KUB Malaysia Berhad Annual Report 2021

15. PROPERTY, PLANT AND EQUIPMENT (cont’d) Office renovation Freehold and Motor buildings equipment vehicles Total Company RM’000 RM’000 RM’000 RM’000 Cost As at 1 January 2019 15,742 8,078 468 24,288 Additions - 84 - 84 Disposals - (66) - (66) Transfer to assets held for sale (Note 13) (2,189) - - (2,189) As at 31 December 2019 13,553 8,096 468 22,117 Accumulated depreciation As at 1 January 2019 1,983 6,713 251 8,947 Depreciation charge for the year 314 649 93 1,056 Disposals - (60) - (60) Transfer to assets held for sale (Note 13) (349) - - (349) As at 31 December 2019 1,948 7,302 344 9,594 Net carrying amount 11,605 794 124 12,523 Assets under construction Assets under construction of the Group include construction of a storage tank facility for liquefied petroleum gas of RM1,620,000 (31.12.2019 : RMNil). Impairment loss on assets The impairment loss of the Company for the current period mainly relates to impairment of office equipment of RM116,000. The impairment loss of the Group in the previous financial year ended 31 December 2019 mainly relates to a leasehold land in Klang, Selangor of RM6,940,000 after considering the market valuation of the land from an independent firm of valuer. Assets written off The assets that were written off by the Group in the current period are mainly in relation to renovation costs of office premises of RM522,000. Assets pledged as security As at 30 June 2021, the freehold and leasehold land, factory and buildings, and bearer plants of the Group and of the Company with a total carrying amount of RM79,706,000 and RMNIL (31.12.2019: RM129,196,000 and RM11,605,000) respectively are pledged to banks as securities for borrowings as disclosed in Note 27. Assets held under hire purchase The carrying amount of assets held under hire purchase of the Group and of the Company at the end of the reporting period were RM42,000 and RMNIL (31.12.2019: RM664,000 and RM124,000) respectively. 95 ANNUAL REPORT 2021 FINANCIAL STATEMENTS