Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 115 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 11. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (a) 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 receivable under the non-cancellable operating leases are as follows: The Group 2023 2022 RM RM Within 1 year 1,266,480 1,090,765 Between 1 and 2 years 1,223,767 - 2,490,247 1,090,765 (b) The long-term leasehold buildings of the Group with carrying amount of RM13,274,807 (2022: RM13,978,055) have been pledged as security for bank facilities granted to the Group. (c) The details of the Group’s property, plant and equipment held under hire purchase arrangement are analysed as follows: 2023 2022 RM RM Motor vehicles 188,234 100,380 These motor vehicles have had been pledged as security for the hire purchase payables of the Group as disclosed in Note 24 to the financial statements.
RkJQdWJsaXNoZXIy NDgzMzc=