FGV Audited Financial Statements 2019

174 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 32 LOANS DUE FROM JOINT VENTURES (CONTINUED) The significant increase in the loss allowance for the financial year is due to continuing losses and operational issues in a joint venture which is expected to further impact its abilities to settle the loan due to the Group on a timely manner. The carrying amount and fair value of the loans due from joint ventures are as follows: Group Carrying amount Fair value 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Loans due from joint ventures - 70,201 - 70,222 The fair value of loans due from joint ventures is based on cash flows discounted using a rate based on the borrowing rate of Nil (2018: 6.02%). The fair value of the loans due from joint ventures is a Level 2 computation. 33 INVENTORIES Group 2019 RM’000 2018 RM’000 - Finished goods 743,543 1,002,549 - Raw materials 396,408 747,391 - Work in progress 29,830 32,302 - Chemicals 51,826 33,044 - Stores, consumables and replaceable products 91,430 247,949 1,313,037 2,063,235