DEPOSITS Consumers are required to deposit a sum sufficient to cover charges for two months supply of electricity as allowed under the regulation of the Licensee Supply (Amendment) Regulations 2002 (with the exception of employees, government departments/agencies and recipients of government assistance program for eKasih Group). In default of payment of the deposit within the time specified, the supply to the consumer’s installation may be disconnected, subject to certain conditions laid out in the regulations. An interest of 2.5% per annum is credited to the consumer’s cash deposit. Consumer deposits are classified as current liabilities as the amounts shall be refunded within 30 days upon request for termination of electricity supply by the consumer. 26 BORROWINGS Accounting Policy Borrowings are recognised initially at fair value, net of transaction costsincurred. In subsequent periods, borrowings are stated at amortised cost using the effective interest method, any differences between proceeds (net of transaction costs) and the redemption value are recognised in the statement of profit or loss over the period of the borrowings. Borrowings are classified as current liabilities unless the Group and the Company have an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date. Where the terms of a financial liability are renegotiated and the Group issues equity instruments to a debt holder to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in statement of comprehensive income, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued, if any. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawdown. The transaction costs are amortised over the tenure of the loan and recognised in the