FGV Audited Financial Statements 2019

69 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 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Market risk (continued) (iii) Finance rate risk The Group’s finance rate risk mainly arises from LLA liability and borrowings issued at variable rates which expose the Group to cash flow finance rate risk. The finance rate profile of the Group’s and Company’s finance bearing financial assets, based on carrying amounts as at the end of the reporting period is as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Financial assets At fixed rate Fixed deposits 1,279,663 587,414 789 534 Loans due from joint ventures - 70,201 - - 1,279,663 657,615 789 534 At floating rate (exposed to cash flow finance rate risk) Loans due from subsidiaries - - 62,600 6,999 The finance rate profile of the Group’s and Company’s finance bearing financial liabilities, based on carrying amounts as at the end of the reporting period is as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Financial liabilities At fixed rate Loans due to a significant shareholder 886,498 1,159,103 886,498 1,159,103 Loans due to subsidiaries - - 1,324,884 908,049 Islamic short term trade financing 2,775,418 2,587,372 75,080 84,880 Short term trade financing 299,338 451,541 - - 3,961,254 4,198,016 2,286,462 2,152,032