Dagang NeXchange Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DAGANG NeXCHANGE BERHAD 134 4. RIGHT-OF-USE ASSETS Motor Group vehicles Buildings Total RM’000 RM’000 RM’000 At 1 January 2019 243 7,890 8,133 Additions - 190 190 Depreciation charge (121) (2,846) (2,967) At 31 December 2019 122 5,234 5,356 Analysed by: RM’000 Cost 9,538 Accumulated depreciation (4,182) 5,356 Company Building Total RM’000 RM’000 At 1 January 2019 - - Additions 800 800 Depreciation charge (291) (291) At 31 December 2019 509 509 Analysed by: RM’000 Cost 800 Accumulated depreciation (291) 509 (a) The Group leases certain office buildings, warehouses and motor vehicles of which the leasing activities are summarised below: (i) Office buildings and warehouses The Group has leased certain office buildings and warehouses that run between 1 year to 8 years, with an option to renew the lease after that date. The Group is allowed to sublease the office buildings and warehouses. (ii) Motor vehicles The Group has leased certain motor vehicles under hire purchase arrangements with lease terms ranging from 1 year to 7 years. At the end of the lease term, the Group has the option to purchase the assets at an insignificant amount. The leases bear effective interest rates ranging from 2.60% to 2.90% and are secured by the leased assets. (b) The comparative information is not presented as the Group and the Company have applied MFRS 16 using the modified retrospective approach.