MKH Annual Report 2020

183 MKH BERHAD 21. PROPERTY DEVELOPMENT COSTS (CONT’D) The Group 2020 RM 2019 RM Leasehold land At beginning of year 142,968,532 185,805,272 Additions 4,824,880 3,572,508 Reversal of provision for landowners’ entitlement - (305,988) Transfer (to)/from land held for property development (Note 18) (7,006,638) 11,552,782 Transfer to inventories (1,428,758) (5,066,956) Adjustment on completion of projects (31,064,234) (52,589,086) At end of year 108,293,782 142,968,532 Development costs At beginning of year 593,125,771 374,024,725 Additions 267,206,165 378,982,524 Reclassification from freehold land - 18,392,560 Transfer from prepayments (Note 20 (j) (i)) 1,148,302 - Transfer from land held for property development (Note 18) 6,589,297 51,604,717 Transfer to inventories (10,429,248) (13,937,380) Adjustment on completion of projects (211,395,722) (215,941,375) At end of year 646,244,565 593,125,771 Total land and development costs 1,020,801,521 956,148,799 Less: Costs recognised as an expense in profit or loss At beginning of year 539,409,190 297,343,435 Additions (Note 5) 329,105,836 510,596,216 Adjustment on completion of projects (242,675,181) (268,530,461) At end of year 625,839,845 539,409,190 394,961,676 416,739,609 Included in the above are: (i) titles of freehold land amounting to RM10,766,809 (2019: RM14,831,054) which have been pledged with a financial institution for term loan facility granted to certain subsidiaries as disclosed in Note 32; Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020