Yinson Annual Report 2021

316 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY Key audit matters How our audit addressed the key audit matters 3) Assessing the carrying value of equity investments in subsidiaries Refer to Note 5(h) and Note 19 to the financial statements. As at 31 January 2021, the net carrying value of equity investments in subsidiaries in the Company’s statement of financial position was RM2,011 million. During the financial year, the Company has written down an amount of RM41 million from its investments in subsidiaries as the recoverable amounts of the subsidiaries were lower than its corresponding carrying values. We focused on the recoverable amounts of equity investments in subsidiaries as they are subject to significant judgement and critical estimates made by management over the key assumptions used in projected cash flows and the discount rates used in deriving the recoverable amounts of the equity investments. Audit procedures performed over this key audit matter were as follows: t &WBMVBUFE NBOBHFNFOU T BTTFTTNFOU PG JNQBJSNFOU indicators; t &WBMVBUFE BOE WBMJEBUFE UIF CBTJT GPS UIF QSPKFDUFE DBTI flows to the underlying subsidiaries’ past performance as well as comparable peers in similar industries; t 0CUBJOFE UIF BTTJTUBODF GSPN PVS JOUFSOBM WBMVBUJPO specialists to assess and validate the discount rates applied by management; t %JTDVTTFE XJUI NBOBHFNFOU UIF LFZ BTTVNQUJPOT VTFE in the valuation model and checked these to supporting documentation; and t &WBMVBUFE UIF BEFRVBDZ PG UIF EJTDMPTVSFT JODMVEFE JO UIF financial statements of the Company. Based on our procedures performed, no material exceptions were noted. 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 Directors' Report and other contents of 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. Responsibilities of the Directors for the financial statements The Directors of the Company are responsible for the preparation of the 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 Group’s and the Company’s ability 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. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) INDEPENDENT AUDITORS’ REPORT (CONT'D) to the members of Yinson Holdings Berhad (Incorporated in Malaysia) Registration No. 199301004410 (259147-A)