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Audit Results Update Report to the Audit, Risk and
Compliance Committee
for the 52 week period ended 25 March 2018
Post Office Limited
27 July 2018
The better the question. The better the answer.
The better the world works.
EY
Bulisiing a better
working world:
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‘he contents of this meyort ae subject tothe tems ant cuins of cu appirtment asset out nour engagement etter dated 1 ay 2016
‘Mis eeportie made solely tothe ARC Commie, Bord of Dirstos ans Mar agement of Pet Ofc Lined in accurance wit our engagement etter Our wodkhas Beem undeken so thet ne nght state
tothe ARC Covanitee, Bood of Dkecor and Management of Pot fice United tose matters we are ecu to stato hem ints rept and oro other puapose.
othe lest extent pemites by aw we dot aoceptorasstieresposibiy to anyone ator than the ARC Commie, Board of Director ané Management of Peet ce tid for ths eportor forthe
‘pines we have foes. souk not be proved ty thn pay witout ow porate consent.
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oat Dos Linites
20Finsbu Street
losdon
E02y 989
‘Bear Bember of he Audi, Risk a: Compliance Commitee,
2017/18 Audit Results Update Report
We ave slated to prostetoe uit Rests pte Report forthe
foctconing meeting the Audit, Risk ard Compance (ARC) Commitee
{his report summarises cbr tpdetec contusions in eae tour sud of
Post Dice Lines’ (he Troup inant posi anc the esuts ote
‘operations oth 52 werk pied ended 25 Rint 2088 the yea,
‘is report provides an upeste tothe report issues on £4 May 2088 tbe
“de ests Repo) ae shou te ea confusion with hat ep.
‘ie por so conta corral cusunany of auch ferences an
commuricatons regeting our ndependence,
27 ly 2088
‘This repotisintened sot tore ntomation and use of He ARC
‘comeaite, Board of ireors ad management Isnt intended tobe an
should note wees by anyone other than these specie pats tout our
pect wten consent,
Wewelcome the opportunity to discuss ts repet with you atthe ARC
‘comet meeting ot 31 ly 2038,
Yours st,
GRO
ater eer
Poriner
Foran on boat of Ems: Young LP
BD oosinaiaor
ret
16
12 September 2022
[Document title]
2
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4 I Executive summary
Sur opinion ane! status of our adit
‘rae wei spect othe spa parent compan bstaniy complete The sitet
pen ere ein oa rae preci eset Apes
Se have incest an opt on he sats tats ich wer ice i our Ress Rept
de £6 ay 2015 wn scons 2 Soft eer
‘ne bss of ewok promedta date, arpt sig a ngulted autt ikon he
‘ennthatisinee notion fh por. Aerial contin hee ne no Empl
attmater incu tcomsiersin sce =v targa iin apa i
Dosis.
tthe en's isn semen riya enn 25 Mach 2018 hs bee peed in
atcortarce wh emational Sands op Acting 3 oder prvi essen ssunnce tat
Sour fins sateen ere eof waters sateen.
Audit scope and audit approach for the year ended 28 March
2048
Tere as bees nochange tow audcope ane apc fom at rpete nau Aust Rees
Report.
Accounting matters and judgemerits:
‘here has heer no change tote signa rks or othe acoutting matters judgements om howe
‘enti in he Au Reset Repo.
ey
tn Sections 2 en 2 ofthis report we have included a epate onthe sttus of matter which
‘ere open tthe time thet ou previnus Au Rests Report was aevediefusing more
sunsive dcuesen on ingame of guodwit and otherong-Bied aests captain sod
iposal of ted assets, rosin for legal clin in patel the Hon cb-postnasters
claim, Perais vuaton ara dzoibsw, até VAT secoeting hen the majony ofthe work on
‘hse sks had vatbeen period that tage.
Summary of audit differences
We have idened cose aut citeresces hich were greater thax our hestold for reporing
sud cteeces of £482, (0% Futur deta, incuding the tumsiouns elect 0! peor year
adjustments, cas bef ie Section $ of Sis report.
We falsed our testing nd he tinal concusion cn our eveuation ot general contro was
tate are able ore) ante T proces ford eleva applications foroer 2047, 18 aust
Fre deta canbe found ie Section 8 ofthis report. We wi sue amanagementetterie
ue coun,
ndence, nomaud! services and fees
no change four ingopendence and no-auck serdoes fees tom tat
Dreseted in he Audit Rests Report.
(urate aiscssions msn ongoing and nee tobe flied porto sing
12 September 2022
[Document title]
3
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2 OES matters al
rapairment of Goodwill and other longetived assets
Hawagement 9
manneencnee eeu we
PR8Gs Wis Faye os
managment analy
What is the risk?
Otherlong-lved asets
F£2016/17 wasthe fit finncial year when Post Ofce generated oft. Tie was achieved
through the implementation ofthe network tenstormation programme togetherwth a focus on
‘coatbase reduction nine withthe ranstonnation programme, management revisited their
accountng estimate frimpaiment of intangible and fed assets; E reviewed this change as
part the prior year aut and agred with the change of accounting estimate Aza result,
previous impaient on lng ved assets was reversed resutingin assets of £325m at 28
March 2017 now being caved forward
‘We have focused on this area to contin that the canying value of asets tthe year end is
appropriate and this area inves sigificantjudeyent about the future resus ofthe business
‘and the assumption (flscount rates, et.) applied to fturecash ow forecasts.
Misstatements that may ocurin elation tots sk would affect Non-cument assets nd
Inpaiment expenses and Depreciation and Amortization nthe Income Statement.
we ntost focuse
> Reatonabnets othe atsuntons undeing the tue as ow reat Pst
Office and POMS
1» Reasonableness of th discount ate short tenn and fon tenm growth ates
ce wih rogone oon cone that
judgements: significant risks
What dict we do and our conctusions?
‘Our work was fcused onthe impsimentanahsis prepared by management fr performing the
lpaiment test ortangble and intangible assets
> We concur with management's conclusion of there being? CGUs; POL and POMS.
>> We auited the POMS impaiment model as part of our testing ofthe POMS good for
which our concisions ae included in ourecutsreportissued on 14 May 2018. We noted
that there is significant headroom of£53m compared to POMS asets of 52m, wich
inclue goodwill of £44, Hence the focus of our testing has been onthe POL CGU which
has hesdroom of €240m and assets of £362m of wich other long-lived assets are
361m.
We noted that POL has use forecast peti of 3 yearfor the pupose ofits impainent
testing We concur that his isin ine with the requirements of1AS 36 which allows 8
forecast period of upto 5 years.
We chatlenged the accuracy of management's cash flow forecasting by comparing the
actual esi for 2017/18 against budget aswel as by taking the actual performance for
the fst 2 months of 2018/19 and extrapolating forthe fullthe year and comparing to
budget. Based on this we note that POL is conservative in t's budgeting process and that
actual pefonnance i better than budget. As an example POL budgeted EBITDA of £280 for
2017/8 with actual EBITDA of £26 which i sinifcant higher.
We engaged our valuations experts to assist with the assessment the discount ate (9%)
and ong term growth rate (0%) applied othe made. Based on this we concude that the
iscount rate of 9% islower than the recommended range of 8.99 - 13.8% proved by our
valuations expert. However, ven significant headroom of £240 for 2017/18 this wil not
have amateial impact.
12 September 2022
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4
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2 I Accounting matters and judgements: significant risks (continued)
impairment of Goodwill and ather iongdived assets
» Weelso note that one ofthe ey assumptions inthe cash fow forecasts the receipt ofthe
‘network subsidy payment of £50m pa. for period beyond 2020/21. POL has goverment
confimnation of thst 2020/21 butnot for any period beyond that. However, theyhave
included thisin the model on the bass that they have no indication fom the goverment that
‘such amounts wll ot be received going forward. We note that ourimpainnent modelis
sersite to this assumption Le. an impalmert of £208 wl aise Keeping all other variables
‘constant shoul this subsidy not be received. On the basis that therein contreictory
cvidence we consider the inclusion ofthis ie i
aso speci ion on this
tinued}
We pertomed sensitties onthe model by varying each ofthe inputs. increase in discount
‘ate, reduction in EBITDA and reduction in network subsidy payment and note tat provides
the fllowng headroom,
a
ee
ste.
peosecr
Based on the procedures performed we note there is no impainment GFHi6i ong ined assets.
12 September 2022
[Document title]
5
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2 I Accounting matters anc jucgem
Capitalisation and dieposal of fixed assets
We fine cammpioted.
idonttiod ace
one
setts far lash deasnclasion ee 2
i.Sed fo be Anpaitod which aa a
What i the Fisk
InMarch 2017, management rested ther accounting estinate for impainnent ofall asses,
and reverse impainnent of £272 As pat of Y's review ofthis reversal we perfomed
Aetalled wok on the hed assetregister and identified a numberof errs equrng adjustment.
‘These included assets under construction (ALC) projects (vith cots totaling 59m) which
had been closed witouta na asset being produce, AUC project wich had been competed
here assets wer created and were in use but not capitalised, and assets on the fed asset
register which were no longer use and coul ot be locsted.
Given ourindings in FY2016/17, there are the following iss:
> Costs ar inconecty capitalised where no asset has been created;
Genuine assets oe not capitalised ona timely basis; and
1» Asset posal are not appropriately recorded.
Misstatements that may ocurin elation tots sk would affect he balance sheet accounts
(on-cument assets) and income expense accounts (expenses capitalised to balance
ey
Whal did we do and our conciis
‘We selected a sample of adtions to both tangible end intangible items obtaining supporting
‘documentation and making inquires of responsible indviduas to contin items meet the captasation
‘tea as periAS 16.
We obtained anuncerstandingotthe process followed bythe Group to contin the completeness of
capitalised cost including infomation received frm branches.
‘We tested a sample of Assets Under Constiction (AUC) to compare the Go Live date as per the project
‘managers with that noted inthe Fed Asset Register. Based on ourtstingwe denied an AUC for
hich an eafer Go Uv date wes applied and asa result there were over depreciated We proposed the
following adjustment which was not adjusted forby management and includes in our uci citeences
Insecton &:
DR Fixed Assets £0.49m
‘OR Depreciation £0.49m
‘We reviewed the aging of AUC and selected a sample of AUC items totes for which the ast
sheet rather than charged to profit an loss expense accounts)
ements 3
> Reasonablenesso costs capitalise
> Completeness of costs capitalised
> Reasonableness of oss for asets dispose orn longer use
Completeness of cost for assets disposed or no longerin use
ewe most focused on?
o costs meet the capitalisation criteria
date was 2016 o eater. Based on our testing we identified an tem ot AUC tobe
‘impaired. We proposed the following adjustment which was adjusted for by management:
DDRAssetimpaiment£0.9m
(OR Fised Assets £0.9m
We selected a sample of capitalised costs to compare to budget investigating vaiances with project
‘managers to contin the completeness and appropatenes of capitalised cots
We compared the branch codes associate to assetsin the ed asset regaterto that inthe Bist of open
‘branches to identity any assets tobe impairs
‘Based onthe procedures perfomed and subject tothe adjustments noted sbove we conclude that
‘asses have been appropriately capitalised and disposed.
12 September 2022
[Document title]
6
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2 I Accounting matters and judgements: other risks
Provision for legal claims, specifically the Horizon Sub-postmasters’ clair
co tet the elaine censutis 3 eanlistor’ LAbiEy aud hat hs wpested (0
dott sof Matta i psjeied fs yer auditors
de we do an: onekisions.
Waste pe nok? >» We havereviened management’ paperich provides adele assessment othe aim
The ongoing group action bought by Sub-postmasters agaist the Post Ofc continues tobe inucing the senate ofthe defence by Post Ofc. As parof this we heve also undertaken
an aeaof judgement. ciscussions with Pos ffe'sin-touse legal counsel This was undertaken subsequent tothe
submission ofthe seleton statement by Freths providing potential aim ale of £80n-£90m
(orn excess thereof, Based on ou procedures we cone with management’ view that he claim
What huigements are we meal focused on? constitutes a contingent libilty as opposed toa provision in accordance with AS 37. This is
a“ because t's a posible obligation that arises tom past events and whose existence wi be
> Reasonableness of the assumptions underying managements assessmentthat ogre en by the oocurence or non-occurence of one or more uncertain future nt wholly
rovision seared ‘tin he conto ofthe entity events (any obligation would only aise from legal proceedings
. and of disclosures inthe financial ‘that woul our folowing the Common sues ana Horizon il).
We senta legalleterand obtained a response to that legal eter fom the extemal lawyers
(Womble Bons Dickinson) who have confimed that managements view that POL are cumety
‘able to estimate the amounts ofthe utmateiabiltiesthatmaybe inured in espectof the
Group Litigation i reasonable
> Weave also undertaken a furhermeeting with te extemal lawjers on 26 hy 2018 which has
supported usin confining the assessment and conclusions in managements paper. No contraty
evidence was noted.
‘We have consulted intemaly with egards to the folowing: () the conclusion that the cain does
not meet the cite fora provision but instead a contingent abt in accordance with AS 37
Gi the adequacy of he contingent ably disclosure in the inca statements and (i the
impact itary, nour auctor’ repo.
Based onthe above we concur with management's concsion thatthe claim constitutes ¢ contingent
Habit. Further we consider the disclosures tobe adequate and that no Emphasis of materi requed
inthe suitors report.
> Consideration ofimplicatons onthe auditor's report
12 September 2022
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natters and
tion and disclosure
2 I Accounting
Pension vaiua
I ~~ == —-—C —
What is the dis
Post fice has both defined benefit RMPP and RMSEPP) and defined contibution schemes
Post fice Limited closed the defined bene pension scheme RMPP) to future accrual with
effect rom 34 March 2017.
(020 uly 2017, the Trustees entered into an agreement with Rothesay Lif PLC in which a
pension buy-in was effected forthe same scheme. As aesulthe net pension assets (ables)
relating to RMPP ae equal ori
Nevertheless, Post Ofc i sil ecuired to nclude disclosures in accordance with IAS 13
(cling ofthe pension asses and bites ofthe RMP scheme) Therefore thet i tisk
relating tothe appropriateness of pension disclosures.
Finally theresa high veo estimation, subjeciy and management judgement in
detemuining pension obligations thus hisis area of focus forthe FRC’ auc inspecton unit
We
joogements are we most focused on?
> Reasonablenes ofthe actual assuptionsdeterninesby management and
nerpmingthe valuation ofthe dined benef obligation
> Reasonblnes ofthe asungtion and the vlutin ofthe pensions buy
> Reasonablenes ofthe valuation othe plan ase.
asset
What old 3
> Assessed the independence, competence and objectivity of Wiis Towers Watson the
‘actuary peromning the work calculations forPost Ofc Limited.
> Wit the rom EY technical we reviewed 5
paper, aticulaty the accounting appfed othe pensions buyin by Rothesay Life PLC. The
sup inthe scheme (before the initation to zr) reduces being he dtlerence between
the ngurance premium an the WAS 19 value a the insured Kablities, POL has recognized
this oss though the statement of Other Comprehensive Income (OCI. As result ofthe
‘asset ceiling (181m), there is then an equal and opposite enty through OC! electing the
reduction in he asset celing. Inthe Balance sheet POL now has Bulk annuity policy assets
that matches the Defined Benefit Obligation. Asa result thenetetfect through Cts ll ana
there sno change inthe net asset position forthe Group.
> We engaged EY pensions specialists to consider whether Post Office Lnited's hey
assumptions are within an acceptable range Asa result ofthe procedures we have not noted
slenifcant issues.
12 September 2022
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2 I Accounting matters and judgements: other risks
Pension valuation and disciosur
‘We presented below a surmar of key assumptions ining acceptable range foreach
assumption
(continued)
ontinsnd)
We received continations forplan asset to contin the esstence and valuation st 25
March 2018 noting no material dferences.
For valuation of plan assets we have also prfomned independent vahistion procedures fora
sample of pension asses,
Wo reviewed the dlacosues inthe nancial statements for consistency with that inthe
‘report produced by Wiis Towers Watson end FRS requirements,
Based on the procedures performed and subject the matersnoted above we conclude that
pensions have ben valued and disclosed appropiate,
ey
12 September 2022
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2 I Accounting matters and judgement:
counting
What is the risk? What cid we do ond our conclusion
Post Ofc Limites's VAT recovery (pata exemption) method i key area which oles 2 Weinvivedourinsretax suppor na VAT aut a et 2
‘material level of reporting risk. ‘uraudnPaningRepot.
Teparialexrpon meta ofrcoveny wos eed wh HRC cringFY2014/15,Thenew Silat ten aie ustdg ptm oe ts baad en recep we
method resulted in a residual VAT recovery percentage of approximately 60%. Sonelude VAT soegurtngi Be sperepria
‘However, Post Ofice Limited continued to apply a provisional recovery rate of 40% throughout
72019/14 and F2014/15 caldera inpe VAT een, Tiree inmate
VT eosin FY2012/14 and PY2018/ 15, DurngFY2015/16 and FY2016/17,
‘aagemerncressd the recoen taped inte tonto 40% 0 5% le
nde tats prosina VA coven ate of 58% wb appl in FY2017/18,
In aton oh we undertones HMRC verte VAT atu of Payment rsenveis
inpogess,
Therefore VA accountng remains ares of ut emphasis itl beinportat ache
thatthe sumed VA covery rte appropri moniter anc atts
What judgements are we most focused on?
> Ressorabloness of recor eies
> Compictensss of proiins in elation othe WRC inguiy over atatu of BAEPaynents
12 September 2022
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2 I Accounting matters and judgements: significant risks EY
_.
12 September 2022
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1
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ey eas that we consider o be paricarty ‘Weave completed our josmel cnt testing
susceptible tomanagementoveride are revenue cedures. Bozed on tat tk we Rave nat
recogition and key dgements and estimates estifed any instaice of managerent
nade bymanogement sch as those applied in he verde,
persons vlton, dasifcation ofcagtal anc
freesimentitems aed the anal inprimert
assesment forthe camingvabie of ¢oodwil and
Fong thed assets.
12 September 2022
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2 I Accounting matters and judgements: significant risks (continued)
12 September 2022
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2} Ac
Mleasertertothe Aud Results Report Rese sour aut procedures we pred on POMS io change to our cach: fan that ince ie our
HAMey2018 tortie cetsisof itech soodwis, wick inched () an exsessmen of tfe Audi Resits Report,
ar permet. reatonablones ofte forecast esd by agresieg tothe
sategeplen avd asesseg he histseal acca ofthe
forecasting and i perfor selity nabs bs ex
‘ny management ssumplons on discount ate ate age
‘onthe wtch ste headrom of £15, nsconcur wah
the covhiin tht hes no gooclipabment 825
Mok 2018,
12 September 2022
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3 I Other accounting matters and judgements
12 September 2022
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3 I Other accounting matters and judgements (continued)
12 September 2022
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3 I Other accounting matters and judgements (continued)
12 September 2022
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4 I Summary of audit differences
“Juogrants ference in cepreciatorlamortsation charge on tangikie anc
intangible assets (asirg column)
‘Unoet prevsion of postmasiers' compensation provision in relator to unkown
branches invastient column ~ non fscing prott affecting}
sfued income (Tracing cola ~ aac pot
12 September 2022
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4 I Summary of audit differences (continued) EY
Uneconted audit iteranessfeontnaer
Rectesietin diterencer
Dierence idonted in cost of em caposed (urdersatment of oat wh slr understatement of ascmelated depreciation, no efecto net book vale) 2506K
anh ow diternces
Diterence increase (decrease in tees oie parsbles due tolncomect opening woeiog capa use ie the calulation - sonal operstng cash et fow £3,000k
Parent companydterences
‘eid ot identity ary settona ested or weedeat aust dtarencosin se pro cxiapary our and above tose presente,
ommoteiterences
‘cron and fetus dterencee:
Disposal ot aged assets - AUG £906K (debit cane statement Trading clera - moe trading prot atecting
‘elena tx adjustment i elation to acaubiton of New Cal 1.086 (n inpact on near staat)
Reclasitetin diferoncee:
Reclasitcation of Ki Cat Good to Custer Relatiznshiptetangbes £3
‘Tumamund soe faust lfferenoes which were unmesoniedinshe oreo,
‘User scat o Gt Yoecher come in elation to Savery ~ ne 2016 ivlced i 2047, 18 ~ £6404 dito cues yearincame sistema
‘vorstatoient of nanos expencesin 2026/7 reversed in 2017/18 -£554k debit to coment yest income etsemest rating coin
ding coma - trang prot stein)
Se )
-Adjstnert of onerous an vacant ease provision dv to inom scot mate ated against oerprovsion of wo ibid leases - 682K cre to casent yer lecome statment vest
‘cohune ~ non tacing prof aflecting)
2ajesnentorinzocrate acrust eater Git Vourher inoome - £1, 640k tit to came yearincame statement radng edums ~ tating pot affecting)
12 September 2022
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§ I Control environment
Scope
The scope of our work on the ternal contro! envronment was explained in our
Audi Results Report
‘We tested the change management, user access and iT operations controls over
‘he applicatons ‘sted in the table beion. We performed additional procedures to
rotate the impact on our audit of the defcencies dented which were
commun cated in ow Audt Resulis Report
(Our conclusion is that we are able to rely on the 1T process for tne relevant
applications for our 2017/18 aust
Menage
EneciveEitectve
FS. ° Reiatiey —“Effecive ——“fectye
SAP HR Reistie" —Etlectve Elective
POLSAP & Relatley “Effective ‘Elective
‘Success scope ®
cee Removed ttom Scope WIA
HNGA > EMectve —sRetatley Effective ——Etfectve
* = Conciusion was finalized after tie completion of sdotions substantive testing
Wank ie on-going to finalise the IT suott work
* + no recommenda
8 were noted
‘© «contol defciencies/recammendations were identified,
‘ss tHlork over this application was de-scoped from the /T aualt and a substanta
audit spproach was adopled
12 September 2022
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6 IFRS 15 ~ Revenue recognition
‘We have understoad the process undertaken by with egads to
IFRS 15, which is eftectve for Post Ofc Limited for FY18/19, whi
> Management idee each revenve product and evauated it pant he fe step
cate uncer IRS. 15 wt the dhiaheal Finance Diets.
> Foreach produc, with he esception of POCA, i was concluded by management hat
there was to impact oF FRS 15
> twas oondudes that the POCA revere streams Wout Be ingacted by FRS 18
though management have vot yet quan the inancia inpac.
> "he shove concssons vere dscuseé sd ageeswih he CFO,
‘We havent perfoned any aut procedures wth regards to management's IFRS 15
impact assessment onthe bass that we will o longer be the auditor for Post Ofice for
118/19 as this isa matter that shout be considered bythe successor suitor.
12 September 2022
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7 I Audit Opinion
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POST
‘OFFICE LIMITED
Opinion
Weave austen fanaa atamens fost otis Ltd te parentcompany) ante
Basis for opinion
urs st on Aung (0) S85 (UN) an
‘nw. Ouresonaitsesundarthoes stands re fort desebedintne Ait srespensies tothe et
‘oftetnani statement section ofou repr below. areindependert oft poup and part campanin
5ccordace wl the ebia!rqurmnts at ar reir ou aud othe anal atomarsnteUK.
‘roudingte FC's Eon! Standard ardvehae lle out otarehiclresponsibliesiaaceartanc ith
these eqement.
\oballee thatthe aut evidene we have bane stint and apr prov
sore " "
Conclusions relating to going concern
Wehavenotingto report inspect oft faloningraters nao to wich SAS UN requ ust epo
‘he draco: es ft going ence bass of acsoumingn tn repair afte neni
eitoraur
‘asben apple in te preparation fe parent copay franca statements apteatelaw and
United ingdom Accounting Standart, ncdngFRS 101 “Redued Disclosure Fameverk" (ted
‘ongiom Genera Accepted ecourang rates,
‘mouropiion:
te eanclalstatements gv atueandtalrwewotthe pous'sad ofthe parentcompany sears
#25 March 2018 andofee gous profit 2 weak periadthen ended:
the youpnarcalsatomens hae been per prepared in aecordanewitFRSs.a opty
the peas company nan tatemerts hae bee pert papain accordance wth Unita
‘ongom Genera exepted Acoureng Practice a aocurdarce the provisions af Companies
3.2006;
-the nancial statements hae boo rpardinacordance ih he aulromerts ft Companies
iene mt
“aha drecorshavenakesonadin te fans en od mata uncealaties that may ast
‘upetcam aout aboutove gous’ re pare compu’ ata conimto adopt grigconcar basis
ofaccoutin fs prod fattest nae mand rm te date when he
foriasie,
Other information
‘Th ter ifomaton compress the iforston cided inthe anal pon te thanthe fant
‘statamaes ad ou autor repo ren. Th areca a respenil othe ote inamaten.
‘ur opinion the fnancal statements doesnatcoerthe ater ifomaton ard excepts th ret ohense
‘expliystated iis report, wed rat ores any fom ofassrance conclusion taron.
12 September 2022
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7 I Audit Opinion (continued)
Inconeston wth ouraut ofthe traci stamens, uresposiiy sto ead the etherntstin 2nd,
indoingo. ere thr smart th he frail oo
ey
Asean mor tly te drectrs'resposiies statement (setouton page... det ae
urknonedge tana the aud oratherwse apearta be metry missed Me ent such
Irate nearasterces or apparent mate missatamet, ne ae ogra deeone wheter are 8
‘rater musatamert th rari statements ora mteel asatarrt of hater
based onthe wore have pred, we conclude that hr sa material mistatamanof he other
Infomation wearerequetorepo ta fact.
Wenaerotingt report ints reg.
Opinions on other matters proscribed by the Companies Act 2006
Inur opinion. tasedontewerkunderahenin tte couseotthe att
‘heintrmation gen in he stata raport ante dat rport fre franll year tleh
‘iano tatamars ae repre constant ih he tanta and
he suatepe pert an
regurement.
reco repr have ben paparedin accordance wt applabe gat
Matters on which we are required to report by exception
Inthe ight oft inowledeandundestandingot te poup andthe part company ands norment
ennai course ane at we have et derttiegratetl maststomentsnthe statgleropon ot
deacon.
\Wehavnebingtoeportin respect oft falowingmatir in alaton owe te Companies et 2005
requires sto repro yout inure:
adequate aecountngrecorts have not ben kaptby ta parent company, rus adults for ur aut
havenetbeen ceived rombranchesntvstedby uo
haparentcompany teen statamers ae atin agement wth he accounting rears andrews oF
-cerain dcosurs of cts remeraon speedy aw ar ot made
\nehave ot rcevedal the iforaton2nd expenatons we requis fr oursudt.
responseterte othe tran andforbengensted at tay gve ats andfir
‘en andforaseh tama carl ate deters determines nepaszayto ena te preparon of
‘inancal statements tata tes fom mate missatment whether duet ud orere.
Inpreparng te rancllstatements, th Bocas arresporsbl fo esesing te you's andthe arent
company sabi contnueas yongconcm dscosing, 2s aplable. mats related to gongconcem
andusngthe wong concen bait aourdnguness ie decors ete inendtiqudtte poup othe
Paar company at chase pears, tava aematia Bat 99
‘Auditor's responsibilities for the audit ofthe financial statements
are tou .
‘esc Repoting Coanc's webs Mis//wow-Re ar ah/audtosesponsistes hs desepton
‘toms puter autor srepen.
Use of our report
“Tisropor sade sate oth company's, 35.3 bod accordance wih Chapar3 Pa 16 tthe
Compaies ct 2008, urausit wrt as bee undertaken otha we might sate company smembers
‘thous mats we ar requed wate themin an udtorsreprcand ono ote purpose, Tote tes
‘tent parted yd rat accep or asumerenonalitytoarjoneate hare coma anathe
‘compar smenbles a body frou audit wor tisrepo othe opinions weave ome.
of ic a 8
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12 September 2022
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Appendix A I Deta
led listofopenttems ae EY
Directo’ remuneration critica: > Management to provide signe catticates E¥and management
> EYtonalie the aut procedures onthe diterence between the TB and the orginal VAT eum submited
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sy iare lesb ntcomaatuce
Irrstra rar eporig Starersas sed Oe eprom
‘Sted 101 Radaced Dios Ponewoa 210)
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odio totage wesentet
cane we maha folong pian chaebue sabe of setneiegsedbolet tring set
Irgitestunecosinedrce Oe pone seeps Meningie
1. Wehoeitedouresporaitie sr etntin fetta ed egepertiti ete Moy 2018 tthe
Piepartor oh teneal tenance us: neg treorlFarcs Repro
pnd te rpeor rin saletbe Corsa rce Retry Sarge 0) Reve DasnoeeFameroh,
owe he oes odor
Fe oy arbongits stator ton edo ss Ok Tew tess oat
‘ateeresserstegannyinecoersnstoresetaytthe eget
Non-compliance with ws and regulations, including fraud
We seirenedgr ison oe rser abe eer te Giup ard Comsary buses cies code
‘ordre wthlaasra rostrata atv semper etn obs ren omplse ath
alee awscrrepustors etre
ison srsper aber ean rec ztresimrereditalereo top
eset
3. Won tosndtoyu te ts
Serta ates
4. enescosedtojn tdproed ut scntitomaton andar tara evant.
insur otitereaedor spec ro onptrce ni ins ard mplorsirdvarghses Mow tty Mv
secetheGmoper Copan peardessofwessee etm rang wove slegsony hate
Boers groncamptoree raters
+ matrgtnerssenprenees
1 bade msardngsstnststiow ae aecttecton nour sauce n be costae sds
f ry ‘oe
re compaytrseiaerats
4. Aumenbenotmaragmerttn Gino andCompuny nel atte Cn staComparyhaves tent ie
eer 3 otenesaceoren res
pote sana sdeptedy We epee Lor foe CeopaaitonslRepote Sard 0] Rete
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‘ampansbss stat erteenbeens astute estas
> mtigaragener ermpioes vt eaters treo
1 tnnisent ay slegstarsttned sapecaeedetcttrtr congcentan arden tomeursed
brenelres tne ergyes arabs mguzone oes
Intormation Provided and Completeness of lnformation and Transactions
Wet poddedyon wit:
> Aumann dunce motte eran 2
‘inte erty tomo atid reno otae
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Apperch. 8 I Drst esanapement reprenzrtaton ete
2 sara renactons have veer recordaain th accuning fords ana etacad he
‘ohected ad rare company trees sareet,
23 wan rands mint > you ran ne mani o!sarahoaee, Sector and
Seramateeeo arecas (or surreaien tations rcare ets ach rata have att
oun prepared) neh Oecugh tn paced 9 meet sam meen othe ebsites Se
4. We cot he compstness of featn pride vga he serine parton
‘iavinn aacinse to yon Hey 2 bin Grae ana Conny ran pie A ees fy
tanec and ancacone or aich we are sware cab alee. purchases cane antes
Sota iatfen and sarecce taanng rangement. gusorase, non risealry wansac to 3
Saneacene ‘eno cnaleraton er he period nde, a5 Web a estes bates ue ot for cUCh
Erie a wes ar Ta rancor va ash eran rn aca
fo conecibtes ans aren compary areal Sater
5. Webeteve tat he sgntcant assurpécas we use aking asccuning estates ncusing
‘oes meatus at eval. "sosona
5. Weve decoese you, od ths toup an Corapny haw corps, ot xp et
‘hrvactitagleemoths nat cous hve a rata tesco conus ov Earn esp
{anc satarvente ne eer ncn compres, cng el e>enant,conftons ot
‘oquvenente > outing sabe
sbi sn Contingencies
1 avian sn cogs nas oe etch urs, at a
have Can Sasoaato yo ade aprepntoy ttc nth onacbted paar?
crpany anc rst
2 Wehave neds cf scuba and ate pton ane cs, eet es
3 erase eons nscr sos ppt, a mint tigate a 2a be
sol and conngor. wre have decousd nf eanasidered and pate! corpany non
Surat gurenlone ale have gw to Ue peter
Subsequint Events
1. Ghortnan as describe in he conzoRisod and garent cepany trance talents thee he
buen a euaneaubaagusmte pro ahd ne equreautee o1 eiuure oo
eons ad pert company trance aeraees nese Pare
‘eroup auats
1. Thats met ns sgcant arn on sr ay en th ann ee ow Gro
becouse of tavary cenmarual ichange ciel cr ater reatacone ter an tee nates
init Group Shane snare
2. Nacossaty eines ve been uso to smi a mast nce gop meena pot
Uaneactons ameage parent comeany subeisary uncetangs and asain Undethings
ac intormation
1. acronnor rnp pati ttt tran Te
rae canna Rope Chasis nar Ct Epa “es
‘handel ot usmetsReane, Govan Serve or Dh
Parcel ond mtgnion Seeder Raper. nerve eopeniy saree
2. Wc ht he cintnt cena thn Bs cnn ie soe the Sane
Siotomente. Oe smarch ie Sranct ard nen-nanoalematn eser an te ae
‘tars one the Sus tepon wey ede wa ery sa ep
(ing Conceen
1. Note 2 ese comctate ant paretcorpany Sane statomants dacs a ce raters
ioc wa to ae mips erie a Cog er 8a
‘oncom tncuing sige eanaions ans venta sur pane fr Rum aston. he aay
oe acon
‘Oumatship of Ase
1. ica se asetn capa unseSmance ines, the Group and Soneany hee ara ie
{Sat ness appsong nt voneneveeh. nn hare ate ne ara or ancunraes he
‘Group ana Company’ soso not hae ay Soest oer pledged as sofa, A aes own
{ho Grove art Corary as sabeacoy i appear inte blac shee
\Yianavs no plan sears ie posuere rn al su ny
ssceat oF oboe matory. nd 2s Ferry aie aan aru excene na reaES
3. Thee arene “mal or nforma!cempensatng bala aangarnents wth any cf sur cash ant
event aos Ee Bj cine eoctostos anc parent sempany
nancial tries wo hace ects 9! re angers
Income and indirect Taxes
1 We a ramennse tee
psa edt
Use ofthe Workot Speciaict
1 Mupemeteapfon ceiauntnenzete mune egret ater ty
satin tet ear
wedaeagenr
Seinen gb cannot senso sear
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‘be paromanee De bs aan Det oR.
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EY I Assurance I Tax I Transactons I Advisory
EY refers toe global ergaration. and may refer toone or mor, of the member ms of
Ema Young Gita Line. eachc hich so separate agal ety. Eat & Young Gibal Led, 2
Ukempny ietes by guarante. oes not pode serces ts lena For mae mvamaon aod Sut
organisation please vsk scam
mst & Young LLP
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