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348 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

25 AMOUNTS DUE FROM/(TO) SUBSIDIARIES, OTHER RELATED COMPANIES, IMMEDIATE HOLDING
COMPANY AND ULTIMATE HOLDING BODY (CONTINUED)
(a) Amounts due from/(to) subsidiaries are unsecured, interest free, denominated in Ringgit Malaysia and have credit
terms of 30 to 180 days (2020: 30 to 180 days).
(b) Amounts due from/(to) other related companies are unsecured, interest free, denominated in Ringgit Malaysia and have
credit terms of 30 to 60 days (2020: 30 to 60 days).
(c) The amount due from/(to) the immediate holding company represents non-trade balance, which is expected to be
settled within the normal credit period of 90 days (2020: 90 days) and is denominated in Ringgit Malaysia, unsecured
and interest free.
(d) Amount due to ultimate holding body relates to office rental charges which is denominated in Ringgit Malaysia,
unsecured and interest free and repayable within 60 days.
(e) The fair value of amount due from/(to) subsidiaries, other related companies, immediate holding company and ultimate
holding body approximates its carrying value, as the impact of discounting is not significant.

Reconciliation of loss allowance
To measure the expected credit losses, amounts due from subsidiaries, other related companies and immediate holding
company have been grouped based on shared credit risk characteristics and the days past due.
For amounts due from subsidiaries, other related companies and immediate holding company which are trade related,
the expected loss rates are based on the payment profiles of revenue earned over a period of 24 months before 31 December
2021 or 31 December 2020 respectively and the corresponding historical credit losses experienced within this period.
The historical loss rates were not adjusted to reflect forward-looking information on macroeconomic factors affecting the
ability of the customers to settle the receivables, as the Group has not identified any forward looking assumptions which
correlate to the historical loss rates.
No loss allowances have been recognised on amounts due from subsidiaries, other related companies and immediate
holding company during the year other than reversal of loss allowances on amount due from a related company of RM3,200,000
(2020: RM654,000) (Note 8).