MSTGOLF Annual Report 2024

137 ANNUAL REPORT 2024 MST GOLF GROUP BERHAD Report on the Audit of the Financial Statements Opinion We have audited the financial statements of MST Golf Group 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 financial year then ended, and notes to the financial statements, including material accounting policy information, as set out on pages 143 to 211. 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 financial year then ended in accordance with Malaysian Financial Reporting Standards, 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 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 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 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. Revenue recognition The risk The Group relies heavily on the information technology system for the processing and recording of revenue involving large volumes of sales generated from its retail outlets. The Group also recognised contract liabilities of RM2,095,000 as at 31 December 2024 in current liabilities in respect of unredeemed membership points. The quantum of deferred revenue recognised at each reporting period requires management’s estimates in relation to the historical trends of redemption of membership points. The aforementioned factors gave rise to higher risk of material misstatements from the perspective of timing of recognition and the amount of revenue to be recognised. Accordingly, we identified revenue recognition to be an area of audit focus as the magnitude and the high volume of transactions may give rise to a higher risk of material misstatements relating to timing and the amount of revenue recognised. The disclosure for contract liabilities and revenue of the Group are included in Note 21 and 22 respectively to the financial statements. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MST GOLF GROUP BERHAD (Incorporated in Malaysia) Registration No: 199301009307 (264044-M)

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