Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 91 13. Inventories Group 30.6.2021 31.12.2019 RM’000 RM’000 At cost Material on site - 908,124 Spare parts and consumables 6,924 11,437 Property development 331,780 - 338,704 919,561 At net realisable value Materials on site 1,213,724 - Total 1,552,428 919,561 Recognised in profit or loss Inventories recognised as cost of contracts with customers 3,359,762 1,621,400 Write down to net realisable value 552,594 - Total recognised in profit or loss 3,912,356 1,621,400 During the financial period, a portion of a development have been transferred from property, plant and equipment and right-of-use assets to inventories (see Notes 6 and 7), as there is an existing potential buyer for a portion of the development. As at the end of the financial period, the property development cost amounted to RM331,779,998. 14. Contract balances Group 30.6.2021 31.12.2019 RM’000 RM’000 Contract assets 671,206 321,558 Contract liabilities (132,815) (35,736) (a) Contract assets/(liabilities) The contract assets primarily relate to the Group’s rights to consideration for work completed but yet to bill at the reporting date. Typically, the amount will be billed within 30 days and payment is expected within 90 to 120 days. The contract liabilities primarily relate to the advance consideration received from customers for construction contract, which revenue is recognised overtime during the construction period.