Wasco Berhad Integrated Annual Report 2025

291 SECTION 6 FINANCIAL STATEMENTS INTEGRATED ANNUAL REPORT 2025 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 25 PROVISION FOR WARRANTIES Group 2025 RM’000 2024 RM’000 At 1 January 44,251 35,510 Additions 11,765 15,385 Utilisation (3,082) (612) Reversal (23,191) (5,125) Effect of exchange rate changes (2,566) (907) At 31 December 27,177 44,251 Recognition and measurement The Group recognises the estimated liability to repair or replace products when the underlying products or services are sold. The provision is calculated based on historical warranty data and specific circumstances related to products or services sold, after considering the various possible outcomes against their associated probabilities. It is expected that most of these costs will be incurred over the warranty period which extends up to 4 years (2024: 4 years). 26 GROSS REVENUE Group Company 2025 RM’000 2024 RM’000 2025 RM’000 2024 RM’000 Revenue from contracts with customers Contract revenue 2,362,447 2,524,734 - - Sale of goods 242,869 659,762 - - 2,605,316 3,184,496 - - Revenue from other sources Rental income 113 26 - - Dividend income - - 4,205 220,885 Interest income - - 2,615 3,340 113 26 6,820 224,225 2,605,429 3,184,522 6,820 224,225 Revenue from contracts with customers is represented by: Timing of revenue recognition - Over time 2,335,500 2,501,178 - - - At a point in time 269,816 683,318 - - 2,605,316 3,184,496 - -

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