Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
ANNUAL REPORT 2016
DRIVING IT UP
| 89
25.
Hire-purchase liabilities
The future minimum payments under hire-purchase agreements to acquire motor vehicles and plant and
equipment are as follows:
Group
Minimum
payments
Present value
of payments
Minimum
payments
Present value
of payments
2016
2016
2015
2015
$’000
$’000
$’000
$’000
Within one year
968
878
1,227
1,169
After one year but not more than five years
1,459
1,323
2,164
2,111
More than five years
–
–
–
–
Total minimum hire-purchase payments
2,427
2,201
3,391
3,280
Less: Amounts representing finance charges
(226)
–
(111)
–
Present value of minimum hire-purchase
payments
2,201
2,201
3,280
3,280
Effective interest rates on the hire-purchase arrangements range from 3.41% to 10.53% (2015: 2.50% to
9.84%) per annum.
26.
Provisions
Group
2015
2015
$’000
$’000
Current liabilities:
Provision for product warranties
At 1 May
550
520
Provision for the year
488
448
Provision utilised during the year
(399)
(418)
At 30 April
639
550
A provision is recognised for expected warranty claims on proprietary products sold during the financial
year based on past experience of the level of returns.
