Financial Statements REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of IHH Healthcare Berhad, which comprise the statements of financial position as at 31 December 2024 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 year then ended, and notes to the financial statements, including material accounting policy information, as set out on pages 125 to 236. 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 2024, and of their financial performance and their cash flows for the year then ended in accordance with MFRS Accounting Standards as issued by the Malaysian Accounting Standards Board (“MFRS Accounting Standards”), IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting 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 auditors’ 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 Responsibilities 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’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Key Audit Matters A key audit matter is the matter that, in our professional judgement, was of most significance in our audit of the financial statements of the Group for the current year. The matter was addressed in the context of our audit of the financial statements of the Group as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter. We have determined that there is no key audit matter in the audit of the separate financial statements of the Company to communicate in our auditors’ report. Refer to Note 22 – Revenue. The key audit matter The Group’s revenue is derived from the provision of healthcare services, laboratories services and management fees. As the Company is listed on the Main Market of Bursa Malaysia Securities Berhad and Singapore Exchange Securities Trading Limited, there are pressures on management to meet financial performance targets to manage shareholders’ expectations in which revenue is the key driver of financial performance of the Group and may be subject to the risk of manipulation to meet specific targets or expectations. We spent a considerable amount of time, with the involvement of more experienced team members, to design and perform audit procedures to address the risk of misstatement in revenue. Consequently, we identified revenue recognition as a key audit matter. How the matter was addressed in our audit We performed, amongst others, the following audit procedures: • We tested the design and implementation as well as the operating effectiveness of anti-fraud controls in respect of management’s revenue process; • We tested trade receivables balances as at financial year end, on a sampling basis, by sending confirmations to selected trade receivables; • We compared, on a sampling basis, sales transactions recorded before and after the financial year end date with supporting documents to assess whether revenue has been recognised in the correct financial year; • We searched for unusual journal entries posted to revenue account and evaluated the appropriateness of these journal entries by vouching to the relevant supporting documents; and • We evaluated, on a sampling basis, credit notes issued after financial year end by vouching to supporting documents to assess whether those transactions are recognised in the correct financial year. Independent Auditors’ Report To the members of IHH Healthcare Berhad (Registration No. 201001018208 (901914-V)) (Incorporated in Malaysia) IHH Healthcare Berhad | Annual Report 2024 122
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