7 161 160 Notes to the Financial Statements Notes to the Financial Statements 6. INTANGIBLE ASSETS Goodwill RM’000 Franchise fees RM’000 License RM’000 Contractual production backlog RM’000 Other intangible assets RM’000 Total RM’000 Group Cost At 1 April 2021 121,578 3,960 487 5,315 64 131,404 Additions - - - - 446 446 Effect of movements in exchange rates - - - - 1 1 At 31 March/1 April 2022 121,578 3,960 487 5,315 511 131,851 Additions - - - - 177 177 Effect of movements in exchange rates - - - - 1 1 At 31 March 2023 121,578 3,960 487 5,315 689 132,029 Amortisation and impairment loss At 1 April 2021 - Accumulated amortisation - 882 - 1,000 64 1,946 - Accumulated impairment loss 234 - - - - 234 234 882 - 1,000 64 2,180 Amortisation for the year - 256 - 1,215 92 1,563 At 31 March/1 April 2022 - Accumulated amortisation - 1,138 - 2,215 156 3,509 - Accumulated impairment loss 234 - - - - 234 234 1,138 - 2,215 156 3,743 Amortisation for the year - 198 - 1,772 88 2,058 Impairment loss for the year 858 - - - 353 1,211 At 31 March 2023 - Accumulated amortisation - 1,336 - 3,987 244 5,567 - Accumulated impairment loss 1,092 - - - 353 1,445 1,092 1,336 - 3,987 597 7,012 Carrying amounts At 1 April 2021 121,344 3,078 487 4,315 - 129,224 At 31 March/1 April 2022 121,344 2,822 487 3,100 355 128,108 At 31 March 2023 120,486 2,624 487 1,328 92 125,017 For the purpose of the impairment testing, goodwill is allocated to the following cash-generating units at which the goodwill is monitored for internal management purposes: Note 2023 RM’000 2022 RM’000 Engineering, procurement and construction (“EPC”) for Clean Energy business 6.1 113,585 113,585 Multiple units without significant goodwill 6.2 6,901 7,759 120,486 121,344 6. INTANGIBLE ASSETS (CONTINUED) 6.1 Impairment testing for EPC for Clean Energy business The Group has assessed the recoverable amount using value-in-use method using the discounted cash flows expected to be generated from the continuing use of the cash-generating unit based on the following key assumptions: • Cash flows were projected based on 5 years (2022: 5 years) plan and an estimated long-term growth rate of 3% (2022: 2%). • The anticipated annual revenue growth included in the cash flow on average of 7% (2022: 8%) based on historical growth performance and anticipate growth within the next 5 years. • Pre-tax discount rate of approximately 12% (2022: 12%) were applied in determining the recoverable amount of the unit. The discount rate is estimated based on an industry weighted average cost of capital. The values assigned to the key assumptions represent management’s assessment of future trends in the cashgenerating unit and are based on both external sources and internal sources (historical data). These key assumptions are not particularly sensitive. The recoverable amount is higher than its carrying value. 6.2 The recoverable amounts of the respective cash-generating units without significant goodwill were based on value in use method. These calculations use pre-tax cash flow projections based on financial budgets approved by management. During the year, the Group has recognised impairment loss of goodwill amounting to RM858,000. 7. INVESTMENT IN SUBSIDIARIES Note Company 2023 RM’000 2022 RM’000 Unquoted shares, at cost 7.1 1,094,177 1,094,177 Amounts due from subsidiaries 7.2 226,427 255,247 Less: Impairment loss (1,432) - 1,319,172 1,349,424 7.1 In the previous financial year, the Company subscribed shares in subsidiaries amounting to RM54,739,000 of which RM54,739,000 was satisfied via capitalisation of debts. 7.2 The amounts due from subsidiaries are advances of: i) RM172,877,000 (2022: RM194,047,000) which are subject to fixed interest rate from 2.22% to 6.50% (2022: 2.22% to 6.50%) per annum and the repayment is neither planned nor likely to occur in the foreseeable future; and ii) RM53,550,000 (2022: RM61,200,000) which are subject to the Company’s weighted average cost of funds (“COF”) (2022: COF) per annum and the repayment is neither planned nor likely to occur in the foreseeable future. Details of the Company’s subsidiaries are shown in Note 34.
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