GHL System Berhad Annual Report 2020

152 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 25. BORROWINGS Group Company 2020 2019 2020 2019 RM RM RM RM Non-current liabilities Term loans 13,901,077 19,623,774 - - Islamic facility - - - - 13,901,077 19,623,774 - - Current liabilities Term loans 8,273,777 6,080,445 - - Islamic facility - 500,000 - - 8,273,777 6,580,445 - - Total borrowings Term loans 22,174,854 25,704,219 - - Islamic facility - 500,000 - - 22,174,854 26,204,219 - - (a) Borrowings are classified as financial liabilities and measured at amortised cost. (b) Term loans of the Group are: (i) secured by legal charge and negative pledge on the long term leasehold land and buildings of the Group as disclosed in Notes 12 and 13 to the financial statements; and (ii) guaranteed by way of corporate guarantee by the Group. (c) Islamic facility of the Group were: (i) secured by first party charge over deposits with licensed banks as disclosed in Note 22 to the financial statements; and (ii) guaranteed by way of corporate guarantee by the Group. The Islamic facility of the Group had been fully repaid during the current financial year. (d) The fair values of the Group’s borrowings are estimated by discounting expected future cash flows at current market interest rates available for similar financial instruments and of the same remaining maturities. Borrowings that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value, are as follows: Group and Company 2020 2019 Carrying amount Fair value Carrying amount Fair value RM RM RM RM Borrowings 22,174,854 20,157,093 26,204,219 26,204,219 The fair values of borrowings are categorised into Level 2 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 fair value measurement during the financial year.