Notes To The Financial Statements (Cont’d) 31 March 2026 SECTION 05 : FINANCIAL STATEMENTS & OTHERS 120 Registration No: 42 199201005296 (236800 - T) 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (continued) The Group and the Company as lessee (continued) (a) Right-of-use assets (continued) (i) The right-of-use assets comprise leasehold land and buildings, and they are initially recorded at cost, which comprise the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date of the leases. Subsequent to initial recognition, the right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses, if any, and adjusted for any remeasurement of lease liabilities. (ii) The right-of-use assets are depreciated on the straight-line basis over the earlier of the estimated useful lives of the right-of-use assets or the end of the lease term. The lease terms of right-of-use assets are as follows: Leasehold land Up to 69 years Buildings 2 to 5 years (iii) Impairment testing on right-of-use assets is similar to that of property, plant and equipment as disclosed in Note 4 to the financial statements. (b) Lease liabilities Group Company 2026 2025 2026 2025 RM’000 RM’000 RM’000 RM’000 Non-current Lease liabilities 2,179 1,559 523 72 Current Lease liabilities 260 155 165 89 Total lease liabilities 2,439 1,714 688 161 Represented by: Lease liabilities owing to nonfinancial institutions 2,439 1,714 688 161 (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 liabilities by increasing the carrying amounts to reflect interest on the lease liabilities, reducing the carrying amounts to reflect lease payments made, and remeasuring the carrying amounts to reflect any reassessment or lease modifications.
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