Wah Seong Corporation Berhad Annual Report 2019

164 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 28 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 2018 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Unsecured Revolving credits 511,118 - 511,118 - - - Term loan 240,302 - 110,892 51,550 37,660 40,200 Trade financing 87,190 - 87,190 - - - Fixed rate notes 9,015 9,015 - - - - 847,625 9,015 709,200 51,550 37,660 40,200 Company Unsecured Revolving credits 170,011 - 170,011 - - - 29 PROVISION FOR WARRANTIES Group 2019 2018 RM’000 RM’000 At 1 January 8,895 6,929 Additions 5,207 4,501 Utilisation (22) - Reversal (4,950) (2,621) Effect of exchange rate changes (69) 86 At 31 December 9,061 8,895 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.