ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 118 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) (d) The following are the amounts recognised in profit or loss: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Amortisation charge of right-of-use assets (included in cost of sales) 151 21,458 – – Amortisation charge of right-of-use assets (included in administration expenses) 1,524 1,465 284 325 Interest expense on lease liabilities 219 2,303 10 26 Expense relating to short-term leases (included in cost of sales) 5,722 2,777 – – Expense relating to short-term leases (included in administration expenses) 412 117 – – Expense relating to leases of low-value assets (included in administration expenses) 24 227 8 154 Variable lease payments arising from COVID-19 related rent concessions (included in administration expenses) (59) – (11) – Gain arising from early termination (64) (2,496) – – 7,929 25,851 291 505 (e) During the financial year, the Group and the Company have received numerous forms of rent concessions from lessors as the Group and the Company were unable to operate for significant periods of time, which included rent forgiveness (e.g. reductions in rent contractually due under the terms of lease agreements). The impact is disclosed in Note 5(d) to the financial statements. (f) The Group and the Company lease several lease contracts that include extension and termination options. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s and the Company’s operations. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. As at 31 March 2021, there is no undiscounted potential future rental payment that is not included in the lease term.