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NOTES TO THE FINANCIAL STATEMENTS 31 AUGUST 2002 (CONTINUED)
126
24 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)
Retirement
benefits Total
Company RM'000 RM'000
At 1 September 2000 715 715
Charged to income statement 155 155
Utilised during the financial year (254) (254)
At 31 August 2001 616 616
Charged to income statement 901 901
Utilised during the financial year (70) (70)
At 31 August 2002 1,447 1,447
At 31 August 2001
Non current 616 616
At 31 August 2002
Non current 1,447 1,447
(a) Retirement benefits - defined benefit plan
MALAYSIAN RESOURCES CORPORATION BERHAD
The Group provides for unfunded retirement benefits to eligible employees that have
been in the service of the Group for a continuous period of at least ten (10) years. The
cost of retirement benefits is calculated based on actuarial valuation using the Projected
Unit Credit Method and determined by a qualified actuary on the basis of a treinnial
valuation. The most recent valuation was as at 31 August 2002.
(b) Guaranteed Rental Scheme
Provisions for guaranteed rental scheme are made for anticipated losses on contracts
undertaken by a subsidiary.
(c) Liquidated ascertained damages and guarantee reserve
Provision for liquidated ascertained damages and provision for guarantee reserve are in
respect of projects undertaken by the subsidiaries. Provision for liquidated ascertained
damages (‘LAD’) is recognised for expected LAD claims based on the contract
agreement. Provision for guarantee reserve is made on each contract based on the
estimated liability that may arise during the guarantee period.
(d) Others
Other provisions relate to:
(i) provision by a subsidiary for remedial works to complete the rehabilitation of the hill
slope due to a landslide on the freehold land held by the subsidiary based on the
estimation carried out by consultants.
(ii) provision made by a subsidiary for concession fees payable to the Government of
Malaysia and Express Rail Link Sdn. Bhd. in relation to the concession to operate,
manage and maintain the Kuala Lumpur central railway station based on the effective
date as stated in the Concession Agreement.