Page 199 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.2 Independent Auditor’s Report 197
Annual Report 2021/22

I examined the transactions above by gaining an understanding of the process testing the calculation and considering the relevant opinions of the Group’s legal
of management’s consideration of the service concession arrangements advisors which has been used in consideration of the aforementioned matters.
to determine whether the management understood the agreements, and I also have considered disclosures of significant information of these matters.
management’s exercise of judgement in analysing the contents of the
agreements and the recording of the transactions in accordance with the scope Impairment of investments in subsidiaries, joint ventures and
of Thai Financial Reporting Standard Interpretations 12 Service Concession associates
Arrangements. We also examined the recognition of revenues from construction As at 31 March 2022, the Group had investments in subsidiaries, joint ventures
and installation services and train procurement services by reading the and associates which are significant to the financial statements as discussed
agreements to consider the conditions relating to revenue recognition, made in Notes 14, 15 and 16 to the financial statements. The determination of
enquiry of responsible executives, gained an understanding of the Group’s impairment of investments are significant accounting estimates requiring
process of making cost estimates for projects, and checked estimates of project management to exercise a high degree of judgment in assessing impairment
costs to the project budgets. We checked actual costs against supporting indicators and recording impairment of investments.
documents, tested the calculation of the percentage of completion based on
actual costs incurred and compared the percentage of completion as evaluated I performed audit procedures by gaining an understanding in assessing
by the counter parties or independent experts to the percentage of completion impairment indicators and considering the identification of cash generating units
based on actual costs incurred. In addition, we also examined the recognition and the financial models selected by management, by gaining an understanding
of revenues from provision of operation and maintenance services to determine of management’s decision-making process, as well as testing the significant
whether it was compliant with the agreements including related interest income assumptions applied by management in preparing estimates of the cash flows
by reading and gaining understand the agreements and considered the actual expected to be realised from the assets in the future, by comparing those
service to be in accordance with the details stipulated in the agreements, assumptions to information from both internal and external sources of the entity
understand the assumptions for the relevant revenue recognition including and comparing past cash flow projections to actual operating results in order
examining evidence of services rendered provided by the Group and receiving to evaluate the cash flow projections. I also evaluated the discount rate applied
services from relevant government authority and testing the calculation of by the management through analysis of the weighted average cost of capital
revenues and interest.
of the entity, tested the calculation of the financial models and considered
the appropriateness of the recoverable amounts (the higher of fair value less
In addition, I have audited the balance of such transactions by sending a cost of disposal and value in use) of the assets. Moreover, I reviewed the
letter confirming the balance of the debtor and reconciling the difference disclosures made with respect to the impairment assessment for investments.
that occurred which were verified with related documents, and considered
allowance for impairment of the debtor and classification of the transaction by
understanding and inquiring about facts and assumptions used by the Group,