ANNUAL REPORT 2016
67
Techno
Dex
Berhad
(627634-A)
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
8. OTHER INVESTMENT
The Group
2016
2015
RM
RM
Unquoted shares, at cost - outside Malaysia
6,030,000
6,030,000
Less: Accumulated impairment losses
(6,030,000)
(6,030,000)
-
-
9. GOODWILL ON CONSOLIDATION
The Group
2016
2015
RM
RM
At Cost:-
Goodwill on consolidation
2,713,542
2,713,542
Goodwill on consolidation arose from the acquisition of subsidiaries in the financial year ended 30 June 2005 and
is stated at cost.
Addition of goodwill on consolidation in last financial year arose from the acquisition of subsidiaries in the financial
year ended 31 October 2014 and is stated at cost.
The Group has assessed the recoverable amounts of goodwill and determined that no impairment is required.
The recoverable amounts of the cash-generating units are determined using the value-in-use approach, and this
is derived from the present value of the future cash flows from the information technology segment computed
based on the projections of financial budgets approved by management covering a period of 3 years. The key
assumptions used in the determination of the recoverable amounts are as follows:-
Gross margin
40%
Growth rate
40%
Discount rate
7%
(i)
Budgeted gross margin
The basis used to determine the budgeted gross margin is based on past performance and the expectation
of market development.
(ii)
Growth rate
The growth rates used are based on the expected projection of the information technology products and
related services.
(iii) Discount rate
The discount rates used are weighted average cost of capital.
