FGV Annual Report 2014

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 term loans. LLA liability and term loans issued at variable rates expose the Group to cash flow finance rate risk. The finance rate profile of the Group’s finance bearing financial assets, based on carrying amounts as at the end of the reporting period was: Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Financial assets At fixed rate Fixed deposits 2,879,777 4,632,239 496,430 1,900,673 The finance rate profile of the Group’s finance bearing financial liabilities, based on carrying amounts as at the end of the reporting period was: Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Financial liabilities At fixed rate Loans due to a significant shareholder 2,202,920 2,697,790 2,202,920 2,697,790 Short term trade financing 2,040,752 1,636,878 – – Term loans 271,953 – – – Finance lease liabilities 5,071 – – – 4,520,696 4,334,668 2,202,920 2,697,790 At floating rate (exposed to cash flow finance rate risk) LLA liability 4,680,829 4,844,390 – – Term loans 182,230 13,032 – – 4,863,059 4,857,422 – – 9,383,755 9,192,090 2,202,920 2,697,790 Felda Global Ventures Holdings Berhad pg 202 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014