220 F INANC IAL Statements 05 Sect ion Ranhi ll Ut i l i t i es Berhad NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 24. TRADE AND OTHER RECEIVABLES (Contd.) (c) Receivable from Johor State Government (“JSG”) This amount represents expenses incurred on behalf which are unsecured, interest-free and repayable on demand. Included in the receivable from JSG is an amount of RM45,405,000 (2021: RM22,176,000) recognised as other income (Note 8) by RanhillSAJ, a subsidiary of the Company, being reimbursable expenses incurred relating to shortfall of raw water supply for year 2021 and 2022 (2021: 2020) as follows: Group 2022 RM’000 2021 RM’000 Reimbursable expenses incurred in: Year 2020 22,176 22,176 Year 2021 18,664 - Year 2022 26,741 - Other receivables as at year end 67,581 22,176 Current portion of other receivables - (22,176) Non-current portion of other receivables 67,581 - Management has submitted the claims to JSG after taken into consideration terms and conditions stated in the Water Supply Agreement entered with JSG on 9 July 2009, letter of acknowledgement of reimbursement request from Johor State Economic Planning Division dated 15 February 2023 and 29 December 2021 as well as legal opinions obtained from solicitors. (d) Receivable from SPAN Group RM’000 Current 138,488 Non-current 3,797 Total 142,285 During the year, the Group recognised a government grant of RM142,285,000 as other income (Note 8) and the related estimated tax charge of RM13,892,000 (i.e. the net impact to profit or loss after tax is RM128,393,000) in relation to the government grant under the National Non-Revenue Water (“NRW”) Rate Reduction Program announced through the 12th Malaysia Plan (Year 2021-2025). Under the NRW Rate Reduction Program, entities that meet the NRW target is entitled to claim 75% of the expenses incurred based on the established terms and conditions. On 19 September 2022, the National Water Services Commission (“SPAN”) informed RanhillSAJ, a subsidiary of the Company, that the Ministry of Environment and Water (currently known as NRECC) has agreed with RanhillSAJ on their achievement of the NRW target for the year 2021. RanhillSAJ then submitted supporting documents relevant to the NRW expenses for SPAN’s review on 29 November 2022. Upon completion of SPAN’s review of the supporting documents, RanhillSAJ received a confirmation letter from SPAN dated 19 January 2023 awarding a government grant amounting to RM142,285,000. On 2 March 2023, RanhillSAJ received a further confirmation letter from SPAN that NRECC has also concurred with the awarding of the grant. The directors of the Company are expecting to receive RM138,488,000 within the year 2023 and the remaining RM3,797,000 is expected to be received in year 2024 upon settlement of the retention sum on the related NRW expenses by RanhillSAJ to its contractors.
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