MKH Annual Report 2018

169 MKH Berhad Annual Report 2018 27. PAYABLES AND ACCRUALS (Cont’d) The Group The Company 2018 2017 2018 2017 Note RM RM RM RM Non-trade Amount due to subsidiaries (c) - - 8,160 12,720 Deferred revenue (d) 9,158,189 16,308,921 - - Other payables 27,955,538 25,227,206 65,800 341,247 Deposits received (e) 14,857,889 16,752,330 - - Advances from customers (f) 7,353,983 5,997,888 - - Accruals (g) 45,660,079 47,109,342 465,976 990,767 573,303,432 497,500,699 539,936 1,344,734 (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 development units and/or 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 5.81% to 10.00% (2017: 5.61% to 10.00%) per annum. (b) The normal trade credit term granted to the Group ranges from 7 to 90 days (2017: 7 to 90 days) unless as specified in the agreements. Included in trade payables is amount due to an associate of the Group of RM6,587,169 (2017: RM2,668,949) which include retention sum of RM5,675,820 (2017: RM2,668,949). (c) Amount due to subsidiaries of the Company is unsecured, interest-free and is 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 deposits received of the Group are: (i) an amount of RM8,930,313 (2017: RM8,894,376) being rental, utilities and other deposits received from tenants; (ii) an amount of RM3,564,929 (2017: RM2,616,463) being downpayment from purchasers of development properties; and (iii) In the previous financial year, being downpayment received from purchasers of RM2,957,711 for disposal 3 parcels of leasehold land as disclosed in Note 23. (f) This represents downpayment from purchasers of crude palm oil and palm kernel. (g) Included in accruals of the Group are accrued legal and professional fees and agents commission totalling RM33,502,220 (2017: RM35,179,447) in respect of on-going property development projects. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018