FGV Audited Financial Statements 2019

185 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 44 BORROWINGS (CONTINUED) Effective finance rates for borrowings are as follows: Group 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 % 2019 Islamic short term trade financing Fixed 1.26 – 5.60 Fixed 3.83 – 4.11 Short term trade financing Fixed 2.60 – 6.87 - - Islamic term loans Floating 5.24 – 6.43 - - Term loans Floating 6.30 – 6.40 - - 2018 Islamic short term trade financing Fixed/Floating 1.14 – 4.70 Fixed 4.11 – 4.21 Short term trade financing Fixed 2.70 – 6.87 - - Islamic term loans Floating 4.48 – 6.00 - - Term loans Floating 3.79 – 4.37 - - The secured term loans consists of the followings: (i) RM Nil (2018: RM584,000) term loans repayable over periods ranging between six to seven years commencing from 2016 to 2017 up to 2019 to 2022 and is secured over certain leasehold lands of the Group. (ii) RM873,893,000 (2018: RM1,197,436,000) Islamic term loans is secured against a leasehold land, debenture and certain bank balances of the Group. (iii) RM71,909,000 (2018: RM Nil) term loan which has a tenure of 30 months is secured against an assignment of proceeds from land disposal and the Assignment and Charge of the Designated Accounts. The secured short term trade financing consists of the followings: (i) RM33,522,000 (2018: RM31,569,000) short term trade financing is secured over certain property, plant and equipment, benefits of an insurance covering finished goods, and guaranteed by some of the directors and/or shareholders of certain subsidiary companies.