Notes to the Financial Statements Registration No. 200301030845 (633265-K) - 72 - 5. Right-of-Use Assets (Cont’d) 2022 2021 Company RM RM Leasehold land At cost At 1 January/ 31 December 842,459 842,459 Accumulated depreciation At 1 January 101,707 93,198 Charge for the financial year 8,510 8,509 At 31 December 110,217 101,707 Carrying amount At 31 December 732,242 740,752 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 25. 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 RM1,162,547 (2021: RM5,401,133) and RM8,026 (2021: RM58,273) respectively. As at 31 December 2022 the remaining lease period of the leasehold properties and industrial land of the Group and of the Company are 51 years and 83 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 36 (2021: 37 years). The carrying amount of the Group’s land use right had been pledged as securities for bank borrowings as disclosed in Note 25. 150 DESTINI BERHAD ANNUAL REPORT 2022
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