Notes To The Financial Statements (Cont’d) 31 March 2026 SECTION 05 : FINANCIAL STATEMENTS & OTHERS 134 Registration No: 56 199201005296 (236800 - T) 7. INVENTORIES (continued) (a) Property development costs Group Balance as at 1.4.2025 Cost incurred during the year Recognised during the year Written off Transfer from assets held for sale (Note 6(e)) Balance as at 31.3.2026 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Land held for development 8,609 26,744 (286) - 13,386 48,453 Development costs 6,746 5,581 (4,852) (2,881) - 4,594 15,355 32,325 (5,138) (2,881) 13,386 53,047 Group Balance as at 1.4.2024 Cost incurred during the year Recognised during the year Transfer to assets held for sale (Note 6(e)) Balance as at 31.3.2025 RM’000 RM’000 RM’000 RM’000 RM’000 Land held for development 21,995 - - (13,386) 8,609 Development costs 8,630 4,647 (6,531) - 6,746 30,625 4,647 (6,531) (13,386) 15,355 Included in property development costs is a provision for deferred consideration amounted to RM21,600,000 (2025: Nil) arising from a land acquisition arrangement entered into during the financial year, as disclosed in Note 15(g) to the financial statements. (b) Inventories are stated at the lower of cost and net realisable value. Property development costs comprise costs associated with the acquisition of land and all costs that are directly attributable to development activities or that can be allocated on a reasonable basis to such activities. 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. 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. The Group writes down its obsolete or slow moving inventories based on assessments of their estimated net selling price. Inventories are written down when events or changes in circumstances indicate that the carrying amounts could not be recovered. Management specifically analyses sales trend and current economic trends when making this judgement to evaluate the adequacy of the write down for obsolete or slow moving inventories. (c) During the financial year, the Group recognised inventories written off amounting to RM2,881,000 (2025: Nil) in respect of development costs incurred on certain property development projects that remained at the preliminary stage and for which management has decided not to proceed.
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