MKH Annual Report 2019

180 A N N U A L R E P O R T 2 0 1 9 18. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D) (j) Included in prepayments of the Group are: (i) RMNil (30.9.2018: RMNil; 1.10.2017: RM1,290,188) paid for the acquisition of land in Indonesia. In the previous financial year, the Group reclassified prepayments amounted to RM1,290,188 to prepaid lease payments as disclosed in Note 12; (ii) RM6,155,837 (30.9.2018: RM5,668,010; 1.10.2017: RM28,612,485) preliminary costs incurred in respect of future property development projects. In the previous financial year, the Group reclassified certain prepayments pertaining to joint venture projects amounted to RM28,597,733 to property development costs upon fulfilment of terms and conditions as stipulated in the agreement as disclosed in Note 19; and (iii) an amount of RM8,706,155 (30.9.2018: RM11,349,748; 1.10.2017: RM12,669,284) paid to Trustee accounts for joint development of infrastructure projects with other developers. 19. PROPERTY DEVELOPMENT COSTS The Group 2019 2018 RM RM At cost: Freehold land At beginning of year 204,227,635 110,620,937 Additions 29,632,449 69,675,547 Reclassify to development costs (18,392,560) - Transfer from land held for property development (Note 16) 4,586,972 59,693,359 Transfer from joint venture deposits (Note 18 (h)) - 15,265,716 Transfer from prepayments (Note 18 (j) (ii)) - 22,970,197 Transfer to inventories - (14,288,605) Adjustment on completion of projects - (59,709,516) At end of year 220,054,496 204,227,635 Leasehold land At beginning of year 185,805,272 228,498,496 Additions 3,572,508 119,886 Reversal of provision for landowners’ entitlement (305,988) (2,154,229) Transfer from land held for property development (Note 16) 11,552,782 18,277,835 Transfer to inventories (5,066,956) (9,341,879) Adjustment on completion of projects (52,589,086) (49,594,837) At end of year 142,968,532 185,805,272 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019