- 11 - INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF DESTINI BERHAD (CONT’D) Registration No: 200301030845 (633265-K) (Incorporated in Malaysia) Key Audit Matters (Cont’d) Key Audit Matters How we addressed the key audit matters Impairment on receivables and contract assets The Group’s receivables and contract assets amounting to RM102,271,602 representing approximately 36% of the Group’s total assets as at 31 December 2022. The assessment of recoverability of receivables involved judgements and estimation uncertainty in analysing historical trend in bad payment, customer concentration, customer creditworthiness and customer payment terms and adjusted for forward looking macro economic factors. Our audit procedures included, amongst others, the following: • Understood on the procedures of the Group:- • the Group’s identification, monitoring and assessment on the impairment of receivables; and • the Group’s basis and justification in making accounting estimates for impairment; • Reviewed the ageing analysis of receivables and testing the reliability thereof; • Reviewed subsequent collections for major receivables and overdue amount; • Made inquiries of management regarding the action plans to recover overdue amounts; • Understood of receivables with significant credit exposures which were significantly overdue or deemed to be in default; and • Evaluated the reasonableness and adequacy of the allowance for impairment recognised for identified exposures. 89 ANNUAL REPORT 2022 DESTINI BERHAD
RkJQdWJsaXNoZXIy NDgzMzc=