15. PROPERTY, PLANT AND EQUIPMENT (CONT’D.) Office furniture, fittings and Motor equipment vehicles Total RM’000 RM’000 RM’000 Company Cost At 1 January 2021 4,924 1,068 5,992 Additions 71 – 71 At 31 December 2021 4,995 1,068 6,063 Accumulated depreciation At 1 January 2021 4,568 303 4,871 Depreciation (Note 9) 164 212 376 At 31 December 2021 4,732 515 5,247 Carrying amount 263 553 816 Cost At 1 January 2020 11,104 1,471 12,575 Additions 45 – 45 Write off (6,225) – (6,225) Transfer to right-of use assets (Note 35(a)) – (403) (403) At 31 December 2020 4,924 1,068 5,992 Accumulated depreciation At 1 January 2020 10,535 219 10,754 Depreciation (Note 9) 258 212 470 Write off (6,225) – (6,225) Transfer to right-of use assets (Note 35(a)) – (128) (128) At 31 December 2020 4,568 303 4,871 Carrying amount 356 765 1,121 FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 15. PROPERTY, PLANT AND EQUIPMENT (CONT’D.) (a) The carrying amounts of property, plant and equipment pledged as securities for borrowings as disclosed in Note 32 are as follows: Group 2021 2020 RM’000 RM’000 Freehold land and buildings 389,926 407,959 Leasehold land and buildings 254,858 313,802 Golf course 30,865 31,800 675,649 753,561 (b) Finance costs capitalised during the financial year under property, plant and equipment of the Group amounted to RM nil (2020: RM3,358,000). (c) In the previous financial year, two subsidiaries of the Group, Tropicana Residences Sdn Bhd and Tropicana Macalister Avenue (Penang) Sdn Bhd, carried out a review of the recoverable amount of its hotel buildings (“Hotels”) as the economic performance of the Hotels fell below expectations. Total impairment losses of RM33,650,000, representing the write-down of the hotel buildings to the recoverable amount were recognised and disclosed under “Other-expenses” line item of the statements of comprehensive income for the financial year ended 31 December 2020. The recoverable amount of the hotel buildings of RM485,000,000 was determined based on its fair value less costs to sell. The fair value was determined based on valuations performed by accredited independent valuers who are specialists in valuing hotel buildings. Description of valuation techniques used and key inputs to determine the fair value of the hotel buildings: Valuation techniques Significant unobservable inputs Range Hotel buildings Income approach Gross operating profit 6.2% to 34.1% Occupancy rate 45% to 84.5% Capitalisation rate 6% Average monthly income RM1,000,000 to RM1,425,000 (d) During the financial year, the cash outflow on acquisition of property, plant and equipment of the Group and of the Company amounted to RM13,985,000 (2020: RM40,659,000) and RM71,000 (2020: RM45,000) respectively. Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 266 267
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