Delta Electronics (Thailand) Public Company Limited and its subsidiaries
Report and consolidated financial statements as of December 31, 2021
Independent auditor’s report
Shareholders of Delta Electronics (Thailand) Public Company Limited
I have audited the accompanying consolidated financial statements of Delta Electronics (Thailand) Public Company Limited and its subsidiaries (the Group), which includes a consolidated statement of financial position as at 31 December 2021 share capital and cash flows for the year then ended. point, as well as notes to the consolidated financial statements, including a summary of key accounting policies, and audited separate financial statements of Delta Electronics (Thailand) Public Company Limited for the same period.
In my view, the financial statements mentioned above accurately reflect in all material respects the financial position of Delta Electronics (Thailand) Public Company Limited and its subsidiaries and Delta Electronics (Thailand) Public Company Limited as of December 31, 2021, their financial results and cash flows for the year ended in accordance with Thai Financial Reporting Standards.
Reason for opinion
I conducted the audit in accordance with Thai auditing standards. My responsibilities under these standards are further described in Auditor’s responsibilities for auditing financial statementssection of my report. I am independent of the Group under the Code of Ethics for Professional Accountants issued by the Federation of Accountant Professions relevant to my audit of the financial statements and I have performed my other ethical duties in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
The main audit issues
The key audit issues are those issues that, in my professional opinion, were of the greatest importance in my audit of the financial statements for the current period. These issues have been considered in the context of my audit of the financial statements as a whole, as well as in forming my opinion on this, and I do not give a separate opinion on these issues.
I performed the duties described in Auditor’s responsibilities for auditing financial statementssection of my report, including on these issues. Accordingly, my audit included performing procedures designed to respond to 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 following issues, form the basis for my audit opinion on the accompanying financial statements as a whole.
The following are key audit questions and how audit procedures respond to each question.
Recognition of proceeds from the sale of goods
Revenue from the sale of goods is one of the Company’s significant accounts because the recorded amounts of revenue will directly affect the Company’s profit or loss for the year. In addition, the company has a large number of customers with different commercial conditions. Therefore, there are risks to the amount and timing of revenue recognition. For this reason, I have paid particular attention to the Company’s recognition of revenue from the sale of goods to ensure that revenue is accounted for properly and in accordance with relevant accounting standards.
I studied the recognition of a company’s revenue by gaining an understanding and evaluation of the effectiveness of the company’s internal control over the revenue cycle. Based on the sample, I also examined supporting documents for sales transactions that took place during the year and towards the end of the reporting period. In addition, I reviewed the credit notes issued by the Company to its customers after the end of the period, and performed analytical procedures to review the sales account to identify possible irregularities in sales transactions throughout the period.
Ensuring a reduction in the value of inventory
Estimating the net realizable value of inventories, as set out in Note 9 to the financial statements, is an area of significant management consideration, and the Company’s inventories are high-tech products that become obsolete faster than some other products. There is a risk with respect to the amount of the provision set aside to reduce the cost of inventories.
I evaluated and tested the company’s internal control tools relevant to determining reserves to reduce the cost of inventories, making a request to the responsible managers, gaining an understanding of controls and selecting representative samples to test the developed controls, and evaluating the method and assumptions applied. guidance in determining such collateral, gaining an understanding of the basis used in determining the provision for reducing the cost of inventories, and considering the sequence of application of that basis. In addition, I compared data on inventory aging and inventory movements to identify product lines with lower-than-usual inventory turnover. I also compared the details of the net amount that the organization expects to receive from the sale of inventories after the date of the financial statements with the value of inventories for each product line.
Impairment of goodwill
As of December 31, 2021, Goodwill in the Group was 443 million baht. I focused on reviewing the impairment of goodwill because the assessment of impairment of goodwill is a significant accounting estimate that requires management to exercise a high degree of judgment in identifying cash-generating units, estimating cash inflows that are expected to be generated from this group. assets in the future, and set an appropriate discount rate. So there are risks to the amount of goodwill.
During a goodwill impairment audit, I assessed the cash-generating units identified by gaining insight into and verifying the key assumptions used by management in preparing cash flow estimates that are expected to be realized from the asset group and applying discount rates. details with sources of information about the group and the industry.
Management is responsible for other information. Other information includes information included in the Group’s annual report, but does not include the financial statements and my audit opinion on it. The group’s annual report is expected to be available to me after the date of this audit opinion.
My opinion on the financial statements does not apply to other information, and I do not express any form of assurance.
In connection with my audit of the financial statements, I am required to read other information and, in doing so, consider whether other information in the financial statements is materially inconsistent, whether the knowledge gained during the audit is materially inaccurate. .
When I read the Group’s annual report, I conclude that there is significant misstatement, I must report this to those responsible for management to correct the misstatement.
Responsibilities of management and those responsible for management, for financial reporting
Management is responsible for the preparation and fair presentation of financial statements in conformity with Thai Financial Reporting Standards and for such internal controls as management considers necessary to prepare financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern by disclosing, as appropriate, continuity issues and using the accounting principle when management does not intend to liquidate or discontinue the Group. surgery, or has no real alternative other than to do so.
Those responsible for management are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for auditing financial statements
My goals are to gain reasonable assurance that the financial statements as a whole are free from material misstatement, due to fraud or error, and to issue an audit opinion that contains my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Thai auditing standards will always reveal material misstatement, if any. Incorrect allegations may arise as a result of fraud or error and are considered material if individually or in combination they may be reasonable
Delta Electronics (Thailand) pcs posted this content on February 16, 2022 and is solely responsible for the information contained therein. Distributed to the public, unedited and unchanged, at February 16, 2022 08:33:02 UTC.
TRENDS IN TECHNICAL ANALYSIS DELTA ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED
The evolution of the income statement
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