Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2022 123 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 12. RIGHT-OF-USE ASSETS (CONT’D) Accumulated Carrying Cost depreciation amount The Group RM RM RM 2021 Leasehold land 24,917,915 (2,963,472) 21,954,443 Factories and buildings 5,303,377 (3,409,072) 1,894,305 Plant and machinery 116,421 (46,526) 69,895 Motor vehicles 1,552,801 (1,000,337) 552,464 31,890,514 (7,419,407) 24,471,107 2022 Leasehold land 35,271,752 (4,352,661) 30,919,091 Factories and buildings 5,733,431 (1,425,733) 4,307,698 Plant and machinery 111,350 (66,782) 44,568 Motor vehicles 1,425,262 (1,135,176) 290,086 42,541,795 (6,980,352) 35,561,443 (a) The details of the Group’s lease assets under hire purchase arrangements are analysed as follows: 2021 RM Motor vehicles 241,914 Effective interest rates 4.53% - 5.28% Remaining lease terms 1 - 2 years (b) The leasing activities of the remaining lease assets are summarised below: (i) Leasehold land The Group has entered into 7 (2021: 6) non-cancellable operating lease agreements for the use of land. The leases are for a period ranging from 20 to 60 (2021: 20 to 60) years. The leases do not allow the Group to assign, transfer or sublease or create any charge, lien or trust in respect of or dispose of the whole or any part of the land. A tenancy is, however, allowed with the consent of the lessor. (ii) Factories and The Group has leased a number of factories and buildings, and motor vehicles buildings and that run between 1 and 5 (2021: 1 and 5) years, with an option to renew the lease motor vehicles after that date. (c) The leasehold land at carrying amount of RM7,014,433 (2021: Nil) is pledged as securities for the bank facilities as disclosed in Note 26 to the financial statements.
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