Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 138 25. Trade and other payables (cont'd) (b) Other payables 26. Provisions 2019 2018 RM RM Defect liability costs At 1 January 13,421,000 13,617,000 Addition/(reversal) during the year (Note 7) 3,749,000 (196,000) At 31 December 17,170,000 13,421,000 This amount represents estimated rectification costs expected to be incurred in the completion of construction contracts. Other than the amount due to a joint venture, which bears interest at 3.30% (2018: 3.30%) per annum and is repayable on demand (2018: 31 March 2019), the amounts due to company related to certain directors, subsidiaries and joint ventures are unsecured, non- interest bearing and are repayable on demand. Other payables due to third parties are non-interest bearing and are normally settled on 30 to 60 day (2018: 30 to 60 day) terms. Group