FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 290 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 43 BORROWINGS (Cont’d.) Effective finance rates for borrowings are as follows: Effective finance rate at date of statement of financial Finance position rate % per annum 2013 Bank overdrafts Fixed 6.60 Revolving credits Fixed 2.40 Bankers acceptances Fixed 3.42 Export credit refinancing Fixed 3.28 Term loans Floating 6.00 2012 Bankers acceptances Fixed 3.43 Term loans Floating 1.03 The term loan is unsecured and repayable by 120 monthly instalments of RM138,775 commencing from January 2014. As at 31 December 2013, certain bankers acceptances are collateralised by the mortgage and/or pledge by the land, including structures, machinery, benefits of an insurance covering finished goods, and guaranteed by some of the directors and/or shareholders of the subsidiary company and by the immediate holding company. As at 31 December 2012, certain borrowings were secured by fixed deposits pledged to a financial institution amounting to RM15,369,000. The carrying amounts and fair value of the total borrowings are as follows: Group Carrying amount Fair value 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Bank overdrafts 24,500 - 24,500 - Revolving credits 136,642 - 136,642 - Term loans 13,032 38,669 13,032 38,669 Bankers acceptances 1,395,736 561,000 1,395,736 561,000 Export credit refinancing 80,000 - 80,000 - Total 1,649,910 599,669 1,649,910 599,669 The fair value of total borrowings equals their carrying amount, as the impact of discounting is not significant for borrowings other than term loans, which have floating finance rate.