138 SECTION 05 : FINANCIAL STATEMENTS & OTHERS Notes To The Financial Statements (Cont’d) 31 March 2025 Registration No: 42 199201005296 (236800 - T) 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (continued) The Group and the Company as lessee (continued) (b) Lease liabilities Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Non-current Lease liabilities 1,559 1,714 72 161 Current Lease liabilities 155 184 89 93 Total lease liabilities 1,714 1,898 161 254 Represented by: Lease liabilities owing to nonfinancial institutions 1,714 1,898 161 254 (i) The lease liabilities are initially measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the entities’ incremental borrowing rate. Subsequent to the initial recognition, the Group and the Company measure the lease liability by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect lease payments made, and remeasuring the carrying amount to reflect any reassessment or lease modifications. (ii) The movements of lease liabilities during the financial year are as follows: Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 At beginning of financial year 1,898 1,636 254 141 Addition - 179 - - Remeasurement - 205 - 205 Interest charged 131 130 5 6 Lease payments (315) (252) (98) (98) At end of financial year 1,714 1,898 161 254 (iii) The weighted average incremental borrowing rate applied to the lease liabilities of the Group and of the Company is 7.47% and 7.47% respectively (2024: 7.47% and 7.47% respectively). (iv) Lease liabilities are denominated in RM.
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