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ANNUAL REPORT 2021 97

InDEPEnDEnT auDITORS’ REPORT
to the members of Export-Import Bank of malaysia Berhad
(Incorporated in malaysia)

Key audit matters (cont’d.)

Risk area and rationale Our response

Insurance contract/Takaful certificate and expense liabilities
(cont’d.)

Reinsurance assets are quantified from claims case (d) reviewed the assumptions used by the Appointed Actuary
estimates, paid claims data and estimates of ultimate claims and rationale for conclusions made thereon;
settlement amount. The Group and the Bank have reinsurance
arrangements designed to protect its aggregate exposure (e) assessed consistency of valuation methodologies applied;
to adverse development covers in the form of excess of loss
contracts and catastrophic claim events. (f) assessed whether changes made to the actuarial models are
in line with our understanding of business developments,
Refer to summary of significant accounting policies in Note and our expectations derived from market experience;
2.4(m), significant accounting estimates and judgement in (g) performed independent analysis and re-computation of
Note 3 and the disclosures of these provisions in Note 22 to the the provision for these liabilities of selected classes of
financial statements. business. We focused on the largest and most uncertain
reserves. We compared our independent analysis to those
performed by management; and
(h) reviewed management’s estimation of the calculated
reinsurance assets and thereon, their assessment of the
credit quality of the underlying reinsurance counterparties.
We also considered whether the disclosures in relation to the
provision for these liabilities comply with the relevant disclosure
requirements.

Information other than the financial statements and auditors’ report thereon

The directors of the Bank are responsible for the other information. The other information comprises the directors’ report and
the information included in the annual report, but does not include the financial statements of the Group and of the Bank and our
auditors’ report thereon, 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 Bank does not cover the other information 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 Bank, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the
Group and of the Bank or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report,
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 on the directors’ report.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to the directors of the Bank and take appropriate action.