168 / 220
1 6 4
NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
fInanCIal StatementS
18. Goodwill on consolidation (cont’d.)
(b) Key assumptions used in value-in-use calculations
The following describes each key assumption on which management has based its cash flow projections to undertake
the impairment testing of goodwill:
2018
2017
%
%
Average discount rate
1
10.0
10.5
Terminal growth rate
2
2
2
Assumptions:
1.
Pre-tax discount rate applied to the cash flow projections.
2.
Weighted average growth rate used to extrapolate cash flows beyond the budget period.
(c) Sensitivity analysis
In assessing value-in-use and fair value, management believes that no reasonably possible change in any of the above
key assumptions would cause the carrying value of the goodwill to materially exceed its recoverable amount.
19. Inventories
Group
2018
2017
RM’000
RM’000
At cost:
Raw materials
15,472
21,758
Printing materials
8,910
9,573
Fertilizer
815
877
Oil palm products
8,432
8,244
Work-in-progress
16,596
14,581
Finished goods
19,210
20,427
Consumables
5,409
4,888
74,844
80,348
At net realisable value:
Finished goods
2,580
2,464
77,424
82,812
During the year, the amount of inventories recognised as an expense in cost of sales of the Group was RM110,627,254
(2017: RM151,199,563).