FGV Audited Financial Statements 2020

46 LOANS DUE TO ULTIMATE HOLDING COMPANY Group and Company 2020 RM’000 2019 RM’000 Unsecured: - Non-current 882,866 883,176 - Current 3,322 3,322 886,188 886,498 Early settlement of loans due to ultimate holding company of RM272 million was made in the previous financial year. The loans are denominated as follows: Group and Company 2020 RM’000 2019 RM’000 - Ringgit Malaysia 886,188 886,498 Effective finance rate for the loans is as follows: Group and Company Finance rate Effective finance rate at date of statement of financial position per annum % Finance rate Effective finance rate at date of statement of financial position per annum % Loans due to ultimate holding company Fixed 4.837 Fixed 4.837 The carrying amount and fair value of the loans due to ultimate holding company are as follows: Group and Company Carrying amount Fair value 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Loans due to ultimate holding company 886,188 886,498 892,759 886,406 The fair value of loans due to ultimate holding company is based on cash flows discounted using a rate based on the borrowing rate of 4.60% (2019: 4.84%). The fair value of the loans due to ultimate holding company is a Level 2 computation. Cash flows and non-cash changes arising from loans due to ultimate holding company financing activities are disclosed in statements of cash flows. 165 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020