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Right-Of-Use Asset/Lease Liability

12 Months Ended

Jun. 30, 2023

Right-Of-Use Asset/Lease Liability [Abstract]

9. RIGHT-OF-USE ASSET/LEASE LIABILITY

Office space

	30 June 2023			30 June 2022
	RM			RM

Right-of-use asset
Cost

As at 1 July		222,984			-
Additional		280,288			222,984
As at 30 June		503,272			222,984

Accumulated depreciation

As at 1 July		(116,801	)		-
Charge for the year		(126,945	)		(116,801	)
As at 30 June		(243,746	)		(116,801	)

Net carrying amount		259,526			106,183

	30 June 2023			30 June 2022
	RM			RM

Lease liability

As at 1 July		108,069			-
Addition		280,288			222,984
Interest charged		4,235			6,085
		392,592			229,069
Payment of:
- principal		(127,765	)		(114,915	)
- interest		(4,235	)		(6,085	)
		(132,000	)		(121,000	)
Net carrying amount		260,592			108,069

(a)

The Group lease an office space in the location which it operates. The lease of the office space comprised fixed payment over the lease term.

(b)

The right of use asset is initially measured at cost, which comprise the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date of the lease. After initial recognition, right of use asset is stated at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for any re-measurement of the lease liability.

The right of use asset is depciated on the straight-line basis over the earlier of the estimated useful lives of the right of use asset or the end of the lease term. The lease terms for office space are 2 years.

(c)

The Group has certain leases of premises and equipment with lease term of twelve (12) months or less, and low value leases of office equipment of RM 20,000 and below. The Group applies the “short-term lease” and “lease of low-value-assets” exemptions for these leases.

(d)

The following are the amounts recognized in profit or loss:

	30 June 2023		30 June 2022
	RM		RM

Administrative expenses:
- depreciation of right of use asset		126,945		116,801
- expense relating to short-term leases		96,000		104,774
- expense relating to leases of low-value assets		6,095		4,770

Finance costs:
- interest expense on lease liability		4,235		6,085

(e)

The table below summarizes the maturity profile of the lease liability as at the end of the reporting period based on contractual undiscounted repayment obligations as follows:

	Weighted average incremental borrowing rate	Within one year		One to five years		Total
	%	RM		RM		RM
30 June 2023

Lease liability	3.88-5.02		132,000		143,000		275,000

30 June 2022

Lease liability	3.88		110,000		-		110,000

(f)

The Group leases several assets that include extension and termination options. These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. Management determines whether these extension and termination options are reasonably certain to be executed.

As at 30 June 2023, there are no undiscounted potential future rental payments that are not included in the lease term.

(g)

For the purpose of the statements of cash flows, the reconciliation of liability arising from financing activities as follows:

	30 June 2023			30 June 2022
	RM			RM

Cash flows		(132,000	)		(121,000	)

Non-cash flows
- additions		280,288			222,984
- accretion of interest		4,235			6,085
At the end of the year		152,523			108,069