My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 184 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 13. GOODWILL ON CONSOLIDATION (CONT’D) (a) Budgeted gross margin Average gross margins achieved in the year immediately before the budgeted year. (b) Growth rate The growth rates used are based on the expected projection of e-business and provision of credit card terminal, hardware, solutions and other related services. There is no growth rate in perpetuity to arrive at terminal value. (c) Discount rate (pre-tax) Reflect specific risk relating to the relevant cash generating unit. The values assigned to the key assumptions represent management’s assessment of future trends in the cash- generating units and are based on both external sources and internal historical data. The directors believe that there is no reasonable change in the above key assumptions applied that is likely to materially cause the respective cash generating unit carrying amount of the goodwill to exceed its recoverable amounts. 14. FINANCING RECEIVABLES The Group 2020 2019 RM’000 RM’000 Current assets Loan receivables (Secured) 18,889 11,111 Loan receivables (Unsecured) 3,789 3,654 Hire purchase and finance lease receivables 14,631 21,026 Ijarah financing receivables 1,584 - Micro financing receivables 3 7 38,896 35,798 Non-Current assets Loan receivables (Secured) 127,407 224,630 Loan receivables (Unsecured) 27,705 26,746 Hire purchase and finance lease receivables 41,828 44,637 Ijarah financing receivables 5,953 - 202,893 296,013 241,789 331,811 Less: Unearned profit (9,993) (11,217) Gross financing receivables 231,796 320,594 Allowance for impairment losses (2,165) (1,563) Net financing receivables 229,631 319,031