MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 26 LOANS DUETO A SUBSIDIARY ANDTO A RELATED COMPANY Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Loans due to a subsidiary Unsecured: - Financing in nature - - 94,758 72,394 Loan due to a related company Unsecured: - Financing in nature 70,431 30,365 37,116 - Loan due to a subsidiary relates to a short term funding facility from a subsidiary. The loan is unsecured denominated in Ringgit Malaysia and the average interest rate of the loan ranges from 4.23% - 4.48% (2018: 4.00% - 4.23% per annum) and repayable in 6 months from the drawdown date. Loan due to a related company relates to short term funding facility from subsidiary of the ultimate holding company. The average interest rate of the loan is 4.90% (2018: 4.58%) per annum. 27 DERIVATIVE FINANCIAL INSTRUMENTS Group 2019 2018 Assets Liabilities Assets Liabilities RM’000 RM’000 RM’000 RM’000 Non-current: Islamic profit rate swap - (4,968) 561 - Current: Sugar futures contracts 2,388 - - - Sugar commodity options - - - (630) Foreign exchange forward contract 78 (10) - - 2,466 (4,978) 561 (630) MSM Malaysia Holdings Berhad | Annual Report 2019 194