Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 96 SASBADI HOLDINGS BERHAD (1022660-T) I BER AD (10 2 60-T) 4. Investment properties Group Buildings RM’000 Cost At 1 September 2015 - Acquisitions through business combinations (Note 29) 2,640 At 31 August 2016/1 September 2016/31 August 2017 2,640 Accumulated depreciation At 1 September 2015 - Charge for the year 3 At 31 August 2016/1 September 2016 3 Charge for the year 53 At 31 August 2017 56 Carrying amounts At 1 September 2015 - At 31 August 2016/1 September 2016 2,637 At 31 August 2017 2,584 Investment properties comprise of commercial buildings that are leased to third parties. Each of the leases contains an initial non-cancellable period of 3 years. Subsequent renewals are negotiated with the lessee with an average renewal period of 2 years. No contingent rents are charged. The investment properties of the Group are charged to banks as security for banking facilities granted to the Group (see Note 12).