Page 133 - HRC_Annual_Report_2023

Financial Reports &
Governance HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 131
Other Information

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

13 PROPERTY, PLANT AND EQUIPMENT (continued)
Plant,
machinery,
equipment
Freehold Land and motor Work-in-
land improvements Buildings vehicles progress Total
2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost or deemed cost
At 1 January 46,219 14,299 99,791 3,733,516 1,078,680 4,972,505
Additions - - - - 161,260 161,260
Reclassification - - - 1,215,247 (1,215,247) -
At 31 December 46,219 14,299 99,791 4,948,763 24,693 5,133,765

Accumulated depreciation
At 1 January - 13,564 67,419 2,662,084 - 2,743,067
Charge for the financial year - 98 2,053 100,658 - 102,809
At 31 December - 13,662 69,472 2,762,742 - 2,845,876

Accumulated impairment losses
At 1 January - - - 220,561 - 220,561
Charge for the financial year - - - - 12,108 12,108

At 31 December - - - 220,561 12,108 232,669
Carrying amount
At 31 December 46,219 637 30,319 1,965,460 12,585 2,055,220

Assets pledged as security
Property, plant and equipment as at the reporting date are pledged as security for borrowings as disclosed in Note 26.
Capitalised borrowing costs
The amount of borrowing costs capitalised during the financial year ended 31 December 2022 was RM14,369,000. The rate
used to determine the amount of borrowing costs eligible for capitalisation was 2.80%, which was the weighted average of
the borrowing costs applicable to the borrowings of the Company. There is no borrowing cost capitalised during the financial
year ended 31 December 2023.
Impairment of equipment
A work-in-progress equipment amounting to RM12,108,000 was impaired as there was no planned usage of the equipment
as at 31 December 2022. There is no impairment made during the financial year ended 31 December 2023.