Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 183 NOTES TO THE FINANCIAL STATEMENTS 16. LOANS AND BORROWINGS (CONTINUED) RECONCILIATION OF MOVEMENT OF LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES Group At 1 October 2018 RM’000 Repayment during the year RM’000 Additions during the year RM’000 Foreign exchange movement RM’000 At 30 September 2019 RM’000 MTN 150,000 (150,000) – – – Term loan 185,524 (130,162) 54,805 13,144 123,311 335,524 (280,162) 54,805 13,144 123,311 17. EMPLOYEE BENEFITS Certain subsidiaries of the Group operate unfunded defined benefit plan for its employees. The plan pays a lump sum amount (instead of a pension) at retirement. The schemes do not hold any physical assets but instead the Group makes provision to cover the estimated retirement benefits liabilities. The provisions are determined and assessed based on actuarial valuations using the Projected Unit Credit Method. The defined benefit plans expose the Group to actuarial risks, such as longevity risk and interest rate risk. MOVEMENT IN THE NET DEFINED BENEFIT LIABILITY The following table shows a reconciliation from the opening balance to the closing balance for net defined benefit liability and its components. Group Note 2019 RM’000 2018 RM’000 Balance at 1 October 2018/2017 40,176 38,070 Included in profit or loss Current service cost 2,404 2,459 Past service cost/(credit) 2,667 (171) Interest cost 1,496 1,554 24 6,567 3,842 Included in other comprehensive income Remeasurement loss/(gain) – Actuarial loss/(gain) arising from: – demographic assumptions 224 – – financial assumptions 5,667 (193) – experience adjustments 1,363 (270) Effect of movements in exchange rates 898 135 8,152 (328) Others Benefits paid (5,077) (1,408) Transfers (307) – (5,384) (1,408) Balance at 30 September 49,511 40,176