KEY AUDIT MATTERS (CONT’D.) Assessment of the Group’s and of the Company’s liquidity position to meet short-term borrowing obligations For the financial year ended 31 December 2025, while the Company recorded a profit before tax of RM41,587,000, the Group recorded a loss before tax of RM12,858,000. As disclosed in Note 32 to the financial statements, the Group and the Company have obligations to repay the short-term borrowings amounting to RM1,106,109,000 and RM169,850,000, respectively, that are due for repayment during the financial year ending 31 December 2026. We identified the Group’s and the Company’s ability to meet the significant short-term financing obligations as a key audit matter. The achievability of the Group’s and of the Company’s cashflow forecasts is highly dependent on the Group’s and the Company’s ability to generate net cash inflows from their operating activities, from the drawdown of the secured financing facilities, and their ability to sell certain assets to raise the necessary funds to repay the loans as and when they fall due. This assessment involves significant management judgement, assumptions and estimates. How have our audit addressed the matter In addressing the key audit matter, we performed amongst others, the following procedures: • We obtained an understanding of the business plans and more specifically, their plans to meet the loan repayment obligations for the next twelve months after the reporting date; • We evaluated the estimates made by the directors in respect of revenue and major operating costs against the Group’s business plans, historical results and expected selling prices; • We evaluated the reasonableness of the Group's ability to complete the relevant performance obligations and the expected collection of proceeds in accordance with the payment terms stipulated in the respective agreements; • We evaluated the Group’s and the Company’s ability to draw down secured financing and undrawn facilities by reviewing the executed loan agreements with financial institutions; and • We have also evaluated the adequacy of disclosures in the financial statements in this respect. 241
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