131 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 CONT’D 19. INVENTORIES Group Company 2021 2020 2021 2020 RM RM RM RM At NRV EDC equipment 103,380 1,112,439 - - Others 101,976 103,546 - - At cost EDC equipment 112,316 - - - Prepaid airtime PINS 62,231,053 57,760,031 - - Others 1,499,085 896,043 - 103,399 64,047,810 59,872,059 - 103,399 (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 RM105,785,784 and RM177,369 (2020: RM121,955,162 and RM42,714) respectively. (d) In addition, the amounts recognised in the other operating expenses include the following: Group Company 2021 2020 2021 2020 RM RM RM RM Inventories written off 168,302 1,353,402 - - (e) During the financial year, the Group wrote back inventories of RM1,265,912 (2020: RM Nil) which were previously written off as the Group is able to realise these inventories in the current financial year. (f) During the financial year, inventories of the Group amounting to RM4,059,274 (2020: RM12,063,393) 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. (g) During the financial year, the Group reversed RM1,570 (2020: RM Nil) in respect of inventories written down in the previous financial years that were subsequently not required as the Group was able to sell those inventories above their carrying amounts.
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