Annual Report - Bina Puri

Notes to and Forming Part of the Financial Statements (Cont’d)
21. OTHER CAPITAL RESERVES, non-distributable
Other capital reserves represent retained earnings of subsidiaries which have been capitalised for the issue of
bonus shares to the Company.As a result of this capitalisation, these retained earnings are no longer available for
distribution, and as such, have been transferred from retained earnings to other capital reserves and considered
non-distributable.
22. GOVERNMENT GRANT
A subsidiary was awarded a government grant of RM108,000 in 2006, which represented the fair value of a
factory equipment pursuant to a subgrant agreement entered between Government of Malaysia and the said
subsidiary. The factory equipment is used by the subsidiary for the purpose of converting its manufacturing
process using chlorofluorocarbon-free technology, and the grant received is being recognised as income over the
useful life of the factory equipment.
23. HIRE PURCHASE LIABILITIES
Group
Company
2008 2007 2008 2007
RM'000 RM'000 RM'000 RM'000
Outstanding hire purchase instalments due:
- not later than one year 3,439 3,674 73 73
- later than one year and not later than five years 4,819 6,858 194 267
- later than five years 6 148 – –
8,264 10,680 267 340
Less:
Unexpired term charges 723 1,079 21 33
Outstanding principal amount due 7,541 9,601 246 307
Less:
Outstanding principal amount due not later than
one year (included in current liabilities) 3,040 3,156 63 60
Outstanding principal amount due later than one year 4,501 6,445 183 247
The effective interest rates of the hire purchase liabilities are between 2.50% and 9.31% (2007 : 2.45% and 9.31%)
per annum.
92 BINA PURI HOLDINGS BHD
Annual Report 2008