FINANCIAL STATEMENTS
18. Loans and borrowings
Group
2014
2013
RM’000
RM’000
Current
Unsecured foreign currency loans
22,029
12,306
Unsecured bankers’ acceptances
-
541
Unsecured revolving credit
15,000
-
37,029
12,847
The borrowings of the Group are subject to interest at 0.83% to 4.05% (2013: 0.90% to 3.80%) per annum.
19. Provisions
Group
RM’000
At 1 January 2013
9,364
Provisions made during the year
19,483
Provisions paid during the year
(4,859)
Provisions reversed during the year
(441)
At 31 December 2013/1 January 2014
23,547
Provisions made during the year
3,765
Provisions paid during the year
(4,661)
Provisions reversed during the year
(1,148)
At 31 December 2014
21,503
A provision for warranties is recognised when the products are sold where they are entitled to warranty. The
provision is based on historical warranty claim and the Group expects to incur most of the liabilities over the next
1 - 3 years.
Contingent liability on abnormal defect
Where an abnormal defect is discovered on a product, the management will perform investigation to identify the
cause. The total warranty liability that will be incurred is highly dependent on the course of action that needs to
be taken by the Group in consultation with the affected customer. It may vary significantly.
