Wah Seong Corporation Berhad Annual Report 2020

166 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 27 LOANS AND BORROWINGS (CONTINUED) The net exposure of loans and borrowings to cash flow risk and fair value risk in the periods in which they mature or reprice (whichever is earlier) are as follows (continued): Total carrying amount Fixed interest rate (Fair value risk) <1 year Floating interest rate (Cash flow risk) <1 year 1 – 2 years 2 – 5 years >5 years 2019 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Unsecured Revolving credits 468,219 - 468,219 - - - Term loan 293,094 - 75,135 75,332 120,427 22,200 Trade financing 167,458 - 167,458 - - - Fixed rate notes 19,324 19,324 - - - - 948,095 19,324 710,812 75,332 120,427 22,200 Company Unsecured Revolving credits 152,217 - 152,217 - - - 28 PROVISION FOR WARRANTIES Group 2020 2019 RM’000 RM’000 At 1 January 9,061 8,895 Additions 5,100 5,207 Utilisation (26) (22) Reversal (4,203) (4,950) Effect of exchange rate changes (88) (69) At 31 December 9,844 9,061 The Group recognises the estimated liability to repair or replace products when the underlying products or services are sold. It is expected that most of these costs will be incurred over the warranty period which extends up to 4 years.