PTT Public Company Limited and its subsidiaries
Report and consolidated accounts December 31, 2021
The independent auditor’s report
To the Shareholders of PTT Public Company Limited
I have audited the accompanying consolidated financial statements of PTT Public Company Limited and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2021, and the consolidated statements of income, comprehensive income , changes in equity ownership and cash flows for the year then ended, together with the notes to the consolidated financial statements, including a summary of significant accounting policies, and have also audited the separate financial statements of PTT Public Company Limited for the same period.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PTT Public Company Limited and its subsidiaries and of PTT Public Company Limited as at 31 December 2021, their financial performance and their cash flows. cash for the year then ended in accordance with Thai Financial Reporting Standards.
Basis of opinion
I conducted my audit in accordance with State Auditing Standards and Thai Auditing Standards. My responsibilities under these standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements part of my report. I am independent of the Group in accordance with the State Auditing Standards as issued by the State Audit Commission and the Code of Ethics for Professional Accountants as issued by the Federation of Accounting Professions with respect to relates to my audit of the financial statements, and I have fulfilled my other ethical responsibilities in accordance with the State Auditing Standards and the Code. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Main audit questions
Key audit matters are matters that, in my professional judgment, were of most significance in my audit of the current period financial statements. These matters were addressed in the context of my audit of the financial statements as a whole and the formation of my opinion thereon, and I express no separate opinion on these matters.
I have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report, including on these issues. Accordingly, my audit included performing procedures to address my assessment of the risks of material misstatement of the financial statements. The results of my audit procedures, including the procedures performed to address the matters below, form the basis of my audit opinion on the accompanying financial statements as a whole.
The main audit questions and how the audit procedures respond to each question are described below.
Use of accounting judgments and estimates during the COVID-19 pandemic
The spread of the COVID-19 pandemic around the world has led to a slowdown in the global economy and has affected all businesses, including the energy industry. Although the public has been gradually vaccinated until 2021, to lessen the severity of the disease, resulting in the easing of pandemic prevention measures and allowing a continued resumption of economic activity, the pandemic remains present in Thailand, along with general prevention measures. As a result, the Thai economy has not fully recovered. I focused on reviewing the impairment of certain assets, namely goodwill, property, plant and equipment, other intangible assets, exploration and evaluation assets and related provisions, since impairment assessments assets and associated provisions constitute significant accounting estimates, which require management to exercise judgment and make accounting estimates, particularly with regard to the identification of cash-generating units, estimates of future cash flows that the Group expects to receive from these asset groups and the determination of an appropriate discount rate. The circumstances described above affect these judgments and estimates.
Gained an understanding of the Group’s business environment and an understanding of the process for assessing the impact of the COVID-19 pandemic on asset impairment testing considerations and related provisions, including the recording of the relevant accounting transactions, making inquiries of the Group’s management and examining the supporting documents. I appreciated the identification of the cash-generating units, after reviewing and evaluating the key assumptions used by management to estimate the expected future cash flows and determine the discount rate used by interviewing the persons responsible and by performing a comparative analysis with different sources of information concerning both the Group and the industry. In addition, I compared cash flow projections for prior periods with actual results of operations, including relevant variables, to assess management’s use of judgment in estimating cash flows. expected future cash flow. To this end, I have followed the Group’s assessment of the impact of these circumstances up to the date of this report. Additionally, I reviewed the disclosure of the impact of the COVID-19 pandemic on impairment testing of related assets and provisions.
As indicated in Note 42 to the financial statements, the Group invested in various activities during the year 2021. At the acquisition date, the Group accounted for these transactions by applying the purchase method, recognizing and measuring assets acquired and liabilities assumed at fair value and recognizing goodwill or gain on the acquisition of a business at a price less than the fair value of the net assets acquired. I have focused on these business acquisitions since they are material to the financial statements as a whole and management was required to exercise substantial judgment in assessing the fair values of assets acquired and liabilities assumed. Consequently, there is a risk with respect to the recognition and measurement of the assets acquired and the liabilities assumed, in particular the recognition of goodwill or a gain on the acquisition of a business at a price less than the fair value of the net assets acquired.
I performed the audit procedures by communicating with the component auditors and obtaining an understanding and evaluation of the work of the auditors in order to obtain sufficient and appropriate audit evidence related to the evaluation of the business combination transactions .
- A review of the terms and conditions of the share purchase agreements and inquiries with management about the nature and objectives of the acquisition to assess whether the acquisition meets the definition of a business combination , including a verification of the fair value of the consideration transferred for the acquisition of the business.
- Testing of the fair value calculation of assets acquired and liabilities assumed using the purchase price allocation method prepared by management, including the assessment of the competence, qualifications and independence of management’s experts , by evaluating the significant methods and assumptions used in calculating the fair value of assets acquired and liabilities assumed, comparing those assumptions with information from internal and external sources, and comparing past cash flow projections with actual operating results to assess cash flow projections and the discount rate applied by subsidiary management.
- A review of the accounting for goodwill or gain on the purchase of a business at less than the fair value of the net assets acquired, and disclosures relating to business combinations in the notes to the statements financial.
State auditing standards as described in the Basis of opinion section and the Auditor’s Responsibilities for the Audit of the Financial Statements section relate only to the audit of the financial statements, which are prepared by management in accordance with Thai financial reporting standards.
The management is responsible for the other information. Other information includes information included in the Group’s annual report, but does not include the financial statements and my audit report thereon.
My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
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Trends Technical Analysis PTT PUBLIC COMPANY LIMITED
|Short term||Middle term||Long term|
Evolution of the income statement
|Medium consensus||TO BUY|
|Number of analysts||19|
|Last closing price||
|Average target price||
|Average Spread / Target||23.0%|