2018 UEM Edgenta Annual Report

28. PROVISIONS (CONT’D.) (a) Provision for employee service entitlements Group 2018 2017 RM’000 RM’000 At 1 January 1,395 27,343 Charged to the income statement (Note 8) 532 2,257 Payments made – (3,238) Disposal of a subsidiary – (22,941) Exchange differences (55) (2,026) At 31 December 1,872 1,395 Provision for employee service entitlements comprises provisions for retirement leave entitlements in respect of eligible employees. The provisions are in respect of both vested and unvested entitlements, and are made by reference to independent actuarial valuations. The timing of such payments depends on when vesting occurs and the subsequent retirement date of the eligible employees. (b) Provision for long term incentive plan (“LTIP”) The Company and some of its subsidiaries grant the Shadow Share Option Scheme, i.e. LTIP, to eligible employees, as part of the remuneration package, whereby the employees will be entitled to future cash payments subject to meeting the pre-determined financial performance and value growth targets of the Group over a specific performance vesting period. 29. BORROWINGS Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Current borrowings Secured: Murabahah Term Facility (Note a) 31,461 28,155 – – Term loans (Note b) 39,708 35,803 – – Finance leases (Note 30) 1,101 1,074 – – 72,270 65,032 – – Unsecured: Islamic Commercial Papers (Note c) 49,964 49,964 49,964 49,964 Islamic Medium Term Notes (Note c) 2,226 2,226 2,226 2,226 Total short term borrowings 124,460 117,222 52,190 52,190 Non-current borrowings Secured: Murabahah Term Facility (Note a) 69,604 100,939 – – Term loans (Note b) 86,750 88,933 – – Finance leases (Note 30) 2,026 3,166 – – 158,380 193,038 – – Unsecured: Islamic Medium Term Notes (Note c) 249,625 249,501 249,625 249,501 Total long term borrowings 408,005 442,539 249,625 249,501 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2018 Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 220