KUMPULAN FIMA ANNUAL REPORT 2017 Background Image
Previous Page  192 / 232 Next Page
Information
Show Menu
Previous Page 192 / 232 Next Page
Page Background

Kumpulan Fima Berhad

(11817-V)

190

Notes to the

financial statements

31 march 2017

31. Provisions

Group

2017

2016

RM’000

RM’000

Provision for warranty

14,827

17,114

Provision for compensation claim

2,120

2,120

16,947

19,234

(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 a subsidiary of the Company, Fima Corporation Berhad (“FCB”). On 27 September 2011, the

Court of Appeal had allowed FCB 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.

Group

2017

2016

RM’000

RM’000

As at 1 April 2016/15

17,114

16,492

Reversal of provision

(5,829)

(3,414)

Charge for the year

3,542

4,036

As at 31 March

14,827

17,114

32. Commitments

Group

2017

2016

RM’000

RM’000

Capital expenditure

Approved and contracted for: Property, plant and equipment

2,749

2,955

Approved but not contracted for: Property, plant and equipment

26,080

51,314

28,829

54,269

Share of capital commitments of associated companies

Approved and contracted for: Property, plant and equipment

2,290

2

Approved but not contracted for: Property, plant and equipment

5

6,696