MKH Annual Report 2019

175 M K H B e r h a d 18. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D) (a) Loan receivables (Cont’d) The maturity profile of loan receivables is as follows: Term loan Other loan Total RM RM RM 30.9.2018 Fixed rate instruments Receivable within 1 year 2,609,781 - 2,609,781 Receivable after 1 year but not later than 2 years 3,351,872 - 3,351,872 Receivable after 2 years but not later than 3 years 17,088,521 - 17,088,521 Receivable after 3 years but not later than 4 years 549,573 - 549,573 23,599,747 - 23,599,747 1.10.2017 Fixed rate instruments Receivable within 1 year 262,575 3,732 266,307 Receivable after 1 year but not later than 2 years 5,435,192 - 5,435,192 Receivable after 2 years but not later than 3 years 158,180 - 158,180 Receivable after 3 years but not later than 4 years 15,173,000 - 15,173,000 21,028,947 3,732 21,032,679 The loan receivables bear effective interest at rates ranging from 5.0% to 8.5% (30.9.2018 and 1.10.2017: 5.0% to 12.0%) per annum. The movement of allowance account used to record the impairment of loan receivables is as follows: The Group 2019 2018 RM RM At beginning of year - - Additions 116,286 - At end of year 116,286 - (b) Included in non-current prepayments of the Group is an amount of RM9,485,916 (30.9.2018: RM9,333,363; 1.10.2017: RM8,152,285) in respect of property infrastructure costs incurred on a plot of land leased from PAK for a period of 60 years for future construction of a retail mall. (c) This is in respect of an amount due from Plasma Farmers Cooperative in Indonesia. In accordance with the Indonesian Government policy, a subsidiary assumes the responsibilities to develop plantation for small land holders (known as Plasma Farmers) in addition to its own plantation. The subsidiary is also required to train and supervise the Plasma Farmers and purchase the fresh fruit bunches from the farmers at prices determined by the Government. The amount is unsecured, interest-free, to be settled in cash not within one year. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019