DESTINI Annual Report 2020

25. Other Payables Group Company 2020 2019 2020 2019 RM RM RM RM Non-Current Liability Other payables 458,751 394,228 - - Current Liabilities Other payables 57,018,645 59,141,520 1,400,553 2,344,598 GST payable 1,435,353 783,894 - Accruals 11,856,548 12,333,034 149,420 149,420 Provision for warranty 513,722 425,000 - - Invoice financing 8,261,536 7,054,690 - - Deposits received 1,763,914 3,519 - - 80,849,718 79,741,657 1,549,973 2,494,018 81,308,469 80,135,885 1,549,973 2,494,018 Invoice financing is repayable within 150 to 180 (2019: 60 to 180) days with interest at rate of 1.00% to 1.17% (2019: 1.00 to 1.17%) per annum above the Bank’s prevailing prime lending rate at 3.00% to 5.25% (2019: 5.25% to 5.50%). The facilities are secured by way of corporate guarantee by ultimate holding company, pledged deposits and a charge on all sum in the current account of the subsidiary company’s bank account. 26. Redeemable Preference Shares Group Number of Shares Amount 2020 2019 2020 2019 Units Units Units Units Issued and fully paid: At 1 January 250,000 250,000 1,350,901 1,346,903 Exchange difference - - 76,586 3,998 At 31 December 250,000 250,000 1,427,487 1,350,901 The redeemable preference shares are issued by a subsidiary, Destini Marine Safety Solutions Ltd. in August 2016. The preference shares holders are entitled to a return of 1% per annum and the shares are redeemable on 31 August 2019. Preference shares have been discounted using an effective interest rate of 10%. As at 31 December 2020, the preference shares have not been redeemed. The subsidiary company has decided to indefinitely postpone the redemption of these shares as at 31 December 2020. The subsidiary company has the right to call for the preference shares at anytime by giving notice in accordance with the agreement. ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 162