PRG Holdings Berhad Annual Report 2020

27. LEASE LIABILITIES (continued) (c) The following are the amounts recognised in profit or loss in relation to lease arrangements during the financial year: Group 2020 2019 RM’000 RM’000 Depreciation charge of right-of-use assets - included in cost of sales 593 457 - included in administrative expenses 620 1,589 - included in distribution costs 4,584 2,411 Interest expense on lease liabilities - included in finance costs 1,380 1,045 - included in discontinued operations 3 79 Expense relating to short-term leases - included in administrative expenses 337 207 - included in discontinued operations 1 11 Expense relating to leases of low-value assets (included in administrative expenses) 8 25 Variable lease payments (included in distribution costs): - arising from COVID-19 related rent concessions (2,799) - 4,727 5,824 (d) The following table sets out the carrying amounts, the weighted average incremental borrowing rates and the remaining maturities of the lease liabilities of the Group that are exposed to interest rate risk: Weighted average incremental Group borrowing rate Within 1 - 2 2 - 5 More than per annum 1 year years years 5 years Total 31 December 2020 % RM’000 RM’000 RM’000 RM’000 RM’000 Lease liabilities Fixed rates 2.5% - 7.5% 4,604 4,318 6,117 2,043 17,082 31 December 2019 Lease liabilities Fixed rates 3.7% - 7.9% 4,059 4,254 9,687 2,165 20,165 Annual Report 2020 157 Notes to the Financial Statements 31 December 2020 cont’d