ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 102 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 12. INVENTORIES (Cont’d) a. Property development costs Balance as at 1.4.2019 RM’000 Cost incurred during the year RM’000 Balance as at 31.3.2020 RM’000 Group Freehold land - 10,025 10,025 Development costs - 2,090 2,090 - 12,115 12,115 b. Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out formula. The cost comprises all cost of purchases plus the cost of bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of completed properties held for sale consists of cost associated with the acquisition of land, direct costs and appropriate proportions of common costs attributable for developing properties until completion. c. Inventories of the Group amounting to RM135,305,000 (2019: RM80,997,000) have been expensed to the statements of profit or loss and other comprehensive income during the financial year. d. Included in property held for sale are borrowing costs capitalised during the financial year of RM1,057,000 (2019: RM194,000) at 10.20% (2019: 10.20%) per annum. e. In the previous financial year, the Group had written down the completed properties of RM9,276,000.