Yinson Annual Report 2021

286 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 36. Trade and other payables (continued) Group Company 2021 2020 2021 2020 RM million RM million RM million RM million Non-current: Other payables Sundry payables 68 - - - Due to subsidiaries - - 865 487 Deferred income 295 714 - - Deposits 21 - - - 384 714 865 487 Total trade and other payables 1,201 1,211 1,028 1,101 (a) Trade payables Trade payables are non-interest bearing. (b) Other payables - current Included in the Group's sundry payables and accruals are amounts relating to expenditures incurred for the construction of FPSOs amounting to RM420 million (2020: RM94 million). Included in the amounts due to subsidiaries as at 31 January 2021 were advances novated from subsidiaries of RM265 million (2020: RM656 million) which arose from an internal re-organisation exercise carried out during the prior financial year. All other payables are unsecured, non-interest bearing and are repayable on demand, except for amounts due to subsidiaries which are revolving on daily basis, and deferred income which relates to income received in advance and is non-refundable. (c) Other payables - non-current Included in the Group’s deposits is an amount of RM21 million (USD5 million) (2020: Nil) relating to a deposit payment received by Yinson Acacia Ltd (“YAL”), an indirect wholly owned subsidiary of the Group, for the proposed disposal of a minority equity interest in Yinson Boronia Consortium Pte. Ltd. (“YBC”), another indirect subsidiary of the Group, to Kawasaki Kisen Kaisha, Ltd. (““K” Line”) for a total cash consideration of USD49 million pursuant to a Share Sale and Purchase Agreement executed between YAL and “K” Line on 9 July 2020. The payment of the remaining balance of the consideration, being USD44 million by “K” Line, and transfer of the minority equity interest to “K” Line (or Japan Offshore Facility Investment 1 Pte. Ltd. (“JOFI”) (a direct wholly owned subsidiary of Sumitomo Corporation), at “K” Line’s option), will be executed upon final acceptance of the Marlim 2 FPSO by Petrobras and release of the financial guarantees under the associated project finance agreements expected to be in financial year ending 2023. On 11 May 2020, an indirect subsidiary of the Group issued a convertible loan of USD52 million (approximately RM211 million) to its shareholders. USD13 million (approximately RM53 million) of the issuance is to a minority shareholder (i.e. Japan Offshore Facility Investment 1 Pte. Ltd., a wholly owned subsidiary of Sumitomo Corporation), which is proportionate to its shareholdings in the subsidiary. In accordance with the terms and conditions (depending on the prevailing gearing once the finance agreements are executed) set out in the Convertible Loan Agreement, the loan may be jointly converted into ordinary shares of the subsidiary by the shareholders on a proportionate basis. Otherwise, the loan from the minority shareholder is due for repayment in equal quarterly repayments within 2 years from the date on which the conditions as set out in the Convertible Loan Agreement are met. The loan was adjusted to its fair value upon initial recognition, and is subsequently carried at amortised cost. As at 31 January 2021, the Group's carrying amount of this loan, which is unsecured and interest free, was USD11 million (RM44 million) (2020: Nil).