INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KIMLUN CORPORATION BERHAD (Incorporated in Malaysia) Registration No: 200901023978 (867077-X) Key Audit Matters (Cont'd) Recoverability of trade receivables Refer to Note 19 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter • • Referring to Note 19(a) of the Group's financial statements, the carrying amount of trade receivables of the Group as at 31 December 2023 amount to RM383 million and represents approximately 37.36% of the Group's current assets (include assets held for sale). To address this risk, our audit procedures involved the following: Reviewing the Group's credit risk policies on impairment losses and evaluating the reasonableness of the impairment losses provided or reversed; We focussed on this area in view of the significance of trade receivables as a component of the Group's current assets and the proportion of trade debts which is above the Group's normal credit period. Assessed recoverability of selected trade receivables by reviewing track record and credit worthiness of the selected customers, reviewing the history of billings to and collections from the customers (including payments subsequent to the financial year end) and evaluated the commercial reasons given by management for non-impairment. - 11 - INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KIMLUN CORPORATION BERHAD (INCORPORATED IN MALAYSIA) 081 Annual Report 2023
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