NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) 12. Other investments (CONT’D) The details of significant unobservable inputs of material investments under level 3 fair value measurement relating to Entity A, B, C, H, I and K are as follows: Investment in an entity engaged in computer and mobile software application and provision of information technology related services activities (Entity A) Unobservable Inputs Relationship of unobservable inputs to fair value Sensitivity analysis assume all other variables held constant (aa) Revenue growth rates of Nil (2021 - 33%) Based on management’s experience and knowledge of market conditions of the specific industries. The higher the revenue growth rate, the higher the fair value. A 1% change in revenue growth rate would result in an increase/decrease in fair value by RMNil (2021: RM1,540,000). (bb) Pre-tax operating profit margins of Nil (2021 - 39%) Taking into account management’s experience and knowledge of market conditions of the specific industries. The higher the pre-tax operating margins, the higher the fair value. A 1% change in pre-tax operating profit margin result in an increase/ decrease in the fair value by RMNil (2021: RM462,000). (cc) Discount rate of Nil (2021 - 17%) Determined using a Capital Asset Pricing Model. The higher the discount rate, the lower the fair value. A 1% change in discount rate would result in a decrease/increase in the fair value by RMNil (2021: RM576,000). Investment in an entity engaged in online fashion boutique business (Entity B) Unobservable inputs Relationship of unobservable inputs to fair value Sensitivity analysis assume all other variables held constant (aa) Revenue growth rates of 16% (2021 - 18%) Based on management’s experience and knowledge of market conditions of the specific industries. The higher the revenue growth rate, the higher the fair value. A 1% change in revenue growth rate would result in an increase/decrease in fair value by RM76,848 (2021: RM4,711,000). (bb) Pre-tax operating profit margins of 64% (2021 - 49%) Taking into account management’s experience and knowledge of market conditions of the specific industries. The higher the pre-tax operating margins, the higher the fair value. A 1% change in pre-tax operating profit margin result in an increase/ decrease in the fair value by RM482,348 (2021: RM1,847,000). (cc) Discount rate of 31% (2021 - 18%) Determined using a Capital Asset Pricing Model. The higher the discount rate, the lower the fair value. A 1% change in discount rate would result in a decrease/increase in the fair value by RM650,164 (2021: RM377,000). 206
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