- 11 - INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF DESTINI BERHAD (CONT’D) Registration No: 200301030845 (633265-K) (Incorporated in Malaysia) Key Audit Matters (Cont’d) Key Audit Matters How we addressed the key audit matters Impairment on receivables The Group’s receivables amounting to RM191,313,261 representing approximately 51% of the Group’s total assets as at 30 June 2025. The determination of the allowance for expected credit losses (“ECL”) involves significant judgement, particularly in assessing: • The credit risk of trade receivables and their ability to settle amounts due; • The application of forward-looking macroeconomic assumptions; and • The appropriateness of management’s ECL model in determining lifetime ECL for receivables in Stage 2 and Stage 3. Our audit procedures included, amongst others, the following: • Assessed the design and implementation of controls over credit control process; • Reviewed the ageing analysis of receivables and testing the reliability thereof; • Reviewed subsequent collections for major receivables and overdue amount; • Obtained understanding of receivables with significant credit exposures which were significantly overdue or deemed to be in default. • Evaluated the methodology used by management to determine ECL, including its compliance with MFRS 9; • Challenged key assumptions such as default rates, loss given default, and forward-looking macroeconomic factors; INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF DESTINI BERHAD and . DESTINI BERHAD ANNUAL REPORT 2025 94
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