114 SECTION 05 : FINANCIAL STATEMENTS & OTHERS INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ENRA GROUP BERHAD (continued) (Incorporated in Malaysia) Key Audit Matters (continued) (5) Assessment of going concern of the Group and of the Company During the financial year ended 31 March 2025, the Group and the Company incurred a net loss of RM47.29 million and RM29.61 million respectively and as at the end of reporting period, the current liabilities of the Group exceeds the current assets by RM11.38 million. Notwithstanding the above conditions, management has assessed that the preparations of the financial statement of the Group and of the Company on a going concern basis is appropriate as : (a) The Group and the Company would be able to generate sufficient operating cash flows from their operations; and (b) The Group and the Company have available credit facilities to meet the Group’s and the Company’s operating and financial need. We considered this a key audit matter due to the significance of the judgment involved in assessing the Group’s and the Company’s going concern assumptions including the management’s cash flow forecasts of the Group and the Company. Audit response Our audit procedures included the following: (a) Evaluated management’s cash flow forecasts covering a period of not less than 12 months from the reporting date, and the underlying assumptions used; (b) Compared actual results post-year-end against budgeted amounts to assess the reliability of management’s forecasting; (c) Reviewed and verified the availability of committed financing facilities and other funding sources; (d) Evaluated the sensitivity analysis performed by management, including the impact of reasonably possible changes in key assumptions; (e) Considered the adequacy of the disclosures made in the financial statements in relation to the Group’s and the Company’s assessment of the appropriateness of the use of group concern assumptions in their preparation of the Group’s and Company’s financial statement. Independent Auditors’ Report (Cont’d) TO THE MEMBERS OF ENRA GROUP BERHAD (Incorporated in Malaysia)
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