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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 273

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 (continued)

Key audit matters How our audit addressed the key audit matters
Impairment assessment of property, plant and equipment,
right-of-use assets and intangible assets other than
goodwill
We performed the following procedures on the cash flow

The carrying values of property, plant and equipment, projections to support the impairment assessment of property,
right-of-use assets and intangible assets other than goodwill plant and equipment, right-of-use assets and intangible
of the Group as at 31 December 2021 is RM1,220.5 million, assets other than goodwill prepared by the management and
RM83.0 million and RM46.0 million respectively (“non-financial approved by the Board of Directors of the Company:
assets”).
• We assessed the reasonableness of the key assumptions
As at 31 December 2021, the Group’s market capitalisation used by management in the VIU calculations, in particular
of RM899.8 million was below the carrying value of its net selling price, raw sugar price, sales volume, refining
assets of RM1,712.6 million which is an indication that the costs, realisability of assets at terminal year, discount
non-financial assets of the Group may be impaired. rate and exchange rate by comparing with business
plans, historical results and market trends;
Consequently, management performed an impairment
assessment on the Group’s non-financial assets. Management • We assessed the reliability of management’s forecast
concluded that the non-financial assets were not impaired as through the review of past trends of actual financial
at 31 December 2021. performance against previous forecasted results;
We focused on this area as the recoverable amount of the • We examined the sensitivity analysis prepared by the
assets based on VIU calculations require management’s management on selling prices, raw sugar price, sales
judgment on the assumptions used in the calculations, in volume, refining costs, capital expenditure, discount
particular selling price, raw sugar price, sales volume, refining rate and exchange rate to evaluate the impact on the
costs, capital expenditure, realisability of the assets at terminal impairment assessment; and
year, discount rate and exchange rate.
• We assessed the adequacy of the disclosures in the
Refer to Note 3(k) in the significant accounting policies, Note 5 financial statements.
in the critical accounting estimates and judgment and Note 17 Based on our procedures, we noted no significant exceptions.
to the financial statements.

There are no key audit matters to report for the Company.