inter roller fa final

Notes to the Financial Statements8 Bank borrowings (cont’d)The borrowings are in respect of the Company and its Malaysian subsidiary company.The secured revolving loan is secured by corporate guarantee provided by the Company of Malaysian Ringgit500,000. Interest is charged at a weighted average effective interest rate of 5.75% (2003 - 5.25%) per annum.The unsecured revolving loan bears interest at a weighted average effective interest rate of 2.34% (2003 -nil%)per annum.The unsecured bank overdraft bears interest at a weighted average effective interest rate of 5.5% (2003 - nil%)per annum.The term loan has been fully repaid during the year. The loan was secured by a legal charge over a subsidiarycompany’s leasehold land and building and corporate guarantee provided by the Company.The amount repayable within one year is included under current liabilities whilst the amount repayable after oneyear is included under non-current liabilities.The carrying amounts of borrowings approximate their fair values.9 Trade payablesTrade payables include provisions for the following:The Group and The Company 2004 2003$ $Provision for warrantiesBalance at beginning 541,000 290,000Provision for the year (Note 19) 142,000 251,000Balance at end 683,000 541,000The Group and The Company 2004 2003$ $Provision for employee leave compensationBalance at beginning 373,122 316,945Provision for the year (Note 19) 37,652 56,177Provision utilised during the year (1,354) -Balance at end 409,420 373,122The provision for warranties is to cater for expenses that may be incurred due to customer claims for rectificationworks.54 inter-roller engineering limited annual report2004