99 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2025 (CONT’D) 22. TRADE PAYABLES The normal trade credit term granted to the Group and to the Company ranged from 30 to 90 days (2024: 30 to 90 days) depending on the terms of the contracts. Included in trade payables of the Group are an amount due to an associate amounting to RM92,650 (2024: RM107,462). The amount is unsecured, trade related with non-interest bearing and repayable on demand. 23. OTHER PAYABLES Group Company 2025 2024 2025 2024 Note RM RM RM RM Amount due to a related party (a) 32,706 33,200 - - Other payables 69,384 53,028 58,683 41,506 Accruals 1,266,616 1,504,194 374,810 522,613 Deposits received 78,340 78,340 - - Provision of loss claim (b) - 1,000,000 - - Service tax payables 615,144 565,204 - - 2,062,190 3,233,966 433,493 564,119 (a) Amount due to a related party Amount due to a related party is unsecured, non-trade related with non-interest bearing and repayable on demand. (b) Provision of loss claim Provision of loss claim represents potential loss claim compensation for the disruption of services to the customers. Movements of provision of loss claim is as follow: Group Company 2025 2024 2025 2024 RM RM RM RM At 1 July 1,000,000 1,600,000 - 1,600,000 Transfer upon corporate reorganisation exercise - - - (1,600,000) Reversal of provision (1,000,000) (600,000) - - At 30 June - 1,000,000 - - The Group has reversed provision amounted to RM1,000,000 (2024: RM600,000), following the reassessment of the obligation due to circumstances surrounding the loss claim have changed. It has been determined that the outflow of economic resources is no longer probable in accordance to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. (c) Material accounting policy information Provisions are recognised when there is a present legal or constructive obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed.
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