FGV Audited Financial Statements 2020

34 BIOLOGICAL ASSETS Oil Palm Oil palm represents the fresh fruit bunches (“FFB”) of up to 15 days prior to harvest for use in the Group’s palm product operations. During the financial year ended 31 December 2020, the Group harvested approximately 4,287,626 metric tonnes (“MT”) of FFB (2019: 4,447,188 MT). The quantity of unharvested FFB of the Group as at 31 December 2020 included in the fair valuation of FFB was 101,460 MT (2019: 106,791 MT). In arriving at the fair value, the Group adopted the income approach which considers the net present value of all directly attributable cash inflows, cash outflows and imputed contributory asset charges where no actual cash flows associated with the use of assets essential to the agricultural activity. Changes to the assumed prices of the FFB and tonnage included in the valuation will have a direct effect on the reported valuation. The Groups biological assets computation is a Level 3 fair value estimation. If the selling prices of FFB or tonnage changed by 10%, the Group’s fair value of FFB would have increased or decreased by approximately RM7.47 million (2019: RM6.03 million). 35 LOANS DUE FROM SUBSIDIARIES Company 2020 RM’000 2019 RM’000 At 1 January 62,600 6,999 Additions 434,437 305,249 Repayment (128,151) (248,586) Provision for impairment - (1,062) At 31 December 368,886 62,600 The loans are denominated as follows: - Ringgit Malaysia 368,886 62,600 368,886 62,600 Financing terms of short term loans due from subsidiaries are between 30 to 365 days (2019: 30 to 365 days) with interest ranging from 0.43% % to 3.60% (2019: 0.43% to 3.60% per annum). 154 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020