ANNUAL REPORT 2021 251 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 48. FINANCIAL INSTRUMENTS (CONT’D) 48.5 FAIR VALUE INFORMATION (cont’d) (a) Fair Value of Financial Instruments Carried at Fair Value (aa) The level 2 fair value of other investments have been determined based on transacted values during the financial year and the market comparison technique using market multiples derived from quoted prices of companies comparable to the investee, adjusted for the effect of the nonmarketability of the unquoted shares. (bb) The level 3 fair value of other investments have been determined using discounted cash flow income approach based on pre-tax cash flow projections performed by management based on the significant unobservable inputs as disclosed in Note 11 to the financial statements. (cc) The fair value of the short-term investments is determined by reference to statements provided by the respective financial institutions, with which the investments were entered into. (b) Fair Value of Financial Instruments not Carried at Fair Value The fair values, which are for disclosure purposes, have been determined using the following basis:- (i) The fair value of the Group’s term loans and revolving credits that carry floating interest rates approximated their carrying amounts as they are repriced to market interest rates on or near the reporting date. (ii) The fair values of financing receivables, hire purchase and finance lease receivables and block discounting that carry fixed interest rates are determined by discounting the relevant cash flows using current market interest rates for similar instruments at the end of the reporting period. The effective interest/profit rates used to discount the estimated cash flows are as follows:- The Group The Company 2021 2020 2021 2020 % % % % Hire purchase and finance lease receivables 2.60 - 10.00 2.60 - 10.00 - - Ijarah financing receivables 3.55 - 10.00 3.69 - 10.00 - - Loan receivables 7.40 - 7.65 7.40 - 7.65 - - Block discounting 3.86 - 6.88 3.86 - 6.76 - - 49. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (a) On 8 January 2021, the Company and Zhifei had received affirmations of support and assistance from the Ministry of Health Malaysia and Clinical Research Malaysia respectively for the commencement of clinical trials in the country, subject to the existing laws and regulations governing such clinical trials. On 22 February 2021, MYEGM, a wholly-owned sub-subsidiary of the Company had entered into a Supply and Distribution Agreement (“the Agreement”) with Zhifei for the purpose of appointing MYEGM as the exclusive distributor in Malaysia of the COVID-19 Vaccine for a period of 3 years; thereby superseding the MOU signed on 7 December 2020. Therefore, the MOU would no longer subsist.
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