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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