ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 117 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (cont’d) The Group and the Company as lessee (Cont’d) (b) Lease liabilities (Cont’d) (ii) The movements of lease liabilities during the financial year are as follows: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 At beginning of financial year 3,796 87,325 328 972 Addition 935 2,314 – – Interest charged 219 2,303 10 26 Lease payments (1,607) (28,594) (281) (416) Lease concession (59) – (11) – Transfer to subsidiaries – – – (236) Remeasurement – – – (18) Derecognition upon expiration/ Early termination (457) (64,230) – – Exchange adjustment (166) 4,678 – – At end of financial year 2,661 3,796 46 328 (iii) The weighted average incremental borrowing rate applied to the lease liabilities is 5.27% (2020: 5.27%). (iv) The currency exposure profile of lease liabilities are as follows: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Ringgit Malaysia 2,379 3,327 46 328 Australian Dollar 282 469 – – 2,661 3,796 46 328 (c) The Group and the Company have certain leases of equipment and premises with lease term of 12 months or less, and low value leases of office equipment of RM20,000 and below. The Group and the Company apply the “short-term lease” and “lease of low-value assets” exemptions for these leases.