Fraser & Neave Holdings Bhd Annual Report 2021

7. INTANGIBLE ASSETS #CONTINUED$ #B$ KEY ASSUMPTIONS USED IN VALUE IN USE CALCULATIONS #CONTINUED$ (i) Goodwill (continued) Cash flows beyond these periods (i.e. three-year) are extrapolated using the estimated growth rate stated in the table below: Terminal growth rate Average annual growth rate Pre-tax discount rate At 30 September 2021 Dairy products 1.0% 10.0% 7.2% Soft drinks 0.0% 8.2% 8.1% Food products 0.0% 8.1% 8.1% At 30 September 2020 Dairy products 1.0% 10.1% 7.1% Soft drinks 0.0% 11.7% 8.4% (ii) Brand During the financial year, the brand comprises “Nona” and “Lee Shun Hing” arose from the acquisition of Sri Nona Companies. The value in use calculations applied a discounted cash flows model using cash flow projections based on business plan covering three-year period. The discount rates applied to the cash flow projections were derived from the cost of capital plus a reasonable risk premium. Terminal growth rate Average annual growth rate Pre-tax discount rate At 30 September 2021 0.0% 8.1% 8.1% The key assumptions represented management’s assessment of future trends in food industry and were based on both external sources and internal sources (historical data). #C$ SENSITIVITY TO CHANGES IN ASSUMPTIONS With regard to the assessment of value in use of these CGUs, management believes that no reasonably possible changes in any of the key assumptions would cause the carrying values of these CGUs to di!er materially from their recoverable amounts except for the changes in the prevailing operating environment, the impact of which is not expected to be significant. 8. INVESTMENTS IN SUBSIDIARIES Company 2021 RM’000 2020 RM’000 At cost Unquoted shares: – Ordinary shares 697,991 363,201 – Redeemable non-cumulative convertible preference shares (“RNCCPS”) 565,404 565,404 1,263,395 928,605 Less: Impairment loss (8,562) (8,562) 1,254,833 920,043 200 NOTES TO THE F INANCIAL STATEMENTS