FGV Audited Financial Statements 2019

190 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 47 LOANS DUE TO SUBSIDIARIES (CONTINUED) Effective finance rate for the loans is as follows: Company 2019 2018 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 subsidiaries Fixed/Floating 5.78 Fixed/Floating 2.23 – 5.50 The carrying amount and fair value of the loans due to subsidiaries are as follows: Company Carrying amount Fair value 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Loans due to subsidiaries 1,477,112 1,104,909 1,532,864 1,104,057 The fair value of loans due to subsidiaries is based on cash flows discounted using a rate based on the borrowing rate of 4.84% (2018: 4.5%). 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.