Page 117 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 115

13 propertY, plant anD eQUipMent (continued)
plant,
machinery,
equipment
freehold land and motor Work-in-
land improvements Buildings vehicles progress total
2019 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000
cost or deemed cost
At 1 January 46,710 14,451 100,851 3,454,690 447,439 4,064,141
Additions - - - - 659,212 659,212
Disposal - - - (153) - (153)
Write off - - - - (2,879) (2,879)
Reclassification - - - 207,535 (207,535) -
Effect of exchange rate changes (491) (152) (1,060) (38,607) (9,683) (49,993)
At 31 December 46,219 14,299 99,791 3,623,465 886,554 4,670,328

accumulated depreciation
At 1 January - 13,391 61,447 2,360,190 - 2,435,028
Charge for the financial year - 112 2,303 119,434 - 121,849
Disposal - - - (153) - (153)
Effect of exchange rate changes - (142) (672) (26,131) - (26,945)

At 31 December - 13,361 63,078 2,453,340 - 2,529,779

accumulated impairment losses
At 1 January - - - 348,343 - 348,343
Reversal of impairment - - - (125,513) - (125,513)
Effect of exchange rate changes - - - (2,269) - (2,269)
At 31 December - - - 220,561 - 220,561

carrying amount
At 31 December 46,219 938 36,713 949,564 886,554 1,919,988

assets pledged as security
Property, plant and equipment as at reporting date are pledged as security for borrowings as disclosed in Note 26.
capitalised borrowing costs
The amount of borrowing costs capitalised during the year ended 31 December 2020 is RM19,379,000 (2019: RM31,164,000).
The rate used to determine the amount of borrowing costs eligible for capitalisation is 2.31% (2019: 4.56%) which is the
weighted average of the borrowing costs applicable to the borrowings of the Company.