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294

Notes to the

Financial Statements

for the year ended 31 December 2016

29. FINANCE LEASES

Group

2016

RM’000

2015

RM’000

Future minimum lease payments:

Not later than 1 year

7,266

6,416

Later than 1 year and not later than 2 years

8,230

5,866

Later than 2 years and not later than 5 years

4,270

987

Total future minimum lease payments

19,766

13,269

Less: Future finance charges

(1,645)

(727)

Present value of finance lease liabilities

18,121

12,542

Analysis of present value of finance lease liabilities:

Not later than 1 year

6,636

6,106

Later than 1 year and not later than 2 years

7,613

5,510

Later than 2 years and not later than 5 years

3,872

926

18,121

12,542

Less: Amount due within 12 months (Note 28)

(6,636)

(6,106)

Amount due after 12 months (Note 28)

11,485

6,436

The Group obtains finance leases for various items of computer equipment and surveying equipment (see Note 13).

These lease contracts expire within one to five years. The leases have terms of renewal, purchase options and escalation

clauses. These terms are at the option of the specific entity that holds the lease.

These obligations are secured by a charge over the leased assets (Note 13). Other information on financial risks of

finance lease are disclosed in Note 41.

The interest rate on the finance leases is ranging from 3.4% to 4.4% (2015: 6.0%) per annum.