BIMB Integrated Annual Report 2017

The key audit matter identified are: How the matter was addressed in our audit Provision for outstanding claims – Family and general takaful contract liabilities The provision for outstanding claims comprises the estimated cost of settling all claims incurred but unpaid at the year end, whether reported or not. The estimation of outstanding claims requires significant judgment, particularly in determining the ultimate cost of all claims incurred but not settled at the end of the reporting period, whether reported or not, together with the related claims handling costs. Judgment is required to assess the extent to which past claims trends may not represent the current situation and its impact on the assumptions over claims projection. Refer to significant accounting policy in Note 2.14 and Note 2.15, the disclosure of takaful contract liabilities in Note 22 and the disclosure of liquidity risk in Note 45.5. 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 information included in the annual report, but does not include the financial statements of the Group and of the Company and our auditor’s report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the annual report and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the annual report and, in doing so, consider whether the annual report is materially inconsistent with the financial statements of the Group and of the Company 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 the annual report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the ability of the Group and of the Company 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 or the Company or to cease operations, or have no realistic alternative but to do so. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF BIMB HOLDINGS BERHAD (Company No. 423858-X) (Incorporated in Malaysia) 302 BIMB HOLDINGS BERHAD Integrated Annual Report 2017