vehicles 451.2 30.5 (16.2) 465.5 66,526.7 4,790.2 (545.2) 70,771.7 Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Net book value Freehold land 3,702.0 3,387.8 3,467.5 3,235.1 Buildings and civil works 16,763.2 17,230.9 11,314.4 11,517.2 20,465.2 20,618.7 14,781.9 14,752.3 Plant and machinery 52,863.1 51,395.7 22,154.4 21,505.3 Lines and distribution mains 27,317.0 25,740.9 25,342.0 23,961.1 Distribution services 2,168.8 2,022.1 2,029.5 1,900.8 Meters 2,014.1 1,852.2 1,981.6 1,822.6 Public lighting 1,457.7 1,406.4 1,457.3 1,405.7 Furniture, fittings and office equipment 912.6 1,001.7 837.3 915.0 Motor vehicles 233.6 243.8 202.4 212.7 107,432.1 104,281.5 68,786.4 66,475.5 Capital work-in-progress 14,500.0 12,295.6 9,979.0 8,710.0 121,932.1 116,577.1 78,765.4 75,185.5 The title deeds of certain lands are in the process of being registered in the name of the Company and certain subsidiaries. Net book value of PPE pledgedas security for borrowings are disclosed in Note 26. Included in the capital work-in-progress is interest capitalised during the financial year for the Group and the Company of RM377.5 million (2022: RM286.5 million) and RM275.0 million (2022: RM263.6 million) respectively. The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 5.3% (2022: 5.2%). NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 225 6 RIGHT-OF-USE ('ROU') ASSETS Accounting Policy A lease is a contract, or part of a contract, whereby the lessor conveys to the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. T o assess whether a contract conveys the right to control the use of an identified asset, the Group and the Company assess whether: • The contract involves the use of an identified asset - this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier