15. PROPERTY, PLANT AND EQUIPMENT (CONT’D.) (b) Finance costs capitalised during the financial year under property, plant and equipment of the Group amounted to RM2,820,000 (2021: RM Nil). (c) During the financial year, two subsidiaries of the Group, Tropicana Residences Sdn Bhd and Tropicana Macalister Avenue (Penang) Sdn Bhd, carried out a review of the recoverable amount of its hotel buildings. The recoverable amount of the hotel buildings of RM485,000,000 was determined based on its fair value less costs to sell. The fair value was determined based on valuations performed by accredited independent valuers who are specialists in valuing hotel buildings. Description of valuation techniques used and key inputs to determine the fair value of the hotel buildings: Valuation techniques Significant unobservable inputs Range Hotel buildings Income approach Gross operating profit 15.9% to 24.8% Occupancy rate 67% to 85% Capitalisation rate 6% Average monthly income RM1,000,000 to RM1,430,000 (d) During the financial year, the cash outflow on acquisition of property, plant and equipment of the Group and of the Company amounted to RM84,501,000 (2021: RM13,985,000) and RM26,000 (2021: RM71,000) respectively. 16. INVENTORIES Group 2022 2021 RM’000 RM’000 Non-current Land held for property development 6,293,893 7,071,745 Current Completed development properties 150,823 215,714 Consumable stores and spares 2,397 2,057 Property development costs 334,531 322,879 Land held for sales 743,574 25,357 1,231,325 566,007 Total inventories 7,525,218 7,637,752 Included in total inventories of the Group are inventories carried at the lower of cost and net realisable value amounting to RM709,360,000 (2021: RM7,885,000). 209 FINANCIAL STATEMENTS & OTHER INFORMATION
RkJQdWJsaXNoZXIy NDgzMzc=