Frontken Berhad Annual Report 2020

Annual Report 2020 102 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 12. RIGHT-OF-USE ASSETS (CONT’D) (a) The details of the Group’s lease assets under hire purchase arrangements are analysed as follows:- 2020 2019 RM RM Plant and machinery 428,410 487,324 Motor vehicles 304,531 213,778 Factory renovation 1,631,602 1,842,132 2,364,543 2,543,234 Effective interest rates 2.80% - 5.28% 2.80% - 5.28% Remaining lease terms 1 – 4 years 1 – 2 years (b) The leasing activities of the remaining lease assets are summarised below:- (i) Leasehold land The Group has entered into 5 non-cancellable operating lease agreements for the use of land. The leases are for a period ranging from 30 to 60 years. The leases do not allow the Group to assign, transfer or sublease or create any charge, lien or trust in respect of or dispose of the whole or any part of the land. A tenancy is, however, allowed with the consent of the lessor. (ii) Factories and buildings and motor vehicles The Group has leased a number of factories and buildings, and motor vehicles that run between 1 to 4 years, with an option to renew the lease after that date. The Company has leased a building for 2 years, with an option to renew the lease after that date. 13. INVESTMENTS IN SUBSIDIARIES The Company 2020 2019 RM RM Unquoted shares, at cost:- At beginning of the year 144,543,930 141,906,949 Addition during the year 775,870 2,636,981 145,319,800 144,543,930 Accumulated impairment losses (987,241) (987,241) 144,332,559 143,556,689