MISC Annual Report 2019

23. CASH, DEPOSITS AND BANK BALANCES (CONT’D.) To allow more efficient cash management for the Group and the Corporation, the Group’s and the Corporation’s cash and bank balances have, since 1 July 2013, been held in the In-House Account (“IHA”) managed by PETRONAS Integrated Financial Shared Services Centre (“IFSSC”). Included in cash and bank balances and deposits with licensed banks of the Group is the retention account of RM1,289,730,000 (2018: RM218,429,000) which is restricted for use because of the requirement of loan covenants. Cash at banks earn interest at floating rates based on daily bank deposit rates. Deposits with licensed banks are made for varying periods between 1 to 99 days (2018: 1 to 187 days) depending on the immediate cash requirements of the Group and of the Corporation and earn interest rates ranging from 0.88% to 3.55% (2018: 2.30% to 7.00%) per annum and 2.90% to 3.52% (2018: 3.10% to 3.31%) per annum respectively. Other information on financial risks of cash and cash equivalents are disclosed in Note 37. 24. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Group 2019 2018 RM’000 RM’000 Ships and offshore floating assets 125,278 – The movement during the financial year relating to non-current assets held for sale are as follows: Group 2019 2018 RM’000 RM’000 At 1 January – 123,003 Write down (Note 5(a)) – (23,814) Transfer from ships and offshore floating assets (Note 13) 446,837 – Disposals (320,244) (98,436) Currency translation differences (1,315) (753) At 31 December 125,278 – In the current financial year, the Group has classified certain ships and offshore floating assets as held for sale with the intention of disposal in the immediate future. 25. TRADE AND OTHER PAYABLES Group Corporation 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Trade payables Third parties 153,988 208,235 5,883 11,497 Subsidiaries – – 117,325 84,639 Holding company 6,824 6,436 6,567 5,996 Fellow subsidiaries 1,341 10,922 30 10,091 Joint ventures – 1,974 – 1,974 Accruals 982,004 973,962 266,642 329,604 Deferred income (Note 29) 102,626 70,247 – – Due to customers on contracts (Note 22) 5,993 2,406 – – 1,252,776 1,274,182 396,447 443,801 Other payables Amount due to related parties: Subsidiaries – – 339,311 557,465 Holding company 457 62 404 – Fellow subsidiaries 6 291 4 – Associates 965 944 – – Joint ventures 67,583 89,821 2,923 2,782 Accruals 562,075 442,013 40,867 68,029 Provisions (Note 25(c)) 43,566 72,717 42,928 64,950 Others 259,160 120,558 174,045 46,347 933,812 726,406 600,482 739,573 Total trade and other payables 2,186,588 2,000,588 996,929 1,183,374 Add: Total borrowings (Note 19(c)) 13,152,173 13,049,906 1,649,920 6,297,370 Less: Due to customers on contracts (Note 22) (5,993) (2,406) – – Less: Provisions (Note 25(c)) (43,566) (72,717) (42,928) (64,950) Less: Deferred income (Note 29) (102,626) (70,247) – – Total financial liabilities carried at amortised cost 15,186,576 14,905,124 2,603,921 7,415,794 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 326 327