209 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 INDEPENDENT AUDITORS’ REPORT To The Members Of Dagang Nexchange Berhad (Incorporated In Malaysia) Registration No. 197001000738 (10039-P) Slow-moving and obsolete inventories Refer to Note 11 to the financial statements Key Audit Matter How our audit addressed the key audit matter As of 31 December 2024, the Group’s inventories was approximately RM127.94 million. The review and assessment of inventories write-downs due to excess quantities, obsolescence and decline in net realisable value below cost involved judgements and estimation uncertainty in forming expectations about future sales and demand. Possible changes in these estimates could result in revisions to the valuation of inventories. Our procedures included, amongst others: • Obtaining an understanding of the process on allowance for slow-moving and obsolete inventories and the design and control effectiveness over slow-moving inventories; • Reviewing the ageing analysis of inventories and testing the reliability thereof; • Reviewing the net realisable value of major inventories; and • Evaluating whether the inventories have been written down to their net realisable value for inventory items with net realisable value lower than their cost. Key Audit Matters (Cont’d) Information Other than the Financial Statements and Auditors’ Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
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