My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 176 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 9. INVESTMENT PROPERTIES The Group The Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Cost:- At 1 January 2020/1 October 2018 32,654 32,654 115,989 123,275 Transfer to property and equipment (Note 8) - - - (7,286) At 31 December 2020/2019 32,654 32,654 115,989 115,989 Accumulated depreciation:- At 1 January 2020/1 October 2018 (1,688) (871) (5,885) (3,180) Depreciation during the financial year/period (Note 37) (653) (817) (2,320) (2,899) Transfer to property and equipment (Note 8) - - - 194 At 31 December 2020/2019 (2,341) (1,688) (8,205) (5,885) 30,313 30,966 107,784 110,104 Represented by:- Buildings: - at cost 30,313 30,966 107,784 110,104 - fair value 34,273 34,972 117,665 118,552 (a) The investment properties of the Group are leased to customers under operating leases with rental payable monthly. The leases contain initial non-cancellable periods ranging from 1 to 4 years. As at the reporting date, the future minimum rental receivable under the non-cancellable operating leases are as follows:- The Group The Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Within 1 year 1,210 1,422 5,706 5,782 Between 1 and 2 years 726 847 4,715 4,799 Between 2 and 3 years 333 363 3,541 4,170 Between 3 and 4 years - - - 3,117 2,269 2,632 13,962 17,868 (b) Certain investment properties have been pledged to a licensed bank as security for banking facilities granted to the Group as disclosed in Note 28 to the financial statements. (c) The fair values of the investment properties are within level 2 of the fair value hierarchy and are arrived at by reference to market evidence of transaction prices for similar properties, locations and category of properties. The most significant input into this valuation approach is the price per square foot of comparable properties. There have been no changes in the valuation technique during the financial year/ period. (d) Investment properties of the Company comprise buildings that are leased to companies within the Group to earn rental income. They are accounted for as property and equipment at the Group.