ENRA Group Berhad Annual Report 2019

83 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 4. PROPERTY, PLANT AND EQUIPMENT (cont’d) (a) All items of property, plant and equipment are initially measured at cost. After initial recognition, property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. (b) Depreciation is calculated to write off the costs of the assets to their residual values on a straight line basis over their estimated useful lives. The principal depreciation rates and period are as follows: Leasehold lands and building up to 99 years Furniture, fittings, renovation and office equipment 10% - 33.33% Computer hardware and software 20% - 33.33% Motor vehicles 20% Plant and machinery 10% Capital work-in-progress represents warehouse under construction and is stated at cost. Capital work-in-progress is not depreciated until such time when the asset is available for use. (c) During the financial year, the Group and the Company made the following cash payments to purchase property, plant and equipment: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Purchase of property, plant and equipment 10,384 2,174 6 3 Transfer from inventories (49) - - - Cash payments on purchase of property, plant and equipment 10,335 2,174 6 3 (d) The carrying amount of the property, plant and equipment of the Group and of the Company under hire purchase arrangements are as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Motor vehicles 690 1,016 70 107 (e) Leasehold lands and building are analysed as: Group 2019 RM’000 2018 RM’000 Long term (unexpired period more than 50 years) 9,282 - The Group has assessed and classified lands use rights and property use right of the Group as finance leases based on the extent to which risks and rewards incidental to ownership of the lands and property resides with the Group arising from the lease term.