8. INVESTMENTS IN SUBSIDIARIES (continued) (b) Details of the subsidiaries, which are all incorporated and operating in Malaysia, are as follows: (continued) Effective ownership interest and Name of company voting interest Principal activities 2025 2024 % % Subsidiary of Malaysian Books Promotions Sdn. Bhd. #Media Distribution Sdn. Bhd. - 100 Dormant * Subsidiary not audited by BDO PLT or member firms of BDO International # Media Distribution Sdn. Bhd. was restructured from being a subsidiary of Malaysian Books Promotions Sdn. Bhd. to a subsidiary of the Company during the financial year (c) In assessing its subsidiaries for impairment indicators, the Company considered the current environment and performance of the subsidiaries. The carrying amounts of investments in subsidiaries with impairment indicators amounted to RM32,980,000 as at 31 August 2025. The recoverable amounts of the investments in subsidiaries are assessed by reference to the fair value less cost to sell of the underlying assets or the value in use of the respective subsidiaries. The value in use is the net present value of the projected future cash flows derived from the business operations of the respective subsidiaries discounted at an appropriate discount rate. For such discounted cash flow method, it involves the use of estimated future results and a set of assumptions to reflect their income and cash flows. Judgement had also been used to determine the discount rate for the cash flows and the future growth of the businesses of the subsidiaries. Impairment losses are made when the carrying amount of the investments in subsidiaries exceed its recoverable amount. The key assumptions for the impairment testing are disclosed in Note 7(e) to the financial statements. (d) During the financial year, the Company made an impairment of RM159,000 in respect of a subsidiary due to its poor financial position. The recoverable amount of the cost of investment in the subsidiary was based on its fair value less cost to sell (“FVLCTS”) of the underlying assets. The net assets of the subsidiary were used as a proxy for its recoverable amount based on FVLCTS method and were within Level 3 of the fair value hierarchy. The impairment loss has been included in the line of other operating expenses in the statements of profit or loss and other comprehensive income. (e) On 10 December 2024, the Company entered into a Share Sale Agreement (“SSA”) with a third party, namely Eduprint Solutions Sdn. Bhd. to acquire 60% equity interest in Edu Paper and Stationery Sdn. Bhd. for a cash consideration of RM2,580,000. Following the fulfilment of all conditions precedent, the acquisition was completed on 1 March 2025 and Edu Paper and Stationery Sdn. Bhd. became a subsidiary of the Company. SASBADI HOLDINGS BERHAD Financial Statements (conঞ nued) 112
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