Frontken Berhad Annual Report 2017

121 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 27. FINANCIAL INSTRUMENTS (CONT’D) (d) Fair Value Information (Cont’d) (i) Fair Value of Financial Instruments Carried at Fair Value � The fair value of short-term investments is determined at their quoted closing bid prices at the end of the reporting period. � There were no transfer between level 1 and level 2 during the financial year. (ii) Fair Value of Financial Instruments Carried at Fair Value The fair values, which are for disclosure purpose, have been determined using the following basis:- The fair value of hire purchase payables, short-term borrowing and term loans determined by discounting the relevant 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 The Company 2017 2016 2017 2016 % % % % Hire purchase payables 1.70 – 5.28 1.70 - 5.64 - - Short-term borrowings 2.44 – 2.96 2.39 - 3.33 - - Term loans 1.40 – 6.57 1.40 - 6.46 6.57 6.46 28. COMMITMENTS (i) Operating lease commitments The Group 2017 2016 RM RM Non-cancellable future minimum lease payments - Not later than one year 2,083,092 2,212,584 - Between one year and five years 4,426,849 5,552,495 - Later than five years 10,610,926 12,459,651 17,120,867 20,224,730 The Group has various operating lease agreements for equipment, offices and other facilities. Most leases contain renewable options. Lease terms do not contain restrictions on the Group’s activities concerning dividends, additional debt or further leasing. (ii) Capital commitments As of 31 December 2017, the Group has the following capital commitments: The Group 2017 2016 RM RM Purchase of property, plant and equipment 693,898 9,690,898 Notes To The Financial Statements (cont’d)