25. TRADE AND OTHER PAYABLES (continued) (b) Amounts owing to subsidiaries, shareholders and associates The amounts owing to subsidiaries, shareholders and associates represent advances, which are unsecured, interest-free and payable upon demand in cash and cash equivalents. Amounts owing to shareholders of the Group and the Company included a loan from a shareholder of RM9,601,000 (2020: RM8,963,000) which bears interest at 4.0% per annum and is payable within next twelve months in cash and cash equivalents. (c) Other payables Included in other payables of the Group is an amount of RM9,264,000 (2020: RM9,310,000), which represents the balance of the purchase consideration of the development land as disclosed in Note 18(b) to the financial statements. (d) Included in accruals of the Group are provision for restoration cost amounting to RM49,000 (2020: RM726,000), which is in respect of the obligation to dismantle and remove refurbishments on the premises and restore them at the end of the lease term to an acceptable condition. The liabilities for restoration are recognised at present value of the compounded future expenditure estimated using current price and discounted using a discount rate of 4.80% (2020: range from 4.80% to 7.50%). A reconciliation of the provision for restoration cost is as follows: Group 2021 2020 RM’000 RM’000 At 1 January 726 676 Provision made during the year 22 50 Reversal of provision of restoration cost (713) - Translation adjustment 14 - At 31 December 49 726 (e) In the previous financial year, the salient features of the redeemable preference shares (“RPS”) in a subsidiary were as follows: (i) tenure of the RPS was 1 year commencing from and including the issuance dates on 12 March 2020 and 4 June 2020; (ii) the RPS were not convertible to ordinary shares in the subsidiary; and (iii) the RPS carried a coupon interest rate at 18% per annum which payable up front for the entire tenure. NOTES TO THE FINANCIAL STATEMENTS 157 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 31 December 2021 (cont’d)
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