Khon Kaen Sugar Industry Public : Financial Statement Yearly 2021 (Audited)

REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS

KHON KAEN SUGAR INDUSTRY PUBLIC COMPANY LIMITED

Opinion

We have audited the consolidated financial statements of Khon Kaen Sugar Industry Public Company Limited and its subsidiaries (the "Group") and the separate financial statements of Khon Kaen Sugar Industry Public Company Limited (the "Company"), which comprise the consolidated and separate statements of financial position as at October 31, 2021, and the related consolidated and separate statements of profit or loss, comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated and separate financial statements present fairly, in all material respects, the financial position of Khon Kaen Sugar Industry Public Company Limited and its subsidiaries and of Khon Kaen Sugar Industry Public Company Limited as at October 31, 2021 and its financial performance and its cash flows for the year then ended in accordance with Thai Financial Reporting Standards ("TFRSs").

Basis for Opinion

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

Deloitte Touche Tohmatsu Jaiyos Audit

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current period. This matter was addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.

Key Audit Matter	Audit Responses
Allowance for Expected Credit Losses of Farmer	Significant audit procedures include the following:
Receivables and Loans for Cane Plantation Development	∙ Gaining an understanding of the basis applied in
As at October 31, 2021, the Group has allowance for	determining allowance for expected credit losses
expected credit losses of farmer receivables and loans	of farmer receivables and loan for cane plantation
for cane plantation development, which are significant to	development in general and specific cases, and
the financial statements. Such farmer receivables and	reviewing the consistency of the application of that
loans for cane plantation development are of different	basis.
nature and characteristics.	∙ Inquiring management the appropriateness of
We focused on such allowance for expected losses because	process for identification and judgement of
the allowance for expected credit losses of farmer receivables	expected loss allowance required, including
and loans for cane plantation development are considered to	assessment the reasonableness of the probability
be significant accounting estimates which the management	of default, loss given default and exposure at
is required to exercise considerable judgement in	default by considering the management's reasons
determining the reasonableness of assumptions used in	used to assess the adequacy of the loss allowance
estimating allowance for expected credit losses. Therefore,	based on the assessment of credit risk and
we considered the appropriateness of the assumptions used in	expected to incur of accounts receivables.
determining allowance for expected credit losses of farmer	∙ Involvement of our internal specialists to assess
receivables and loans for cane plantation development is
the appropriateness of model design, assumptions,
a key audit matter.
inputs and formulas used. We tested the data used
The accounting policies and disclosure of allowance for	in the ECL calculation and recalculating the
expected credit losses of farmer receivables and loans	allowance for expected credit loss for a sample of
for cane plantation development are in Notes 4.3, 4.15,	models.
5, 18 and 19 to the financial statements.	∙ Evaluating whether the disclosure in the notes
	to the financial statements is sufficient and
	appropriate in accordance with the financial
	reporting standards.

Other Information

Management is responsible for the other information. The other information comprises information in the annual report, which is expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate financial statements, our 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 financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Deloitte Touche Tohmatsu Jaiyos Audit

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When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and the management of the Group.

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 Company or to cease operations, or has no realistic alternative but to do so.

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

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

Our 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 our 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, we exercise professional judgment and maintain professional skepticism throughout the audit. We 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 our 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 internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Deloitte Touche Tohmatsu Jaiyos Audit

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• 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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our 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. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we 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 our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Wimolporn Boonyusthian

Certified Public Accountant (Thailand)

BANGKOKRegistration No. 4067

December 22, 2021 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

KHON KAEN SUGAR INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES
	STATEMENTS	OF FINANCIAL POSITION
	AS AT OCTOBER 31, 2021
									UNIT : BAHT
	Notes	Consolidated Financial Statements		Separate Financial Statements
			as at		as at		as at		as at
			October 31,		October 31,		October 31,		October 31,
			2021	2020	2021	2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents	6.3		224,064,164	137,729,493	7,093,086	11,686,005
Temporary investments			-	263,973	-	-
Trade and other current receivables	8		1,064,093,678	1,202,630,557	930,706,618	747,434,385
Finance lease current receivables	9		19,336,762	19,999,475	-	-
Short-term loans	10		588,434,890	785,834,362	1,322,175,395	2,491,131,273
Inventories	11		2,707,437,417	2,049,298,360	1,269,883,150	1,120,819,020
Current biological assets	12		46,380,239	41,680,290	-	4,684,418
Other current financial assets	13 and 28	91,232,880	-	90,966,450	-
Other current assets			39,628,287	36,208,298	9,477,738	13,227,831
Total Current Assets			4,780,608,317	4,273,644,808	3,630,302,437	4,388,982,932
NON-CURRENT ASSETS
Investments held as available for sale	14		-	149,565,340	-	149,565,340
Other non-current financial assets	13		172,883,030	-	165,636,010	-
Investments in associates	15		4,649,914,827	4,273,201,242	3,380,458,786	3,380,458,786
Investments in subsidiaries	16		-	-	4,613,845,717	4,572,347,333
Other long-term investments	17		-	7,551,354	-	326,950
Trade and other non-current receivables	18		147,364,523	116,926,448	64,024,710	17,127,614
Finance lease non-current receivables	9		361,250,792	360,600,838	-	-
Long-term loans	19		136,623,772	144,347,254	2,469,520,961	2,059,172,684
Investment properties	20		6,111,603,918	5,774,844,664	2,009,268,162	1,811,801,873
Property, plant and equipment	21		25,006,759,320	25,890,581,776	9,007,137,280	9,474,701,899
Right-of-use assets	22		42,748,819	-	298,824,344	-
Other intangible assets			29,710,527	37,358,296	23,292,211	29,309,577
Deferred tax assets	30.2		1,131,195	1,014,109	-	373,560
Other non-current assets			80,825,441	91,919,271	54,700,404	64,388,117
Total Non-current Assets			36,740,816,164	36,847,910,592	22,086,708,585	21,559,573,733
TOTAL ASSETS			41,521,424,481	41,121,555,400	25,717,011,022	25,948,556,665

Notes to the financial statements form an integral part of these statements