18. LOANS AND BORROWINGS (continued) 2023 2022 Group RM’000 RM’000 Current Hire purchase 142 24 Term loans - secured 427 404 Bank overdrafts - secured 33 6,024 Bankers’ acceptances - secured 6,682 4,411 7,284 10,863 8,626 12,222 (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), 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), 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), 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: 2023 2022 Group Carrying amount Fair value Carrying amount Fair value RM’000 RM’000 RM’000 RM’000 Hire purchase 589 666 62 70 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. ANNUAL REPORT 2023 SASBADI HOLDINGS BERHAD 122 Financial Statements (continued)
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