ENRA Group Berhad Annual Report 2019

86 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (cont’d) (b) Lease liabilities Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Non-current Lease liabilities 59,144 1,233 462 915 Current Lease liabilities 27,658 931 452 455 Total lease liabilities 86,802 2,164 914 1,370 (i) The lease liabilities is initially measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the entities’ incremental borrowing rate. Subsequent to the initial recognition, the Group and the Companymeasure the lease liabilities by increasing the carrying amount to reflect interest on the lease liabilities, reducing the carrying amount to reflect lease payments made, and remeasuring the carrying amount to reflect any reassessment or lease modifications. (ii) The movements of lease liabilities during the financial year are as follows: Group 2019 RM’000 2018 RM’000 At 1 April 2,164 2,602 Addition 104,561 611 Acquisition of a subsidiary 1,000 - Interest charged 3,621 118 Payments of: - Principal (24,943) (1,042) - Interest (3,621) (118) Exchange adjustment 4,020 (7) At 31 March 86,802 2,164 Company 2019 RM’000 2018 RM’000 At 1 April 1,370 1,498 Addition - 326 Interest charged 62 73 Payments of: - Principal (454) (442) - Interest (62) (73) Exchange adjustment (2) (12) At 31 March 914 1,370 (iii) The weighted average incremental borrowing rate applied to the lease liabilities is 5.27% (2018: 5.27%). The sensitivity analysis of the effect of the changes in interest rate is not significant, hence it is not presented.