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Annual Report 2020
202
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
37. Provisions
Group
2020
RM’000
2019
RM’000
Provision for warranty (Note (a))
8,078
9,192
Provision for compensation claim (Note (b))
-
2,120
Others
687
687
8,765
11,999
(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’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.
During the case management held on 30 June 2020, the Court has directed that the matter to be struck out by
virtue of Order 34 Rule 6 of Rules of Court 2012 with no order as to costs and no liberty to file afresh, resulting a
reversal of RM2,120,000 which has been reflected in Note 10.
The movement of the provisions are as follows:
Group
2020
2019
RM’000
RM’000
Provision for warranty:
As at 1 April 2019/2018
9,192
9,961
Reversal of provision
(2,897)
(2,558)
Charge for the year
1,783
1,789
As at 31 March
8,078
9,192
Provision for compensation claim:
At 1 April 2019/2018
2,120
2,120
Reversal of provision (Note 10)
(2,120)
-
At 31 March
-
2,120