Key Audit Matters cont’d How the matter was addressed in our audit We performed the following audit procedures, among others: • We evaluated whether the Group’s designations of the loans and borrowings, forward exchange contracts, cross currency swaps and commodity swaps form valid hedging relationships with the forecast sale transactions and loan repayments; • We assessed whether there are formal designations and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge at the inception; • We determined whether the hedging relationship met the criteria of the accounting standards; • We evaluated the probability of the forecast sale transactions by assessing the historical accuracy of management’s forecasts, checking to secured sales contracts and verifying sales transacted subsequent to the end of the financial year; and • We involved our financial risk management specialists in assessing the cash flow changes to hedged items and hedging instruments, and the hedge effectiveness. 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 the annual report 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 annual report and, in doing so, consider whether the annual report 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 annual report, 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. INDEPENDENT AUDITORS’ REPORT Cont’d ANNUAL REPORT 2022 314
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