20 INVESTMENTS IN SUBSIDIARIES (CONTINUED) (c) Impairment in subsidiaries Investments in subsidiaries was impaired in the financial year ended 31 December 2020 as there was indication that the carrying amount would not be fully recovered. The impairment charge was recognised based on a combination of the value-in-use and fair value less costs to sell methods using the following key assumptions: Value in use Key assumptions 2020 Selling price, RM/MT 1,866 - 2,690 Raw sugar price, US cents/lbs 13.2 - 15.0 Sales volume, MT’000 498 - 671 Terminal value growth rate, % 2% Pre-tax discount rate, % 12% - 13% Fair value less costs to sell Included in the cash generating unit is the fair value less costs to sell for a piece of land of RM175,000,000. Details of subsidiaries, are as follows: Name of subsidiaries Place of business/ country of incorporation Nature of business Proportion of ordinary shares directly held by parent Proportion of ordinary shares directly held by Group 2021 2020 2021 2020 % % % % Direct subsidiaries MSM Prai Berhad Malaysia Sugar refining, sales and marketing of refined sugar products 100 100 100 100 MSMTrading & Distribution Sdn Bhd Malaysia Buy and sell commodities products either through physical or paper transaction that would add revenue streams, improve quality, productivity and efficiency of operations 100 100 100 100 MSM Sugar Refinery (Johor) Sdn Bhd Malaysia Sugar refining, sales and marketing of refined sugar products 100 100 100 100 MSMTrading International DMCC* United Arab Emirates Trading in sugar (under liquidation) 100 100 100 100 Indirect subsidiary MSM Logistics Sdn Bhd Malaysia Provision of transportation services - - 100 100 * Audited by firms other than member firms of PricewaterhouseCoopers International Limited. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 340
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