AL-SALAM REIT ANNUAL REPORT 2019

AL-SALĀM REIT • 133 ANNUAL REPORT 2019 For The Financial Year Ended 31 December 2019 (Cont’d) Trade receivables comprise rental receivable from lessees. The credit period granted by the Group and the Fund on rental receivable from lessees ranges from 30 to 60 days (2018: 30 to 60 days). Unbilled rental income relate to the Group’s rights to recognise revenue. Rental income is recognised on a straight line basis including rent free period. Rental will be billed in accordance with the billing terms as set out in the tenancy agreements. The ageing analysis of the Group’s and of the Fund’s trade receivables is as follows: The Group The Fund 2019 2018 2019 2018 RM RM RM RM 0 - 30 days 3,140,630 2,713,047 3,140,630 2,713,047 31 - 60 days 729,888 359,046 729,888 359,046 61 - 90 days 725,553 31,732 725,553 31,732 91 - 120 days 21,842 1,820,399 21,842 1,820,399 4,617,913 4,924,224 4,617,913 4,924,224 The Group and the Fund have not recognised any allowance for estimated credit loss as the Group and the Fund hold tenant deposits as credit enhancement and the amounts are considered recoverable. Other receivables and prepaid expenses consist of: Note The Group The Fund 2019 2018 2019 2018 RM RM RM RM Other receivables 1,794,908 2,369,474 1,794,908 2,363,041 Prepaid expenses (c) 1,369,876 1,599,052 1,272,734 1,519,023 Deposit for acquisition of properties (a) 566,400 3,820,698 566,400 3,820,698 Other receivables and prepaid expenses 3,731,184 7,789,224 3,634,042 7,702,762 Less: Prepaid expenses (1,369,876) (1,599,052) (1,272,734) (1,519,023) Deposit for acquisition of properties (566,400) (3,820,698) (566,400) (3,820,698) Unbilled rental income (5,067,673) (853,005) (5,067,673) (853,005) Add: Trade receivables 11,606,235 8,204,799 11,606,235 8,204,799 Amounts owing by related companies (b) 785,646 823,361 785,646 823,361 Fixed deposits with licensed banks 36,069,000 34,273,000 33,739,000 34,273,000 Cash and bank balances 8,422,103 12,489,624 8,297,805 10,071,233 Total financial assets 53,610,219 57,307,253 51,155,921 54,882,429 (a) During the year, the Fund has completed 17 acquisition out of 22 properties. The balance of deposits for acquisition of properties represent deposits paid for the remaining acquisition of 5 properties across Malaysia by AmanahRaya Trustees Berhad (the “Trustee”). The deposits will be utilised upon the completion of the remaining acquisition. As of 31 December 2019, the Group and the Fund have capitalised an amount of RM3,254,298 (2018: RMNil) to investment properties for the acquisition of the said 17 properties. (b) Amounts owing by related companies, which arose mainly from collections on behalf, unsecured, interest-free and repayable on demand. Transactions with related parties are disclosed in Note 20. (c) Included in the prepaid expenses of the Group, there is prepayment relating to Sukuk Ijarah amounting to RM86,463 (2018: RM86,463) which should be realised upon maturity. Notes To The Financial Statements