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Notes to the

Financial Statements

As at 31 March 2020

Fima CORPORATION Berhad

(197401004110) (21185-P) •

Annual Report 2020

154

14. Investment properties

Group

Company

2020

2019

2020

2019

RM’000

RM’000

RM’000

RM’000

Cost

At 1 April 2019/2018 and 31 March

87,559

87,559

72,116

72,116

Accumulated depreciation

At 1 April 2019/2018

28,396

26,889

23,837

22,674

Charge for the year

1,507

1,507

1,164

1,163

At 31 March

29,903

28,396

25,001

23,837

Net carrying amount

57,656

59,163

47,115

48,279

Fair value

62,195

62,650

50,995

51,000

(a) The land title of a freehold land and building of the Company with a net book value of approximately RM46,343,000 (2019:

RM47,489,000) is pledged as security for certain unutilised credit facilities of the Group.

(b) The transfer of the land title of a building of the Company which is located at Pekan Nenas, Johor with a net book value of

approximately RM772,000 (2019: RM790,000) has yet to be finalised.

(c) As at 31 March 2020 and 2019, the fair values of the investment properties are based on valuation performed by independent

professional valuer. Valuations are performed by accredited independent valuer with recent experience in the location and

category of properties being valued. The valuations are based on cost approach that makes reference to the valuation of land by

comparing it with evidence of values of comparable lands and adding to it depreciated replacement cost of the buildings.

(d) Rental income generated from and direct operating expenses incurred on income generated from investment properties are

as follows:

Group

Company

2020

2019

2020

2019

RM’000

RM’000

RM’000

RM’000

Rental income

5,326

5,195

4,031

3,920

Direct operating expenses

3,738

3,848

3,293

3,430

(e) Other details of future minimum rental receivable under non-cancellable operating leases are disclosed in Note 15.