KUB Malaysia Berhad Annual Report 2021

26. TRADE AND OTHER PAYABLES, REFUNDABLE CYLINDER DEPOSITS AND CONTRACT LIABILITIES (cont’d) Included in other payables are amounts owing to property, plant and equipment creditor and accrued expenses amounting to RM2,029,000 and RM2,773,000 respectively. (a) Trade payables These amounts are non-interest bearing and normally settled between 60 to 90 days (31.12.2019: 60 to 90 days) terms. (b) Refundable cylinder deposits Group 30.6.2021 31.12.2019 RM’000 RM’000 Current 11,724 22,604 Non-current 31,637 17,778 43,361 40,382 The refundable cylinder deposits are deposits received in exchange of gas cylinders which has no scheduled repayment term and refundable upon return of the cylinders in good working condition. The Group has classified RM31,637,000 (31.12.2019: RM17,778,000) into non-current liabilities based on the Group’s long-term experiences with the customers in prior years which are currently still active. (c) Provisions Movement of provision for liquidated ascertained damages during the period/year is as follows: Group 30.6.2021 31.12.2019 RM’000 RM’000 As at 1 January 316 316 Additions (Note 9) 2,356 - As at 30 June/31 December 2,672 316 The provision for liquidated ascertained damages is made based on the approved contract terms and is computed on the agreed penalty charges per delay multiplied by the number of days delayed. Contract liabilities Group 30.6.2021 31.12.2019 RM’000 RM’000 Construction contracts (Note 24) 617 981 Contract liabilities relating to construction contracts are balances due to customers under construction contracts. These arise if a particular milestone billing exceeds the revenue recognised to date. 117 ANNUAL REPORT 2021 FINANCIAL STATEMENTS