My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 198 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) 51. FINANCIAL INSTRUMENTS (CONT’D) 51.5 Fair Value INFORMATION (cont’d) (a) Fair Value of Financial Instruments Carried at Fair Value (aa) The level 3 fair value of the other investments is determined using discounted cash flow approach based on pre-tax cash flow projections performed by management based on the significant unobservable inputs as disclosed in Note 12 to the financial statements. (bb) The fair value of the short term investments is determined by reference to statements provided by the respective financial institutions, with which the investments were entered into. (b) Fair Value of Financial Instruments not Carried at Fair Value The fair values, which are for disclosure purposes, have been determined using the following basis:- (i) The fair value of the Group’s term loans and revolving credits that carry floating interest rates approximated their carrying amounts as they are repriced to market interest rates on or near the reporting date. (ii) The fair values of financing receivables, hire purchase and finance lease payables and block discounting that carry fixed interest rates are determined by discounting the relevant cash flows using current market interest rates for similar instruments at the end of the reporting period. The effective interest rates used to discount the estimated cash flows are as follows:- The Group The Company 31.12.2019 30.9.2018 31.12.2019 30.9.2018 % % % % Hire purchase and finance lease receivables 2.65 - 8.10 2.50 - 10.00 - - Loan receivables 7.65 7.65 - - Hire purchase and finance lease payables - 4.44 - 6.30 - - Block discounting 3.86 - 6.74 - - - 52. SIGNIFICANT EVENTS DURING THE FINANCIAL PERIOD (a) On 12 October 2018, the Company had accepted the Letter of Intent (“LOI”) from Universiti Utara Malaysia (“UUM”) with the intention to work, co-operate and deploy their respective expertise, knowledge and resources to conduct academic programmes. (b) On 22 October 2018, the Company had entered into a Memorandum of Understanding (“MOU”) with University of Malaya (“UM”) to jointly promote and foster the development of academic and research projects in blockchain, as well as for the implementation of an on-campus e-wallet. (c) On 12 November 2018, the rights, title, interests and benefits together with all duties, obligations and liabilities of MYEGI arising from the Joint Venture Cum Shareholders Agreement (“the Agreement”) with Control Data (BD) Limited, My Paycheck Sdn. Bhd., Arif Alam and Teo Kim Hoe have been transferred to and assumed by MYEGB. (d) On 26 November 2018, MYEGIND entered into a Memorandum Of Understanding (“the MOU”) with PT Cartenz Technology Indonesia (“Cartenz”) to define and regulate the intended collaboration and cooperation to expand and extend the scope of Cartenz’s product and services in relation to its tax monitoring system and tax revenue system in the Republic of Indonesia, upon the terms and conditions contained in the MOU.