DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 25. Finance Lease Liabilities (Cont’d) The Group leases plant and machineries under finance lease (Note 4 and Note 5). At the end of the lease term, the Group has the option to acquire the assets at a nominal price deemed to be a bargain purchase option. There are no restrictive covenants imposed by the lease agreement and no arrangements have been entered into for contingent rental payments. 26. Lease Liabilities Group 2019 2018 RM RM At 1 January 2019 2,447,516 - Effect of adoption of MFRS 16 19,347,840 - At 1 January 2019, as restated 21,795,356 - Additions 6,631,697 - Payments (7,013,080) - Exchange difference 2,414 At 31 December 2019 21,416,387 - Presented as: Repayable within twelve months 6,797,863 - Repayable after twelve months 14,618,524 - 21,416,387 - The maturity analysis of lease liabilities of the Group at the end of the reporting period: Group 2019 2018 RM RM Within one year 7,524,796 - Between one to five years 11,307,570 - Between two to five years 3,378,189 - More than five years 126,211 - 22,336,766 - Less : Future finance charges (920,379) - Present value of lease liabilities 21,416,387 - The Group leases leasehold properties, machinery and equipment, motor vehicles, land use right, office and apartments. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions at interest rates ranging from 2.05% to 7.36% per annum. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 163