ANNUAL REPORT 2025 FINANCIAL STATEMENTS Notes to the Financial Statements (Cont’d) For the Financial Year Ended 31 March 2025 157 11. GOODWILL (CONT’D) (a) The carrying amounts of goodwill allocated to each cash-generating unit are as follows:- Group 2025 2024 RM’000 RM’000 Customised smart card solutions 17,550 - Manufacturing of cards - 2,693 Others 9 9 17,559 2,702 The amount of goodwill relates to the customised smart card solutions and manufacturing of cards cash-generating unit. The goodwill arose from the investment in subsidiaries and is reviewed for impairment annually. The Group has assessed the recoverable amount of goodwill, and recognised an impairment loss of RM2,693,000 (2024 - RM1,460,000) during the current financial year. The recoverable amount of the customised smart card solutions and manufacturing of cards cash-generating unit are computed using the value in use approach, and this is derived from the present value of the future cash flows from the cash-generating unit based on the projections of financial budgets approved by management covering a period of 5 years. The key assumptions used in the determination of the recoverable amount are as follows:- Customised smart card solutions Manufacturing of cards (i) Budgeted gross margin Gross margin is fixed approximately at 70% for the 5 years budgeted period. Average gross margin achieved in the 5 years immediately before the budgeted period increased for expected efficiency improvements and cost saving measures. (ii) Growth rate Based on the expected projection of the customised smart card solutions business. Based on the expected projection of the smart card business. (iii) Discount rate (pre-tax) Reflects specific risks relating to the relevant cash-generating unit. Reflects specific risks relating to the relevant cash-generating unit. The values assigned to the key assumptions represent management’s assessment of future projections in the cashgenerating unit and are based on both external sources and internal historical data. 12. DEVELOPMENT EXPENDITURE Group 2025 2024 Note RM’000 RM’000 At cost:- At 1 April 2024/2023 51,807 51,807 Acquisition of a subsidiary (Note 44) (c) 47,345 - Additions during the financial year 108 - At 31 March 2025/2024 99,260 51,807 Accumulated amortisation:- At 1 April 2024/2023 (50,585) (46,733) Amortisation during the financial year (Note 41) (275) (3,852) At 31 March 2025/2024 (50,860) (50,585) Accumulated impairment losses:- At 31 March 2025/2024 (1,222) (1,222) 47,178 -
RkJQdWJsaXNoZXIy NDgzMzc=