Annual Report 2023 157 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 (CONT’D) 9. OTHER INVESTMENT Group 2023 2022 RM’000 RM’000 Investment in club membership, at fair value 110 110 10. GOODWILL Group 2023 2022 RM’000 RM’000 Goodwill 4,162 4,162 The amount of goodwill relates to the manufacturing of cards cash-generating unit. The goodwill arose from the investment in subsidiaries and is reviewed for impairment annually. The Group has assessed the recoverable amount of goodwill, and determined that no impairment is required. The recoverable amount of the manufacturing of cards cash-generating unit is computed using the value in use approach, and this is derived from the present value of the future cash flows from the cash-generating unit based on the projections of financial budgets approved by management covering a period of 5 years. The key assumptions used in the determination of the recoverable amount are as follows:- (i) Budgeted gross margin Average gross margin achieved in the 5 years immediately before the budgeted period increased for expected efficiency improvements and cost saving measures. (ii) Growth rate Based on the expected projection of the smart card business. (iii) Discount rate (pre-tax) Reflects specific risks relating to the relevant cash-generating unit. The values assigned to the key assumptions represent management’s assessment of future projections in the cash-generating unit and are based on both external sources and internal historical data. 11. DEVELOPMENT EXPENDITURE Group 2023 2022 RM’000 RM’000 At cost:- At 31 March 2023/2022 51,807 51,807 Accumulated amortisation:- At 1 April 2022/2021 (35,226) (30,244) Amortisation during the financial year (Note 37) (11,507) (4,982) At 31 March 2023/2022 (46,733) (35,226) Accumulated impairment losses:- At 31 March 2023/2022 (1,222) (1,222) 3,852 15,359
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