DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 5. Right-of-Use Assets (Cont’d) At 1 January 2019 Additions Previously stated Effect of adopting MFRS 16 Restated Additions At 31 December 2019 Company RM RM RM RM RM 2019 At cost Leasehold land - 842,459 842,459 - 842,459 Accumulated depreciation At 1 January 2019 Additions Previously stated Effect of adopting MFRS 16 Restated Additions At 31 December 2019 Carrying amount RM RM RM RM RM RM Company 2019 Leasehold land - 76,178 76,178 8,509 84,687 757,772 The Group and the Company lease machinery and equipment, motor vehicles, office and apartment, leasehold land and properties. Leasehold properties and industrial land are pledged as securities for bank borrowings as disclosed in Note 27 to the financial statements. As at 31 December 2019, the remaining lease period of the leasehold properties and industrial land of the Group and of the Company are 55 years and 87 years, which are expired on 2073 and 2105 respectively. The Group has land use right over a plot of state-owned land in the People’s Republic of China (“PRC”) where the Group’s PRC manufacturing and storage reside. The land use right is not transferrable and has a remaining tenure of 39 (2018: 40 years). The carrying amount of the Group’s land use right had been pledged as securities for bank borrowings as disclosed in Note 27 to the financial statements. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 137