UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 253 252 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 20. TRADE AND OTHER RECEIVABLES (CONTD.) (b) Other receivables Amounts due from subsidiaries and related parties Amounts due from subsidiaries and related parties are non-trade related, non-interest bearing and repayable on demand except for an amount due from subsidiaries of RM34.6 million (2020: RM16.3 million) which bears interest ranging between 3.76% to 5.00% (2020: 3.76%) 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 27(a). Further details on related party transactions are disclosed in Note 37. Other receivables that are impaired At the reporting date, the Group and the Company have provided an allowance of RM2.7 million (2020: RM2.5 million) and RM29.2 million (2020: RM27.7 million) respectively. These mainly relate to balances due from third parties and subsidiaries respectively 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 27(a). 21. CONTRACT RELATED ASSETS AND LIABILITIES Group 2021 RM’000 2020 RM’000 Contract assets (a) Non-current 75,078 60,957 Current 309,551 290,743 384,629 351,700 Contract liabilities (a) Current (30,312) (30,663) Contract fulfillment asset (b) Non-current 2,616 6,794 Current 2,095 2,608 4,711 9,402 (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 2021 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.
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