total of RM1,064.8 million (2022: RM1,025.8 million), which consists of two loans amounting to RM985.8 million and RM79.0 million, with the effective interest rate of 6.7% and 9.2% per annum repayable over 10 and 15 years respectively. (iii) Vantage RE Ltd. (‘VRE’) amounting to RM884.3 million (2022: RM842.0 million), which is based on the Islamic financing structure, for a profit rate of 5.3% (2022: 4.5%) per annum repayable over 2 years. (iv) GSPARX Sdn. Bhd. amounting to a total of RM277.7 million (2022: RM98.1 million), which consist of two loans amounting to RM194.3 million and RM83.4 million, are based on the Islamic financing structure, for a profit rate of 6.5% and 7.5% per annum repayable over 2 years. (b) Amounts due from/(to) subsidiaries classified as current are trade related,unsecured, interest free and repayable on demand. Credit risks are disclosed in Note 45(b) to the financial statements. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 244 Accounting Policy The Group and the Company as lessors When the Group and the Company act as lessors, they determine at lease inception whether each lease is a finance lease or an operating lease. T o classify each lease, the Group and the Company make an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; otherwise, then it is an operating lease. Operating leases Leases where the Group and the Company retain substantially all of the risks and rewards of ownership of the leased assets are classified as operating leases. The Group and the Company recognise lease payments received under operating leases as operating income on a straight- line basis over the lease term. Finance leases If the Group and the Company transfer substantially all of the risks and rewards incidental to ownership of the leased assets, leases are classified as finance leases. The Group and