Frontken Berhad Annual Report 2019

108 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 25. TERM LOANS (CONT’D) (c) The interest rate profile of the term loans is summarised below:- Effective Interest Rate The Group 2019 2018 2019 2018 % % RM RM Floating rate term loans 3.40 - 3.76 1.40 - 3.40 843,865 11,447,968 26. HIRE PURCHASE PAYABLES The Group 2018 RM Total outstanding 2,356,236 Less: Interest-in-suspense (152,706) Present value of payments 2,203,530 Less: Amount due within 12 months (included under current liabilities) (862,253) Non-current portion 1,341,277 The non-current portion is payable as follows:- Later than one year but not later than five years 1,341,277 (a) The hire purchase payables have been represented as ‘lease liabilities’ as shown in Note 27 to the financial statement following the application of MFRS 16 by the Group using the modified retrospective approach. (b) In the previous financial year, the hire purchase arrangements were expiring from 1 to 3 years. The interest rates implicit in the hire purchase obligations range from 2.80% to 5.28% per annum. (c) In the previous financial year, the Group’s hire purchase payables were secured by the financial institutions’ charge over the assets under hire purchase as disclosed in Note 11 to the financial statements. Notes To The Financial Statements (cont’d)