NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
124
COSCO Corporation (Singapore) Limited
27.
Borrowings
(continued)
(c)
Fair values of non-current borrowings
At the balance sheet date, the carrying amounts of non-current borrowings approximated their fair
values.
The fair values were determined from cash flow analyses, discounted at the market borrowing rates
which the directors expected to be available to the Group as follows:
2014
2013
USD
RMB
USD
RMB
Bank borrowings
2.97% 4.36%
2.67% 4.22%
28.
Provisions
The Group
2014
2013
$’000
$’000
Provision for off hire claim (Note (a))
1,514
2,321
Provision for warranties (Note (b))
53,811
43,449
Provision for legal claims (Note (c))
841
9,482
Provision for an onerous contract (Note (d))
–
144
56,166
55,396
(a)
Movements in provision for off hire claim on hire income are as follows:
The Group
2014
2013
$’000
$’000
Beginning of financial year
2,321
2,794
Provision made during the financial year
540
332
Provision utilised during the financial year
(1,485)
(904)
Currency translation differences
138
99
End of financial year
1,514
2,321
Provision for off hire claim on charter hire income is in respect of refund to be made to customers for
period in which the motor vessels are not available for use.
