26. LEASE LIABILITIES (continued) (c) The following are the amounts recognised in profit or loss in relation to lease arrangements during the financial year: Group 2021 2020 RM’000 RM’000 Depreciation charge of right-of-use assets - included in cost of sales 1,051 593 - included in administrative expenses 824 620 - included in distribution costs 1,624 4,584 Interest expense on lease liabilities - included in finance costs 573 1,380 - included in discontinued operations - 3 Expense relating to short-term leases - included in administrative expenses 283 337 - included in discontinued operations - 1 Expense relating to leases of low-value assets (included in administrative expenses) 13 8 Variable lease payments (included in distribution costs): - arising from COVID-19 related rent concessions (1,130) (2,799) 3,238 4,727 (d) The following table sets out the carrying amounts, the weighted average incremental borrowing rates and the remaining maturities of the lease liabilities of the Group that are exposed to interest rate risk: Weighted average incremental Group borrowing rate Within 1 - 2 2 - 5 More than per annum 1 year years years 5 years Total 31 December 2021 % RM’000 RM’000 RM’000 RM’000 RM’000 Lease liabilities Fixed rates 2.5% - 3.6% 354 343 736 2,095 3,528 31 December 2020 Lease liabilities Fixed rates 2.5% - 7.5% 4,604 4,318 6,117 2,043 17,082 NOTES TO THE FINANCIAL STATEMENTS P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 160 31 December 2021 (cont’d)
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