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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
106
Independent
Auditors’ Report
To the members of Fima Corporation Berhad
(Incorporated in Malaysia)
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the financial statements of the Group and of the Company, which comprise the statements of financial position as at 31
March 2020, and statements of 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 110 to 190.
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 March 2020 and of their financial performance and their cash flows for the year then ended
in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) 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 Code of Ethics for Professional Accountants (including International
Independence Standards) (“IESBA Code”), and we have fulfilled our 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 year. We have determined that there are no key audit matters to communicate in our
report on the financial statements of the Company. The key audit matter for the financial statements of the Group is described below. 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. For each matter below, our description of how our audit addressed the matter
is provided in that context.
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section of our
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis of our audit opinion on the accompanying financial statements.
Revenue recognition
(Refer to Note 3 to the financial statements)
Revenue from production of security documents and net sale of oil palm products recognised by the Group amounted to approximately
RM134.0million and RM103.1million respectively. Given itsmagnitude and significant volume of transactions involved, revenue recognition
is identified as an area of focus in our audit.
As part of our audit, we performed the following procedures to address the possible cause of revenue misstatement, particularly in respect
of the timing and amount of revenue recognised: