69 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 Report on the Audit of the Financial Statements Opinion We have audited the financial statements of GHL Systems Berhad, which comprise the statements of financial position as at 31 December 2021 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 74 to 165. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2021, and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRSs”) and the requirements of the Companies Act 2016 in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. 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. a) Assessment of impairment of the carrying amount of goodwill As at 31 December 2021, the carrying amount of goodwill of the Group amounted to RM168,638,985 as disclosed in Note 15 to the financial statements. We considered this to be a key audit matter because the determination of the recoverable amount of goodwill requires significant judgement about the future results and cash flows of the business, including forecast growth in future revenues and operating profit margins, as well as determining an appropriate discount factor. Audit response Our audit procedures included the following: (i) Assessed the historical reliability of management’s projections by comparing prior period projections to actual results; (ii) Verified the pre-tax discount rate by comparison to market data, and relevant risk factors; (iii) Compared projected growth rates of each revenue segment, operating profit margins and terminal values, incorporating the impact of COVID-19 pandemic, to historical results as well as market and industry data; and (iv) Performed sensitivity analysis to stress test the key assumptions used in the impairment assessment. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF GHL SYSTEMS BERHAD (Incorporated in Malaysia)
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