Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 143

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 19
Chunk 143
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 performance obligation. The duration of the development period is usually six months to two years.

The Company’s system development
service revenues are generated primarily from contracts with clients across various sectors. The contracts contain negotiated billing
terms which generally include multiple payment phases throughout the contract term and a portion of the contract amount usually is billed
upon the completion of the related milestone. Pursuant to the contract terms, the Company has enforceable right on payments for the work
performed.

The Company’s revenue from technology
development contracts can be recognized over time or at a point in time. For revenue recognized over time, the Company uses an input method
based on cost incurred as the Company believes that this method most accurately reflects the Company’s progress toward satisfaction
of the performance obligation, which usually takes 6 to 24 months. Under this method, the Company could appropriately measure the fulfilment
of a performance obligation. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the
amount of revenues, receivables, and deferred revenues at each reporting period.

F-21

For revenue recognized at a point in
time, revenue is recognized upon services has been rendered and accepted by customers, and there is no unfulfilled obligation from the
Company.

No element of financing is deemed present
as typical payment term is 30 days from the date of issuance of invoice.

  Solutions and Consultancy  

Revenue from solutions and consulting
services is primarily comprised of fixed-fee contracts, which require the Company to provide professional solutions and consulting services
over contract terms beginning on the commencement date of each contract, which is the date its service is made available to clients. Billings
to the clients are generally on a monthly or quarterly basis over the contract term, which is typically 6 to 12 months. The solutions
and consulting services contracts typically include a single performance obligation. The revenue from solutions and consulting services
is recognized over the contract term.

  Interest Income  

The Company enter into loan arrangements
with both corporate and individuals. Interest income is recognised on a time-proportion basis using the effective interest method.

  Processing fee and late interest  

A non-refundable processing fee (0.5% to2.5% of the loan) is charged
to cover the administrative costs associated with evaluating, underwriting and originating a loan.

This fee is charged at the time of loan
disbursement and will be deducted from the loan proceeds unless otherwise agreed in writing.

If the borrower fails to make an installment