Notes To The Financial Statements 31 March 2024 (Cont’d) 126 ENRA GROUP BERHAD ANNUAL REPORT 2024 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONT’D) The Group and the Company as lessee (Cont'd) (b) Lease liabilities Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Non-current Lease liabilities 1,714 1,540 161 48 Current Lease liabilities 184 96 93 93 Total lease liabilities 1,898 1,636 254 141 Represented by: Lease liabilities owing to non-financial institutions 1,898 1,636 254 141 (i) The lease liabilities are 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 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 At beginning of financial year 1,636 1,620 141 62 Addition 179 - - - Remeasurement 205 163 205 163 Interest charged 130 124 6 3 Lease payments (252) (271) (98) (87) At end of financial year 1,898 1,636 254 141 (iii) The weighted average incremental borrowing rate applied to the lease liabilities of the Group and of the Company is 7.47% and 7.47% respectively (2023: 7.41% and 5.27% respectively). (iv) Lease liabilities are denominated in RM. (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.
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