Section 22

The Group

The Company 2005 2004 2005 2004

At cost:

Freehold land 1,176,335 1,176,335

—

—

Long leasehold land 12,649,966 12,235,510 12,649,966 12,235,510

Development expenditure 97,886,514 72,737,420 64,656,437 46,125,945

At beginning of year 111,712,815 86,149,265 77,306,403 58,361,455

Cost incurred during the year:

Long leasehold land

—

498,543

—

498,543

Development expenditure 66,578,550 60,166,496 50,532,147 47,085,847 66,578,550 60,665,039 50,532,147 47,584,390 178,291,365 146,814,304 127,838,550 105,945,845

Cost recognised as an expense in Income

Statements:

Previous year

(37,206,042)

(28,695,354)

(16,254,163) (18,335,466)

Current year

(34,309,348)

(38,128,872)

(27,821,083) (27,536,881)

(71,515,390)

(66,824,226)

(44,075,246) (45,872,347)

Transfers from (to):

Land held for future development

(Note 16)

1,819,223 4,135,194 594,518 4,135,194

Inventories

(20,806,534)

(9,618,499)

(20,806,534)

(3,156,452)

At end of year 87,788,664 74,506,773 63,551,288 61,052,240

The title to the long leasehold land is held in escrow by the ultimate holding corporation.

In 2005, borrowing costs of RM5,436,181, arising on funds borrowed specifically for property development activities, were capitalised during the period and are included in development expenditure incurred during the period.

1674

[22hb Jun 2006