DESTINI Annual Report 2020

5. Right-of-Use Assets (Cont’d) Leasehold land 2020 2019 Company RM RM At cost At 1 January 842,459 - Effect of adopting MFRS 16 - 842,459 At 1 January, restated 842,459 842,459 Additions - - At 31 December 842,459 842,459 Accumulated depreciation At 1 January 84,687 - Effect of adopting MFRS 16 - 76,178 At 1 January 84,687 76,178 Charge for the financial year 8,511 8,509 At 31 December 93,198 84,687 Carrying amount At 31 December 749,261 757,772 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 23 to the financial statements. As at 31 December 2020 the remaining lease period of the leasehold properties and industrial land of the Group and of the Company are 53 years and 86 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 38 (2019: 39 years). The carrying amount of the Group’s land use right had been pledged as securities for bank borrowings as disclosed in Note 23 to the financial statements. ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 130