7 175 174 Notes to the Financial Statements Notes to the Financial Statements 11. BIOLOGICAL ASSETS (CONTINUED) Sensitivity analysis (continued) Effect on fair value of respective biological assets 2023 2022 Broilers Estimated selling price of the broiler at the point of sale (per KG) - Increased by 5% +9.56% +10.96% - Decreased by 5% -9.56% -10.96% Hatching eggs Estimated selling price of the day-old chick - Increased by 5% +8.50% +6.70% - Decreased by 5% -8.50% -6.70% Fresh fruit bunches Estimated selling price of the fresh fruit bunches (per MT) - Increased by 5% +16.64% +7.28% - Decreased by 5% -16.64% -7.28% In respect of other variables, a reasonable possible change in the assumptions used will not result in any material change to the fair value of the biological assets. 12. INVENTORIES Group 2023 RM’000 2022 RM’000 At cost: Raw materials 263,570 203,453 Manufactured and trading inventories 681,341 463,691 944,911 667,144 At net realisable value: Raw materials 2,454 2,785 Manufactured and trading inventories 3,229 4,433 950,594 674,362 At fair value: Agricultural produce – layer eggs 4,624 4,940 955,218 679,302 13. CONTRACT WITH CUSTOMERS 13.1 Contract assets/(liabilities) Group 2023 RM’000 2022 RM’000 Contract assets 55,743 53,820 Contract liabilities (77,265) (62,221) Contract assets Contract assets are primarily relate to: i) the Group’s right to consideration for the revenue earned but not yet billed at the reporting date. Typically, the amount will be billed within 30 days and payment is expected within 60 days; and ii) the Group’s right to consideration for work completed on construction contracts but not yet billed at the reporting date. Typically, the amount will be invoiced within 12 months. Contract liabilities Contract liabilities are made up of: i) deferred revenue from loyalty points yet to be redeemed by the customers of a subsidiary of RM2,915,000 (2022: RM2,688,000). The value of the loyalty points is estimated by reference to the monetary value attributable to the redemption points and are based on the best estimate of future redemption profile. The amount will be recognised as revenue when the points are redeemed by customers or expired, which is expected to occur over a year; ii) advance considerations of RM5,723,000 (2022: RM9,217,000) received from customers for their purchases; and iii) advance considerations of RM68,627,000 (2022: RM50,316,000) received from few customers for construction services of which the revenue will be recognised over the remaining contract term of the specific contract it relates to, within 12 months. 13.2 Contract costs Group 2023 RM’000 2022 RM’000 Cost to fulfil a contract 850 1,075 Cost to fulfil a contract comprises of costs incurred in construction and solar installation contracts that are used to fulfil the contracts in future. These costs are to be recognised in profit or loss over the specific contract it relates to, consistent with the pattern of recognition of the associated revenue.
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