Ni Hsin Berhad Annual Report 2018

14. Trade and other payables (continued) 14.1 Contract liabilities The contract liability was related to advance consideration received from customers, which revenue is recognised at a point in time when goods are delivered and accepted by the customers. 15. Revenue Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Sales of goods 33,047 39,612 - - Dividend income 148 - 148 500 Management fees - - 240 240 33,195 39,612 388 740 15.1 Nature of goods and services The Group main products are cookware, clad metals and convex mirrors and the following information reflects the typical transactions of the Group: Nature of goods or services Cookware, clad metal and convex mirrors Timing of recognition or method used to recognised revenue Revenue is recognised when the goods are delivered and accepted by the customers. Significant payment terms Partial or full advance payment upon confirmation of order from customers or issuance of Bill of Lading. Variable element in consideration Not applicable. Obligation for returns or refunds The Group allows returns only on manufacturing defect for exchange with new goods (i.e. no cash refunds are offered). Warranty Not applicable. 16. Finance costs Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Interest expense of financial liabilities that are not at fair value through profit or loss: Bank overdrafts 9 14 - - Bankers’ acceptances 34 38 - - Finance lease liability 17 2 - - Intercompany advances - - - 52 60 54 - 52 Notes to the financial statements (continued) Annual Report 2018 77