FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 175 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 44 LOANS DUE TO SUBSIDIARIES (CONTINUED) Effective finance rate for the loans at date of statement of financial position per annum is as follows: Company Finance rate Effective Finance rate % Finance rate Effective Finance rate % Loans due to subsidiaries Fixed 5.02 Fixed 5.02 The carrying amount and fair value of the loans due to subsidiaries are as follows: Company Carrying amount Fair value 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Loans due to subsidiaries 973,764 811,034 983,881 822,948 The fair value of loans due to subsidiaries is based on cash flows discounted using a rate based on the borrowing rate of 5.02% (2022: 5.02%). The fair value of the loans due to subsidiaries is a Level 2 computation. The terms of long term loans due to subsidiaries are from 26 December 2019 until 31 December 2034 (2022: 26 December 2019 until 31 December 2034) with interest ranging from 5.02% to 5.78% (2022: 5.02% to 5.78%). Cash flows and non-cash changes arising from loans due to subsidiaries are disclosed in statements of cash flows.
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