PRG Holdings Berhad Annual Report 2019

ANNUAL REPORT 2019 181 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 36. FINANCIAL INSTRUMENTS (continued) (b) Categories of financial instruments (continued) 2019 2018 RM’000 RM’000 Company Financial assets Amortised cost Other receivables, net of prepayments 125,727 103,282 Cash and bank balances 130 501 Fair value through other comprehensive income Other investments 6,452 - 132,309 103,783 Financial liabilities Amortised cost Other payables 11,265 4,617 Borrowings 8,411 15,060 19,676 19,677 (c) Fair value information The carrying amounts of cash and bank balances, short term receivables and payables and borrowings are reasonable approximation of fair values either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the end of each reporting period. The fair values of long term receivables and payables are estimated by discounting the expected future cash flows at weighted average cost of capital, which is similar to the market incremental lending rate offered by financial institution and hence, the carrying amounts of the financial instruments are reasonable approximation of fair value. Fair value of the borrowings, long term receivables and payables of the Group and of the Company are categorised as Level 2 in the fair value hierarchy. There is no transfer between levels in the hierarchy during the financial year.