Serba Dinamik Annual Report 2018

229 SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 9. Inventories - Group 2018 2017 RM’000 RM’000 At cost Material on site 842,981 564,298 Spare parts and consumables 5,269 13,464 __________ __________ 848,250 577,762 ========= ========= Recognised in profit or loss - inventories recognised as cost of 1,319,821 1,092,689 contracts with customers ========= ========= 10. Contract balances - Group 2018 2017 RM’000 RM’000 Group Contract assets 61,177 40,540 ========== ========== Contract liabilities ( 18,559) - ========== ========== 10.1 Contract assets/(liabilities) The contract assets primarily relate to the Group’s rights to consideration for work completed on construction contracts but not yet billed at the reporting date. Typically, the amount will be billed within 30 days and payment is expected within 60 days. The contract liabilities primarily relate to the advance consideration received from a customer for construction contract, which revenue is recognised overtime during the construction period. N O T E S T O T H E F I N A N C I A L S TAT E M E N T