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272 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF MSM MALAYSIA HOLDINGS BERHAD
(Incorporated in Malaysia) Registration No. 201101007583 (935722-K)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
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 financial 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.

Key audit matters How our audit addressed the key audit matters
Impairment assessment of goodwill
As at 31 December 2021, the Group has goodwill of RM576.2 We performed the following procedures on the cash flow
million. projections to support the impairment assessment of goodwill
prepared by the management and approved by the Board of
We focused on this area as the recoverable amount of the Directors of the Company:
cash generating unit (“CGU”) is based on value-in-use (“VIU”)
calculations, which require management’s judgment on the • We assessed the reasonableness of the key assumptions
assumptions used in the calculations, in particular selling price, used by management in the VIU calculations, in
raw sugar price, sales volume, refining costs, terminal value particular selling price, raw sugar price, sales volume,
growth rate, capital expenditure, discount rate and exchange refining costs, terminal value growth rate, discount rate
rate. and exchange rate by comparing with business plans,
historical results and market trends;
Refer to Note 3(d) in the significant accounting policies, Note 5
in the critical accounting estimates and judgment and Note 19 • We assessed the reliability of management’s forecast
to the financial statements. through the review of past trends of actual financial
performance against previous forecasted results;
• We examined the sensitivity analysis prepared by the
management on selling prices, raw sugar price, sales
volume, refining costs, capital expenditure, discount
rate and exchange rate to evaluate the impact on the
impairment assessment; and
• We assessed the adequacy of the disclosures in relation
to goodwill in the financial statements.
Based on our procedures, we noted no significant exceptions.
.