18. LOANS AND BORROWINGS 2025 2024 Group RM’000 RM’000 Non-current Hire purchase 1,553 1,240 Term loan - secured - 442 1,553 1,682 Current Hire purchase 561 375 Term loan - secured 442 454 Bank overdrafts - secured 13,950 158 Bankers’ acceptances - secured 1,559 4,768 16,512 5,755 18,065 7,437 (a) Loans and borrowings are classified as financial liabilities measured at amortised cost. (b) Loans and borrowings are denominated in Ringgit Malaysia. (c) The term loan of the Group is secured by charges over the land and buildings (Note 5), investment properties (Note 6), corporate guarantees by the Company and letter of negative pledge. (d) The bank overdrafts of the Group are secured by charges over the land and buildings (Note 5), investment properties (Note 6), pledged deposits (Note 16), corporate guarantees by the Company and letter of negative pledge. (e) The bankers’ acceptances are secured by charges over the land and buildings (Note 5), investment properties (Note 6), corporate guarantees by the Company and letter of negative pledge. (f) Fair value of the Group’s hire purchase is categorised as Level 3 in the fair value hierarchy, which is estimated by discounting expected future cash flows at current market interest rates available for similar financial instruments. There were no transfers between levels in the hierarchy during the financial year. Hire purchase that is not carried at fair value and together with its carrying amount, is as follows: 2025 2024 Group Carrying amount Fair value Carrying amount Fair value RM’000 RM’000 RM’000 RM’000 Hire purchase 2,114 2,331 1,615 1,823 The carrying amounts of short-term borrowings reasonably approximate their fair values due to the relatively short-term nature of these financial instruments. The carrying amount of term loan is reasonable approximation of fair value as it is floating rate instrument that is re-priced to market interest rate on or near to the reporting period. SASBADI HOLDINGS BERHAD Financial Statements (conঞ nued) 132
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