110 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 4. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (c) Impairment assessment (Cont’d) Both fair value measurement and VIU were categorised as Level 3 fair value as defined in Note 35(c) to the financial statements. During the financial year, the management have re-assessed the recoverable amount of the marine equipment. Recoverable amount was determined based on the VIU of the marine equipment. The Group estimated the recoverable amount for marine equipment of RM53,016,000 based on the assumptions that the revenue is only generated from fixed base rent as per new service agreements secured during the financial year or on a second scenario, the revenue is generated from fixed base rent as well as variable base rent. Due to inherent uncertainty arising from the outcome of revenue generated, the VIU is determined based on the following scenarios: 2023 Scenario 1 Scenario 2 Key assumptions Weightage 50% 50% Cash flow projections period 5 years 5 years Revenue generated (RM’000) 53,949 76,520 Discount rate 8.0% 8.0% Based on the above impairment assessment, the recoverable amount of the marine equipment based on VIU is higher than the carrying amount of marine equipment, therefore, no further impairment loss is required. (d) In the previous financial year, certain marine equipment of the Group with a carrying amount of RM58,906,000 has been charged as securities for banking facilities granted to the Group as disclosed in Note 21(b) to the financial statements. As at the end of the reporting period, the marine equipment of the Group is effectively free from any encumbrances as disclosed in Note 21(b) to the financial statements.
RkJQdWJsaXNoZXIy NDgzMzc=