ENRA Group Berhad | Annual Report 2022 123 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 8. GOODWILL ON CONSOLIDATION (CONT’d) (b) Impairment of goodwill (Cont’d) For the purpose of impairment testing, the recoverable amount of a CGU is determined based on its value-inuse. The value-in-use is determined by discounting the pre-tax cash flows based on financial budgets prepared by the Group covering a five-year period with a terminal value based on the following key assumptions: 2022 2021 % % Growth rates 5 5 Pre-tax discount rate 10 10 In the previous financial year, impairment of goodwill amounted to RM8,536,000 was recognised due to adverse adjustments made to the forecast operating cash flows included in the value-in-use calculation of Malaysia’s subsidiaries due to COVID-19 pandemic. Based on the annual impairment testing undertaken by the Group, no impairment losses were required for the carrying amounts of the goodwill assessed as at 31 March 2022 as their recoverable amounts were in excess of their carrying amounts. Sensitivity to changes in assumptions The management is not aware of any reasonably possible change in the key assumptions on which management has based its determination of the CGU’s recoverable that could cause further impairment loss on goodwill. 9. DEFERRED TAXATION (a) The deferred taxation are made up of the following: Group Company 2022 2021 2022 2021 Note RM’000 RM’000 RM’000 RM’000 At beginning of the financial year (457) (502) – – Recognised in profit or loss – 56 – – Exchange adjustment – (11) – – Disposal of subsidiary 6 457 – – – At end of the financial year – (457) – – Presented by: Deferred tax assets, net – 247 – – Deferred tax liabilities, net – (704) – – – (457) – –
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