FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 189 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 51 LOANS DUE TO ULTIMATE HOLDING COMPANY (CONTINUED) Effective finance rate for the loans at date of statement of financial position per annum is as follows: Group and Company 2023 2022 Finance rate Effective Finance rate % Finance rate Effective Finance rate % 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 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Loans due to ultimate holding company - 333,316 - 335,415 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 NIL (2022: 4.2%). The fair value of the loans due to ultimate holding company is a Level 2 computation. The terms of loans due to ultimate holding company are from 2 June 2014 until 4 December 2023 (2022: 2 June 2014 until 4 December 2023) with fixed interest of 4.84% (2022: 4.84%). Cash flows and non-cash changes arising from loans due to ultimate holding company financing activities are disclosed in statements of cash flows.
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