104 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2023 (continued) f) MSM Sugar Refinery (Johor) Sdn. Bhd. (“MSM Johor”) (continued) The carrying amount of MSM Johor CGU includes property, plant and equipment, right-of-use assets and working capital. The key assumptions used for the value in use calculation are: Key assumptions 2023 2022 Selling price, RM/MT* 2,967 - 4,564 2,303 - 3,635 Selling price of packed products subject to price control, RM/MT # 3,690 - 4,190 2,690 Raw sugar price, RM/lb 0.96 - 1.04 0.65 - 0.79 Utilisation factor 26.6% - 59.0% 19.5% - 57.0% Sales volume, MT’000 266 - 587 195 - 570 Freight charges, RM/MT 157.5 - 180.0 152.3 - 162.4 Natural gas price, RM/MMBtu 44.5 - 48.4 33.0 - 54.8 Long term growth rate % 2.0% 2.0% Discount rate % (pre-tax) 12.4% 12% * Excluding products subject to price control # In deriving the key assumption of selling price of products subject to price control, the Group has applied three probability weighted scenario on the assumptions surrounding the selling prices based on the Group’s ongoing discussion with the relevant authorities. The sensitivity on the MSM Johor’s assets VIU recoverable amount to key assumptions are as follows: 2023 Key assumptions Sensitivity VIU lower by RM ‘000 Selling price of product subject to price control Selling price remain at RM2,690/MT * (1,267,012) * Represents existing ceiling price for products subject to price control 2022 Key assumptions Sensitivity VIU lower by RM ‘000 Raw sugar price Increase NY11 in 2024 and 2025 by USD0.61 cents/ lbs and USD0.30 cents/lbs (6,900) Selling price Decrease of selling price by RM116/mt in 2023 (266,852) Natural gas price Increase in natural gas price by 22% to RM67/MMBtu in 2023 (16,968) The above sensitivity analysis is based on the movement of individual key assumptions while holding all other assumptions constant.
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