Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 131 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 24. BANK BORROWING The Group 2023 2022 RM RM Non-current Hire purchase payable 49,047 - Current Hire purchase payable 32,656 - Money market loan - 19,719,600 32,656 19,719,600 In the previous financial year, the short-term borrowings represented money market loan facility obtained by a subsidiary incorporated in Singapore which are rolled over every month. The money market loan facility was secured by legal mortgages over the Group’s right-of-use assets as disclosed in Note 12 to the financial statements and a corporate guarantee of the Company. The interest rate profile of the borrowings of the Group are summarised below:- Effective Interest Rate The Group 2023 2022 RM RM Hire purchase payable 2.51% - Money market loan - 5.50% 25. LEASE LIABILITIES The Group 2023 2022 RM RM At 1 January 32,916,569 21,308,831 Interest expense recognised in profit and loss 916,038 804,827 Changes due to reassessment of lease term - 9,858,908 Changes due to lease modification 187,517 - Repayment of principal (3,183,189) (3,023,873) Repayment of interest expense (916,038) (804,827) Additions 1,762,290 5,176,431 Exchange difference 1,362,785 (403,728) At 31 December 33,045,972 32,916,569 Analysed by: Current liabilities 3,248,775 2,886,103 Non-current liabilities 29,797,197 30,030,466 At 31 December 33,045,972 32,916,569
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