NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 72 - 5. Right-of-Use Assets (Cont’d) Leasehold land 2021 2020 Company RM RM At cost At 1 January 842,459 842,459 Additions - - At 31 December 842,459 842,459 Accumulated depreciation At 1 January 93,198 84,687 Charge for the financial year 8,509 8,511 At 31 December 101,707 93,198 Carrying amount At 31 December 740,752 749,261 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 23 to the financial statements. The aggregate additional costs for the right-of-use assets of the Group during the financial year acquired under the lease liabilities and cash payments are RM5,401,133 (2020: RM2,877,630) and RM58,273 (2020: RMNil) respectively. As at 31 December 2021 the remaining lease period of the leasehold properties and industrial land of the Group and of the Company are 52 years and 84 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 37 (2020: 38 years). The carrying amount of the Group’s land use right had been pledged as securities for bank borrowings as disclosed in Note 23 to the financial statements. 149 ANNUAL REPORT 2021 • DESTINI BERHAD
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