Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. Key audit matters How our audit addressed the key audit matters Impairment Assessment on Property, Plant and Equipment Refer to Note 7 to the financial statements As at 31 December 2025, the carrying amount of property, plant and equipment was approximately RM861,490,000. A significant portion of the Group’s property, plant and equipment comprises vessels, for which professional valuers were engaged to perform valuations for vessels owned by the Group. We determined this to be a key audit matter given the magnitude of the carrying amount and significant judgement and estimates involved in its impairment assessment. Our procedures included, amongst others: • Reviewed management assessment on the triggering event on impairment test; • Evaluated the objectivity, independence and capabilities of the professional valuers and obtained an understanding of the work of the professional valuers; and • Assessed the appropriateness of the valuation model, related data, including estimates used by the professional valuers. Impairment Assessment on Trade Receivables Refer to Note 11 to the financial statements As at 31 December 2025, the carrying amount of trade receivables was approximately RM35,446,000. The Group is exposed to credit risk, or the risk of counterparties defaulting. The assessment of the adequacy of the allowance for impairment losses involved judgement, which includes analysing historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customer payment terms. We determined this to be a key audit matter given the magnitude of the carrying amount and the determination of the adequacy of the impairment loss of trade receivables under Expected Credit Losses (“ECL”) method involves the application of significant judgement and estimates. Our procedures included, amongst others: • Obtained an understanding of: • the Group’s control over the receivable collection process; • how the Group identifies and assesses the impairment of receivables; and • how the Group makes the accounting estimates for impairment. • Reviewed the ageing analysis of receivables and testing the reliability thereof; • Reviewed subsequent cash collections for major receivables and overdue amounts; • Made inquiries of management regarding the action plans to recover overdue amounts; • Compared and challenged management’s view on the recoverability of overdue amounts to historical patterns of collection; • Examined other evidence including customer correspondences, proposed or existing settlement plans, repayment schedules, etc.; and • Evaluating the reasonableness and adequacy of the allowance for impairment recognised. There are no key audit matters to report for the Company. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KEYFIELD INTERNATIONAL BERHAD (CONT’D) 154 KEYFIELD INTERNATIONAL BERHAD (Incorporated in Malaysia) | Registration No: 202001038989 (1395310 - M)
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