169 ANNUAL REPORT 2025 MST GOLF GROUP BERHAD Report on the Audit of the Financial Statements (cont’d) Key Audit Matters (cont’d) Impairment assessment of investment in subsidiaries (Parent company only) (cont’d) Our response Our audit procedures included, amongst others: - held discussion with management to obtain an understanding of assumptions used in the cash flow forecast and projections; - compared the key assumptions used in the impairment assessments to historical performance, external data reflecting current market conditions and our understanding of the business, in particular gross margin and growth rates used to determine the value in use at each cash generating unit (“CGU”) level, and considering the viability of future plans, local economics and industry outlook; - performed sensitivity analysis of the key assumptions and determine if the carrying amount of CGU materially exceeded the recoverable amount; - involved our internal valuation specialists to assist us in evaluating the appropriateness of discount rate, methodologies and assumptions used in the cash flow forecast and projections; and - assessed the adequacy of disclosure in relation to impairment assessment including those assumptions to which the outcome of the impairment test is most sensitive, that have the most significant effect on the determination of the recoverable amount of the investment. Information other than the Financial Statements and Auditors’ Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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