PRG Holdings Berhad Annual Report 2017

• Annual Report 2017 105 7. PROPERTY, PLANT AND EQUIPMENT (CONT’D) Furniture, fittings and office Motor equipment vehicles Total Company RM’000 RM’000 RM’000 Cost At 1 January 2016 9 1,220 1,229 Disposals (9) (607) (616) At 31 December 2016/1 January 2017 - 613 613 Disposals - (613) (613) At 31 December 2017 - - - Accumulated depreciation At 1 January 2016 1 336 337 Depreciation charge for the financial year 1 123 124 Disposals (2) (153) (155) As at 31 December 2016/1 January 2017 - 306 306 Depreciation charge for the financial year - 56 56 Disposals - (362) (362) At 31 December 2017 - - - Carrying amount At 31 December 2016 - 307 307 At 31 December 2017 - - - (a) As at 31 December 2017, freehold land, long-term leasehold land, buildings and certain plant and machinery of the Group with a total carrying amount of RM30,285,000 (2016: RM35,777,000) are pledged to licensed banks as security for credit facilities granted to the Group as disclosed in Note 20 to the financial statements. (b) Included in property, plant and equipment of the Group and of the Company are motor vehicles and plant and machinery acquired under hire purchase arrangements with carrying amounts of RM3,318,000 (2016: RM2,056,000) and RMNil (2016: RM307,000) respectively. (c) During the financial year, the Group made the following cash payments to purchase property, plant and equipment: Group 2017 2016 RM’000 RM’000 Purchase of property, plant and equipment 7,773 6,846 Financed by hire purchase arrangements (793) (2,327) Cash payments on purchase of property, plant and equipment 6,980 4,519 (d) Land premium for two (2) parcels of leasehold land of the Group was paid for an extension of sixty (60) years on 12 February 2015 and subject to perfection of the documentation by authorities. N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( C O N T ’ D )