GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 137 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 19. INVENTORIES Group Company 2019 2018 2019 2018 RM RM RM RM At NRV EDC equipment 11,186,138 13,794,235 - - At Cost Prepaid airtime PINS 48,783,974 61,130,238 - - Others 3,925,353 4,163,280 55,519 558,968 63,895,465 79,087,753 55,519 558,968 (a) Inventories are stated at lower of cost and net realisable value. (b) Cost of inventories is determined using the first-in, first-out formula. (c) During the financial year, inventories of the Group and of the Company other than prepaid airtime PINS recognised as cost of sales amounted to RM128,304,802 and RM1,165,635 (2018: RM94,990,420 and RM318,980) respectively. (d) In addition, the amounts recognised in the other operating expenses include the following: Group Company 2019 2018 2019 2018 RM RM RM RM Inventories written off 689,769 23,494 552,608 23,494 (e) During the financial year, inventories of the Group amounting to RM90,043 (2018: RM21,310) are written back due to the sales of inventories previously written off. (f) During the financial year, inventories of the Group amounting to RM7,174,766 (2018: RM19,446,041) have been capitalised as property, plant and equipment as disclosed in Note 12 to the financial statements as the inventories are no longer held for sale.