Sasbadi Annual Report 2021

107 ANNUAL REPORT 2021 FINANCIAL STATEMENTS (continued) 107 19. LOANS AND BORROWINGS Group 2021 2020 RM’000 RM’000 Non-current Hire purchase 66 104 Term loans - secured 2,149 10,045 2,215 10,149 Current Hire purchase 40 39 Term loans - secured 4,451 4,238 Bank overdrafts - secured 8,776 18,094 Bankers’ acceptances - secured 2,009 4,923 15,276 27,294 17,491 37,443 (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 loans of the Group are secured by charges over the land and buildings (Note 5), asset classified as held for sale (Note 17), corporate guarantees by the Company and letter of negative pledged. (d) The bank overdrafts of the Group are secured by charges over the land and buildings (Note 5), pledged deposits (Note 16), asset classified as held for sale (Note 17), 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), asset classified as held for sale (Note 17), 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: 2021 2020 Group Carrying amount Fair value Carrying amount Fair value RM’000 RM’000 RM’000 RM’000 Hire purchase 106 115 143 156 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 loans is reasonable approximation of fair value as they are floating rate instruments that are re-priced to market interest rate on or near to the reporting period.