Pg 147 - Berjaya Corporation Berhad

Berjaya Land Berhad (201765-A)
Annual Report 2005
69
17 SHORT TERM BORROWINGS (CONT’D)
The secured portion of the borrowings is secured by certain quoted and unquoted investments and properties of the Company, its
subsidiary and related companies of an aggregate asset value of RM3,322,968,000 (2004 : RM3,210,130,000) as mentioned in Notes
3, 4, 5, 7, 8, 10, 14 and 15 to the financial statements.
The borrowings bear interest at rates ranging from 3.50% to 10.50% (2004 : 3.50% to 8.90%) per annum for the Group and from 3.50%
to 10.50% (2004 : 3.50% to 8.58%) per annum for the Company.
18 RETIREMENT BENEFIT OBLIGATIONS
Group
2005 2004
RM’000 RM’000
At 1 May 2004/2003 2,751 2,359
Additional provision during the year 261 418
Utilisation of provision during the year (4) (20)
Unused amount reversed during the year (1,307) (6)
At 30 April 2005/2004 1,701 2,751
Analysed as follows:
Current 70 34
Non-Current 1,631 2,717
1,701 2,751
Certain subsidiary companies operate unfunded, defined retirement benefit schemes and provision is made at contracted rates for
benefits that would become payable on retirement of eligible employees. Under the scheme, eligible employees are entitled to retirement
benefits varying between 18 days and 52 days per year of final salary on attainment of the retirement age of 55.
The amounts recognised in the balance sheet are determined based on the present value of unfunded defined benefit obligations.
The amounts recognised in the income statement are as follows:
Group
2005 2004
RM’000 RM’000
Current service cost (1,139) 249
Interest cost 93 163
Total included in staff costs (Note 28) (1,046) 412
Principal actuarial assumptions used:
Discount rate (%) 6.50 6.50
Expected rate of salary increases (%) 5.00 5.00