ENRA Group Berhad Annual Report 2018

83 A N N U A L R E P O R T 2 0 1 8 NOTES TO THE FINANCIAL STATEMENTS 31 March 2018 cont’d 10. PROPERTY DEVELOPMENT COSTS (Cont’d) In the previous financial year, included in property development cost were borrowing costs capitalised of RM90,000 at 8.10% per annum. Property development costs are analysed as follows: Group 2018 2017 RM’000 RM’000 Leasehold land, at cost - 80,405 Development costs - 197,584 Accumulated costs recognised as an expense to statements profit or loss and other comprehensive income - (248,823) Transfer to inventories - (29,166) Balance as at 31 March - - Leasehold land The leasehold land under development is provided by Koperasi Shamelin Berhad, a third party, pursuant to the Joint Venture agreement dated 28 February 2011 for the development of Shamelin Star project. At the end of the reporting period, the Group has accrued an amount of Nil (2017: RM43,005,000) for the purchase consideration of the leasehold land as disclosed in Note 22(b)(i) to the financial statements. 11. INVENTORIES Group 2018 2017 RM’000 RM’000 At cost Property held for sale 51,976 44,757 Completed properties 10,566 29,166 Inventories in transit 1,586 - Consumables 20 724 Finished goods 9,446 2,584 73,594 77,231 (a) 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. (b) Inventories amounting to RM39,889,000 (2017: RM25,777,000) have been expensed to the statements of profit or loss and other comprehensive income during the financial year. (c) Included in property held for sale are borrowing costs capitalised during the financial year of RM612,000 (2017: RM1,450,000) at 4.75% per annum. (d) The property held for sale of the Group is charged to a financial institution for banking facility granted to the Group as set out in Note 26(e)(ii) to the financial statements.