Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 122 12. Property, plant and equipment (cont'd) Assets held under the name of a joint venture company Assets held under hire purchase arrangements 2019 2018 RM RM Plant, machinery and motor vehicles 84,475,564 95,457,213 Leased assets are pledged as security for the related hire purchase arrangements (Note 23). Leasehold land is pledged as security for bank loans and borrowings (Note 23). 13. Right-of-use assets Included herein are motor vehicles with carrying amount of RM1 (2018: RM6,619) held under the name of a joint venture company. Group During the financial year, the Group acquired property plant and equipment with an aggregate cost of RM14,552,515 (2018: RM42,180,938) by means of hire purchase arrangements. The cash outflow on acquisition of property, plant and equipment amounted to RM11,767,365 (2018: RM21,749,361). The carrying amount of property, plant and equipment held under hire purchase arrangements at the reporting date were as follows: The Group has entered into non-cancellable operating lease agreements for the use of land, buildings, machinery and equipment. The leases generally have lease terms of between 1 year to 6 years. The Group also has certain leases with lease terms of 12 months or less and leases that have been determined to be low value. The Group applies the ‘short-term lease’ and ‘lease of low- value assets’ recognition exemptions for these leases.