REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters How our audit addressed the key audit matters Impairment assessment of goodwill As at 31 December 2021, the Group has goodwill of RM576.2 million. We focused on this area as the recoverable amount of the cash generating unit (“CGU”) is based on value-in-use (“VIU”) calculations, which require management’s judgment on the assumptions used in the calculations, in particular selling price, raw sugar price, sales volume, refining costs, terminal value growth rate, capital expenditure, discount rate and exchange rate. Refer to Note 3(d) in the significant accounting policies, Note 5 in the critical accounting estimates and judgment and Note 19 to the financial statements. We performed the following procedures on the cash flow projections to support the impairment assessment of goodwill prepared by the management and approved by the Board of Directors of the Company: • We assessed the reasonableness of the key assumptions used by management in the VIU calculations, in particular selling price, raw sugar price, sales volume, refining costs, terminal value growth rate, discount rate and exchange rate by comparing with business plans, historical results and market trends; • We assessed the reliability of management’s forecast through the review of past trends of actual financial performance against previous forecasted results; • We examined the sensitivity analysis prepared by the management on selling prices, raw sugar price, sales volume, refining costs, capital expenditure, discount rate and exchange rate to evaluate the impact on the impairment assessment; and • We assessed the adequacy of the disclosures in relation to goodwill in the financial statements. Based on our procedures, we noted no significant exceptions. . INDEPENDENT AUDITORS’ REPORT TOTHE MEMBERS OF MSM MALAYSIA HOLDINGS BERHAD (Incorporated in Malaysia) Registration No. 201101007583 (935722-K) WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 272
RkJQdWJsaXNoZXIy NDgzMzc=