FGV Audited Financial Statements 2020

43 OTHER RESERVES (continued) Long Term Incentive Plan (“LTIP”) reserve LTIP reserve relates to reserve created from the corresponding increase in equity from expenses recognised in profit or loss over the vesting period of the equity-settled share based compensation plan for the Group’s employees as disclosed in Note 54 to the financial statements. Cash flow hedge reserve The Group manages its cash flow interest rate risk with floating-to-fixed interest rate swaps which are designated in cash flow hedge relationships. To the extent this hedge is effective, the change in fair value of the hedge instrument is recognised in the cash flow hedge reserve. The gain or loss relating to the effective portion of the interest rate swaps is reclassified to profit or loss and recognising within ‘finance cost’. 44 BORROWINGS Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Current Secured: Short term trade financing 32,254 33,522 - - Islamic term loans 113,660 107,839 - - Term loans - 71,909 - - Unsecured: Islamic short term trade financing 2,261,655 2,775,418 75,080 75,080 Short term trade financing 225,908 265,816 - - Islamic term loans 105 - - - 2,633,582 3,254,504 75,080 75,080 Non-current Secured: Islamic term loans 759,730 766,054 - - Unsecured: Islamic short term trade financing 13,452 - - - 773,182 766,054 - - Total borrowings 3,406,764 4,020,558 75,080 75,080 161 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020