MKH BERHAD | ANNUAL REPORT 2023 175 4. REVENUE (CONT’D) The Group The Company 2023 2022 2023 2022 RM RM RM RM Timing of revenue recognition Point in time 473,775,128 454,848,737 - - Over time 560,676,888 485,811,730 - - 1,034,452,016 940,660,467 - - Included in the rental income from investment properties is an amount of lease income amounting to RM4,570,847 (2022: RM4,288,277) generated from an international school and other retail properties, with remaining non-cancellable lease period ranging from 2 years to 16 years (2022: 3 years to 17 years) under operating lease arrangement. 5. COST OF SALES The Group 2023 2022 RM RM Attributable property development costs 436,453,114 374,305,156 Attributable cost of completed development properties sold 19,085,079 34,875,244 Overprovision of property development costs for completed projects (5,656,181) (17,494,746) Attributable construction contract costs 5,884,053 2,033,873 Cost of land held for property development 172,583 - Direct operating expenses from investment properties generating rental income 12,160,035 10,902,692 Cost of goods sold 100,153,666 79,505,594 Cost of non-current assets classified as held for sale 345,812 391,218 Cost of sales of crude palm oil and palm kernel 247,449,664 187,776,797 Cost of services 995,847 852,201 Recognition of provision for foreseeable loss 2,080,070 - 819,123,742 673,148,029 During the financial year, total contract cost recognized by the Group as cost of sales in profit or loss amounting to RM19,783,677 (2022: RM15,783,476). NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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