Notes to the Financial Statements For the financial year ended 31 December 2025 Notes to the Financial Statements For the financial year ended 31 December 2025 23 FINANCIAL INSTRUMENTS (continued) Accounting classifications and fair values (continued) Carrying amount Fair value Note Amortised cost Other financial liabilities Total Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 Company 31 December 2025 Financial assets not measured at fair value Loans to subsidiaries 26 229,692 – 229,692 Trade and other receivables(1) 9 486,208 – 486,208 Cash and cash equivalents 11 1,636 – 1,636 717,536 – 717,536 Financial liabilities not measured at fair value Loans and borrowings - Medium term notes 12 – (77,709) (77,709) – (77,709) – (77,709) Trade and other payables 13 – (156,047) (156,047) – (233,756) (233,756) 31 December 2024 Financial assets not measured at fair value Loans to subsidiaries 26 634,693 – 634,693 Trade and other receivables(1) 9 227,761 – 227,761 Cash and cash equivalents 11 1,620 – 1,620 864,074 – 864,074 Financial liabilities not measured at fair value Loans and borrowings - Medium term notes 12 – (77,632) (77,632) – (77,632) – (77,632) Trade and other payables 13 – (436,807) (436,807) – (514,439) (514,439) (1) Excludes prepayments 23 FINANCIAL INSTRUMENTS (continued) Measurement of fair values (i) Valuation techniques and significant unobservable inputs The following table shows the valuation techniques used in measuring Level 2 and 3 fair values, as well as the significant unobservable inputs used. Financial instruments not measured at fair value Type Valuation technique Secured and unsecured bank loans Secured and unsecured bank loans approximate their fair values as these loans are interest-bearing at floating rates and reprice frequently at an interval of one, two, three or six-months or any other agreed interest period. Medium term notes The fair value is determined based on quoted price of the notes in markets that are not active. Other financial liabilities* Discounted cash flows: The valuation model considers the present value of future principal and interest cash flows, discounted using a risk adjusted discount rate. The discount rate used is 3.58% (2024: 5.21%). * Other financial liabilities include convertible bonds – liability component and security deposits. (ii) Transfers between the levels There were no transfers between the levels during the year. 24 FINANCIAL GUARANTEE CONTRACTS Intra-group financial guarantees Intra-group financial guarantees comprise guarantees given by the Company to banks in respect of banking facilities drawn by its subsidiaries and joint ventures. The maximum exposure of the Company is $2,612.4 million (2024: $2,398.1 million). At the reporting date, the Company has not recognised an ECL provision as the amount of the allowance is insignificant. The Company does not consider it probable that a claim will be made against the Company under the guarantees. The periods in which the financial guarantees will expire are as follows: Company 2025 2024 $’000 $’000 Within one year 1,249,134 1,666,683 Between one and five years 1,331,219 731,453 Above five years 32,046 – 2,612,399 2,398,136 OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 231 230 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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