ESR Group Limited Annual Report 2023 195 Notes to the Consolidated Financial Statements 31 December 2023 21. OTHER NON-CURRENT ASSETS (continued) Notes: (i) The Group subscribed to the Optionally Convertible Debentures (“OCD”) issued by the Group’s joint ventures. The OCD, at the request of the lender and consent of the borrower, shall be convertible into equity shares at any time before 3 years from the drawdown date, but before the date of completion of 6 years from the drawdown date. The OCD may be converted into equity shares in one or more tranches. The OCD shall convert into equity shares at the fair market value of the equity shares on the date of conversion of OCD into equity shares. The outstanding OCD that are neither converted nor redeemed, shall be compulsorily redeemed on the date of completion of 6 years from the drawdown date. The fair value measurement for the OCD has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used (see note 47). The balances due from non-controlling interests of subsidiaries are non-trade in nature and unsecured. As at 31 December 2023, the balance of US$27,549,000 (2022: US$22,277,000) bears interest of 4.00% to 5.50% (2022: 4.00% to 5.50%) per annum. The remaining balance is non-interest bearing. The balance due from joint ventures are non-trade in nature and unsecured. As at 31 December 2023, the balance of US$19,576,000 (2022: US$7,569,000) bears interest of 6.00% to 9.21% (2022: 6.00%) per annum. The remaining balance is non-interest bearing. The receivable from funds are non-trade in nature and unsecured. As at 31 December 2023, the balance of US$39,869,000 (2022: Nil) bears interest of 3.00% to 15.00% per annum. As at 31 December 2023 and 2022, other non-current assets of the Group were considered to be of low credit risk and thus the Group has assessed that the ECL for deposits was immaterial under the 12-month expected credit loss method. 22. TRADE RECEIVABLES As at 31 December 2023 As at 31 December 2022 US$’000 US$’000 Rental income receivables 8,257 6,414 Management fees due from the joint ventures and associates of the Group 304,226 109,757 Management fees due from funds and REITs managed by the Group 231,697 248,573 Management fees due from minority shareholders of subsidiaries 514 875 Construction income receivables 3,195 2,247 Solar energy income receivables 102 661 547,991 368,527 Impairment (15,130) (15,039) 532,861 353,488 The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The Group seeks to maintain strict control over its outstanding receivables to minimise credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group’s trade receivables related to various diversified customers, there is no significant concentration of credit risk. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. The balances of trade receivables are non-interest-bearing. CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
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