Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 120 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 12. RIGHT-OF-USE ASSETS (CONT’D) (a) The details of the Group’s lease assets under hire purchase arrangements are analysed as follows:- 2021 2020 RM RM Plant and machinery - 428,410 Motor vehicles 241,914 304,531 Factory renovation - 1,631,602 241,914 2,364,543 Effective interest rates 4.53% - 5.28% 2.80% - 5.28% Remaining lease terms 1 - 2 years 1 - 4 years (b) The leasing activities of the remaining lease assets are summarised below:- (i) Leasehold land The Group has entered into 6 (2020: 5) non-cancellable operating lease agreements for the use of land. The leases are for a period ranging from 20 to 60 (2020: 30 to 60) years. The leases do not allow the Group to assign, transfer or sublease or create any charge, lien or trust in respect of or dispose of the whole or any part of the land. A tenancy is, however, allowed with the consent of the lessor. (ii) Factories and The Group has leased a number of factories and buildings, and motor vehicles that buildings and run between 1 and 5 (2020: 1 and 4) years, with an option to renew the lease after motor vehicles that date. In the previous financial year, the Company has leased a building for 2 years, with an option to renew the lease after that date. 13. INVESTMENTS IN SUBSIDIARIES The Company 2021 2020 RM RM Unquoted shares, at cost:- At beginning of the year 145,319,800 144,543,930 Addition during the year 4,240,434 775,870 149,560,234 145,319,800 Accumulated impairment losses (987,241) (987,241) 148,572,993 144,332,559
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