AL-SALAM REIT ANNUAL REPORT 2020

146 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 13. TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES (CONT’D) Movement in allowance for expected credit losses of trade receivables: Group and Fund 2020 2019 RM RM At 1 January - - Derecognition loss on lease receivables (Note (i)) 13,404,632 - Written off (9,946,724) - At 31 December 3,457,908 - (i) Derecognition loss on lease receivables I n March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organisation. The rapid spread of ongoing COVID-19 pandemic throughout the country has a significant impact on the overall economy. The Movement Control Order ("MCO") imposed by the Government of Malaysia has caused the reduction in the income generated by the Group’s and the Fund’s retail and food and beverages ("F&B") tenants. As at the date of the financial statements, Malaysia's international borders remain closed. I n view of the ongoing COVID-19 pandemic, the Group and the Fund granted rent concession of RM13,404,632 to their tenants. Other receivables and prepaid expenses consist of: Group Fund 2020 2019 2020 2019 RM RM RM RM Other receivables 4,427,153 1,794,908 4,426,661 1,794,908 Prepaid expenses 433,824 1,369,876 433,824 1,272,734 Deposit for acquisition of properties - 566,400 - 566,400 Other receivables and prepaid expenses 4,860,977 3,731,184 4,860,485 3,634,042 Less: Prepaid expenses (433,824) (1,369,876) (433,824) (1,272,734) Unbilled rental income (9,489,311) (5,067,673) (9,489,311) (5,067,673) Add: Trade receivables 24,643,715 11,606,235 24,643,715 11,606,235 Amount due from related companies (Note (a)) 496,566 785,646 496,566 785,646 Fixed deposits with licensed banks 27,970,000 36,069,000 22,500,000 33,739,000 Cash and bank balances 6,340,983 8,422,103 6,329,870 8,297,805 Total financial assets carried at amortised cost (debt instruments) 54,389,106 54,176,619 48,907,501 51,722,321 (a) Amount due from related companies A mount due from related companies, which arose mainly from collections on behalf, is unsecured, interest-free and repayable on demand. Transactions with related parties are disclosed in Note 20.