MKH Annual Report 2018

199 MKH Berhad Annual Report 2018 41. FAIR VALUE OF FINANCIAL INSTRUMENTS (Cont’d) (iii) Borrowings The carrying amounts of bank overdrafts, short-term revolving credits, bridging loan and short-term loans approximate fair values due to the relatively short-term maturity of these financial liabilities. The carrying amounts of long-term floating rate revolving credits and loans approximate their fair values as the loans will be re-priced to market interest rate on or near reporting date. The fair value of finance lease is estimated using discounted cash flow analysis, based on current lending rates for similar types of lending arrangements. The carrying amounts and fair value of financial instruments, other than the carrying amounts which are reasonable approximation of fair values, are as follows: The Group Carrying Fair amount value RM RM 2018 Financial assets Long-term other receivables 1,031,666 455,774 Loan receivables 23,599,747 21,278,374 Financial liabilities Finance lease liabilities 1,686,072 1,719,296 2017 Financial assets Long-term other receivables 1,169,973 917,525 Loan receivables 21,032,679 18,002,070 Financial liabilities Finance lease liabilities 1,974,114 2,005,779 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018