KUB Malaysia Berhad Annual Report 2021

17. LEASES (cont’d) (i) As lessee (cont’d) Lease liabilities (cont’d) Amounts recognised in the statements of cash flows are as follows: 1.1.2020 to 1.1.2019 to 30.6.2021 31.12.2019 (18 months) (12 months) Group RM’000 RM’000 Total cash outflow for leases 1,318 765 Extension options Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. The Group has estimated that the potential future lease payments, should it exercise the extension option, would result in an increase in lease liabilities of RM2,131,000 (31.12.2019: RM632,000). Office premise Company RM’000 As at 1 January 2020 - Additions 1,365 Finance costs 17 Repayments of finance cost (17) Repayments of lease liabilities (130) As at 30 June 2021 1,235 The maturity analysis of the lease liabilities is presented below: Office Company premise 30.06.2021 RM’000 Year 1 457 Year 2 495 Year 3 354 1,306 Less: unearned interest (71) 1,235 NOTES TO THE FINANCIAL STATEMENTS 102 KUB MALAYSIA BERHAD