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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.