FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 269 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 31 LOANS DUE FROM SUBSIDIARIES Company 2017 RM’000 2016 RM’000 At 1 January 206,013 1,062 Addition - 204,951 Repayment (202,349) - At 31 December 3,664 206,013 The loans are denominated as follows: - Ringgit Malaysia 2,602 204,951 - Great Britain Pound 1,062 1,062 3,664 206,013 Financing terms of short term loans due from subsidiaries are between 30 to 180 days (2016: 30 to 180 days) with interest ranging from 0.15% to 4.50% per annum (2016: 0.80% to 4.73% per annum). Past due but not impaired The short term loans due from subsidiaries as at 31 December 2017 are neither past due nor impaired as they are yet to exceed the credit period. Impaired and provided for As at 31 December 2017, there were no short term loans due from subsidiaries impaired and provided for (2016: 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 2017 RM’000 2016 RM’000 Group 2 3,664 206,013 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 approximates their carrying value, as the impact of discounting is not significant.