HG Metal Manufacturing Ltd - Annual Report 2015 - page 95

16. INVENTORIES
Group Company
2015 2014 2015 2014
$’000 $’000 $’000 $’000
Trading inventories 4,376 26,343 4,381 25,645
Finished goods 26 – – –
Work-in-progress 194 263 – –
Raw materials 785 1,452 – –
Inventories (at lower of cost or
net realisable value) 5,381 28,058 4,381 25,645
Group
2015 2014
$’000 $’000
Inventories recognised as expense in cost of sales (Note 7) 118,527 165,048
Write-down of inventories to net realisable value recognised in
other operating expenses 2,139 9,783
Write off of inventories 34 638
During the year, the Group wrote down inventories by $2,139,000 to convert the slow moving
inventories to cash and to mitigate the impact of the decline in steel prices.
93 HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 December 2015