perspective perspective - ChartNexus

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22 DEPOSITS, BANK AND CASH BALANCES (cont’d)
The subsidiary companies’ bank balances under Housing Development Accounts are not freely remissible to the Company until
the issuance of the Certificate of Fitness for the respective housing development and with the approval of the Controller of
Housing after deducting certain sums of monies as specified in Housing Development (Control and Licensing) Act 1966, Housing
Developers (Housing Development Account)(Amendment) Regulations 2002, Regulation 9.
The sinking fund, which is established in accordance with the terms stipulated in the loan agreement, represents deposits with
a bank which will be utilised for the repayment of term loan and bridging loan of a subsidiary company.
23 TRADE AND OTHER PAYABLES
Group Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Trade payables 40,214 19,162 – –
Trade accruals 26,079 19,271 – –
Amount due to a subsidiary company – – 1,492 –
Amounts due to related parties 2 236 2 236
Payroll liabilities 2,958 2,108 807 780
Real property gains tax payable 1,800 6,466 – –
Progress billings in respect of property development – 5,363 – –
Other payables and accruals 8,688
–––––––––––––––––––
8,462
–––––––––––––––––––
816
–––––––––––––––––––
462
–––––––––––––––––––
79,741 61,068 3,117 1,478
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Credit terms of trade payables granted to the Group vary from no credit terms to 60 days.
The amount due to a subsidiary company, UM Residences Sdn Bhd, is unsecured and has no fixed term of repayment.
The weighted average interest rate as at financial year end was 7.25% per annum.
The amounts due to related parties, CapitaLand Residential Ltd, Tradewinds Corporation Berhad, Tradewinds Travel & Tours Sdn
Bhd and Chee Tat Holdings (S) Pte Ltd are unsecured, interest-free and have no fixed term of repayment.
24 PROVISION
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
for the financial year ended 31 December 2005
Group
2005 2004
RM’000 RM’000
Property development costs
At beginning of the financial year 20,777 21,459
Provision for property development costs 950 3,483
Utilised during the financial year
Reversal of unutilised provision to:
– (2,512)
- development costs recognised as expenses (10,411) (1,653)
- completed properties and property development costs (9,618) –
- trade accruals (748) –
(20,777) (1,653)
––––––––––––––––––– –––––––––––––––––––
At end of the financial year 950 20,777
================= =================
This represents the development costs estimated to be incurred. This provision will be utilised when the designated development
activities take place.
The reversal of unutilised provision during the financial year was due to changes in plans of the future designated development
activities.