185 / 232
Notes to the
Financial Statements
As at 31 March 2019
33. Provisions
Group
2019
2018
RM’000
RM’000
Provision for warranty (Note (a))
9,192
9,961
Provision for compensation claim (Note (b))
2,120
2,120
11,312
12,081
(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.
Group
2019
2018
RM’000
RM’000
As at 1 April 2018/2017
9,961
14,827
Reversal of provision
(2,558)
(6,138)
Charge for the year
1,789
1,272
As at 31 March
9,192
9,961
(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 to 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.
34. Retained earnings
As at 31 March 2019 and 31 March 2018, the Company may distribute the entire balance of the retained earnings
under the single tier system.
35. 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
9,045
44,249
65
58
12,015
46,259
65
58
financial
statements
181