Yinson Annual Report 2021

287 ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 36. Trade and other payables (continued) (c) Other payables - non-current (continued) Amounts due to subsidiaries are unsecured and the Company has discretion to defer the settlement for at least 12 months from the balance sheet date. Included in the amounts due to subsidiaries is an interest-bearing loan of approximately RM531 million (2020: RM487 million), which bears interest of 6.23% to 6.55% (2020: 6.53% to 7.09%) per annum. 37. Derivatives Group 2021 2020 Assets Liabilities Assets Liabilities RM million RM million RM million RM million Non-current Hedging derivatives: - Interest rate swaps (Note (a)) - (204) - (139) Current Hedging derivatives: - Interest rate swaps (Note(a)) - (21) - (17) Total - (225) - (156) (a) Subsidiaries of the Group had entered into a series of USD interest swap contracts with banks. The interest rate swaps reflect the negative change in fair value of those interest rate swaps which have been designated as cash flows hedge and are used to manage the exposure to the risk of changes in market interest rates arising from floating rate bank loans of the subsidiaries. The fair values of the interest rate swaps are determined by using the prices quoted by the counterparty banks which are categorised as Level 2 of the fair value hierarchy. There is no transfer from Level 1 and Level 2 or out of Level 3 during the financial year. 38. Significant related party disclosures For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly.