MKH Annual Report 2020

178 FINANCIAL STATEMENTS ANNUAL REPORT 2020 20. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D) (a) The maturity profile of loan receivables is as follows: The Group 2020 RM 2019 RM Fixed rate instruments Receivable within 1 year 669,876 674,239 Receivable after 1 year but not later than 2 years 18,833,467 19,815,647 Receivable after 2 years but not later than 3 years 8,080,141 4,070,647 Receivable after 3 years but not later than 4 years 2,000,000 34,235 29,583,484 24,594,768 The loan receivables bear effective interest at rates ranging from 5.0% to 8.5% (2019: 5.0% to 8.5%) per annum. The movement of allowance account used to record the impairment of loan receivables is as follows: The Group 2020 RM 2019 RM At beginning of year 116,286 - Additions 21,000 116,286 At end of year 137,286 116,286 (b) Included in amount due from subsidiaries are unsecured amounts of: (i) RM321,349,371 (2019: RM379,265,402) which bears interest at 4.51% (2019: 5.79%) per annum and repayable on demand; and (ii) RM35,166,352 (2019: RM5,525,215) which is interest-free and repayable on demand. (c) Included in non-current prepayments of the Group is an amount of RM10,239,440 (2019: RM9,485,916) 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. (d) 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.