2019 UEM Edgenta Annual Report

216 217 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 21. TRADE AND OTHER RECEIVABLES (CONT’D.) (a) Trade receivables (cont’d.) Amount due from a debtor of a foreign subsidiary Included in the Group’s non-current trade receivables is an amount due from a debtor of a foreign subsidiary, which is non- interest bearing, unsecured and is to be paid in cash. The movement of the amount is as follows: Group 2019 RM’000 2018 RM’000 At 1 January 27,662 27,114 Received during the year (27,658) - Exchange difference (4) 548 At 31 December - 27,662 Less: Allowance for ECL At 1 January (27,662) (27,114) Reversal of allowance 27,658 - Exchange difference 4 (548) At 31 December - (27,662) Net debt - - (b) Other receivables Amounts due from subsidiaries and related companies Amounts due from subsidiaries, related companies and associates are non-trade related, non-interest bearing and repayable on demand except for an amount due from subsidiaries of RM13,795,666 (2018: RM7,564,912) which bears interest at ranging from 4.75% to 5.00% (2018: 4.75% to 5.00%) per annum. All related companies balances are unsecured and are to be settled in cash. The loan to a subsidiary is subordinated to the subsidiary’s borrowing from a financial institution until the borrowing is fully repaid as disclosed in Note 29(a). Further details on related party transactions are disclosed in Note 40. Other receivables that are impaired At the reporting date, the Group and the Company have provided an allowance of RM3.0 million (2018: RM3.0 million) and RM0.02 million (2018: RM0.02 million) respectively. These mainly relate to balances due from third parties which have been long outstanding. (c) Concession receivable This is in relation to a concession arrangement in which the Group provides retro-fitting works and upgrades of infrastructure to turn existing buildings into green buildings. These amounts are to be repaid over the remaining period of the concession. These amounts are also pledged as security for the borrowing obtained for this concession as disclosed in Note 29(b). 22. CONTRACT RELATED ASSETS AND LIABILITIES Group 2019 RM’000 2018 RM’000 Contract assets (a) Non-current 32,941 20,088 Current 344,037 179,758 376,978 199,846 Contract liabilities (a) Current (21,131) (14,368) Contract fulfillment asset (b) Non-current 2,271 - Current 699 - 2,970 - (a) Contract assets and liabilities Contract assets are initially recognised for revenue earned from services transferred which receipt of the consideration is conditional on the completion and final acceptance by customers. Upon final acceptance by the customers, the amounts recognised as contract assets becomes unconditional and are reclassified to trade receivables. The increase in contract asset as at financial year ended 31 December 2019 was mainly due to unbilled receivables pertaining to revenue earned for infrastructure services provided during the year. Contract liabilities include billings made in advance which represent amounts where customers have been invoiced ahead of the satisfaction of the performance obligation by the Group. Set out below is the amount of revenue recognised from: Group 2019 RM’000 2018 RM’000 Amounts included in contract liabilities at the beginning of the year 2,713 27,762 (b) Contract fulfillment asset 2019 RM’000 As at 1 January - Additions 3,494 Utilised during the year (524) As at 31 December 2,970