PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 164 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 26. DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE (continued) (g) During the financial year, the impairment losses on assets held for sale of RM5,624,000 have been recognised as the carrying amount is lower than its fair value less costs to sell. 27. COMMITMENTS (a) Operating lease commitment Non-cancellable operating lease rental are as follows: Group 2019 2018 RM’000 RM’000 Not later than one (1) year - 2,221 Later than one (1) year but not later than five (5) years - 19,617 Later than five (5) years - 7,296 - 29,134 In the previous financial year, the Group’s operating lease commitments comprise the followings: (i) rental of three parcels of land under operating leases to industrial zone owners in Vietnam. The leases will expire in year 2044 and year 2048, with an option to renew the lease at the end of the lease term; (ii) rental of a factory for a period of three years, with an option to renew the lease at the end of the lease term; and (iii) rental of shops for a period of five years, with an option to renew the lease at the end of the lease term. None of the leases included contingent rentals.