somboon advance technology public company limited and its...

Somboon Advance Technology Public Company

Limited and its subsidiaries

Condensed interim financial statements

for the three-month period ended 31 March 2020

and

Independent auditor’s review report

1

Independent Auditor’s Report on Review of Interim Financial Information

To the Board of Directors of Somboon Advance Technology Public Company Limited

I have reviewed the accompanying consolidated and separate statements of financial position of Somboon

Advance Technology Public Company Limited and its subsidiaries, and of Somboon Advance Technology

Public Company Limited, respectively, as at 31 March 2020; the consolidated and separate statements of

income, comprehensive income, changes in equity and cash flows for the three-month period ended 31 March 2020; and condensed notes (“interim financial information”). Management is responsible for the

preparation and presentation of this interim financial information in accordance with Thai Accounting

Standard 34, “Interim Financial Information”. My responsibility is to express a conclusion on this interim

financial information based on my review.

Scope of Review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, “Review of Interim

Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial

information consists of making inquiries, primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures. A review is substantially less in scope than an

audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain

assurance that I would become aware of all significant matters that might be identified in an audit.

Accordingly, I do not express an audit opinion.

2

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the interim financial

information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34,

“Interim Financial Information”.

(Sakda Kaothanthong)

Certified Public Accountant

Registration No. 4628

KPMG Phoomchai Audit Ltd.

Bangkok

15 May 2020

Somboon Advance Technology Public Company Limited and its Subsidiaries

Statement of financial position

31 March 31 December 31 March 31 December

Assets Note 2020 2019 2020 2019

(Unaudited) (Unaudited)

Current assets

Cash and cash equivalents 1,602,718 1,702,734 450,205 415,090

Short-term deposits at financial institutions 510,051 660,244 256,897 256,041

Other current financial assets 9 500,448 - 90,996 -

Trade accounts receivable 3, 9 1,299,968 1,359,182 430,489 414,300

Other receivables 3 89,522 88,826 52,648 75,263

Short-term loans to related parties 3 200,000 200,000 420,000 420,000

Inventories 583,280 569,758 115,455 112,141

Total current assets 4,785,987 4,580,744 1,816,690 1,692,835

Non-current assets

Restricted deposits at financial institutions 24,955 24,955 - -

Investments in associates 4 524,033 515,340 - -

Investments in subsidiaries 5 - - 2,542,012 2,542,012

Investments in joint venture 4 349,539 347,071 350,500 350,500

Other non-current financial assets 26,651 26,651 - -

Investment properties 58,562 58,562 - -

Property, plant and equipment 6 3,507,593 3,596,205 980,108 1,011,827

Right-of-use assets 6 33,855 - 12,692 -

Goodwill 44,591 44,591 - -

Intangible assets 30,143 29,360 12,777 13,755

Deferred tax assets 58,354 57,779 20,073 19,806

Other non-current assets 35,215 30,232 3,943 3,799

Total non-current assets 4,693,491 4,730,746 3,922,105 3,941,699

Total assets 9,479,478 9,311,490 5,738,795 5,634,534

Consolidated Separate

financial statements financial statements

(in thousand Baht)

The accompanying notes are an integral part of these interim financial statements.

3




Liabilities and equity Note 2020 2019 2020 2019


Current liabilities

Bank overdrafts and short-term loans

from financial institutions 7 12,022 108,899 - -

Trade accounts payable 3 895,405 885,396 299,694 286,788

Other payables 3 476,589 454,200 108,680 121,030

Accounts payable - purchase of assets 57,139 49,437 6,411 7,693

Current portion of long-term loans

from financial institutions 7 81,149 90,402 43,428 43,428

Current portion of lease liabilities -

(2019: Current portion of finance lease liabilities) 15,159 1,059 5,492 -

Income tax payable 71,462 46,117 33,109 19,753

Total current liabilities 1,608,925 1,635,510 496,814 478,692

Non-current liabilities

Long-term loans from financial institutions 7 100,543 117,559 80,786 91,643

Lease liabilities (2019: Finance lease liabilities) 17,555 4,325 7,233 -

Non-current provisions for employee benefits 357,720 349,991 133,371 130,989

Other non-current liabilities 816 817 832 834

Total non-current liabilities 476,634 472,692 222,222 223,466

Total liabilities 2,085,559 2,108,202 719,036 702,158


(in thousand Baht)



4




Liabilities and equity 2020 2019 2020 2019


Equity

Share capital

Authorised share capital

(425,194 ordinary shares, par value at Baht 1 per share) 425,194 425,194 425,194 425,194

Issued and paid-up share capital

(425,194 ordinary shares, par value at Baht 1 per share) 425,194 425,194 425,194 425,194

Premium on ordinary shares 716,444 716,444 716,444 716,444

Retained earnings

Appropriated

Legal reserve 55,671 55,671 42,671 42,671

Unappropriated 6,153,359 5,960,657 3,835,450 3,748,067

Total equity 7,350,668 7,157,966 5,019,759 4,932,376

Non-controlling interests 43,251 45,322 - -

Total equity 7,393,919 7,203,288 5,019,759 4,932,376

Total liabilities and equity 9,479,478 9,311,490 5,738,795 5,634,534



(in thousand Baht)


5


Statement of comprehensive income (Unaudited)

Note 2020 2019 2020 2019

Revenue

Revenue from sale of goods

and rendering of services 3, 8 1,831,323 2,201,955 576,220 722,428

Net foreign exchange gain - 158 3,958 -

Other income 3 32,663 33,105 42,224 50,596

Total revenue 1,863,986 2,235,218 622,402 773,024

Expenses

Cost of sale of goods and

rendering of services 3 1,495,872 1,769,001 431,897 522,221

Distribution costs 3 26,945 43,816 9,852 28,522

Administrative expenses 3 133,571 139,705 77,832 86,011

Net foreign exchange loss 619 - - 516

Finance costs 2,739 2,803 976 1,345

Total expenses 1,659,746 1,955,325 520,557 638,615

Share of profit of joint venture and associates

accounted for using equity method 4 11,161 34,536 - -

Profit before income tax expense 215,401 314,429 101,845 134,409

Income tax expense (24,770) (27,395) (14,461) (16,633)

Profit for the period 190,631 287,034 87,384 117,776

Other comprehensive income - - - -

Profit and total comprehensive income for the period 190,631 287,034 87,384 117,776

Basic earnings per share (Baht) 0.45 0.68 0.21 0.28

Profit and total comprehensive income attributable to

Owners of the parent 192,702 287,034 87,384 117,776

Non-controlling interests (2,071) - - -

Profit and total comprehensive income for the period 190,631 287,034 87,384 117,776

(in thousand Baht)



Three-month period Three-month period

ended 31 March ended 31 March


6

Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of changes in equity (Unaudited)

Equity

Issued and attributable to Non-

paid-up Share owners of controlling Total

share capital premium Legal reserve Unappropriated the parent interests equity

Three-month period ended 31 March 2019

Balance at 1 January 2019 425,194 716,444 55,671 5,689,331 6,886,640 - 6,886,640

Comprehensive income for the period

Profit - - - 287,034 287,034 - 287,034

Balance at 31 March 2019 425,194 716,444 55,671 5,976,365 7,173,674 - 7,173,674


Balance at 1 January 2020 425,194 716,444 55,671 5,960,657 7,157,966 45,322 7,203,288


Profit - - - 192,702 192,702 (2,071) 190,631

Balance at 31 March 2020 425,194 716,444 55,671 6,153,359 7,350,668 43,251 7,393,919

Consolidated financial statements

Retained earnings

(in thousand Baht)


7


Statement of changes in equity (Unaudited)

Issued and

paid-up Share Total

share capital premium Legal reserve Unappropriated equity


Balance at 1 January 2019 425,194 716,444 42,671 3,844,022 5,028,331


Profit - - - 117,776 117,776

Balance at 31 March 2019 425,194 716,444 42,671 3,961,798 5,146,107


Balance at 1 January 2020 425,194 716,444 42,671 3,748,066 4,932,375


Profit - - - 87,384 87,384

Balance at 31 March 2020 425,194 716,444 42,671 3,835,450 5,019,759

Separate financial statements

Retained earnings

(in thousand Baht)


8

Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of cash flows (Unaudited)

2020 2019 2020 2019

Cash flows from operating activities

Profit for the period 190,631 287,034 87,384 117,776

Adjustments to reconcile profit to cash receipts (payments)

Tax expense 24,770 27,395 14,461 16,633

Finance costs 2,739 2,803 976 1,345

Depreciation and amortisation 156,316 160,970 48,716 53,292

Write-off of property, plant and equipment 3,337 1,143 - -

Interest income (5,668) (6,535) (4,356) (4,809)

Bad and doubtful debts expenses 2,589 - - -

Reversal of losses on inventories devaluation (3,675) (2,137) (539) (744)

Unrealised gain on exchange (3,109) (574) (2,869) (432)

Gain on disposal of property, plant and equipment (1,054) (239) (591) -

Share of profit of joint venture and associates accounted for

using equity method (11,161) (34,536) - -

Provisions for employee benefits 9,079 7,184 3,512 2,722

364,794 442,508 146,694 185,783

Changes in operating assets and liabilities

Trade accounts receivable 59,534 (123,011) (13,281) (71,629)

Other receivables 1,685 (8,427) 22,422 14,223

Inventories (9,847) (1,574) (2,775) 2,654

Other non-current assets (4,983) 1,288 (144) 2,261

Trade accounts payable 10,182 (13,243) 12,866 (5,362)

Other payables 22,266 63,846 (12,350) 6,116

Other non-current liabilities (1) (1) (2) (1)

Net cash generated from operating 443,630 361,386 153,430 134,045

Employee benefit paid (1,350) - (1,130) -

Income tax paid (3,733) (2,278) (1,372) (1,342)

Net cash from operating activities 438,547 359,108 150,928 132,703

(in thousand Baht)

31 March 31 March



Three-month period ended Three-month period ended


9

Somboon Advance Technology Public Company Limited and its Subsidiaries Statement of cash flows (Unaudited)

2020 2019 2020 2019

Cash flows from investing activities

Interest received 7,018 5,991 4,549 3,808

(Increase) decrease in short-term deposits at financial institutions 150,193 147,775 (856) 149,985

Increase in other current financial assets (500,448) - (90,996) -

Short-term loans to related parties - - (220,000) (170,000)

Proceeds from repayment of short-term loans

to related parties - - 220,000 140,000

Acquisition of property, plant and equipment (64,244) (59,047) (17,175) (11,888)

Proceeds from sale of property, plant and equipment 2,222 411 1,759 -

Acquisition of intangible assets (3,960) (4,360) (60) (4,340)

Net cash from (used in) investing activities (409,219) 90,770 (102,779) 107,565

Cash flows from financing activities

Interest paid (2,370) (2,817) (840) (1,359)

Payment of lease liabilities (2019: Payment by a lessee for

reduction of the outstanding liability relating to a finance lease) (3,828) - (1,337) -

Repayment of borrowings (123,146) (28,657) (10,857) (10,857)

Net cash used in financing activities (129,344) (31,474) (13,034) (12,216)

Net increase (decrease) in cash and cash equivalents (100,016) 418,404 35,115 228,052

Cash and cash equivalents at 1 January 1,702,734 1,362,776 415,090 475,759

Cash and cash equivalents at 31 March 1,602,718 1,781,180 450,205 703,811

Non-cash transactions

Increase (decrease) in payable for purchase of assets 7,702 (5,894) (1,282) 745

(in thousand Baht)

Separate


Three-month period ended Three-month period ended

31 March 31 March

Consolidated


10

Somboon Advance Technology Public Company Limited and its Subsidiaries Notes to the condensed interim financial statements

For the three-month period ended 31 March 2020 (Unaudited)

11

Note Contents

1 General information

2 Basis of preparation of the interim financial statements

3 Related parties

4 Investments in associates and joint venture

5 Investments in subsidiaries

6 Property, plant and equipment

7 Interest-bearing liabilities

8 Segment information

9 Financial instruments

10 Commitments with non-related parties

11 Events after the reporting period



12

These notes form an integral part of the interim financial statements.

The interim financial statements issued for Thai regulatory reporting purposes are prepared in the Thai

language. These English language financial statements have been prepared from the Thai language

statutory financial statements, and were approved and authorised for issue by the Board of Directors on

15 May 2020.

1 General information

The principal businesses of the Company are manufacture of pick-up axles and truck trunnion shafts.

Details of the Company’s subsidiaries, associates and joint venture as at 31 March 2020 and 31

December 2019 are described in note 4 and 5.

2 Basis of preparation of the interim financial statements

(a) Statement of compliance

The condensed interim financial statements are presented in the same format as the annual financial

statements and prepared its notes to the interim financial statements on a condensed basis (“interim

financial statements”) in accordance with Thai Accounting Standard (TAS) No. 34 Interim Financial

Reporting, guidelines promulgated by the Federation of Accounting Professions and applicable rules

and regulations of the Thai Securities and Exchange Commission.

The interim financial statements do not include all of the financial information required for full annual

financial statements but focus on new activities, events and circumstances to avoid repetition of

information previously reported. Accordingly, these interim financial statements should be read in

conjunction with the financial statements of the Company and its subsidiaries for the year ended 31

December 2019.

The Group has initially applied TFRS - Financial instruments standards and TFRS 16 Leases which

have no material impact on the financial statements.

(b) Use of judgements, estimates and accounting policies

In preparing these interim financial statements, judgements and estimates are made by management in

applying the Group’s accounting policies. Actual results may differ from these estimates. The

accounting policies, methods of computation and the key sources of estimation uncertainty were the

same as those that described in the financial statements for the year ended 31 December 2019, except

for the new significant judgements and key sources of estimation uncertainty related to the application

of new TFRS and COVID-19 outbreak.

At 31 March 2020, the situation of COVID-19 outbreak is still ongoing, resulting in estimation

uncertainty on the potential impact, therefore, the Group elected to apply accounting guidance on

temporary accounting relief measures for additional accounting options in response to impact from the

situation of COVID-19 outbreak on the following:

(1) Impairment of assets

The Group considered impairment of trade accounts receivables under simplified approach using

historical loss rate and did not take forward-looking information into account.



13

The Group elected to exclude the COVID-19 situation as impairment indicator for the impairment

testing factors of goodwill.

(2) Fair value measurement

The Group elected to measure investment in non-marketable equity securities at 31 March 2020

using fair values at 1 January 2020.

(3) Deferred tax assets

The Group elected to exclude the factor of COVID-19 situation in considering sufficiency of future

taxable profits to review the amount of deferred tax assets at 31 March 2020.

3 Related parties

Relationships with associates, joint venture and subsidiaries are described in notes 4 and 5.

Significant transactions for the three-month period ended 31 March with related parties were as

follows:

Three-month period Pricing policies Consolidated Separate ended 31 March financial statements financial statements 2020 2019 2020 2019

(in million Baht) Subsidiaries

Sales of goods Approximates market price - - 25 46

Interest income Contractually agreed rate - - 1 1

Management fee

income Contractually agreed price - - 23 26

Facilities income Approximates cost - - 2 2

Rental income Contractually agreed price - - 1 1

Sales of scraps Approximates market price - - 2 2

Rental expense Contractually agreed price - - 1 -

Purchases of goods Approximates market price - - 2 -

Facilities expense Approximates cost - - 1 1 Joint venture

Rental income Contractually agreed price 4 5 - -

Management fee

income Contractually agreed price 3 3 3 3

Interest income Contractually agreed rate 2 2 2 2

Other income Contractually agreed price 1 1 - - Associate

Purchases of goods Approximates market price 8 12 - - Key management personnel

Key management personnel compensation

Short-term benefits 20 18 17 17

Other long-term benefits 3 1 2 1

Total key management personnel

compensation 23 19 19 18



14

Three-month period Pricing policies Consolidated Separate ended 31 March financial statements financial statements 2020 2019 2020 2019

(in million Baht) Other related parties

Sales of goods Approximates market price 3 3 3 3

Management fee Contractually agreed price 5 5 5 5

Balances as at 31 March 2020 and 31 December 2019 with related parties were as follows:

Consolidated

financial statements

Separate



2020 2019 2020 2019

(in thousand Baht)

Trade accounts receivable

Subsidiaries - - 18,085 27,391

Joint venture 36 226 - -

Other related parties 4,022 4,408 4,022 4,408

Total 4,058 4,634 22,107 31,799

Other receivables


Joint venture 8,244 6,977 3,481 3,210

Other related parties 340 313 7 7

Total 8,584 7,290 30,305 52,394


As at 31

December

As at 31

March

Loan to 2019 Increase Decrease 2020

(in thousand Baht)

Joint venture 200,000 - - 200,000

Total 200,000 - - 200,000


As at 31

December

As at 31

March

Loans to 2019 Increase Decrease 2020

(in thousand Baht)

Subsidiaries 220,000 220,000 (220,000) 220,000

Joint venture 200,000 - - 200,000

Total 420,000 220,000 (220,000) 420,000

Short-term loans to related parties carry interest at MMR (Money Market Rate) per annum.



15

Consolidated


Separate



2020 2019 2020 2019

(in thousand Baht)

Trade accounts payable


Associates 9,122 10,258 - -

Total 9,122 10,258 1,924 8,060

Other payables


Joint venture 49 7,539 10 -

Associates 65 73 - -

Other related parties 1,739 1,739 1,739 1,739

Total 1,853 9,351 7,507 7,410



16

4 Investments in associates and joint venture


Dividend income for the

Type of business Ownership Interest Paid-up capital Cost method Equity method

three-month periods

ended

31

March

31

December

31

March

31

December

31

March

31

December

31

March

31

December

31

March

31

March

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(%) (in thousand Baht)

Associates

Tsuchiyoshi

Somboon Coated

Sand Co., Ltd

Manufacture

and

sale of plastic-

coated sand

and

dry sand 21.25 21.25 72,000 72,000 15,300 15,300 52,992 52,125 - -

Yamada Somboon

Company Limited

Manufacture and

sale of auto parts 20.00 20.00 150,000 150,000 30,807 30,807 471,041 463,215 - -

46,107 46,107 524,033 515,340 - -

Joint venture

Mubea Somboon

Automotive Co.,

Ltd.

Manufacture and

sale of auto parts 50.00

50.00

701,000

701,000

350,500

350,500

349,539

347,071

-

-

Total 396,607 396,607 873,572 862,411 - -



17


Ownership Interest Paid-up capital Cost method

31

March

31

December

31

March

31

December

31

March

31

December

2020 2019 2020 2019 2020 2019

(%) (in thousand Baht)

Joint venture

Mubea Somboon

Automotive Co., Ltd. 50.00

50.00 701,000

701,000

350,500

350,500

Total 701,000 701,000 350,500 350,500

All associates and joint venture were incorporated and operate in Thailand.

None of the Group’s associates and joint venture are publicly listed and consequently do not have

published price quotations.



18

5 Investments in subsidiaries Separate financial statements Dividend income for the Type of business Ownership interest Paid-up capital Cost method three-month periods ended 31

March

31

December

31

March

31

December

31

March

31

December

31

March

31

December 2020 2019 2020 2019 2020 2019 2020 2019 (%) (in thousand Baht)

Direct Subsidiaries

Somboon Malleable

Iron Industrial

Company Limited

Manufacture and

sale of auto parts

100

100

500,000

500,000

875,989

875,989

-

-

Bangkok Spring

Industrial Company

Limited

Rent of real estate,

investment

company, service

100

100

130,000

130,000

519,989

519,989

-

-

International Casting

Products Co., Ltd

Manufacture and

sale of auto parts

100

100

785,000

785,000

796,034

796,034

- -

Somboon Forging

Technology Company

Manufacture and

Limited sale of auto parts 100 100 350,000 350,000 350,000 350,000 - -

Total

2,542,012 2,542,012 -

-



19

Details of the Company’s indirect subsidiary as at 31 March 2020 and 31 December 2019 were as follows:

Name of party Type of business Ownership Interest

31 March 31 December

2020 2019

(%)

Indirect Subsidiary

Nippon Kikai Engineering Co., Ltd.

Manufacture and assembly

of machinery, automatic

equipment and parts

51

51

All subsidiaries were incorporated and operate in Thailand.

6 Property, plant and equipment

Acquisitions, disposals and transfers of property, plant and equipment excluding right-of-use assets

during the three-month period ended 31 March 2020 were as follows:


Net book

value as at

1 January

2020

Acquisitions

and

transfers in

- at cost

Disposals

and

transfers out

- net book

value

Depreciation

charge for the

period

Net book

value as at

31 March

2020

(in thousand Baht)

Land 597,772 - - - 597,772

Buildings and other construction 746,797 5,293 (1,245) (21,785) 729,060

Machinery and factory equipment 1,968,699 77,500 (3,481) (124,237) 1,918,481

Furniture, fixtures and office

equipment

29,852

3,209

-

(2,815)

30,246

Vehicles 5,963 - - (495) 5,468

Assets under construction and

installation

139,087

43,392

(57,995)

-

124,484

Spare parts for machinery 101,216 9,562 (8,696) - 102,082

Total 3,589,386 138,956 (71,417) (149,332) 3,507,593

As at 1 January 2020, assets under finance leases are reclassified to right-of-use assets in amounting to

Baht 6.82 million.



20


Net book

value as at

1 January

2020

Acquisitions

and

transfers in

- at cost

Disposals

and

transfers out

- net book

value

Depreciation

charge for the

period

Net book

value as at

31 March

2020

(in thousand Baht)

Land 91,781 - - - 91,781

Buildings and other construction 247,575 1,944 (1,168) (6,570) 241,781

Machinery and factory equipment 600,692 14,411 - (38,239) 576,864

Furniture, fixtures and office

equipment

16,749

1,036 -

(1,454)

16,331

Vehicles 581 - - (181) 400

Assets under construction and

installation

41,074

12,559

(15,825)

-

37,808

Spare parts for machinery 13,375 1,942 (174) - 15,143

Total 1,011,827 31,892 (17,167) (46,444) 980,108

Movement of right-of-use assets is as follows:

Consolidated financial statements Separate financial statements

Right-of-use assets Machinery Vehicle Total Machinery Vehicle Total (in thousand Baht) At 1 January 2020 1,264 30,792 32,056 - 8,319 8,319 Additions - 5,606 5,606 - 5,606 5,606 Less depreciation (292) (3,515) (3,807) - (1,233) (1,233) At 31 March 2020 972 32,883 33,855 - 12,692 12,692

7 Interest-bearing liabilities

Consolidated


Separate


31

March

31

December

31

March

31

December

2020 2019 2020 2019

(in thousand Baht)

Bank overdrafts - secured - 34,024 - -

Short-term loans from financial institutions - secured

12,022

74,875

-

-

Long-term loans from financial institutions - secured

181,692

207,961

124,214

135,071

Total interest-bearing liabilities 193,714 316,860 124,214 135,071



21

The periods to maturity of interest-bearing liabilities were as follows:

Consolidated


Separate


31

March

31

December

31

March

31

December

2020 2019 2020 2019

(in thousand Baht)

Maturity period − − −

Within 1 year 93,171 − 199,300 − 43,428 − 43,428

1 - 5 years 100,543 − 115,965 − 80,786 − 91,643

After 5 years - − 1,595 − - − -

Total 193,714 − 316,860 − 124,214 − 135,071

Long-term credit facilities of the Group contain certain covenants such as dividend payment, pertaining

to matters such as there shall be no effect on the total debt to equity ratio, loan repayment ability, and

other conditions stipulated by the financial institutions.

The bank overdrafts and short-term credit facilities of a subsidiary are mortgaged by fixed deposit and guaranteed by certain directors of the subsidiary.

The long-term credit facilities are mortgaged by a majority of the land with premises and machinery of the Group.



22

8 Segment information Consolidated financial statements

Pick-up axles and truck

trunnion shafts

Other

auto parts

Total

Elimination

Net

Three-month period ended 31 March 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

(in million Baht)

External revenue from sale of goods

and rendering of services 551 675 1,280 1,527 1,831 2,202

- - 1,831 2,202

Inter-segment revenue from sale of goods

and rendering of services 25 47 462 572 487 619

(487)

(619) - -

Total revenue 576 722 1,742 2,099 2,318 2,821 (487) (619) 1,831 2,202

Profit before income tax 102 141 114 180 216 321 (1) (7) 215 314

Segment assets as at 31 March / 31 December 5,739 5,635 7,058 7,005 12,797 12,640 (3,318) (3,329) 9,479 9,311

Segment liabilities as at 31 March / 31 December 719 702 2,136 2,184 2,855 2,886 (769) (778) 2,086 2,108

The Group is managed and operates principally in Thailand. There are no material revenues derived from, or assets located in foreign countries. The Group’s revenue is recognised at a point in time.



23

9 Financial instruments

Other current financial assets

Carrying amounts and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities,

including their levels in the fair value hierarchy for financial instruments measured at fair value. It does

not include fair value information for financial assets and financial liabilities not measured at fair value

if the carrying amount is a reasonable approximation of fair value.


Carrying amount Fair value

At 31 March 2020

Fair value

through profit

or loss Total

Level 1

Level 2

Level 3

Total

(in thousand Baht)

Financial assets

Investment in mutual funds 500,448 500,448 - 500,448 - 500,448

Total financial assets 500,448 500,448 - 500,448 - 500,448


Carrying amount Fair value

At 31 March 2020

Fair value

through profit

or loss Total

Level 1

Level 2

Level 3

Total

(in thousand Baht)

Financial assets

Investment in mutual funds 90,996 90,996 - 90,996 - 90,996

Total financial assets 90,996 90,996 - 90,996 - 90,996

Type Valuation technique

Investments in marketable unit trusts classified as financial

assets measured at FVTPL

The net asset value as of the reporting date.

Since the majority of financial assets and liabilities of the Group were short-term, interest rates of loans

and borrowings are approximate to market rate. The fair value of financial assets and liabilities is taken

to approximate the carrying value as determined in the statement of financial position.

Trade accounts receivable

Impairment loss

Allowance for impairment loss for trade receivables and contract assets are measured at an amount equal

to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the

historical credit loss experience, adjusted for factors that are specific to the debtors and assessment of

both the current and forecast general economic conditions.



24

Consolidated


Separate


31

March

31

December

31

March

31

December

Note 2020 2019 2020 2019

(in thousand Baht)

Related parties

Within credit terms 4,058 4,593 22,107 31,799

Overdue:

Less than 3 months - 41 - -

3 4,058 4,634 22,107 31,799

Other parties

Within credit terms 1,241,044 1,250,217 408,382 382,501

Overdue:

Less than 3 months 43,753 58,123 - -

3 - 6 months 12,394 45,401 - -

6 -12 months 2,395 1,894 - -

Over 12 months 1,489 1,489 - -

1,301,075 1,357,124 408,382 382,501

Less allowance for impairment

(2019: allowance for doubtful accounts)

(5,165)

(2,576)

- -

1,295,910 1,354,548 408,382 382,501

Net 1,299,968 1,359,182 430,489 414,300

The normal credit term granted by the Group ranges from 30 days to 90 days.

10 Commitments with non-related parties

At 31 March 2020

Consolidated

financial

statements

Separate

financial

statements

(in million Baht)

Capital commitments

Machinery and equipment 20 -

Other commitments

Unused letters of credit for goods 19 2

Bank guarantees 70 16

Total 89 18



25

11 Events after the reporting period

a) On 3 April 2020, the Company enterred into a joint venture agreement with Shenyang Siasun Robot

& Automation Co., Ltd. The main objective of this joint venture is providing full system integration

services in automotive and automotive parts, agriculture machinery and machinery industries in

Thailand.

b) At the Board of Directors’ meeting of the Company held on 6 April 2020, the Board of Directors

approved the appropriation of interim dividend from the operation for the year 2019 at the rate of

Baht 1.00 per share, totaling of Baht 425 million which is derived from the operation for the year

2019 at the rate of Baht 0.40 per share, totaling of Baht 170 million and the retained earnings at the

rate of Baht 0.60 per share, totaling of Baht 255 million. The dividend was paid to the shareholders

on 28 April 2020.

c) Subsequent to the financial reporting date, many countries have enacted several protection measures

against COVID-19, with a significant impact on the daily life, production and supply chain of goods

in these countries and beyond. The evolution of COVID-19 as well as its impact on the economy

and on the Group’s operation, is hard to predict at this stage. The management is monitoring the

situation to ensure the safety of its staff as well as to adapt its services and operations in response to

the situation.

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