MSM Malaysia Holdings Berhad Annual Report 2020

21 LOANS DUE FROM SUBSIDIARIES Company 2020 2019 RM’000 RM’000 Term loan – MSM Perlis Sdn Bhd - 37,030 Loss allowance - (419) Islamic term loan – MSM Sugar Refinery (Johor) Sdn Bhd 1,002,053 1,023,087 1,002,053 1,059,698 Analysed as: Current 70,090 104,237 Non-current 931,963 955,461 Total loans to subsidiaries 1,002,053 1,059,698 The loss allowance has been recognised in the prior financial year subsequent to considering the repayment plan agreed by the Company with the subsidiary. The interest rates charged during the financial year were as follows: 2020 2019 % % per annum per annum Term loan 5.90 - 6.45 5.80 Islamic term loan 4.36 - 5.67 4.45 - 5.64 Revolving credit loans - 4.48 (a) Revolving credit loans to subsidiaries are unsecured, with interest charged at a rate which is at the prevailing rate based on a licensed bank’s revolving credit facility rate on the day of draw down. Subject to the provisions of the agreements, the amount of the facility shall be repaid at the end of every six (6) months from the date of the first draw down. This amount has been fully repaid in the financial year ended 31 December 2019. (b) Term loan is unsecured, with interest charged at a rate which is at the prevailing rate based on a licensed bank’s term loan facility rate on the day of the drawing. Subject to the provisions of the agreements, the amount of the facility shall be repaid commencing from the seventh (7) year from the date of the first drawing and shall be repaid fully at the tenth (10) year. The amount has been fully repaid in the financial year ended 31 December 2020. (c) Islamic term loan is unsecured, with interest charged at a rate which is at the prevailing rate based on a licensed bank’s Islamic term loan facility rate on the day of the drawing. Subject to the provisions of the agreements, the amount of the facility shall be repaid commencing from 2021 for a period of 8.5 years. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 198 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT