Annual Report 2016
133
28. Financial instruments (Cont’d)
28.8 Fair value information (Cont’d)
Inter-relationship
between significant
Significant unobservable
unobservable inputs and fair
Type Valuation Technique inputs value measurement
(b) Financial instruments not carried at fair value
Term loans Discounted cash flows Discount rate The estimated fair value
and finance (2016: 4.99%; would increase (decrease)
lease 2015: 4.99%) if the interest rate were
liabilities lower (higher).
29. Capital and other commitments
Group
2016 2015
RM’000 RM’000
Capital commitments:
Property, plant and equipment
Authorised but not contracted for 290,296 156,918
Contracted but not provided for in the financial statements 11,694 43,790
30. Capital management
The Group and the Company define capital as the total equity and debt. The objective of the Group’s and the Company’s
capital management is to maintain an optimal capital structure and ensuring funds availability to support business
operations and maximises shareholders value. The Group and the Company monitor debts to equity ratio to ensure
compliance with management policies as well as maintaining shareholders’ confidence in the management.
31. Operating leases
Non-cancellable operating leases are as follows:
Group
2016 2015
RM’000 RM’000
Less than one year 211 154
Between one and five years 282 162
More than five years 340 386
833 702
The subsidiaries lease land and hostel under operating lease. For the land under operating leases, the lease typically
run for a period ranging from 15 to 25 years, with an option to renew the lease after that date. None of the operating
leases for land includes contingent rentals. For the hostel, the leases typically run for an initial period of two years with
an option to renew the leases after the expiry date.
Notes to the Financial Statements
(Cont’d.)
