FGV Audited Financial Statements 2020

47 LOANS DUE TO SUBSIDIARIES Company 2020 RM’000 2019 RM’000 Unsecured: - Non-current 1,283,922 1,324,884 - Current 121,537 152,228 1,405,459 1,477,112 The loans are denominated as follows: - Ringgit Malaysia 1,405,459 1,477,112 1,405,459 1,477,112 Effective finance rate for the loans is as follows: 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/ Floating 5.32 Fixed/ Floating 5.78 The carrying amount and fair value of the loans due to subsidiaries 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 subsidiaries 1,405,459 1,477,112 1,406,461 1,532,864 The fair value of loans due to subsidiaries is based on cash flows discounted using a rate based on the borrowing rate of 5.40% (2019: 5.78%). The fair value of the loans due to subsidiaries is a Level 2 computation. Cash flows and non-cash changes arising from loans due to subsidiaries financing activities are disclosed in statements of cash flows. 166 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020