MSM Malaysia Holdings Berhad Annual Report 2019

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MSM MALAYSIA HOLDINGS BERHAD (Incorporated in Malaysia) (Registration No. 201101007583 (935722-K)) REPORT ONTHE AUDIT OFTHE FINANCIAL STATEMENTS (continued) Key audit matters (continued) Key audit matters How our audit addressed the key audit matters Impairment assessment of property, plant and equipment, right-of-use assets and intangible assets (continued) We focused on this area as the recoverable amount of the assets based on VIU calculations require management’s judgement on the assumptions used in the calculations, in particular selling price, raw sugar price, sales volume, realisability of the assets at terminal year, and discount rate. Refer to Notes 3(e), 3(i), 3(k) and 3(r) in the significant accounting policies, Note 5 in the critical accounting estimates and judgement and Notes 17, 18 and 19 to the financial statements. Based on our procedures, we noted no significant exceptions. There are no key audit matters to report for the Company. 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 Directors' Report, Chairman’s Statement, Management Discussion and Analysis, Group Financial Report, Sustainability Report, Corporate Governance (including Audit Committee Report, Nomination and Remuneration Committee Report, and Statement on Risk Management and Internal Control), and other sections of the Annual Report 2019, 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 the 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. 113 FINANCIAL STATEMENTS 08