92 / 113
27 Provisions
Legal
Claims
Warranty
Provision
Other Provi-
sions
Total
Balance at January 1, 2016
5 147
77 752
60 312
143 211
Provisions formed during the year
520
48 309
53 860
102 689
Provisions utilized during the year
(3 372)
(31 377)
(65)
(34 814)
Provisions no longer required
(23)
-
-
(23)
Effect of movement of exchange rates
2
-
-
2
Balance atDecember 31, 2016
2274
94684
114 107
211 065
Balance at 1 January 2015
5 773
77 306
30 313
113 392
Provisions formed during the year
21
30 593
30 093
60 707
Provisions utilized during the year
(647)
(12 485)
(94)
(13 226)
Provisions no longer required
-
(17 662)
-
(17 662)
Balance atDecember 31, 2015
5 147
77 752
60 312
143 211
Legal claims
The amounts shown comprises of gross provisions in respect of legal claims brought against the Group, and management
opinion, after taking appropriate legal advice, that the outcome of these legal claimswill not exceed significantly the provision
formed as at December 31, 2016.
Warranty Provision
TheGroupprovideswarranty on its products and guarantees to either fixor replace the products that arenotworking properly,
and theGrouphas estimated itswarranty provisions to be EGP684 94 at the end of the year for expectedwarranty claims in the
light of management experience for repair and returns level in previous years.
The warranty provision includes a long termprovision amounted to EGP 49 174 (December 31, 2015 EGP 54 741).
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 affects the outcome of the negotiation with that third party. These provisions are reviewed by management yearly
and adjusted based on latest developments, discussions and agreements with the third party.
28 Trade and notes payables long term
December 31, 2016
December 31, 2015
Present
Value
Notes
Payable
Present
Value
Notes
Payable
Total notes payables and creditors
222 697
222 697
78 125
78 125
Notes payable Less than 1 year (Note 26)
(222 697)
(222 697)
(78 125)
(78 125)
Total
-
-
-
-
2016 ANNUAL REPORT
90
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2016
(In thenotes all amounts are shown inThousandEgyptianPounds unless otherwise stated)