21 LOANS DUE FROM SUBSIDIARIES (CONTINUED) (b) Maximum exposure to credit risk The following table contains an analysis of the credit risk exposure of the subsidiaries for which an ECL allowance is recognised. Their gross carrying amounts disclosed below also represents the Group’s maximum exposure to credit risk on these assets: Group internal credit rating Expected credit loss Basis for recognition of expected credit loss provision Estimated gross carrying amount at default RM’000 Loss allowance RM’000 Carrying amount (net of loss allowance) RM’000 2021 Performing - 12 months ECL - - - Under performing 1.3% Lifetime ECL 1,054,803 (13,433) 1,054,803 2020 Performing - 12 months ECL 1,002,053 - 1,002,053 Under performing - Lifetime ECL - - - 22 LEASE RECEIVABLES Company 2021 2020 RM’000 RM’000 Not later than 1 year 2,167 2,167 Later than 1 year 82,732 83,859 84,899 86,026 The leased asset is in respect of a piece of leasehold land acquired for the construction of a sugar refinery which the Company leases to a subsidiary of the Company. The Company and its subsidiary had agreed that the total investment recovery cost of RM87,346,451 as at 30 April 2016, which is the commencement date of the lease agreement for the said land, will be recovered by the subsidiary over a period of 59 years. Accordingly, the Company has transferred the net book value of the leasehold land amounting to RM87,346,451 as at 30 April 2016 from property plant and equipment to lease receivables in 2019. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 342
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