Sasbadi Annual Report 2021

95 ANNUAL REPORT 2021 FINANCIAL STATEMENTS (continued) 95 11. RIGHT-OF-USE ASSETS/(LEASE LIABILITIES) (continued) The Group as lessee (continued) Lease liabilities (continued) Balance Balance as at Lease Rent Interest as at 1.9.2019 Additions payments concession expense 31.08.2020 Carrying amount RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Buildings 1,607 1,124 (720) (12) 78 2,077 Motor vehicles 338 - (119) - 15 234 1,945 1,124 (839) (12) 93 2,311 Group Represented by: 2021 2020 RM’000 RM’000 Current liabilities 561 993 Non-current liabilities 674 1,318 1,235 2,311 Lease liabilities owing to financial institutions 128 234 Lease liabilities owing to non-financial institutions 1,107 2,077 1,235 2,311 (a) Nature of the leasing activities Condominiums, leasehold land and buildings The Group has made upfront payments to secure the right-of-use of condominiums, leasehold land and buildings for its operations. The Group also leases warehouses and residential properties for the purpose of staff accommodation. These leasehold land and buildings, and related leases which have a lease term of more than 12 months are recognised within property, plant and equipment (Note 5) and asset classified as held for sale (Note 17). Motor vehicles The Group leases motor vehicles for employees for use in operations. (b) The right-of-use assets under property, plant and equipment are initially measured at cost, which comprise the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date. After initial recognition, right-of-use assets are stated at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for any re- measurement of the lease liabilities. The Group has certain leases with lease term less than twelve (12) months, and low value leases of office of RM20,000 and below. The Group applies the “short- term lease” and “lease of low-value assets” exemptions for these leases. The right-of-use assets are depreciated on a straight-line basis over the earlier of the estimated useful lives of the right-of-use assets or the end of the lease term.