[3.5.

2022]

U Min Baw
Managing Director
KHIN SU HTAY & ASSOCIATES LIMITED

#C1/005, ground Floor, Hninnsi Street, Yuzana Highway Complex,

Kamayut Township, Yangon, Myanmar
Tel: (95-9) 799657902
Email: minbaw@ytp.com.mm

Dear U Min Baw,

This representation letter is provided in connection with your audit of the financial statements of Central
Laboratory Services Company Ltd. for the year ended 30 September 2021 for the purpose of
expressing an opinion as to whether these financial statements present fairly, in all material respects, the
financial position of Central Laboratory Services Company Ltd and the results of its operations and its
cash flows in accordance with Myanmar Finacial Reporting Standards ( MFRS ) .

We acknowledge our responsibility for the correctness and completeness of information presented in the
financial statements (“the financial statements”). The Company’s Board of Directors approves these
financial statements.
Certain representations in this letter are described as being limited to matters that are material. We
understand that omissions or misstatements of items are material if they could, individually or
collectively, influence the economic decisions of users taken on the basis of the financial statements.
Materiality depends on the size and nature of the omission or misstatement judged in the surrounding
circumstances. The size or nature of the item, or a combination of both, could be the determining factor.

We have made appropriate inquiries of directors and officers of the Company with the relevant
knowledge and experience. Accordingly, we confirm, to the best of our knowledge and belief, the
following representations:

Financial Statements

1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated [3.5.2022],
for the preparation and fair presentation of the financial statements referred to above in accordance
with MFRS.

2. Measurement methods and significant assumptions used by us in making accounting estimates,

including measurements at fair value, are reasonable.

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3. All events subsequent to the date of the financial statements and for which MFRS require adjustment
disclosure have been adjusted or disclosed.

4. The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the
financial statements as a whole. A list of the uncorrected misstatements is attached to this
representation letter.

5. There are no significant matters that have arisen that would require a restatement of the comparative
information.

6. We have provided you with:

 all books of account and supporting documentation;

 additional information that you have requested from us for the purpose of the audit; and
 unrestricted access to persons within the Company from whom you determined it necessary to
obtain audit evidence.
7. All transactions have been recorded in the accounting records and are reflected in the financial
statements.

8. We confirm the following:

8.1 We have disclosed to you the results of our assessment of the risk that the financial statements
may be materially misstated as a result of fraud.
8.2 We have disclosed to you all information in relation to:
a) Fraud or suspected fraud that we are aware of and that affects the Company and involves:
 management;
 employees who have significant roles in internal control; or
 others where the fraud could have a material effect on the financial statements.
b) Allegations of fraud, or suspected fraud, affecting the Company’s financial statements
communicated by employees, former employees, analysts, regulators or others.
In respect of the above, we acknowledge our responsibility for such internal control as we
determine necessary for the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. In particular, we acknowledge our responsibility
for the design, implementation and maintenance of internal control to prevent and detect fraud
and error.
9. There has been no known actual or possible non-compliance with laws and regulations that could have
a material effect on the annual financial statements in the event of non-compliance.

10. We confirm the completeness of the information provided to you regarding the identification of
related parties and regarding transactions with such parties that are material to the financial
statements. The identity of, and balances and transactions with, related parties have been properly
recorded and adequately disclosed in the notes to the annual financial statements.

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11. We have provided you with all relevant information regarding all of the key risk factors, assumptions
and uncertainties of which we are aware that are relevant to the Company’s ability to continue as a
going concern, and these are fully disclosed in the notes to the financial statements, in accordance
with the requirements of MFRS. Material uncertainties that may cast significant doubt on the
Company’s ability to continue as a going concern are fully disclosed.

12. The engagement team would consider asking management to provide representations with respect to
material matters including matters impacted by:

 significant assumptions made by management;

 management intent;
 information that is only known to management.
The purpose of obtaining representations from management with respect to these types of matters is to
confirm that:

 the engagement team has an understanding of management’s intent and the relevant assumptions
made with respect to these matters; and
 management has provided the engagement team with all relevant information in relation to these
matters, i.e., that there are no undisclosed issues such as side agreements that may impact the
engagement team’s conclusions about the matters.
13. All sales transactions are final and there are no side agreements with customers or other terms that
allow for the return of merchandise, except for conditions covered by the usual and customary
warranties.

14. Receivables reported in the financial statements represent valid claims against debtors for sales or
other charges arising on or before the financial reporting date and appropriate provisions have been
made for losses that may be sustained on uncollectible receivables.

15. We have no plans or intentions that may materially alter the carrying value or classification of assets
and liabilities reflected in the financial statements. We believe that the carrying amounts of all
material assets will be recoverable.

16. The Company has satisfactory title to all assets and there are no liens or encumbrances on their assets,
except for those that are disclosed.

17. The following have been properly recorded and when appropriate, adequately disclosed in the notes to
the financial statements:

(a) losses arising from sale and purchase commitments;

(b) agreements and options to buy back assets previously sold;
(c) assets pledged as collateral;
(d) off-financial reporting activities, and revenue recognition;
(e) significant common ownership or management control relationships;
(f) changes in accounting principles affecting consistency;

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 (g) treasury share repurchase options and agreements and treasury shares reserved for options,
warrants, conversions and other requirements;
(h) onerous contracts, i.e. those contracts under which the unavoidable costs of meeting the
obligation exceed the economic benefits to be received under it, including losses arising
from sale and purchase commitments that are onerous contracts under IFRS* Provisions and
Contingent Liabilities;
(i) liabilities for interest on deposits and other indebtedness, including subordinated notes and
participation loans;
(j) losses from transactions not recognized in the statement of financial position;
(k) arrangements with financial institutions involving restrictions on cash balances and lines of
credit or similar arrangements;
18. The following have been properly disclosed in the notes to the financial statements in accordance with
MFRS:

(a) judgments, apart from those involving estimations, management has made in the process of
applying the entity’s accounting policies that have the most significant effect on the amounts
recognised in the financial statements, including:
 classification and reclassification of investments;
 the criteria developed by the Company to distinguish investment property from owner-
occupied property and from property held for sale in the ordinary course of business,
when classification of property is difficult.
(b) key assumptions concerning the future, and other key sources of estimation uncertainty at the
financial reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, including:
 major assumptions concerning future events affecting classes of provisions..
 significant assumptions applied in estimating employee benefit obligations, as required
by IAS. (if the Company has adopted IAS)

19. Except as disclosed in the financial statements or notes to the financial statements, there are no
material transactions that have not been properly recorded in the accounting records underlying the
financial statements.

20. The Company has complied with all aspects of contractual agreements that could have a material
effect on the financial statements in the event of non-compliance, for example debt covenants.

21. The Company has not entered into any arrangement or agreement whereby it has directly or indirectly
given financial assistance to another party for the purpose of, or in connection with, the acquisition of
shares in the Company.

22. The Company has an established procedure whereby an officer reviews, at least annually, the adequacy
of insurance cover on all assets and insurable risks. This review has been performed, and where it is
considered appropriate, assets and insurable risks of the Company are adequately covered by insurance.

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23. There have been no changes to, or introduction of new, information systems or incidents which
occurred during the year which could adversely impact the basic completeness and accuracy of the
information systems and underlying data.

Representations Regarding Taxation Balances

24. Adequate provision has been made to cover income and other taxes and known additional
assessments.
25. We confirm the correctness of the information, relating to the Company’s business, in accordance
with the Notification of the Internal Revenue Department relating to the audit and the issuance of the
audit report, on the following matters:
 The Company did not sell products, render services, or sell properties and other assets, lend
money or lease out properties and other assets, without value received or with value received
below market that are obviously considered material in amount.
 The Company did not purchase assets, including expenses incurred for the purchase of such
assets, and did not pay for services at value above normal prices that are obviously considered
material in amount.
 The Company did not record non-existent or excessive value creditors or debtors that are
obviously considered material in amount.
 The Company has not suffered net operating losses more than 3 consecutive accounting periods,
or
The Company has suffered net operating losses more than 3 consecutive accounting periods and
there was no expansion of business.
 The Company has withheld and remitted tax in accordance with the rules and regulations of the
Revenue Code.

Yours truly,
On behalf of Central Laboratory Services Co., Ltd

Daw Hnin Si

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 ( Accountant )
Central Laboratory & Services Co., Ltd

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