ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 85 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d) The Group and the Company as lessee (Cont’d) b. Lease liabilities Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Non-current Lease liabilities 2,722 59,426 46 493 Current Lease liabilities 1,074 27,899 282 479 Total lease liabilities 3,796 87,325 328 972 Lease liabilities owing to financial institutions 326 523 30 58 Lease liabilities owing to non-financial institutions 3,470 86,802 298 914 Total lease liabilities 3,796 87,325 328 972 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 Company measure the lease liability by increasing the carrying amount to reflect interest on the lease liability, 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 Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 At beginning of financial year 87,325 3,081 972 1,453 Addition 2,314 104,561 - - Acquisition of a subsidiary - 1,090 - - Interest charged 2,303 3,659 26 66 Lease payments (28,594) (29,086) (416) (545) Transfer to subsidiaries - - (236) - Remeasurement - - (18) - Derecognition upon expiration / Early termination (64,230) - - - Exchange adjustment 4,678 4,020 - (2) At end of financial year 3,796 87,325 328 972