Notes to the Financial Statements
31 December 2015
24.
Provisions (cont’d)
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
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ongoing basis and revised where appropriate.
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for maintenance and warranties exceeded the amount necessary to cover warranty claims on contract works.
Accordingly, S$923,000 (2014: S$402,000) of the warranty provision has been reversed.
Share of a joint venture’s losses
In 2014, the Group provided for its share of losses in a joint venture, Bukit Timah Green Development Pte Ltd,
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the joint venture to meet its liabilities as and when they fall due (Note 13). In the current year, the joint venture
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share of the joint venture’s losses was reversed.
25.
Loans and borrowings
Bank loans
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on changes to the bank’s cost of funds. The interest rates range from 2.20% to 2.97% (2014: Nil%) per annum.
The bank loan is repayable in full by February 2019.
Bank loan A is secured by:
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carrying amount of S$37,485,000 (2014: S$Nil) at the end of the reporting period (Note 16); and
(ii)
corporate guarantees executed by the Company.
Bank loan B was fully repaid during the year.
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The obligation is secured by a charge over the leased asset (Note 9). The average discount rate implicit in the
lease is 4.4% (2014: Nil%) per annum.
Group
Maturity
2015
2014
S$’000
S$’000
Non-current:
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2017
13
ȫ
Bank loan A
2019
15,490
–
Current:
Bank loan B
2015
ȫ
4,992
2EOLJDWLRQ XQGHU ȴQDQFH OHDVH 1RWH F
2016
51
ȫ
15,554
4,992
HOCK LIAN SENG HOLDINGS LIMITED
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