MKH Annual Report 2019

170 A N N U A L R E P O R T 2 0 1 9 16. LAND HELD FOR PROPERTY DEVELOPMENT (CONT’D) The Group 2019 2018 RM RM Development costs At beginning of year 267,003,467 256,592,153 Additions 30,903,244 21,007,170 Reclassification from freehold land  cost - 10,637,689 Charged out to profit or loss as land  donation - (5,853,344) Transfer (to)/from non-current assets  held for sale (Note 24) (900,092) 6,601,543 Transfer to property development costs  (Note 19) (51,604,717) (21,981,744) At end of year 245,401,902 267,003,467 Total land and development costs 880,234,952 873,044,017 Less: Accumulated impairment loss At beginning and end of year (6,284,988) (6,284,988) 873,949,964 866,759,029 Included in land held for property development are: (i) freehold land amounting to RM143,414,505 (30.9.2018: RM127,530,916; 1.10.2017: RM169,678,150) which have been pledged for term loan and revolving credit facilities granted to certain subsidiaries as disclosed in Note 29; (ii) leasehold land amounting to RM19,040,009 (30.9.2018 and 1.10.2017: RM19,040,009) which have been charged for revolving credit facilities granted to certain subsidiaries as disclosed in Note 29; and (iii) freehold and leasehold land amounting to RM295,900,485 (30.9.2018: RM284,461,990; 1.10.2017: RM257,621,706) represent entitlements of the landowners pursuant to joint land development agreements to undertake property development projects. The titles to the development land will be transferred from landowners to the property purchasers. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019