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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
16
PROVISIONS 2011
Opening
balance
Additional
provisions
Utilised &
reversed
Closing
balance
GROUP R’000 R’000 R’000 R’000
Warranty provision
The warranty provision relates to goods sold under a 12 month
warranty. The provision amount is determined based on a
percentage of the replacement value of all sales made within the
current fi nancial year. This percentage is management’s estimate of
the likely returns of goods under warranty for repairs.
381 328 (381) 328
381 328 (381) 328
17
OPERATING LEASE COMMITMENTS
GROUP
CSIR
2011 2010 2011 2010
R’000 R’000 R’000 R’000
Financial commitments under non-cancellable operating leases will result in the following payments falling due:
Within one year: 5 938 6 701 5 817 6 211
Land and buildings 4 311 4 670 4 190 4 180
Vehicles 1 627 2 031 1 627 2 031
Within two to fi ve years: 2 442 6 868 2 442 6 868
Land and buildings 1 485 5 039 1 485 5 039
Vehicles 957 1 829 957 1 829
Agreements relating to operating lease payments for vehicles vary from 12 to 60 months and payments are fi xed for
the term of the agreements.
The CSIR leases buildings under operating leases. The lease periods vary from 24 to 60 months. Lease payments are
increased with a fi xed annual escalation percentage to refl ect market rentals. None of the leases include contingent
rentals.
148