Maxis Berhad | Annual Report 2013

137 OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 28 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED) SITE RECTIFICATION CONTRACT AND DECOMMI- OBLIGATIONS STAFF SSIONING AND INCENTIVE CTS GROUP WORKS LEGAL CLAIMS SCHEME COSTS TOTAL RM’000 RM’000 RM’000 RM’000 RM’000 Represented by: Current liabilities 8,686 69,178 38,240 19,369 135,473 Non-current liabilities 109,554 – – – 109,554 As at 31 December 2013 118,240 69,178 38,240 19,369 245,027 Current liabilities 8,955 13,450 49,676 – 72,081 Non-current liabilities 102,321 – – – 102,321 As at 31 December 2012 111,276 13,450 49,676 – 174,402 Descriptions of the above provisions are as disclosed in Note 3(p) to the financial statements. Site rectification and decommissioning works As at 31 December 2013, a provision of RM118,240,000 (2012: RM111,276,000) has been recognised for dismantling, removal and site restoration costs. The provision is estimated using the assumption that decommissioning will only take place upon the expiry of the lease terms (inclusive of secondary terms) of 15 to 30 years (2012: 15 to 30 years). The provision has been estimated based on the current conditions of the sites, at the estimated costs to be incurred upon the expiry of lease terms and discounted at the current market interest rate available to the Group. Contract obligations and legal claims In the Directors’ opinion, the net negotiated cost to exit the contract will not give rise to any significant loss beyond the amounts provided at the reporting date.