Central Pattana Public : Full Year Financial Statement 2021 21 February 2022

Central Pattana Public Company Limited

and its Subsidiaries

Financial statements for the year ended

31 December 2021

and

Independent Auditor's Report

Independent Auditor's Report

To the Shareholders of Central Pattana Public Company Limited

Opinion

I have audited the consolidated and separate financial statements of Central Pattana Public Company Limited and its subsidiaries (the "Group") and of Central Pattana Public Company Limited (the "Company"), respectively, which comprise the consolidated and separate statements of financial position as at 31 December 2021, the consolidated and separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

In my opinion, the accompanying consolidated and separate financial statements present fairly, in all material respects, the financial position of the Group and the Company, respectively, as at 31 December 2021 and their financial performance and cash flows for the year then ended in accordance with Thai Financial Reporting Standards (TFRSs).

Basis for Opinion

I conducted my audit in accordance with Thai Standards on Auditing (TSAs). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of my report. I am independent of the Group and the Company in accordance with the Code of Ethics for Professional Accountants issued by the Federation of Accounting Professions that is relevant to my audit of the consolidated and separate financial statements, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of my audit of the consolidated and separate financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.

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Business acquisition

Refer to Note 2, 3 (a) and 5 to the consolidated financial statements.

The key audit matter	How the matter was addressed in the audit
On 30 August 2021, the Group has acquired the	Audit procedures included:
business of Siam Future Development Public	- read the sale and purchase agreement and analysis
Company Limited and its Subsidiaries in Baht
13,341 million. Management of the Company had	memorandum of business combination prepared
evaluated the fair value of assets acquired and	by the Group to understand key terms and
liabilities assumed from business acquisition. The	conditions;
fair value of assets acquired were evaluated by	- evaluated the assessment of the identification of
market comparison and income approach
discounted cash flows. Such business acquisition	assets acquired and liabilities assumed and fair
had significant amounts and involved with	value of valuation methods of the business
judgement. I considered as the key audit matter.	acquired that prepared by management of the
	Company;
	- evaluated the significant assumptions that
	management used in market comparison and
	discounted cash flows;
	- considered the adequacy of the disclosure in
	accordance with the related Thai Financial
	Reporting Standards.

Revenue recognition

Refer to Note 3 (s), 4 and 24 to the consolidated and separate financial statements.

The key audit matter	How the matter was addressed in the audit
Revenue from rental and service are significant	Audit procedures included:
amounts in the financial statements. Those	- understanding the revenue recognition process by
revenues are based on a large number of tenancy
agreements and service agreements, each with	inquiring these activities with the relevant
variety of contractual terms and conditions	management and reading a sample of tenancy
including rental and service discounts given to	agreements and service agreements to understand
tenants. In 2021, the Group considered to provide	the key contractual terms and conditions to assist in
rental discounts to tenants in shopping centers that	identifying the risks of inappropriate income
has effect from the COVID-19 pandemic. Such	recognition pertaining to the various revenue
transactions were lease modification and had	streams;
material amounts.	- testing of internal control over the revenue
Consequently, the accuracy and completeness of	process including key manual controls,
revenue recognition relating to tenancy agreements	including but not limited to, the controls on the
and service agreements are areas of focus for my	approval of lease contracts and changes to lease
audit.	terms and the input of this information to the
	accounting system, controls on the invoice
	billings and collection processes, controls on the
	approval of rental discount granted and credit
	note issued;
	- testing of systems-based controls over the revenue
	process with assistance of KPMG IT specialists
	including testing of controls over system
	configuration of rental pricing data and billing
	process and the linkage to usage data that drives
	revenue recognition;
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Revenue recognition

Refer to Note 3 (s), 4 and 24 to the consolidated and separate financial statements.

The key audit matterHow the matter was addressed in the audit

- testing the recording of revenue from rental and service using a sampling basis and comparing contractual terms and conditions stipulated in the lease agreements with related documents including discount, testing calculation, collection; and

- assessing the adequacy of the disclosure in accordance with the related Thai Financial Reporting Standards.

Emphasis of Matter

I draw attention to note 5 during the year ended 31 December 2021. The Group has business acquisition in Siam Future Development Public Company Limited and its subsidiaries and the engaging independent appraisers to determine the fair values of assets acquired and liabilities assumed from a business acquisition and the appraisal has not yet been completed. Therefore, the determination of the fair value and the allocation of the purchase price was determined and is subject to potential amendment. My opinion is not modified in respect of this matter.

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. The annual report is expected to be made available to me after the date of this auditor's report.

My opinion on the consolidated and separate financial statements does not cover the other information and I will 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 identified above when it becomes available 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.

When I read the annual report, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the correction be made.

Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with TFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial statements, management is responsible for assessing the Group's and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Company or to cease operations, or has no realistic alternative but to do so.

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Those charged with governance are responsible for overseeing the Group's and the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements

My objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with TSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with TSAs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Company's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.

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