ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 86 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d) The Group and the Company as lessee (Cont’d) b. Lease liabilities (Cont’d) iii. The weighted average incremental borrowing rate applied to the lease liabilities is 5.27% (2019: 5.27%). iv. The currency exposure profile of lease liabilities are as follows: Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Ringgit Malaysia 3,327 2,199 328 954 US Dollar - 84,274 - - Australian Dollar 469 852 - 18 3,796 87,325 328 972 c. The Group and the Company have certain leases of equipment and premises with lease term of 12 months or less, and low value leases of office equipment of RM20,000 and below. The Group and the Company apply the “short-term lease” and “lease of low-value assets” exemptions for these leases. d. The following are the amounts recognised in profit or loss: Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Amortisation charge of right-of-use assets (included in cost of sales) 21,458 25,240 - - Amortisation charge of right-of-use assets (included in administration expenses) 1,465 1,502 325 501 Interest expense on lease liabilities 2,303 3,659 26 66 Expense relating to short-term leases (included in cost of sales) 2,777 65 - - Expense relating to short-term leases (included in administration expenses) 117 2 - - Expense relating to leases of low-value assets (included in cost of sales) - 1 - - Expense relating to leases of low-value assets (included in administration expenses) 227 107 154 81 28,347 30,576 505 648