continued - The Lion Group

34. TRADE AND OTHER PAYABLES
Group Company
2010 2009 2010 2009
RM’000 RM’000 RM’000 RM’000
Trade payables 1,632,791 1,271,773 – –
Other payables 171,526 307,638 13,348 7,221
Security deposits received from
customers 33,499 35,427 – –
Product financing liabilities 915,873 633,434 – –
Accruals 178,315 151,157 25,187 25,218
Project payables 23,559 34,021 – –
Hire purchase liabilities (Note 33) 977 2,087 – –
2,956,540 2,435,537 38,535 32,439
Included in payables of the Group and of the Company are related parties balances of which RM730.7 million
(2009: RM470.9 million) and RM Nil (2009: RM Nil) respectively are in trade payables, RM35.0 million (2009:
RM63.0 million) and RM13.3 million (2009: RM4.5 million) respectively are in other payables and RM423.9
million (2009: RM256.1 million) and RM Nil (2009: RM Nil) respectively are in product financing liabilities.
Certain of the related parties balances bear interest rates ranging from 7.5% to 8.1% (2009: 7.8% to 9.0%) per
annum.
The security deposits received from customers amounting to RM33.5 million (2009: RM35.3 million) bear interest
rates ranging from 8% to 10% (2009: 8% to 10%) per annum.
Product financing liabilities are the liabilities arising from the trade financing arrangements with parties where
titles to the inventories pertaining to these arrangements are legally with these parties and of which the Group
has the obligation to purchase. The obligation to purchase ranges from 30 days to 180 days (2009: 30 days to
180 days) with interest rates ranging from 2% to 9% (2009: 2% to 9%) per annum. The inventories under such
arrangements are disclosed in Note 23. All other normal credit terms granted to the Group in trade payables range
from 30 days to 60 days (2009: 30 days to 60 days).
Project payables represent construction costs for plant and machinery, and are unsecured and interest-free. The
normal credit terms granted to the Group range from 30 days to 120 days (2009: 30 days to 120 days). Other
credit terms are assessed on a case-by-case basis.
Since the previous financial year, a subsidiary had exceeded certain credit terms of trade and other payables and
product financing liabilities. The subsidiary has entered into deferral payment plans, formulating payment strategies
and refinancing balances with a significant constitution of these creditors. The Directors are of the opinion that
there is no material uncertainty that the subsidiary will have continued support from these creditors.
35. BANK OVERDRAFTS
105
Group
2010 2009
RM’000 RM’000
Secured 13,194 16,962
Bank overdrafts pertaining to certain subsidiaries are secured by charges on the property, plant and equipment
(Note 14), and other assets of the subsidiaries.
The weighted average effective interest rate for bank overdrafts at the balance sheet date is 7.7% (2009: 8.5%)
per annum.