Sri Trang Gloves (Thailand) PCL: FY2025 Audit Report Analysis

Sri Trang Gloves (Thailand) Public Company Limited (STGT) has released its consolidated and separate financial statements for the year ended December 31, 2025. The financials were independently audited by EY Office Limited, with a clean opinion provided. This article analyzes the key audit findings, significant financial matters, and governance highlights disclosed in the audit report.

Audit Opinion

The external auditor expressed an unqualified (clean) opinion on STGT’s financial statements for the year ended December 31, 2025. The auditor confirmed that the financial statements present fairly, in all material respects, the financial position, performance, and cash flows of Sri Trang Gloves (Thailand) PCL and its subsidiaries in accordance with Thai Financial Reporting Standards.

Key Audit Matter: Revenue Recognition

The auditor highlighted revenue recognition from sales of goods as a key audit matter due to its significance in the financial statements and the highly competitive nature of the rubber glove market. The audit procedures included:

• Testing effectiveness of internal controls related to the revenue cycle
• Examining supporting documents for sale transactions on a sampling basis
• Testing the accuracy and timing of revenue recognition, especially near period-end
• Reviewing credit notes issued after year-end
• Performing analytical procedures and reconciling sales to cash receipts to detect irregularities

There were no adverse findings or material misstatements identified by the auditor in relation to revenue recognition.

Other Noteworthy Disclosures

• Management Responsibility: Management is responsible for preparing the financial statements, maintaining internal control, and assessing the Group’s ability to continue as a going concern.
• Governance Oversight: Those charged with governance are responsible for overseeing the financial reporting process.
• Auditor Independence: The auditor confirmed compliance with ethical independence requirements and disclosed all relevant relationships.

Events and Risks Highlighted

• Market Competition: The rubber glove market’s competitive environment was specifically noted as a risk factor, directly affecting selling prices and revenue recognition.
• No Exceptional Items or Asset Revaluation: The audit report does not mention any extraordinary earnings, expenses, asset revaluations, or one-off events.
• No Legal, Macroeconomic, or Regulatory Events: There was no disclosure regarding legal disputes, regulatory changes, or macroeconomic shocks affecting the company.

Chairman’s Statement

No Chairman’s Statement was included in the provided document.

Director’s Remuneration

No disclosures regarding director or executive compensation were found in the audit report.

Corporate Actions

There were no mentions of share buybacks, placements, IPOs, asset sales, or major fundraising activities in the report.

Conclusion & Investor Recommendations

The overall financial reporting for Sri Trang Gloves (Thailand) PCL appears solid and transparent, supported by a clean audit opinion and robust internal controls over revenue recognition. The company operates in a highly competitive market, but there were no material misstatements, exceptional risks, or uncertainties identified by the auditor for FY2025.

Investor Recommendations

• Current Shareholders: The clean audit opinion and absence of material risks suggest that STGT remains a stable investment from a financial reporting perspective. Investors may consider holding their position, especially if they have a long-term view and can tolerate industry-specific competition risks.
• Prospective Investors (Not Holding): The company’s financials are sound and free from audit qualifications, making it a viable candidate for further due diligence. However, the absence of specific financial performance data in this report means potential investors should review the full financial statements and market analysis before making a purchase.

Disclaimer: This analysis is based solely on the information disclosed in the FY2025 audit report and does not constitute investment advice. Investors should consult the complete annual report and conduct further research in line with their risk profile before making any investment decisions.

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