18. LOANS AND BORROWINGS 2024 2023 Group RM9000 RM9000 Non-current Hire purchase 1,240 447 Term loan - secured 442 895 1,682 1,342 Current Hire purchase 375 142 Term loan - secured 454 427 Bank overdrafts - secured 158 33 Bankers9 acceptances - secured 4,768 6,682 5,755 7,284 7,437 8,626 (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 pledged. (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 bankers9 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 Group9s 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: 2024 2023 Group Carrying amount Fair value Carrying amount Fair value RM9000 RM9000 RM9000 RM9000 Hire purchase 1,615 1,825 589 666 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. ANNUAL REPORT 2024 HOLDINGS BERHAD Financial Statements (continued) 128
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