FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 307 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 45 LOANS DUE TO A SIGNIFICANT SHAREHOLDER (CONTINUED) The loans are denominated as follows: Group and Company 2016 RM'000 2015 RM'000 - Ringgit Malaysia 1,689,005 1,893,290 Effective finance rate for the loans is as follows: Group and Company 2016 2015 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 a significant shareholder Fixed 4.911 Fixed 4.911 The carrying amount and fair value of the loans due to a significant shareholder are as follows: Group and Company Carrying amount Fair value 2016 RM'000 2015 RM'000 2016 RM'000 2015 RM'000 Loans due to a significant shareholder 1,689,005 1,893,290 1,702,544 1,916,044 The fair value of loans due to a significant shareholder is based on cash flows discounted using a rate based on the borrowing rate of 4.66% (2015: 4.60%). The fair value of the loans due to a significant shareholder is a Level 2 computation.