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GB Auto and its Subsidiaries (S.A.E)
Notes to the Consolidated Financial Statements
For the year ended 31 December 2012
(In the notes all amounts are shown in thousand Egyptian pounds unless otherwise stated)
74
GB Auto
•
2012 ANNUAL REPORT
For the purpose of the cash flow statement, cash and cash equivalent include cash on hand and at banks and treasury bills with maturities
of there months or less, as follows:
2012
2011
Cash on hand and cash at banks
1,173,532
881,041
Treasury bills
89,224
277,718
1,262,756
1,158,759
18. Provisions
Legal
Claims
Warranty
Other
Provisions
Total
Balance at 1 January 2012
7,284
11,671
24,283
43,238
Foreign currency translation differences
-
-
306
306
Additional provision
1,478
17,091
3,405
21,974
Utilized during the year
(500)
(4,416)
(2,400)
(7,316)
Provisions no longer required
-
(6,651)
(37)
(6,688)
Balance at 31 December 2012
8,262
17,695
25,557
51,514
Legal
Claims
Warranty
Other
Provisions
Total
Balance at 1 January 2011
4,626
18,028
18,527
41,181
Additional provision
4,412
470
5,581
10,463
Utilized during the year
(385)
(4,557)
-
(4,942)
Provisions no longer required
(768)
(2,696)
-
(3,464)
Balance at 31 December 2011
7,885
11,245
24,108
43,238
Legal claim
The amounts shown comprises of gross provisions in respect of legal claims brought against the Group. Management opinion, after
taking appropriate legal advice, the outcome of these legal claims will not give rise to any significant loss beyond the amounts pro-
vided as at 31 December 2012.
Warranty
The Group provides warranties on its products and guarantees to either fix or replace the products that are not working properly.
Accordingly, the Group has estimated its warranty liability to be
EGP 17,695 at the end of the year for warranty claims based on management experience for repair and returns in previous years.
The warranty provision includes a long term provision amounted to LE 10,856 (2011: LE 6,865).
Other provisions
Other provisions are related to claims expected to be made by a third party in connection with the Group operations. The information
usually required by accounting standards is not disclosed because the management believes that to do so would seriously prejudice the
outcome of the negotiation with that third party. These provisions are reviewed by management every year and adjusted based on latest
developments, discussions and agreements with the third party.