Haier 2009 Annual Report Download - page 135

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31 December 2009

NOTES TO FINANCIAL STATEMENTS 財務報表附註
 海爾電器集團有限公司 133
26. Interest-bearing Borrowings (Cont’d)
All borrowings of the Group bear interest at floating interest rates
and are denominated in RMB.
The carrying amounts of the Groups borrowings approximate to
their fair values.
27. Provisions
Group
Product warranties
and installation

2009 2008
年 
Notes RMB’000 RMB’000
 
At 1 January  239,933 177,238
Additional provision  6 434,571 391,149
Amounts utilised during the year  (367,504 ) (328,454 )
At 31 December  307,000 239,933
Portion classified as 
current liabilities (206,476 ) (160,399 )
Non-current portion  100,524 79,534
The Group provides installation services and warranties of one to
six years to its customers on washing machines and water heaters,
under which faulty products are repaired or replaced. The amount
of the provision for the warranties is estimated based on sales
volume and past experience of the level of installation services
rendered, repairs and returns. The estimation basis is reviewed on
an ongoing basis and revised where appropriate.
26. 




27. 





