ANNUAL REPORT 2025 FINANCIAL STATEMENTS Notes to the Financial Statements (Cont’d) For the Financial Year Ended 31 March 2025 195 52. FINANCIAL INSTRUMENTS (CONT’D) 52.4 FAIR VALUE INFORMATION (CONT’D) (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 term loans, term financing and trade financing 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 hire purchase payables are determined by discounting the relevant cash flows using current market interest rates for similar instruments at the end of the financial year. The interest rates used to discount the estimated cash flows are as follows:- Group Company 2025 2024 2025 2024 % % % % Hire purchase payables 3.39 3.39 3.39 3.39 53. SIGNIFICANT EVENTS DURING/AFTER THE FINANCIAL YEAR (a) Acquisition of 51% equity interest in Innov8tif Holdings Sdn. Bhd. On 4 November 2024, the Company has entered into a conditional share sale agreement (“SSA”) with Revenue Group Berhad for the proposed acquisition by the Company of 51% equity interest in Innov8tif Holdings Sdn. Bhd. (“Innov8tif Holdings”), comprising 717,570 ordinary shares in Innov8tif Holdings, for a total cash consideration of RM40 million, subject to the terms as set out in the SSA. On 6 March 2025, the SSA has become unconditional and the Proposed Acquisition is deemed completed. The Company paid purchase consideration of RM37,250,000 in cash while the remaining balance will be payable within two years upon achieving term and condition of the SSA. (b) Incorporation of new subsidiary, NexG CSA Sdn. Bhd. On 19 March 2025, NexG CSA Sdn. Bhd. was incorporated under the Companies Act 2016 with 100 ordinary shares. (c) Acquisition of other investments in MMAG Holdings Berhad On 5 March 2025, the Company has acquired 45,000,000 ordinary shares in MMAG Holdings Berhad (“MMAG”), representing 1.95% equity interest in MMAG for a total consideration of RM18,000,000. On 27 March 2025, the Company has entered into a Sale and Purchase Agreement (“SPA”) with Chan Swee Ying, the Vendor for the acquisition of 175,000,000 ordinary shares in MMAG representing 7.58% equity interest in MMAG, for a total cash consideration of RM70,000,000 via direct business transaction. On 2 April 2025, following the fulfilment of the terms as stipulated in the SPA, the Investment in MMAG is deemed completed.
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