e period of MKH Berhad 219 Notes to the Financial Statements For the Financial Year Ended 30 September 2022 FAIR VALUE OF FINANCIAL INSTRUMENTS 45. The methods and assumptions used to estimate the fair value of the following classes of financial assets and liabilities are as follows: Cash and cash equivalents, trade and other receivables and payables (i) The carrying amounts approximate their fair values due to the relatively short-term maturities of these financial assets and financial liabilities. Long-term trade receivables and payables, loan receivables and finance lease receivables (ii) The fair values of long-term trade receivables and payables, loan receivables and finance lease receivables are estimated using expected future cash flows of contractual instalment payments discounted at current prevailing rates offered for similar types of credit or lending arrangements. Other investment (iii) The fair value of other investment in quoted shares is estimated based on the market value as at the reporting date. Borrowings (iv) 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 hire-purchase liabilities 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: Carrying amount RM Fair value RM The Group 67,592 67,592 2022 Financial assets Long-term other receivables 1,735,682 1,787,769 Financial liabilities Hire-purchase liabilities 28,727,268 26,991,913 Loan receivables 4,429,437 4,308,732 2021 Financial assets Long-term other receivables 789,965 803,124 Financial liabilities Hire-purchase liabilities 37,398,433 35,056,239 Loan receivables
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