Page 202 - MSM_AR2020

CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

21 LOANS DUE FROM SUBSIDIARIES (CONTINUED)

(e) Maximum exposure to credit risk
The following table contains an analysis of the credit risk exposure of the subsidiaries for which an ECL allowance is
recognised. Their gross carrying amounts disclosed below also represents the Group’s maximum exposure to credit risk
on these assets:
Basis for Carrying
recognition of Estimated gross amount
Group internal Expected expected credit carrying amount Loss (net of loss
credit rating credit loss loss provision at default allowance allowance)
200 RM’000 RM’000 RM’000

2020
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
Performing - 12 months ECL 1,002,053 - 1,002,053
Under performing - Lifetime ECL - - -

2019
Performing - 12 months ECL 1,023,087 - 1,023,087
Under performing 1.1% Lifetime ECL 37,030 (419) 36,611

22 LEASE RECEIVABLES
Company
2020 2019
RM’000 RM’000
Not later than 1 year 2,167 2,167
Later than 1 year 83,859 84,972
86,026 87,139

The leased asset is in respect of a piece of leasehold land acquired for the construction of a sugar refinery which the
Company leases to a subsidiary of the Company. The Company and its subsidiary had agreed that the total investment
recovery cost of RM87,346,451 as at 30 April 2016, which is the commencement date of the lease agreement for the said
land, will be recovered by the subsidiary over a period of 59 years. Accordingly, the Company has transferred the net book
value of the leasehold land amounting to RM87,346,451 as at 30 April 2016 from property plant and equipment to lease
receivables in 2019.