KEY AUDIT MATTERS (CONT’D.) Valuation of investment properties As at 31 December 2025, the Group’s investment properties were measured at fair value with a carrying amount of RM506,461,000, representing approximately 8% of the Group’s total non‑current assets and 5% of its total assets. The Group adopts the fair value model in accounting for its investment properties, with fair values determined based on valuations performed by independent valuers. The determination of fair value represents the estimated price that would be received from the sale of an investment property in an orderly transaction between market participants at the reporting date and involves significant judgement, particularly in relation to the valuation methodologies adopted, property‑related data used as inputs to the valuation models and key assumptions that reflect prevailing market conditions. We identified the valuation of investment properties as an area requiring audit focus as significant management judgement is involved in determining the fair value of the investment properties, which directly affects the carrying value of these assets and the reported financial position of the Group. How have our audit addressed the matter In addressing the key audit matter, we performed, amongst others, the following procedures: • We evaluated the objectivity, competence and capabilities of the independent valuers engaged by the Group, including consideration of their relevant experience and qualifications; • We obtained an understanding of the valuation methodologies applied by the independent valuers in determining the fair values of the investment properties and assessed whether the methodologies adopted were appropriate and consistent with generally accepted valuation practices in the industry; • We obtained an understanding of the valuation processes performed by the independent valuers, including evaluating the relevance and comparability of historical transactions and property-specific data used as key inputs into the valuation models; • We obtained an understanding of the adjustment factors applied by the independent valuers to account for differences in, amongst others, occupancy rates, property location, property size and tenure between the subject properties and the comparable properties; and • We assessed whether the capitalisation rates used in the valuation models reflect the returns that investors would require if they were to choose an investment that would generate cash flows of amounts, timing and risk profile equivalent to those that the entity expects to derive. 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, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon, which we obtained prior to the date of this auditors’ report, and the information included in the annual report, which is expected to be made available to us after the date of this auditors’ report. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not and will not express any form of assurance conclusion thereon. 243
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