MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 303 MISC BERHAD ANNUAL REPORT 2018 302 24. CASH, DEPOSITS AND BANK BALANCES (CONT'D.) To allow more efficient cash management for the Group and the Corporation, the Group and the Corporation’s cash and bank balances have, since 1 July 2013, been held in the In-House Account (“IHA”) managed by PETRONAS Integrated Financial Shared Services Centre (“IFSSC”). Included in cash and bank balances of the Group is the retention account of RM218,429,000 (2017: RM104,732,000) which is restricted for use because of the requirement of loan covenants. Cash at banks earn interest at floating rates based on daily bank deposit rates. Deposits with licensed banks are made for varying periods between 1 to 187 days (2017: 1 to 182 days) depending on the immediate cash requirements of the Group and of the Corporation and earn interest rates ranging from 1.44% to 6.80% (2017: 0.04% to 6.10%) per annum and 1.44% to 3.31% (2017: 0.04% to 3.60%) per annum respectively. Other information on financial risks of cash and cash equivalents are disclosed in Note 38. 25. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Ships - 123,003 - 40,595 The movement during the financial year relating to non-current assets held for sale are as follows: Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 At 1 January 123,003 175,035 40,595 - Additions - 15,420 - - Write down (Note 5(a)) (23,814) (42,514) - - Transfer from ships in operation (Note 13) - 43,008 - 43,008 Disposals (98,436) (53,463) (40,343) - Currency translation differences (753) (14,483) (252) (2,413) At 31 December - 123,003 - 40,595 In the previous financial year, the Group and the Corporation have classified certain ships as held for sale with the intention of disposal in the immediate future. The ships have been disposed off in the current financial year. 26. TRADE AND OTHER PAYABLES Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Trade payables Third parties 208,235 327,685 11,497 9,421 Subsidiaries - - 84,639 20,823 Holding company 6,436 4,327 5,996 3,512 Fellow subsidiaries 10,922 736 10,091 9 Joint ventures 1,974 - 1,974 - Accruals 973,962 1,019,709 329,604 314,141 Deferred income (Note 30) 70,247 88,748 - - Due to customers on contracts (Note 23) 2,406 8,917 - - 1,274,182 1,450,122 443,801 347,906 Other payables Amount due to related parties: Subsidiaries - - 557,465 643,496 Holding company 62 60 - - Fellow subsidiaries 291 3,746 - - Associates 944 950 - - Joint ventures 89,821 102,214 2,782 89 Accruals 442,013 496,500 68,029 28,888 Provisions (Note 26(c)) 72,717 82,509 64,950 74,057 Others 120,558 98,526 46,347 50,210 726,406 784,505 739,573 796,740 Total trade and other payables 2,000,588 2,234,627 1,183,374 1,144,646 Add: Total borrowings (Note 19(c)) 13,049,906 11,663,893 6,297,370 7,224,567 Less: Due to customers on contracts (Note 23) (2,406) (8,917) - - Less: Provisions (Note 26(c)) (72,717) (82,509) (64,950) (74,057) Less: Deferred income (Note 30) (70,247) (88,748) - - Total financial liabilities carried at amortised cost 14,905,124 13,718,346 7,415,794 8,295,156