Notes To The Financial Statements 31 March 2024 (Cont’d) 139 FINANCIAL STATEMENTS & OTHERS 9. INVENTORIES (CONT’D) (a) Property development costs Cost Balance incurred Recognised Balance Group as at during the during as at 1.4.2023 year the year 31.3.2024 RM’000 RM’000 RM’000 RM’000 Land held for development 21,995 - - 21,995 Development costs 11,904 669 (3,943) 8,630 33,899 669 (3,943) 30,625 Cost Balance incurred Recognised Balance Group as at during the during as at 1.4.2022 year the year 31.3.2023 RM’000 RM’000 RM’000 RM’000 Land held for development 26,207 - (4,212) 21,995 Development costs 8,690 3,807 (593) 11,904 34,897 3,807 (4,805) 33,899 (b) Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out formula. The cost comprises all cost of purchases plus the cost of bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of completed properties held for sale consists of cost associated with the acquisition of land, direct costs and appropriate proportions of common costs attributable for developing properties until completion. (c) A write down of inventories of RM1,026,000 (2023: RM13,481,000) of the Group and RM32,000 (2023: Nil) of the Company was made during the financial year due to decline in net realisable values of certain completed properties. (d) Inventories of the Group amounting to RM4,616,000 (2023: RM5,019,000) have been expensed as cost of sales to the statements of profit or loss and other comprehensive income during the financial year. (e) As at the end of the reporting period, certain completed properties of the Group and the Company with a carrying amount of RM3,994,000 (2023: RM4,699,000) have been charged as securities for banking facilities granted to the Group and the Company as disclosed in Note 21(a) to the financial statements.
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