Page 164 - ar2010

162 KPJ Healthcare Berhad

(Company No. 247079 M)

Annual Report 2010

notes to the

financial statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 (cont’d)

31 BORROWINGS (CONTINUED)

The proceeds which were raised from the CP issued during the fnancial year have been utilised by the Group and the Company in the following manner:

Group/Company 2010 2009 RM’000 RM’000

CP/MTN

At 1 January 249,000 214,000 Issued during the fnancial year for working capital purposes 0 35,000

At 31 December 249,000 249,000

As at 31 December 2010, the unutilised amount of CP/MTN amounted to RM1 million (2009: RM1 million).

During the fnancial year, KPJ has proposed to refnance existing CP/MTN which is expiring in 2011 with the issuance of Islamic Commercial Papers/Islamic Medium Term Notes up to RM500 million. The proposed issuance was approved by Securities Commissioner on 27 December 2010.

32 DEFERRED REVENUE

Group 2010 2009 RM’000 RM’000

At 1 January 28,812 13,761 Additions 46,296 41,612 Earned during the fnancial year (38,964) (26,561)

At 31 December 36,144 28,812

Represented by:

Students’ fees 3,868 4,399 Accommodation fees 1,028 2,481 KPJ Wellness Subscription Fees 31,248 21,932

36,144 28,812

33 DEPOSITS

Long term deposits represent refundable practising fees received from consultants, repayable on death, retirement (at age 65) or disability of the consultants. Deposits are forfeited on termination of a consultant’s practice either by the Group due to events of breach or on early termination by the consultant. However, the deposits may be refunded to the consultants if approval from the Board of Directors is obtained.

Long term deposits previously measured at cost, are now measured at fair value initially and subsequently at amortised costs using effective interest method. The differences between the fair value and cash value are recognised as deferred consultancy expenses and amortised using remaining service period to retirement (at age 65) of consultants. These amortisation expenses are charged to proft or loss.