Frontken Berhad Annual Report 2019

93 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 11. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (a) The details of the Group’s property, plant and equipment charged as collateral to certain banks for term loans granted to the Group as mentioned in Note 25 to the financial statements are analysed as follows:- Carrying Amount 2019 2018 RM RM Freehold land - 18,873,729 Freehold building - 37,066,872 Long-term leasehold building 16,907,636 18,196,598 16,907,636 74,137,199 (b) The details of the Group’s property, plant and equipment under hire purchase arrangement were analysed as follows:- Carrying Amount 2018 RM Plant and machinery 589,145 Motor vehicles 136,524 Factory renovation 2,105,293 2,830,962 (c) Certain plant and equipment and office space of the Group are leased to customers under operating leases with rentals payable monthly. Each of the leases contains an initial non-cancellable average period of 2 years and the subsequent renewals are negotiated separately on a contract by contract basis. The Group does not require a financial guarantee on its lease arrangements. The undiscounted operating lease payments receivable are as follows:- The Group 2019 RM Within 1 year 491,131 Between 1 and 2 years 233,873 725,004 The comparative information is not presented as the Group has applied MFRS 16 using the modified retrospective approach. Notes To The Financial Statements (cont’d)