139 F INANC IAL Statements Sect ion 05 Annual Report 2022 INDEPENDENT AUDITORS’ REPORT To the Members of Ranhill Utilities Berhad (Incorporated in Malaysia) Report on the Audit of the Financial Statements Opinion We have audited the financial statements of RANHILL UTILITIES BERHAD, which comprise the statements of financial position of the Group and of the Company as at 31 December 2022, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 144 to 261. In our opinion, the accompanying financial statements of the Group and of the Company give a true and fair view of the financial position of the Group and of the Company as at 31 December 2022, and of their financial performance and their cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. Revenue recognition on sale of treated water (“water revenue”) (Refer Note 5 - Revenue, Note 3 - Revenue from contracts with customers, Note 4(a)(iv) - Accrued water revenue) The Group provides source-to-tap water supply services to end customers and recognised water revenue of RM1,122.4 million, representing 65% of the total revenue of the Group. The Group relies on its information technology system (the “IT System”) to account for its water revenue, which includes the water billing information system. The IT system processes large volumes of data comprising individually low value transactions. In addition, management estimates are involved in accounting for unbilled revenue at the reporting date. Accordingly, we have identified recognition of water revenue in respect of accuracy and cut-off as a key audit matter.
RkJQdWJsaXNoZXIy ODQxNzg=