Frontken Berhad Annual Report 2020

Annual Report 2020 138 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 28. FINANCIAL INSTRUMENTS (CONT’D) (e) Fair Value Information (Cont’d) (i) Fair Value of Financial Instruments Carried at Fair Value • The fair value of short-term investments is determined by reference to statements provided by the respective financial institutions, with which the investments were entered into. • There were no transfers between level 1 and level 2 during the financial year. (ii) Fair Value of Financial Instruments Not Carried at Fair Value The fair values, which are for disclosure purpose, have been determined using the following basis:- The fair value of term loans determined by discounting the relevant future contractual cash flows using current market 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:- The Group 2020 2019 % % Term loans – 3.40 - 3.76 29. COMMITMENTS As of financial year end, the Group has the following capital commitments:- The Group 2020 2019 RM RM Purchase of property, plant and equipment 530,505 2,210,529