MKH Annual Report 2020

184 FINANCIAL STATEMENTS ANNUAL REPORT 2020 21. PROPERTY DEVELOPMENT COSTS (CONT’D) Included in the above are (Cont’d): (ii) titles of leasehold land amounting to RMNil (2019: RM62,643,600) which have been pledged with a financial institution for term loan facility granted to certain subsidiaries as disclosed in Note 32; and (iii) freehold and leasehold land amounting to RM243,783,314 (2019: RM224,348,703) represent entitlements of the landowners pursuant to joint venture and joint land development agreements to undertake property development projects. The titles to the development land will be transferred from landowners to the property purchasers. 22. INVENTORIES The Group 2020 RM 2019 RM At cost: Raw materials 243,448 268,940 Work-in-progress 214,021 169,600 Finished goods 980,257 1,083,362 Food and beverages 22,087 40,333 Plantation consumables 10,545,329 8,317,720 Fertilizers 12,948,843 9,051,615 Crude palm oil and palm kernel 4,745,929 3,526,480 Completed development properties 107,444,154 159,342,555 137,144,068 181,800,605 At net realisable value: Completed development properties - 12,050,000 137,144,068 193,850,605 During the financial year, the cost of inventories recognised as an expense in cost of sales of the Group is RM240,713,032 (2019: RM280,359,101). During the financial year, the Group transferred completed inventories amounted to RM54,161,808 to investment properties as disclosed in Note 14 due to the change in management intention.