MKH Annual Report 2017

27. PAYABLES AND ACCRUALS (continued) The Group The Company 2017 2016 2017 2016 Note RM RM RM RM Non-trade Amount due to subsidiaries (c) - - 12,720 12,720 Deferred revenue (d) 16,308,921 - - - Other payables (e) 25,227,206 41,159,229 341,247 193,350 Deposits received (f) 16,752,330 11,454,445 - - Advances from customers (g) 5,997,888 5,676,750 - - Accruals (h) 47,109,342 49,286,404 990,767 509,294 497,500,699 526,288,941 1,344,734 715,364 (a) These are in respect of payable for landowners’ entitlement under deferred payment term pursuant to the joint land development agreements and joint venture agreements entered into with the landowners. Pursuant to the said agreements, the entitlements are determined based on agreed percentage on the total gross development value net of trade discount, where applicable, of the property development projects. These deferred payables are measured at amortised cost at imputed interest rates ranging from 5.61% to 10.00% (2016: 5.15% to 10.00%) per annum. (b) The normal trade credit term granted to the Group ranges from 7 to 90 days (2016: 7 to 90 days) unless as specified in the agreements. Included in trade payables is amount due to an associate of the Group of RMNil (2016: RM68,423). (c) Amount due to subsidiaries of the Company is unsecured, interest-free and repayable on demand. (d) The deferred revenue arises in respect of the progress billings issued in relation to the disposal of inventories and is expected to be recognised within 12 months. (e) Included in other payables of the Group in previous financial year were outstanding purchase acquisition of a subsidiary in Indonesia of RM13,500,000, which was due upon the completion of the registration of sale shares with Investment Coordination Board (Badan Koordinasi Penanaman Modal or “BKPM”), Public Authorities and other competent authorities. The Group has on 9 December 2016 completed the acquisition. (f) Included in deposits received of the Group are: (i) an amount of RM8,894,376 (2016: RM8,104,531) being rental, utilities and other deposits received from tenants; (ii) an amount of RM2,957,711 (2016: RM1,186,226) being downpayment received from purchasers for disposal of 3 parcels (2016: 1 parcel) of leasehold lands as disclosed in Note 23; and (iii) an amount of RM2,616,463 (2016: RMNil) being downpayment from purchasers of development properties. (g) This represents downpayment from purchasers of crude palm oil and palm kernel. (h) Included in accruals are accrued legal and professional fees and agents commission totalling RM35,179,447 (2016: RM35,089,049) in respect of on-going property development projects. Notes to the Financial Statements For the Financial Year ended 30 September 2017 167 MKH Berhad • Annual Report 2017