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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
22. TERM LOANS (CONT’D)
(b) The interest rate profile of the term loans is summarised below
:
(Cont’d)
Effective Interest Rate
The Company
2016
2015
2016
2015
%
%
RM
RM
Floating rate term loans
6.46
6.72
4,128,510
6,065,353
23. HIRE PURCHASE PAYABLES
The Group
2016
2015
RM
RM
Total outstanding
659,725
1,214,506
Less: Interest-in-suspense
(56,232)
(89,066)
Present value of payments
603,493
1,125,440
Less: Amount due within 12 months
(included under current liabilities)
(249,222)
(686,532)
Non-current portion
354,271
438,908
The non-current portion is payable as follows:
The Group
2016
2015
RM
RM
Later than one year but not later than five years
354,271
429,936
After five years
-
8,972
354,271
438,908
It is the Group’s policy to acquire certain of its plant and equipment under hire purchase arrangements. The average
term of the hire purchase is about 1 to 6 years (2015: 1 to 6 years). The interest rates implicit in the hire purchase
obligations range from 1.70% to 5.64% (2015: 1.51% to 5.64%) per annum.
The Group’s hire purchase payables are secured by the financial institutions’ charge over the assets under hire purchase
as disclosed in Note 10 to the financial statements.
24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES
Trade payables of the Group comprise amounts outstanding for trade purchases. The credit periods granted to the
Group for trade purchases range from 30 to 90 days (2015: 30 to 90 days). Included in trade payables is RM5,582 (2015:
RM87,800) owing to related parties.
Notes To The Financial Statements
(cont’d)