NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 SECTION 4: FINANCIAL PERFORMANCE 168 5. INTANGIBLE ASSETS (CONT’D) Goodwill Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating unit that is expected to benefit from that business combination. The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired. The recoverable amount of the cash generating unit is determined based on the value in use. The value in use calculations is based on the discounted net cash projections based on financial budgets approved by management covering a period 3 years (2023: 3 years) with an estimated growth rate range between 0% to 8% (2023: 0% to 8%) and a weighted average cost of capital of 9.32% (2023: 8.88%). Cash flows projections during the budget period are based on the same expected gross margins and raw materials price inflation throughout the budget period. The Directors believe that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit. 6. INVESTMENT IN SUBSIDIARIES Company 2024 2023 RM’000 RM’000 Unquoted shares, at cost - Within Malaysia 39,717 39,717 - Outside Malaysia 49,098 31,889 Total cost of investment 88,815 71,606 Details of the subsidiaries are as follows:- Name Country of incorporation and principal place of business Effective interest (%) Principal activities 2024 2023 MST Golf Sdn. Bhd. Malaysia 100% 100% Specialty retailer and wholesaler of golf equipment comprising golf clubs, accessories and apparels as well as operating golf driving range and provision of golf related services. MST Golf Management Sdn. Bhd. Malaysia 100% 100% Provision of golf related services including golf event management and golf academy.
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