ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 112 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 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 except for freehold land 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: Building 3% Furniture, fittings, renovation and office equipment 10% - 33.33% Computer hardware and software 20% - 33.33% Motor vehicles 20% Marine equipment 7% Plant and machinery 10% Freehold land has unlimited useful life and is not depreciated. Capital work-in-progress represent asset which is not ready to use. Capital work-in-progress are stated at cost and not depreciated until such time when the asset is available for use. (c) As at the end of the reporting period, certain marine equipment of the Group with a carrying amount of RM72,402,000 (2020: certain plant and machinery and capital work in progress of the Group with a carrying amount of RM73,911,000) has been charged as securities for banking facilities granted to the Group as disclosed in Note 24(c) to the financial statements. (d) During the financial year, the Group and the Company made the following cash payments to purchase property, plant and equipment: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Purchase of property, plant and equipment 23,501 83,142 77 22 Financed by term loans (4,244) (48,223) – – Cash payments on purchase of property, plant and equipment 19,257 34,919 77 22