11. INVENTORIES Group 30.6.2022 RM’000 30.6.2021 RM’000 Raw materials 27,335 – Work in progress 55,891 – Manufactured inventories 3,938 – Consumables 42,472 – Crude oil 11,912 8,657 Spares 4,864 5,165 Trading merchandise in transit 1,558 1,548 147,970 15,370 Recognised in profit or loss: Inventories recognised as cost of sales 140,249 69,514 Write-down to net realisable value 1,323 115 Due to slow-moving and obsolete consumables, the Group tested the related product line for impairment and also wrote down the related inventories to their net realisable value, which resulted in a loss of RM1,323,000 (30.6.2021: RM115,000) in the financial year. 12. CONTRACT ASSETS/(LIABILITIES) Group 30.6.2022 RM’000 30.6.2021 RM’000 Contract assets Contract assets relating to contracts with customers 58,760 56,987 Less: Impairment loss (14,982) (16,450) 43,778 40,537 Contract liabilities Contract liabilities relating to contracts with customers (563,725) (1,816) Analysed: Non-current liabilities (342,748) – Current liabilities (220,977) (1,816) (563,725) (1,816) (a) The contract assets primarily relate to the Group’s right to consideration for work completed and services provided on contracts but not yet billed as at the reporting date. The amount will be transferred to trade receivables when the Group issues billing in the manner as established in the contracts with customers. (b) The contract liabilities primarily relate to the advance consideration received from customers. The amount will be recognised as revenue when the performance obligations are satisfied. The contract liabilities are expected to be recognised as revenue over a period of 5 years (30.6.2021: 9 months). NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DAGANG NeXCHANGE BERHAD 258
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