MSM Malaysia Holdings Berhad Annual Report 2020

26 LOANS DUE TO A SUBSIDIARY AND TO A RELATED COMPANY Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Non-current liability Loans due to a subsidiary Unsecured: - Financing in nature - - 98,662 - Current liability Loans due to a subsidiary Unsecured: - Financing in nature - - 30,194 94,758 Loan due to a related company Unsecured: - Financing in nature 47,152 70,431 10,108 37,116 Loan due to a subsidiary relates to a short term and long term funding facility from a subsidiary. The loan is unsecured, denominated in Ringgit Malaysia and the average interest rate of the loan ranges from 3.02% - 4.48% (2019: 4.23% - 4.48% per annum). Short term funding is repayable in 6 months from the drawdown date. Long term funding is repayable within 7 years. Loan due to a related company relates to short term funding facility from subsidiary of the immediate holding company. The average interest rate of the loan is 2.85% - 4.45% (2019: 4.90%) per annum. 27 DERIVATIVE FINANCIAL INSTRUMENTS 2020 2019 Group Assets Liabilities Assets Liabilities RM’000 RM’000 RM’000 RM’000 Non-current: Islamic profit rate swap - (10,163) - (4,968) Current: Sugar futures contracts - - 2,388 - Foreign exchange forward contract - (929) 78 (10) - (11,092) 2,466 (4,978) MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 207 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING