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340 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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:
Proportion of Proportion of
Place of business/ ordinary shares ordinary shares
country of directly held directly held
Name of subsidiaries incorporation Nature of business by parent by Group
2021 2020 2021 2020
% % % %
Direct subsidiaries
MSM Prai Berhad Malaysia Sugar refining, sales and 100 100 100 100
marketing of refined sugar
products
MSM Trading & Malaysia Buy and sell commodities 100 100 100 100
Distribution Sdn Bhd products either through
physical or paper transaction
that would add revenue
streams, improve quality,
productivity and efficiency
of operations
MSM Sugar Refinery Malaysia Sugar refining, sales and 100 100 100 100
(Johor) Sdn Bhd marketing of refined sugar
products
MSM Trading United Arab Trading in sugar 100 100 100 100
International DMCC* Emirates (under liquidation)

Indirect subsidiary
MSM Logistics Sdn Bhd Malaysia Provision of transportation - - 100 100
services
* Audited by firms other than member firms of PricewaterhouseCoopers International Limited.