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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
156
15. Right-of-use assets (cont’d.)
As lessor
The Group and the Company have entered into operating leases on its investment properties consisting of certain office
and commercial buildings as disclosed in Note 14. These leases have terms of between one to five years. All leases include
a clause to enable upward revision of the rental charge on annual basis according to prevailing market conditions.
Future minimum rentals receivable under non-cancellable operating leases as at 31 March 2020 and 2019 for the Group and the
Company are as follows:
Group
Company
2020
2019
2020
2019
RM’000
RM’000
RM’000
RM’000
Within one year
4,452
3,114
3,130
2,616
After one year but not more than three years
6,255
4,150
3,877
3,011
After three years
317
1,237
254
986
11,024
8,501
7,261
6,613
16. Goodwill on consolidation
Group
2020
2019
RM’000
RM’000
At 1 April 2019/2018 and 31 March
510
510
(a) Key assumptions used in value-in-use calculations
The key assumptions used in value-in-use calculations are as follows:
2020
2019
%
%
Discount rate
1
15.5
10.0
Terminal growth rate
2
-
5
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.
(b) 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.