Kimlun Corporation Berhad Annual Report 2020

200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 25. Trade and other payables (cont'd) (b) Other payables 26. Provisions 2020 2019 RM RM Defect liability costs At 1 January 17,170,000 13,421,000 Addition during the year (Note 7) 1,031,000 3,749,000 At 31 December 18,201,000 17,170,000 This amount represents estimated rectification costs expected to be incurred during the defect liability period of construction contracts. Other than the amount due to a joint venture, which bears interest at 1.75% - 3.00% (2019: 3.30%) per annum and is repayable on demand, the amounts due to company related to certain directors, subsidiaries, related company and joint ventures are unsecured, non- interest bearing and are repayable on demand. Other payables due to third parties are non-interest bearing and are normally settled on 30 to 60 days (2019: 30 to 60 days) terms. Group - 85 - Annual Report 2020 142 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020