7 227 226 Key Audit Matters (continued) i) Valuation of biological assets – Livestock (continued) Refer to Note 1(d)(iv) – Use of estimate and judgement, Note 2(i) – Significant accounting policies: Biological assets – livestock and Note 11 – Biological assets to the financial statements. (continued) Key audit matter How the matter was addressed in our audit Our audit procedures performed over this area included, among others: (continued) • In respect of the projected selling prices and feed costs, we performed testing by comparing the projected selling prices against externally derived data, historical trends and other collaborative evidence available; • We tested the Group’s control over the recording of livestock quantities. Our testing involved a comparison of actual quantity to our expectations, derived based on our understanding of the operation, size of the farms and subsequent quantities sold; and • We evaluated the adequacy of the disclosure, including disclosure of key assumptions, judgments and sensitivities analysis performed by the management. ii) Valuation of goodwill Refer to Note 1(d)(ii) – Use of estimate and judgement, Note 2(g) – Significant accounting policies: Intangible assets and Note 6.1 – Goodwill arising from Engineering, procurement and construction (“EPC”) for Clean Energy business. The key audit matter How the matter was addressed in our audit The carrying value of the Group’s goodwill arising from Engineering, procurement and construction (“EPC”) for Clean Energy business was RM113,585,000 as at 31 March 2023. The Group performed goodwill impairment review to determine whether the carrying amount exceeds the estimated recoverable value of the cash generating unit attached to the goodwill at the balance sheet date. We have identified valuation of goodwill as a key audit matter due to the degree of judgement and assumptions involved in the preparation of the discounted cash flows, including estimated revenue growth rate, long-term growth rate, and discount rate, which are inherently uncertain. Changes in judgements and the related estimates could result in material adjustments to the estimated recoverable amount, hence, affect the carrying amount of goodwill. We performed the following audit procedures, among others: • Evaluated the design and implementation of the management control over the preparation of valuation model used to determine the recoverable amount of the cash generating unit (“CGU”); • Assessed the appropriateness of the underlying assumptions made by the Group in their cash flow projections, including revenue growth rate, long term growth rate, and discount rate with reference to internally and externally derived sources; • Assessed the sensitivity of the key assumptions in the cash flow projections including revenue growth rate, longterm growth rate and discount rate and the impact on the headroom over the carrying value; and • Considered the adequacy of the disclosure in the financial statements in respect of this matter. We have determined that there are no key audit matters in the audit of the separate financial statements of the Company to be communicated in our auditors’ report. Independent Auditors’ Report to the Members of QL Resources Berhad Independent Auditors’ Report to the Members of QL Resources Berhad 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 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 the other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the ability of the Group and of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Group and of the Company. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
RkJQdWJsaXNoZXIy NTkwNzg=