Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 99 20. Lease liabilities (continued) (a) Maturity of lease liabilities (continued) The lease liabilities are payable as follows: Future minimum lease payments Interest or profit Present value of minimum lease payments RM’000 RM’000 RM’000 Financial period 31.12.2019 Contractual payment for land use rights Less than one year 55,180 1,905 53,275 Between one and two years 15,063 - 15,063 70,243 1,905 68,338 Finance lease liabilities Less than one year 4,466 641 3,825 Between one and two years 4,189 507 3,682 Between two and five years 4,556 298 4,258 More than five years 145 11 134 13,356 1,457 11,899 Other lease liabilities Less than one year 1,490 140 1,350 Between one and two years 720 76 644 Between two and five years 713 73 640 2,923 289 2,634 (b) Contractual payment for land use rights i. The Group through its subdiary, SDSB had entered into a Joint Venture Agreement (“JVA A”) with a third party (“the Land Owner A”) on 16 August 2018 to develop a land (the project is hereinafter referred to as “the Proposed Development” and the land, as “the Project Land A”). Through the JVA A, Land Owner A shall contribute the Project Land A for the Proposed Development and SDSB shall undertake the Proposed Development pursuant to and in accordance with the provision of the JVA A. SDSB shall be solely responsible for the entire costs and expenses of the Proposed Development and obtaining all funds and necessary financing in respect thereof. Pursuant to the JVA A, SDSB is obliged to pay to Land Owner A an amount of RM46.0 million and has been fully paid as of year end.