116 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 CONT’D 15. GOODWILL (Cont’d) (c) Key assumptions used in value-in-use calculations (Cont’d) (iii) Terminal value 2021 2020 % % Terminal growth rates e-pay group of companies 5 2 Paysys group of companies 5 5 In the previous financial year, impairment of goodwill amounting to RM11,332,252 was recognised due to adverse adjustments made to the forecast operating cash flows included in the value in use calculation of Speed Pay Plc as a result of COVID-19 pandemic. Speed Pay Plc was subsequently disposed off during the previous financial year as disclosed in Note 16(e) to the financial statements. Based on the annual impairment testing undertaken by the Group, no impairment loss is required for the carrying amount of the remaining goodwill assessed as at 31 December 2021 as its recoverable amount is in excess of its carrying amount. Sensitivity to changes in assumptions Management is not aware of any reasonably possible changes in the assumptions above that could cause further impairment loss on goodwill. 16. INVESTMENTS IN SUBSIDIARIES Company 2021 2020 RM RM Unquoted shares, at cost 45,416,124 45,416,124 Accumulated impairment losses (16,162,619) (15,662,619) 29,253,505 29,753,505 Equity contributions in subsidiaries in respect of ESS 3,593,586 3,593,586 Accumulated impairment losses (97,162) (97,162) 3,496,424 3,496,424 Advances to subsidiaries 135,919,430 103,050,344 Accumulated impairment losses (11,307,397) (1,343,782) 124,612,033 101,706,562 157,361,962 134,956,491 (a) Investments in subsidiaries, which are eliminated on consolidation, are stated in the separate financial statements of the Company at cost less impairment losses, if any.
RkJQdWJsaXNoZXIy NDgzMzc=