FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 268 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 29 LOANS DUE FROM JOINT VENTURES (CONTINUED) The credit quality of the loans due from joint ventures that are neither past due nor impaired can be assessed to historical information about counterparty default rates: Group 2017 RM’000 2016 RM’000 Group 1 - 54,222 Group 2 71,431 - 71,431 54,222 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 carrying amount and fair value of the loans due from joint ventures are as follows: Group Carrying amount Fair value 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Loans due from joint ventures 71,431 54,222 71,446 54,222 The fair value of loans due from joint ventures is based on cash flows discounted using a rate based on the borrowing rate of 4.96% (2016: 4.73%). The fair value of the loans due from joint ventures is a Level 2 computation. 30 INVENTORIES Group 2017 RM’000 2016 RM’000 - Finished goods 1,125,485 886,277 - Raw materials 732,933 1,134,768 - Work in progress 78,150 55,058 - Chemicals 40,971 51,852 - Stores, consumables and replaceable products 149,354 61,300 2,126,893 2,189,255