Wah Seong Corporation Berhad Annual Report 2019

121 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Assets pledged as security The net book value of the Group’s property, plant and equipment amounting to RM226,152,000 (2018: RM359,153,000) are pledged as security for a pipe coatings project. Subsequent event On 14 February 2020, the Company’s wholly-owned subsidiary, Wasco Coatings Germany GmbH (“WCG”) entered into a sale and purchase agreement for the disposal of plant and machineries for a consideration of EUR6,950,000 (equivalent to approximately RM31,869,000), resulting in a no gain, no loss on disposal being recognised in the statement of profit or loss. The completion of the disposal is subject to fulfilment of the condition precedent as stipulated in the sales and purchase agreement. The assets are reported within the Oil & Gas segment in Note 43. 5 LEASES (a) Right-of-use assets Land and buildings Motor vehicles Total Group RM’000 RM’000 RM’000 2019 Cost At 1 January 323,036 - 323,036 Additions 25,940 1,159 27,099 Effect of exchange rate changes (638) (5) (643) At 31 December 348,338 1,154 349,492 Accumulated depreciation At 1 January 13,366 - 13,366 Depreciation charge for the financial year 21,737 80 21,817 Effect of exchange rate changes (118) (1) (119) At 31 December 34,985 79 35,064 Carrying amount at 31 December 313,353 1,075 314,428 The title deeds to certain leasehold land of the Group stated at a total carrying amount of approximately RM28,692,000 (2018: RM29,062,000) have yet to be issued by the relevant authorities. (b) Lease liabilities Group 2019 RM’000 Total cash outflow for leases for the financial year 23,893 Comparative information for the previous financial year is not required to be disclosed in accordance with MFRS 16.