NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 28 PROVISION FOR WARRANTIES Group 2022 2021 RM’000 RM’000 At 1 January 12,438 9,844 Additions 14,799 6,776 Utilisation (676) (381) Reversal (4,339) (4,015) Effect of exchange rate changes 465 214 At 31 December 22,687 12,438 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 (2021: 5 years). 29 GROSS REVENUE Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Revenue from contracts with customers Contract revenue 2,029,384 796,134 - - Sale of goods 651,751 615,136 - - Management fees 8 104 6,819 701 2,681,143 1,411,374 6,819 701 Revenue from other sources Rental income 5,375 17,937 - - Dividend income - - 22,440 22,766 Interest income - - 949 910 5,375 17,937 23,389 23,676 2,686,518 1,429,311 30,208 24,377 Revenue from contracts with customers is represented by: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Timing of revenue recognition - Over time 2,022,203 748,922 6,819 701 - At a point in time 658,940 662,452 - - 2,681,143 1,411,374 6,819 701 Annual Report 2022 Wah Seong Corporation Berhad 181
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