107
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
23. TERM LOANS (CONT’D)
The term loans and bank borrowings as mentioned in Note 26 are secured by:-
(a)
legal charges over certain freehold land and buildings of the Group as disclosed in Note 10 to the
financial statements;
(b)
legal charges over the long leasehold land and buildings of the Group as disclosed in Note 10 to the
financial statements;
(c)
corporate guarantees of the Company; and
(d)
fixed deposits as disclosed in Note 16 to the financial statements.
24. HIRE PURCHASE PAYABLES
The Group
2014
2013
RM
RM
Total outstanding
2,611,819
4,169,004
Less: Interest-in-suspense
(195,225)
(336,566)
Present value of payments
2,416,594
3,832,438
Less: Amount due within 12 months
(included under current liabilities)
(1,377,295)
(2,131,297)
Non-current portion
1,039,299
1,701,141
The non-current portion is payable as follows:
The Group
2014
2013
RM
RM
Later than one year but not later than five years
969,832
1,701,141
After five years
69,467
–
1,039,299
1,701,141
It is the Group’s policy to acquire certain of its plant and equipment under hire purchase arrangements. The
average term of the hire purchase is about 1 to 7 years (2013: 1 to 7 years). The interest rates implicit in the
hire purchase obligations range from 1.51% to 7.42% (2013: 2.43% to 6.89%) per annum.
The Group’s hire purchase payables are secured by the financial institutions’ charge over the assets under
hire purchase as disclosed in Note 10 to the financial statements.
