21 LOANS DUE FROMA SUBSIDIARY Company 2021 2020 RM’000 RM’000 Islamic term loan – MSM Sugar Refinery (Johor) Sdn Bhd 1,054,083 1,002,053 Loss allowance (Note 8) (13,433) - 1,041,370 1,002,053 Analysed as: Current - 70,090 Non-current 1,041,370 931,963 Total loans to subsidiaries 1,041,370 1,002,053 The interest rates charged during the financial year were as follows: 2021 2020 % % per annum per annum Islamic term loan 4.36 - 4.37 4.36 - 5.67 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 2023 for a period of 12 years. (a) Reconciliation of loss allowance Loan due from subsidiaries using general 3 stage approach The loss allowance for loan due from subsidiaries as at 31 December 2021 reconciles to the opening loss allowance for that provision as follows: Under- Non- Performing performing performing Total RM’000 RM’000 RM’000 RM’000 Opening loss allowance as at 1 January 2020 (calculated under MFRS 9) - (419) - (419) Reversal of loss allowance (Notes 1a, 8) - 419 - 419 Closing loss allowance as at 31 December 2020 - - - - Individual financial assets transferred to under-performing (credit-impaired financial assets) (Notes 1b, 8) - (13,433) - (13,433) Closing loss allowance as at 31 December 2021 - (13,433) - (13,433) Note 1a: The reversal of loss allowance in the previous financial year of RM419,000 was recorded after repayment made during that year. Note 1b: The loss allowance have been recognised during the financial year subsequent to considering the revised repayment plan agreed by the Company with the subsidiaries. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 341
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