PRG Holdings Berhad Annual Report 2020

18. INVENTORIES Group 2020 2019 Note RM’000 RM’000 At cost Raw materials 7,224 8,548 Work-in-progress 3,062 3,069 Manufactured inventories 9,870 7,267 Trading merchandise 346 251 Other consumables 1,659 1,408 22,161 20,543 Agricultural produce 447 6 Property development costs 19 30,639 29,929 Land held for development - leasehold - 8,660 At net realisable value Trading merchandise 1,129 650 Land held for development 7,200 - 61,576 59,788 (a) During the financial year, inventories of the Group recognised as cost of sales amounted to RM48,148,000 (2019: RM74,652,000). Inventories written down and written off during the financial year amounted to RM1,704,000 and RM nil (2019: RM1,612,000 and RM72,000) respectively and are included in cost of sales. Land held for development written down during the financial year amounted to RM1,460,000 (2019: RM nil). (b) The Group reversed RM1,915,000 (2019: RM110,000) in respect of inventories written down in previous financial years, which were subsequently not required as the Group was able to sell those inventories above their carrying amounts. 19. PROPERTY DEVELOPMENT COSTS Group 2020 2019 RM’000 RM’000 Property development costs at beginning of financial year: - leasehold land 21,569 144,958 - development costs 11,203 141,015 - accumulated cost recognised in profit or loss (2,843) (102,337) 29,929 183,636 Costs incurred during the financial year: - development costs 7,960 6,038 Annual Report 2020 145 Notes to the Financial Statements 31 December 2020 cont’d