Serba Dinamik Annual Report 2019

278 2019 ANNUAL REPORT FINANCIAL STATEMENTS SERBA DINAMIK HOLDINGS BERHAD 17. LEASE LIABILITIES – GROUP (CONTINUED) 17.2 Contractual payment for land use rights (a) The Group through its subsidiary, SDSB had entered into a Joint Venture Agreement (“JVA A”) with a third party (“the Land Owner A”) on 16 August 2018 to develop a land (the project is hereinafter referred to as “the Proposed Development” and the land, as “the Project Land A”). Through the JVA A, Land Owner A shall contribute the Project Land A for the Proposed Development and SDSB shall undertake the Proposed Development pursuant to and in accordancewith the provision of the JVA A. SDSB shall be solely responsible for the entire costs and expenses of the Proposed Development and obtaining all funds and necessary financing in respect thereof. Pursuant to the JVA A, SDSB is obliged to pay to Land Owner A an amount of RM46 million and the last payment due in November 2020. (b) SDSB had also entered into another Joint Venture Agreement (“JVA B”) with a third party (“the Land Owner B”) on 28 November 2018 to develop a land (the Proposed Development in (a) and the land, as “the Project Land B”). Through the JVA B, Land Owner B shall contribute the Project Land B for the Proposed Development and SDSB shall undertake the Proposed Development pursuant to and in accordancewith the provision of the JVA B. SDSB shall be solely responsible for the entire costs and expenses of the Proposed Development and obtaining all funds and necessary financing in respect thereof. Pursuant to the JVA B, SDSB is obliged to pay to Land Owner B an amount of RM150 million and the last payment due in January 2021. 17.3 Finance lease liabilities Finance lease liabilities are relating to leases of motor vehicles, tools and equipment and plant and machinery recognised in accordance with MFRS 16, Leases. 17.4 Other lease liabilities Other lease liabilities are relating to leases of buildings recognised in accordance with MFRS 16, Leases . N O T E S T O T H E F I N A N C I A L S TAT E M E N T S