continued - The Lion Group

21. TRADE AND OTHER RECEIVABLES
Group Company
2010 2009 2010 2009
RM’000 RM’000 RM’000 RM’000
Trade receivables 121,275 107,272 – –
Allowance for doubtful receivables (12,739) (16,951) – –
108,536 90,321 – –
Accrued billings in respect of
property development costs 186 6,724 – –
Other receivables 43,288 141,125 526 512
Allowance for doubtful receivables (3,454) (3,523) – –
39,834 137,602 526 512
Prepayments and deposits 146,739 89,124 6 6
295,295 323,771 532 518
Included in receivables of the Group and of the Company are related parties balances of which RM10.6 million
(2009: RM14.0 million) and RM Nil (2009: RM Nil) respectively are in trade receivables and RM4.6 million (2009:
RM99.9 million) and RM0.4 million (2009: RM0.3 million) respectively are in other receivables.
Included in deposits of the Group is an amount of RM45.0 million (2009: RM45.0 million) of deposits (“Offtake
Deposit”) paid by a subsidiary to a related party for raw materials supplies as security against the subsidiary’s
payment obligations to the related party. In the event the payment obligations are not met by the subsidiary within
the credit period given, the related party shall be entitled to withdraw from the Offtake Deposit such amount
as may be due to the related party towards settlement of the amount due. The Offtake Deposit is pledged to the
lender of the related party for credit facilities granted to the related party.
The Group’s normal trade credit terms range from 5 days to 60 days (2009: 5 days to 60 days). Other credit terms
are assessed and approved on a case-by-case basis.
The Group has no significant concentration of credit risk that may arise from exposures to a single debtor or to
groups of debtors.
Receivables of the Group amounting to RM179.9 million (2009: RM162.5 million) are secured by way of a floating
charge for certain borrowings as disclosed in Note 30.
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