NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
23. Amounts due from a joint venture
Amounts due from a joint venture are non-trade related, unsecured, bear interest at 2.50% (2013: 2.50%) per annum and are
repayable upon demand, except for an amount of S$3,420,000 (2013: S$3,056,000) which is non-interest bearing.
24. Provisions
Maintenance and warranties
The Group provides for maintenance and warranties claims on contracted items with customers after the substantial completion
of projects. The amount of the provisions for maintenance and warranties are based on past experience of the level of
maintenance and rectification work. The estimation basis is reviewed on an ongoing basis and revised where appropriate.
During the financial year, based on the warranty claims experience, management concluded that the provision for maintenance
and warranties exceeded the amount necessary to cover warranty claims on contract works. Accordingly, S$402,000 (2013:
S$633,000) of the warranty provision has been reversed.
Share of a joint venture’s losses
The Group provides for its share of losses in a joint venture, Bukit Timah Green Development Pte Ltd, in excess of its interest
in the joint venture as the Group has given an undertaking to provide financial support for the joint venture to meet its liabilities
as and when they fall due (Note 13).
Provision for
maintenance
and
warranties
Provision for
share
of a joint
venture’s
losses
Total
S$’000
S$’000
S$’000
At 1 January 2014
5,609
1,359
6,968
Utilised
(1,029)
–
(1,029)
Current year provision
39,884
–
39,884
Write-back
(402)
(45)
(447)
At 31 December 2014
44,062
1,314
45,376
At 1 January 2013
8,603
–
8,603
Utilised
(3,034)
–
(3,034)
Current year provision
673
1,359
2,032
Write-back
(633)
–
(633)
At 31 December 2013 (Restated)
5,609
1,359
6,968
Current 2014
44,062
1,314
45,376
Current 2013 (Restated)
5,609
1,359
6,968
Hock Lian Seng Holdings Limited
Annual report 2014
80
