- 12 - INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF DESTINI BERHAD (CONT’D) Registration No: 200301030845 (633265-K) (Incorporated in Malaysia) Key Audit Matters (Cont’d) Key Audit Matters How we addressed the key audit matters Impairment on receivables (Refer to Note 2(c), Note 3(m)(ii), Notes 12 and 13) The Group’s trade and other receivables amounted to RM171,483,846, representing approximately 49% of the Group’s total assets as at 30 June 2026. The determination of the allowance for expected credit losses (“ECL”) involves significant judgement, particularly in assessing: • The credit risk of trade receivables and their ability to settle amounts due; • The application of forward-looking macroeconomic assumptions; and • The appropriateness of management’s ECL model in determining lifetime ECL for receivables in Stage 2 and Stage 3. Our audit procedures included, amongst others, the following: • Assessed the design and implementation of controls over the credit control process; • Reviewed the ageing analysis of receivables and tested the reliability thereof; • Reviewed subsequent collections for major receivables and overdue amounts; • Obtained an understanding of receivables with significant credit exposures which were significantly overdue or deemed to be in default; • Evaluated the methodology used by management to determine ECL, including its compliance with MFRS 9; • Challenged key assumptions such as default rates, loss given default, and forward-looking macroeconomic factors. DESTINI BERHAD 125 ANNUAL REPORT 2026
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