My EG Services Berhad Annual Report 2021

MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 202 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 11. OTHER INVESTMENTS (CONT’D) Investment in an entity engaged in providing debt collection system, telecommunication services, computer software, hardware and related accessories (Entity C) Unobservable Inputs Relationship of Unobservable Inputs to Fair Value Sensitivity Analysis (Assume All Other Variables Held Constant) (aa) Revenue growth rates of 9% (2020 - 17%) Based on management’s experience and knowledge of market conditions of the specific industries. The higher the revenue growth rate, the higher the fair value. A 1% change in revenue growth rate would result in an increase/decrease in the fair value by RM677,000. (bb) Pre-tax operating profit margins of 76% (2020 - 70%) Taking into account management’s experience and knowledge of market conditions of the specific industries. The higher the pre-tax operating margins, the higher the fair value. A 1% in pre-tax operating profit margin would result in an increase/decrease in the fair value by RM233,000. (cc) Discount rate of 14% (2020 - 9%) Reflects current market assessments of the uncertainty in the amount and timing of cash flows. The higher the discount rate, the lower the fair value. A 1% change in discount rate would result in a decrease/ increase in the fair value by RM297,000. Investment in an entity engaged in providing shared telecommunication infrastructure for rent by telecommunication operators, site acquisition and construction of telecommunication infrastructure (Entity H) Unobservable Inputs Relationship of Unobservable Inputs to Fair Value Sensitivity Analysis (Assume All Other Variables Held Constant) (aa) Revenue growth rates of 17% Based on management’s experience and knowledge of market conditions of the specific industries. The higher the revenue growth rate, the higher the fair value. A 1% change in revenue growth rate would result in an increase/decrease in the fair value by RM740,000. (bb) Pre-tax operating profit margins of 73% Taking into account management’s experience and knowledge of market conditions of the specific industries. The higher the pre-tax operating margins, the higher the fair value. A 1% in pre-tax operating profit margin would result in an increase/decrease in the fair value by RM181,000. (cc) Discount rate of 17% Reflects current market assessments of the uncertainty in the amount and timing of cash flows. The higher the discount rate, the lower the fair value. A 1% change in discount rate would result in a decrease/ increase in the fair value by RM311,000.

RkJQdWJsaXNoZXIy NDgzMzc=