MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS MISC BERHAD | Annual Report 2017 246 18. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT'D.) (d) Finance lease receivables Finance lease receivables represent lease rental and interest receivable due from customers in relation to the lease of ships and offshore floating assets by the Group. Group 2017 RM'000 2016 RM'000 Minimum lease receivables: Not later than 1 year 1,866,938 1,858,956 Later than 1 year and not later than 5 years 7,001,150 6,651,833 Later than 5 years 12,334,024 12,370,860 21,202,112 20,881,649 Less: Future finance income (6,348,921) (6,417,135) Present value of finance lease assets 14,853,191 14,464,514 Present value of finance lease receivables: Not later than 1 year 990,841 1,010,288 Later than 1 year and not later than 5 years 4,195,431 3,950,497 Later than 5 years 9,666,919 9,503,729 14,853,191 14,464,514 Analysed as: Due within 12 months (Note 21) 990,841 1,010,288 Due after 12 months (Note 21) 13,862,350 13,454,226 14,853,191 14,464,514 The effective interest rate of the Group's finance lease receivables is between 4.75% to 6.52% (2016: 4.75% to 6.52%). Included in minimum lease receivables are the estimated unguaranteed residual values of the leased assets of RM341,217,000 (2016: RM264,122,000). In the current financial year, the Group took delivery of two (2016: one) liquefied natural gas ("LNG") carriers. Upon commencement of the finance lease of the ships on 27 January 2017 and 5 August 2017 (2016: 7 October 2016) respectively, total finance receivables of RM1,885,440,000 (2016: RM908,220,000) was recognised.