Page 135 - HRC_Annual_Report_2023

Financial Reports &
Governance HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 133
Other Information

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

15 LEASES (continued)
(i) The balance sheet shows the following amounts relating to leases: (continued)
Right-of-use assets (continued)
Land lease Equipment Tugboats Vehicles Total
2022 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 1,626 1,024 34,746 1,541 38,937

At 31 December 1,626 1,024 34,746 1,541 38,937
Accumulated depreciation
At 1 January 54 425 21,091 1,027 22,597
Charge for the financial year 20 188 6,950 308 7,466
At 31 December 74 613 28,041 1,335 30,063

Carrying amount
At 31 December 1,552 411 6,705 206 8,874

Lease liabilities
2023 2022
RM’000 RM’000

Current 753 7,235
Non-current 159 870
At 31 December 912 8,105

(ii) Nature of the lessee’s leasing activities and restrictions or covenants imposed by leases
The Company leases various equipment, vehicles and tugboats. Rental contracts are typically made for fixed periods of
2 to 5 years but may have extension options.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowings,
except for land lease.
(iii) Variable payments terms
The Company does not have any variable payment terms on its lease agreements.