FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 295 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 31 LOANS DUE FROM SUBSIDIARIES Company 2016 RM'000 2015 RM'000 Loans due from subsidiaries 206,013 1,062 The loans are denominated as follows: - Ringgit Malaysia 204,951 - - Great Britain Pound 1,062 1,062 206,013 1,062 Financing terms of short term loans due from subsidiaries are between 30 to 180 days (2015: 30 to 90 days) with interest ranging from 0.80% to 4.73% per annum (2015: 1.50%). Past due but not impaired The short term loans due from subsidiaries as at 31 December 2016 are neither past due nor impaired as they are yet to exceed the credit period. Impaired and provided for As at 31 December 2016, there were no short term loans due from subsidiaries impaired and provided for (2015: Nil). The credit quality of the short term loans due from subsidiaries that are neither past due nor impaired can be assessed to historical information about counterparty default rates: Company 2016 RM'000 2015 RM'000 Group 2 206,013 1,062 Group 1 - new customers (less than 6 months). Group 2 - existing customers (more than 6 months) with no defaults in the past. Group 3 - existing customers (more than 6 months) with some defaults in the past. All defaults were fully recovered. The fair value of the short term loans due from subsidiaries equals their carrying value, as the impact of discounting is not significant.