Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 99 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 18. Land held for property development and property development costs (cont’d) (b) Property development costs (cont’d) Freehold and Development leasehold land costs Total Group RM RM RM At 31 December 2016 Cumulative property development costs At 1 January 2016 50,240,141 27,608,501 77,848,642 Costs incurred during the year - 7,012,301 7,012,301 Transfer to land held for property development (15,403,109) (5,351,091) (20,754,200) At 31 December 2016 34,837,032 29,269,711 64,106,743 Cumulative costs recognised in profit or loss At 1 January 2016 (460,516) (3,978,824) (4,439,340) Recognised during the year (514,369) (4,995,929) (5,510,298) At 31 December 2016 (974,885) (8,974,753) (9,949,638) Property development costs At 31 December 2016 33,862,147 20,294,958 54,157,105 Included in land held for property development and property development costs incurred during the financial year are: 2017 2016 RM RM Interest expenses (Note 6) 2,224,142 2,337,383 Certain of the land and the lease over land of the Group with an estimated aggregate carrying amount of RM61,895,539 (2016: RM61,943,251) are charged for bank borrowings as referred to in Note 24. 19. Inventories Group 2017 2016 RM RM Cost Raw materials 11,117,912 9,910,190 Finished goods 49,122,077 8,502,289 Completed properties 13,491,560 - 73,731,549 18,412,479 Net realisable value Finished goods 154,371 32,427 73,885,920 18,444,906 The cost of inventories sold during the year was RM79,808,363 (2016: RM124,041,607).