Page 135 - flipbook-ubp-IR

OUR CORPORATE PERFORMANCE GOVERNANCE
Key audit matters
How our audit addressed the key audit matters
Impairment assessment of goodwill and brand name
Goodwill and brand name arising from the acquisition of Pre- Mixed Concrete Limited, (“the subsidiary” and “CGU”) amounting to Rs 340.7 million and Rs 60.8 million respectively were assessed for impairment as at 30 June 2022.
Management conducted an annual impairment test before the end of the reporting period to assess the recoverability of the carrying value of goodwill and brand name. This was performed by calculating the cash generating unit’s (“CGU”) value-in-use by using future cash flow the Group expects to derive from the CGU. As a result, the Group has impaired goodwill amounting to Rs 340.7 million as detailed in Note 8(a).
As disclosed in Notes 8(a), there is inherent uncertainty and significant judgements involved in preparing future cash flow forecasts and applying the appropriate discount rate to determine the value-in-use amount of the cash generating unit.
In evaluating the impairment of goodwill and brand name, we reviewed the CGU’s value in use calculations prepared by management. We performed various procedures, including the following:
• Reviewed the inputs used in the cash flow forecast against historical performance and in comparison to management’s strategic plans;
• Compared the growth rates used to historical data regarding economic growth rates in the cash generating unit;
• Reviewed appropriateness of discount factors used;
• Verified the mathematical accuracy of the valuation; and
• Performed sensitivity analyses on discount rates to evaluate the extent of impact on the value in use.
Other information
The Directors are responsible for the other information. The other information comprises the Financial Highlights, Risk Report, Other Statutory Disclosures, Capital Reports, Statement of Directors’ Responsibilities and Company Secretary’s Certificate which we obtained prior to the date of this auditor’s report. It also includes other reports to be included in the Annual Report which are expected to be made available after that date. The other information, does not include the consolidated and separate financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements as well as the Corporate Governance Report do not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with financial statements 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 this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the other reports, if we conclude that there is material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Directors for the consolidated and separate financial statements
The Directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards, and in compliance with the requirements of the Mauritius Companies Act 2001 and the Financial Reporting Act 2004 and they are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the Directors are responsible for assessing the Group’s and the Company’s ability 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 and/or the Company or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for overseeing the Group’s and the Company’s financial reporting process.
UBP INTEGRATED REPORT 2022 133
FINANCIAL STATEMENTS