ENRA Group Berhad Annual Report 2019

139 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 41. FINANCIAL INSTRUMENTS (cont’d) (e) Fair value hierarchy (cont’d) The significant unobservable input used in determining the fair valuemeasurement of Level 3 financial instruments as well as the relationship between key unobservable inputs and fair value, is detailed in the table below: Financial instruments Valuation technique used Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value Financial liabilities Contingent consideration for business acquisition Discounted cash flows method Discount rate (9.31%) The higher the discount rate, the lower the fair value of the liabilities would be. The following table set out the fair value of financial instruments that are not carried at fair value on the statements of financial position: Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 Total fair value RM’000 Carrying amount RM’000 2019 Group Financial liabilities Amortised cost - Lease liabilities - - 88,475 88,475 88,475 86,802 - Hire-purchase and lease creditors - - 467 467 467 523 Company Financial liabilities Amortised cost - Lease liabilities - - 918 918 918 914 - Hire-purchase and lease creditors - - 56 56 56 58 2018 Group Financial liabilities Amortised cost - Lease liabilities - - 2,457 2,457 2,457 2,164 - Hire-purchase and lease creditors - - 777 777 777 917 Company Financial liabilities Amortised cost - Lease liabilities - - 1,407 1,407 1,407 1,370 - Hire-purchase and lease creditors - - 76 76 76 83