Page 200 - BTSGroup ONE REPORT 2021/22_EN

198 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

Classif cation and measurement of fair value of f nancial instruments transactions relating to sale of net future fare box revenues”). As discussed in
As at 31 March 2022, the Group has financial instruments which are classified Note 5 to the financial statements, in making these allocations the management
and presented as a separate item in the statement of financial position whose needed to apply significant judgement to determine the basis and assumptions
values are significant to the financial statements as disclosed in Note 13, 23 for recognition of the transactions in compliance with the terms and conditions
and 32 to the financial statements. The determination of fair value of financial stipulated in the agreements made with BTSGIF.
instruments are significant accounting estimates requiring management to
exercise a high degree of judgment in selection of the method and consideration I examined the allocation transactions relating to the sale of net future fare
of relevant assumptions. box revenues by assessing and testing the internal controls with respect to
the transactions by making enquiry of responsible executives, gaining an

I assessed the classification of financial instruments by gaining an understanding understanding of the controls and selecting representative samples to test
of content and details of financial instruments, and policy in entering the the operation of the designed controls. On a sampling basis, I also tested
financial instruments if they are in accordance with the scope of the financial allocation transactions relating to the sale of net future fare box revenues and
reporting standard. I also assessed the method used in fair value measurement, sent a confirmation request to BTSGIF for the balance of net future fare box
for instance, market value, discounted cash flow, and other appropriate method revenue remittance, consisting of the outstanding inter-company balance and
for each financial instrument. I have also assessed the information used in the amount of fare box revenue remitted during the year.
calculation of fair value e.g. estimation of the cash flows and financial models
selected by the management of the Group by gaining an understanding of Other Information
the management’s decision-making process as to whether the decisions are Management is responsible for the other information. The other information
consistent with the facts and contents of each financial instrument. In addition, comprise the information included in annual report of the Group, but does not
I considered the appropriateness of significant assumptions and tested the include the financial statements and my auditor’s report thereon. The annual
calculation of the fair value of financial instruments using the selected financial report of the Group is expected to be made available to me after the date of
model applied by management. this auditor’s report.

Allocation of transactions relating to sale of net future fare My opinion on the financial statements does not cover the other information
box revenues and I do not express any form of assurance conclusion thereon.
In 2013, the Group sold the rights to collect future fare box revenues to BTS
Rail Mass Transit Growth Infrastructure Fund (“BTSGIF”), and the basis of In connection with my audit of the financial statements, my responsibility is
recognition of the relevant transactions from an accounting and tax perspective to read the other information and, in doing so, consider whether the other
is discussed in Note 1.2.1 a) to the financial statements. During the year, the information is materially inconsistent with the financial statements or my
Group had significant transactions relating to the above transaction, consisting knowledge obtained in the audit or otherwise appears to be materially misstated.
of allocations of assets, liabilities, revenues and expenses to BTSGIF (“Allocation