ENRA Group Berhad Annual Report 2019

97 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 7. INVESTMENTS IN SUBSIDIARIES (cont’d) (g) The annual impairment review conducted at the end of the financial year is performed by comparing the subsidiaries’ carrying amounts and their recoverable amounts determined based on value in use calculation using cash flow projections covering five years period with a terminal value based on year five results. There is no impairment loss to be recognised in the current financial year. The pre-tax discount rate applied to the cash flow projections and the forecasted growth rate used to extrapolate cash flows beyond the five years period are as follows: Company 2019 2018 Growth rate 2.5% 1.0% Pre-tax discount rate 7.0% -7.5% 8.5% Sensitivity to changes in assumptions The management believes that a reasonably possible change in the key assumptions on which management has based its determination of the subsidiaries’ recoverable amounts would not cause the subsidiaries’ carrying amounts to further exceed their recoverable amounts 8. INVESTMENT IN AN ASSOCIATE Group 2019 RM’000 2018 RM’000 Unquoted shares at cost 30 15 Share of post-acquisition reserves (13) (15) 17 - The summarised financial information of the associate is as follows: Group 2019 RM’000 2018 RM’000 Assets and liabilities Total assets 743 430 Total liabilities (682) (763) Results Revenue 1,092 - Profit/(Loss) for the financial year 7 (67)