120
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
27. FINANCIAL INSTRUMENTS (CONT’D)
(d) Fair Value Information (Cont’d)
The fair values of level 2 above have been determined using the following basis:-
(i)
The fair value of hire purchase payables and term loans determined by discounting the relevant
cash flows using interest rates for similar instruments at the end of the reporting period. The
interest rates used to discount the estimated cash flows are as follows:-
2014
2013
%
%
Hire purchase payables
1.51% - 7.42% 2.43% - 6.89%
Short-term borrowings
2.12% - 2.39% 2.07% - 4.90%
Term loans
1.68% - 6.79% 1.68% - 4.97%
28. CONTINGENT LIABILITIES
The Company provided corporate guarantees to banks and financial institutions to secure banking facilities
and leasing of equipment provided to certain subsidiaries amounting to RM37,661,459 (2013 : RM23,660,383).
29. COMMITMENTS
(i)
Operating lease commitments
The Group
2014
2013
RM
RM
Non-cancellable future minimum lease payments
Not later than one year
1,746,287
1,872,495
Between one year and five years
3,709,383
4,499,389
Later than five years
10,939,395
10,823,452
16,395,065
17,195,336
The Group has various operating lease agreements for equipment, offices and other facilities. Most
leases contain renewable options. Lease terms do not contain restrictions on the Group’s activities
concerning dividends, additional debt or further leasing.
(ii)
Capital commitments
As of 31 December 2014, the Group has the following capital commitments:
The Group
2014
2013
RM
RM
Approved and contracted for:
Plant and equipment
836,585
590,730
