Qualified opinion

We have audited the financial statements of Global Treasure Bank Public Company Limited (“the Bank”), which comprise the statement of financial position as at 31 March 2025, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages FS 9 to FS 36.

In our opinion, except for the matters stated in the preceding paragraph, “Basis for Qualified opinion” the accompanying financial statements are property drawn up in accordance with the provisions of the Myanmar Companies Law and Myanmar Financial Reporting Standards (MFRSs) so as to give a true and fair view of the financial position of the Bank as at 31 March 2025 and of the financial performance, changes in equity and cash flows of the Bank for the year ended on that date.

Basis for qualified opinion

We conducted our audit in accordance with Myanmar Standards on Auditing (MSAs). Our responsibilities under those standards are further described in the ‘Auditors’ responsibilities for the audit of the financial statement’ section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to our audit of the financial statements in Myanmar, 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

It is observed that;

(i) Non-performing loan (NPL) balances as at 31 March 2025 as per report to the Central Bank of Myanmar is MMK 224,453 million (41.34% of Total Loan and Overdrafts) which include NPL-loss of MMK 224,327 million and doubtful of MMK 126 million.
Although the specific provision amount calculated based on the forced sale value submitted by the responsible officer should be MMK 11,113 million, it was found that as of March 31,2025, the specific provision made by the Global Treasure Bank was only MMK 4,568.53 million. It is required to review each NPL, for recovery and if require, to provide specific provision for possible loss. [Letter to management paragraph 6.5]

(ii) In respect of interest icome on NPL and accrued income receiables for NPL, interest of MMK 467 million fo NPL (9) Nos is recognized as interest income in FY 2024/2025, which is not in line with CBM’s instruction 17/2017 and no provision for impairment loss on accrued interest receivable [Letter to management paragraph 6.4]

Other Information

Management is responsible for the other information. The other information comprises the Directors’ statement, but does not include the financial statements and the auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Responsibilities of management and directors for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Myanmar Companies Law and MFTSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and transactions are properly authorized and that they are recorded as necessary to permit the preparation of true & fair financial statements and to maintain accountability of assets.

In preparing the financial statements, management is responsible for assessing the Bank’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 Bank or to cease operations, or has no realistic alternative but to do so.

The directors’ responsibilities include overseeing the Bank’s financial reporting process.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not guarantee that an audit conducted in accordance with MSAs will always detect a material misstatement when it exists. Misstatement 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 decision of users taken on the basis of these financial statements.

As part of an audit in accordance with MSAs, we exercise professional judgment and maintain professional scepticism throughout the audit.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit the significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

Report on other legal and regulatory requirements

In accordance with Myanmar Companies Law(2017), we report that;

(i) We have obtained all the information and explanations we have required and

(ii) The books and records have been maintained by the Bank as required by Section 258 of the Myanmar Companies Law.

In accordance with section 89(a) of the Financial Institutions Law 2016, we report that subject to our letter to the management, in our opinion the financial statements of the Bank are properly and fairly drawn up, they present fairly the operation of the Bank and information obtained from the officers and representatives of the Bank are satisfactory.