Annual Report 2020

31. Financial instruments (continued) 31.8 Fair value information (continued) The following table shows the valuation techniques used in the determination of fair values within Level 3, as well as the key unobservable inputs used in the valuation models. (a) Financial instruments carried at fair value Type Valuation Technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Derivative used for hedging The fair value of cross currency swap and interest rate swap are based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using spot rate and market interest rates respectively for a similar instrument at the measurement date. Exchange rate at maturity Interest rate (2020: 3-5%; 2019: 3-5%) The estimated fair value would increase/(decrease) if the foreign currency rate were strengthen/ (weaken). The estimated fair value would increase/(decrease) if the interest rate were higher/ (lower). (b) Financial instruments not carried at fair value Type Description of valuation technique and inputs used Hire purchase liabilities, term loan and amounts due from subsidiaries Discounted cash flow using a rate based on the current market rate of borrowing of the Group at the reporting date. 32. Capital and other commitments Group 2020 RM’000 2019 RM’000 Capital commitments: Property, plant and equipment Contracted but not provided for 56,246 19,905 A Milestone on Our Sustainable Growth Journey 203