DESTINI AR 2017

Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Destini Berhad, which comprise the statements of financial position as at 31 December 2017 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 84 to 175. 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 2017, and of their financial performance and their cash flows for financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards 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. 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 Requirements 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’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and IESBA Code. Key Audit Matters Key audit matters are those matters that, in our professional judgment, 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 Impairment assessment on goodwill The Group has goodwill amounting to RM192,132,962 as at 31 December 2017. The management is required to perform impairment test on the goodwill annually. There is significant judgment involved in forecasting and discounting of future cash flows, which is the basis of assessment of the recoverability of the goodwill. How we addressed the key audit matters Our procedures in relation to management’s impairment assessment included: - Examined management’s cash flows forecast that support the impairment assessment; - Assessed the reliability of management’s forecast through the review of past trends of actual financial performances against previous forecasted results; - Assessed the key assumptions on which the cash flows projections are based, by amongst others, comparing them against business plans, historical results and market data; - Evaluated the appropriateness of the discount rate used to determine the present value of the cash flows and whether the rate used reflects the current market assessments of the time value of money and the risks specific to the asset; and - Performed sensitivity analysis on the key inputs to impairment models, to understand the impact that reasonably possible changes to key assumption would have on the overall carrying value of the goodwill at the end of the reporting period; and - Assessed the adequacy and reasonableness of the disclosures in the financial statements. 79 DESTINI BERHAD Annual Report 2017 AUDITORS’ REPORT to the Members of Destini Berhad INDEPENDENT