123 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 CONT’D 19. INVENTORIES Group 2022 2021 RM RM At NRV EDC equipment 1,239,988 103,380 Others 44,761 101,976 At cost EDC equipment 588,274 112,316 Prepaid airtime PINS 87,443,294 62,231,053 Others 673,755 1,499,085 89,990,072 64,047,810 (a) Inventories are stated at lower of cost and net realisable value. (b) Cost of inventories is determined using the first-in, first-out formula. (c) During the financial year, inventories of the Group recognised as cost of sales amounted to RM118,624,226 (2021: RM105,785,784). (d) In addition, the amounts recognised in the other operating expenses include the following: Group 2022 2021 RM RM Inventories written off 93,884 168,302 (e) During the financial year, the Group wrote back inventories of RM1,042,266 (2021: RM1,265,912) which were previously written off as the Group is able to realise these inventories in the current financial year. (f) During the financial year, inventories of the Group amounting to RM6,717,098 (2021: RM4,059,274) have been capitalised as property, plant and equipment as disclosed in Note 12 to the financial statements as the inventories are no longer held for sale. (g) During the financial year, the Group reversed RM57,216 (2021: RM1,570) in respect of inventories written down in the previous financial years that were subsequently not required as the Group was able to sell those inventories above their carrying amounts.
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