KENANGA ANNUAL REPORT 2019

192 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 11. OTHER ASSETS (CONT’D.) 11.2 ECL allowance for amount due from subsidiaries are as follows: Bank 2019 ECL allowances Stage 1 RM’000 Stage 2 RM’000 Stage 3 RM’000 Total RM’000 As at 1 January - - - - New assets originated or purchased 304 - - 304 As at 31 December 304 - - 304 (a) Assets segregated for customers These represent margin deposits paid by a subsidiary to Bursa Malaysia Derivatives Clearing Berhad. (b) Amounts due from subsidiary companies Included in the amount due from subsidiary companies is the term loan offered to a subsidiary company, Kenanga Investors Berhad. The loan is unsecured and bear interest of 1.0% per annum above cost of funds. The tenure for the loan is 6 years from 5 July 2019. (c) Amounts due from related parties Amounts due from all related parties comprise payments of expenses made on behalf of these related parties and are unsecured, non-interest bearing and repayable on demand. (d) Other debtors Included in other debtors are receivables from corporate advisory billings which are non-interest bearing and generally on 90 day (2018: 90 day) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. 12. STATUTORY DEPOSIT WITH BANK NEGARA MALAYSIA (“BNM”) The non-interest bearing statutory deposit is maintained with BNM in compliance with Section 26(2)(c) of the Central Bank of Malaysia Act 2009. The amount is determined as a set percentage of net eligible liabilities.