111 ENRA GROUP BERHAD ANNUAL REPORT 2025 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ENRA GROUP BERHAD (continued) (Incorporated in Malaysia) Key Audit Matters (continued) (1) Impairment assessment of the carrying amount of property, plant and equipment (continued) Audit response (continued) Our audit procedures to assess management’s impairment testing based on VIU included the following: (continued) (e) performed sensitivity analysis to stress test the key assumptions used by management in the impairment model. Our audit procedures to assess management’s impairment testing based on FVLCD are as follows: (a) Considered the independence, competence, capabilities and objectivity of the external valuer; and (b) Obtained an understanding of the methodology adopted by the independent valuer in estimating the fair value of the marine equipment and assessed whether such methodology is consistent with those used in the industry. (2) Assessment of net realisable values of inventories As at 31 March 2025, carrying amounts of property held for sales of the Group were RM21.54 million and completed properties of the Group and Company were RM3.98 million respectively, as disclosed in Note 8 to the financial statements. We determined this as a key audit matter because of the judgement made by the Directors in determining an appropriate inventory valuation which involved predicting the amount of future demand from customers. Besides that, judgements are also required to identify slow moving and obsolete inventories which need to be written down to their net realisable value. Audit response Our audit procedures included the following: (a) assessed the unsold units based on enquiries with management including corroborative enquiries with the key management personnel on the plans to address slow moving inventories; and Independent Auditors’ Report (Cont’d) TO THE MEMBERS OF ENRA GROUP BERHAD (Incorporated in Malaysia)
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