NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 112 - 25. Redeemable Preference Shares 2021 2020 2021 2020 Units Units RM RM Issued and fully paid: At 1 January 250,000 250,000 1,427,487 1,350,901 Interest - - 35,647 - Exchange difference - - 69,078 76,586 At 31 December 250,000 250,000 1,532,212 1,427,487 Number of shares Amount Group The redeemable preference shares are issued by a subsidiary, Destini Marine Safety Solutions Ltd. in August 2016. The preference shares holders are entitled to a return of 1% per annum and the shares are redeemable on 31 August 2019. Preference shares have been discounted using an effective interest rate of 10%. As at 31 December 2021, the preference shares have not been redeemed. As the redemption date is over, the Group is in discussion with the holders of the preference shares to redeem the preference shares. The subsidiary company has the right to call for the preference shares at anytime by giving notice in accordance with the agreement. The main features of the preference shares are as follows: (i) The preference shares shall confer a right to a fixed non-cumulative preferential dividend at the fixed rate of GBP0.01 per annum. The preferential dividend shall rank for payment in priority to the payment of a dividend on any other shares of the subsidiary. (ii) The preference shares shall not confer the right to any further or other participation in the profit of the subsidiary. (iii) The preference shares will be redeemed at GBP1.00 each in a date to be determined later but not later than thirty-six (36) months from the date of issuance. (iv) The preference shares shall rank in priority in any distribution of assets in the event of liquidation, dissolution or winding-up of the subsidiary. 26. Trade Payables Credit terms of trade payables of the Group and Company ranged from 30 to 90 days (2020: 30 to 90 days) depending on the terms of the contracts. 189 ANNUAL REPORT 2021 • DESTINI BERHAD
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