119 / 174
financiAL STATEMENTs
Annual Report 2017
117
NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.4 Significant Accounting Estimates and Judgments (Cont’d.)
(v) Employee Share Scheme (“ESS”)
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions
requires determining the most appropriate valuation model, which is dependent on the terms and conditions of
the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the
expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions
and models used for estimating fair value for share-based payment transactions and the carrying amounts are
disclosed in Note 24.
(vi) Impairment of goodwill
Goodwill is tested for impairment annually and at other times when such indicators exist. This requires an estimation
of the value-in-use of the CGU to which goodwill is allocated. Estimating a value-in-use requires management to
make an estimate of the expected future cash flows from the CGU and also to choose a suitable discount rate in
order to calculate the present value of those cash flows. The carrying amount of goodwill as at 31 March 2017 was
RM510,000 (2016: RM510,000). Further details are disclosed in Note 15.
(vii) Provision for warranty
Provision for warranty is based on volumes of products sold still under warranty and on historic quality rates, as well
as estimates and assumptions regarding future quality rates for new products.
Total Group’s provision for warranty as of 31 March 2017 is RM14,827,000 (2016: RM17,114,000), as disclosed in
Note 30.
3.
REVENUE
Group
Company
2017
2016
2017
2016
RM’000
RM’000
RM’000
RM’000
Dividend income from subsidiaries
-
-
22,509
47,125
Production and trading of security and confidential documents
233,347
266,682
-
-
Net sale of oil palm products
133,214
102,614
-
-
Rental income from investment properties
5,132
5,460
3,836
4,066
Property management services
408
451
398
431
372,101
375,207
26,743
51,622