Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 189 Key Audit Matters (contineud) Information Other than the Financial Statements and Auditors’ Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so. Key Audit Matters in relation to Ping Petroleum Limited (“Ping”) (contineud) ii. Impairment of intangible assets and equipment (“upstream assets”) The carrying amount of upstream assets as at 31 December 2019 was RM1,257.62 million. These upstream assets relate to the production fields of the Anasuria Cluster, Avalon, and Ranger respectively We focused on this area as the recoverability of the carrying amount of the upstream assets is dependent upon the future cash flows of the business. In view of the long-term oil and gas price outlook, significant degree of management judgement is involved. • Assessing the indications for impairment by evaluating the financial indicators of Ping such as gross profit, shareholders’ equity and net current position. KEY AUDIT MATTER HOWOUR AUDIT ADDRESSED THE KEY AUDIT MATTER Investments in associates (contineud) Refer to Note 8 to the financial statements