GPSC FN_ENG

4 F I N A N C I A L R E P O R T 2 0 1 7 Independent Auditor’s Report Impairment on old machines and assets not used in operation Refer to Note 3 15 and 16 to the consolidated and separate financial statements The key audit matter How the matter was addressed in the audit The Group holds old machines and certain group of assets which are not used in operation due to the fact that the projects has been suspended for certain periods and no progress. The old machines and assets not used in operations totalling net balances of Baht 182.7 million in the consolidated financial statements. There is a risk of recoverability of the assets which requires significant judgement of key assumptions and estimates of future sales prices. I focused on the estimate of recoverable amount that is based on the higher of the value in use or the fair value less cost to sell. My audit procedures in this area included, among others : • evaluating the appropriateness of estimated recoverable amount process of the underlying asset; • challenging the fair value of underlying asset estimated by the independent appraiser using market approach for selling consideration purpose; • assessing the competency of the independent appraiser engaged by the Group; • consulting KPMG’s external expert evaluating the appraisal report; • evaluating the appropriateness of the recoverable amount and the key assumptions, including sales volume and prices, operating costs and long-term growth rates, which included comparing these inputs with externally derived data as well as my knowledge of the client and the industry; • consulting KPMG valuation specialists to assist in evaluating the appropriateness of the discount rates applied comparing with market average; • evaluating the adequacy of financial statement disclosures according to Thai Financial Reporting Standards. Other Information Management is responsible for the other information . The other information comprises the information included in the annual report, but does not include the consolidated and separate financial statements and my auditor ’ s report thereon . My opinion on the consolidated and separate financial statements does not cover the other information and I do not express any form of assurance conclusion thereon . In connection with my audit of the consolidated and separate financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated . If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report the fact . I have nothing to report in this regard . Impairment on old machines and assets not used in operation Refer to Note 3 15 and 16 to the consolidated and separate financial statements The key audit matter How the matter was addressed in the audit The Group holds old machines and certain group of assets which are not used in operation due to the fact that the projects has been suspended for certain periods and no progress. The old machines and assets not used in operations totalling net balances of Baht 182.7 million in the consolidated financial statements. There is a risk of recoverability of the assets which requires significant judgement of key assumptions and estimates of future sales prices. I focused on the estimate of recoverable amount that is based on the higher of the value in use or the fair value less cost to sell. My audit procedures in this area included, among others : • evaluating the appropriateness of estimated recoverable amount process of the underlying asset; • challenging the fair value of underlying asset estimated by the independent appraiser using market approach for selling consideration purpose; • assessing the competency of the independent appraiser engaged by the Group; • consulting KPMG’s external expert evaluating the appraisal report; • evaluating the appropriateness of the recoverable amount and the key assumptions, including sales volume and prices, operating costs and long-term growth rates, which included comparing these inputs with externally derived data as well as my knowledge of the client and the industry; • consulting KPMG valuation specialists to assist in evaluating the appropriateness of the discount rates applied comparing with market average; • evaluating the adequacy of financial statement disclosures according to Thai Financial Reporting Standards. Other Information Management is responsible for the other information . The other information comprises the information included in the annual report, but does not include the consolidated and separate financial statements and my auditor ’ s report thereon . My opinion on the consolidated and separate financial statements does not cover the other information and I do not express any form of assurance conclusion thereon . In connection with my audit of the consolidated and separate financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated . If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report the fact . I have nothing to report in this regard .