the underlying cash flow projections; INDEPENDENT AUDITORS’ REPORT To The Members of Tenaga Nasional Berhad (Incorporated In Malaysia) (Registration No. 199001009294 (200866-W)) FINANCIAL STATEMENTS Sec 5 367 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) Key audit matters How our audit addressed the key audit matters Business Combination – Acquisitions during the financial year (continued) Acquisitions of Dullarbtons Limited and Elipsgeen Limited On 20 December 2023, the Group completed its acquisitions of 100% equity interests in both Dullarbtons Limited and Elipsgeen Limited for a purchase consideration of RM494.0 million. The Group assessed the acquisitions of these subsidiaries as a business acquisition in accordance with MFRS 3 “Business Combinations”. Based on the PPA exercise performed, the fair value of identifiable net assets recognised on thedate of acquisition was RM335.3 million, of which RM84.6 million relates to fair value adjustments. The provisional goodwill recognised amounted to RM158.7 million. We focused on this area because the determination of fair values in the identifiable assets acquired and liabilities assumed, including the identification of intangible assets, requires significant judgement in estimating the underlying assumptions to be applied. Acquisition of Spark Renewables Group (continued) We performed the following audit procedures: (continued) • Checked the calculation of the provisional goodwill arising from the acquisition, being the difference between the total purchase consideration and the provisional fair values of identification net assets acquired; and • Assessed the adequacy and appropriateness of the disclosures relating to the acquisition in the Group's consolidated financial statements. Acquisitions of Dullarbtons Limited and Elipsgeen Limited We performed the following audit procedures: • Agreed purchase consideration to the share purchase agreements; • Assessed the appropriateness of key assumptions, in particular, asset