ANNUAL REPORT 2025 FINANCIAL STATEMENTS 120 Independent Auditors’ Report (Cont’d) To The Members of NexG Berhad (Formerly Known As Datasonic Group Berhad) (Incorporated in Malaysia) Registration No: 200801008472 (809759 - X) Recoverability of Trade Receivables (Cont’d) Refer to Notes 5.1(f), Note 16 and Note 52.1(b) to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter The Group assessed at each of the reporting date whether there is any objective evidence that trade receivables are impaired based on the validity of contractual terms, analysis of customer creditworthiness, past historical payment trends and expectation of repayment. The impairment assessment involved significant judgements and there is inherent uncertainty in the assumptions applied by the management to evaluate the adequacy of the allowance for impairment losses and estimation of future cash collection. We determined this to be a key audit matter due to the inherent subjectivity that is involved in making judgement in relation to credit risk exposures to assess the recoverability of trade receivables. Impairment of goodwill Refer to Notes 5.1(h), Note 11 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter The Group carries significant goodwill as disclosed in Note 11 to the financial statements. Irrespective of whether there is any indication of impairment, goodwill is tested for impairment annually. The impairment test involved significant judgements and estimation uncertainty in making key assumptions about future market economic conditions, growth rates, profit margins, discount rate, development period, etc. We performed, amongst others, the following audit procedures:- • evaluated whether the method used by the Group in measuring the recoverable amount is appropriate in the circumstances; • enquired of and challenging management on the key assumptions and inputs used in the measurement method; • evaluated whether the key assumptions and inputs used are reasonable and consistent by taking into consideration the past performance, market and economic conditions, etc; and • performed stress tests and sensitivity analysis to assess the impacts of those key assumptions and inputs on the measurement of recoverable amount. 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. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D) Key Audit Matters (Cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=