Page 343 - MSM_AIR2021

SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 341

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

21 LOANS DUE FROM A SUBSIDIARY
Company
2021 2020
RM’000 RM’000

Islamic term loan – MSM Sugar Refinery (Johor) Sdn Bhd 1,054,083 1,002,053
Loss allowance (Note 8) (13,433) -
1,041,370 1,002,053
Analysed as:
Current - 70,090
Non-current 1,041,370 931,963
Total loans to subsidiaries 1,041,370 1,002,053

The interest rates charged during the financial year were as follows:
2021 2020
% %
per annum per annum

Islamic term loan 4.36 - 4.37 4.36 - 5.67
Islamic term loan is unsecured, with interest charged at a rate which is at the prevailing rate based on a licensed bank’s
Islamic term loan facility rate on the day of the drawing. Subject to the provisions of the agreements, the amount of the
facility shall be repaid commencing from 2023 for a period of 12 years.
(a) Reconciliation of loss allowance

Loan due from subsidiaries using general 3 stage approach
The loss allowance for loan due from subsidiaries as at 31 December 2021 reconciles to the opening loss allowance for
that provision as follows:
Under- Non-
Performing performing performing Total
RM’000 RM’000 RM’000 RM’000

Opening loss allowance as at 1 January 2020
(calculated under MFRS 9) - (419) - (419)
Reversal of loss allowance (Notes 1a, 8) - 419 - 419
Closing loss allowance as at 31 December 2020 - - - -
Individual financial assets transferred to
under-performing (credit-impaired financial assets)
(Notes 1b, 8) - (13,433) - (13,433)
Closing loss allowance as at 31 December 2021 - (13,433) - (13,433)
Note 1a:
The reversal of loss allowance in the previous financial year of RM419,000 was recorded after repayment made during
that year.
Note 1b:
The loss allowance have been recognised during the financial year subsequent to considering the revised repayment
plan agreed by the Company with the subsidiaries.