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Advanced Information Technology Public Company Limited Report and interim financial statements For the three-month and nine-month periods ended 30 September 2016

Independent Auditor’s Report on Review of Interim Financial Information

To the Shareholders of Advanced Information Technology Public Company Limited

I have reviewed the accompanying statement of financial position in which equity method is

applied of Advanced Information Technology Public Company Limited as at 30 September 2016,

the related statements of comprehensive income for the three-month and nine-month periods then

ended, changes in shareholders’ equity and cash flows for the nine-month period then ended, as

well as the condensed notes to the financial statements. I have also reviewed the separate financial

information of Advanced Information Technology Public Company Limited for the same periods.

Management is responsible for the preparation and presentation of this interim financial information

in accordance with Thai Accounting Standard 34 Interim Financial Reporting. 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.

Conclusion

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

accompanying interim financial information is not prepared, in all material respects, in accordance

with Thai Accounting Standard 34 Interim Financial Reporting.

Manee Rattanabunnakit

Certified Public Accountant (Thailand) No. 5313

EY Office Limited

Bangkok: 8 November 2016

Advanced Information Technology Public Company Limited

Statement of financial position

As at 30 September 2016

(Unit: Thousand Baht)

Note 30 September 2016 31 December 2015 30 September 2016 31 December 2015

(Unaudited (Audited) (Unaudited (Audited)

but reviewed) but reviewed)

Assets

Current assets

Cash and cash equivalents 1,581,919 1,291,641 1,581,919 1,291,641

Current investments - trading securities - 504,834 - 504,834

Trade and other receivables 3 1,509,186 1,596,038 1,509,186 1,596,038

Unbilled receivables 501,989 302,834 501,989 302,834

Inventories 226,103 462,820 226,103 462,820

Other current assets 77,168 21,586 77,168 21,586

Total current assets 3,896,365 4,179,753 3,896,365 4,179,753

Non-current assets

Investments in jointly controlled entities 4 48,494 57,776 79,000 75,000

Property, plant and equipment 5 125,647 125,887 125,647 125,887

Equipment for lease 6 184,457 246,664 184,457 246,664

Intangible assets 7 23,982 21,979 23,982 21,979

Deferred tax assets 43,548 31,901 43,548 31,901

Other non-current assets 8,689 8,543 8,689 8,543

Total non-current assets 434,817 492,750 465,323 509,974

Total assets 4,331,182 4,672,503 4,361,688 4,689,727

The accompanying notes are an integral part of the financial statements.

Financial statements

Separate financial statements in which equity method is applied


Statement of financial position (continued)



Note 30 September 2016 31 December 2015 30 September 2016 31 December 2015



Liabilities and shareholders' equity

Current liabilities

Trade and other payables 8 530,450 745,165 530,450 745,165

Unbilled payables 601,544 638,750 601,544 638,750

Current portion of long-term loans 9 51,360 51,690 51,360 51,690

Current portion of liabilities under finance

lease agreements 10 19,032 22,676 19,032 22,676

Income tax payable 17,760 21,443 17,760 21,443

Advanced receipts from customers 51,429 36,489 51,429 36,489

Provision for penalty on projects delay 77,618 53,038 77,618 53,038

Other current liabilities 65,585 75,516 65,585 75,516

Total current liabilities 1,414,778 1,644,767 1,414,778 1,644,767

Non-current liabilities

Long-term loans, net of current portion 9 41,800 80,320 41,800 80,320

Liabilities under finance lease agreements,

net of current portion 10 38,225 24,810 38,225 24,810

Provision for long-term employee benefits 68,179 60,250 68,179 60,250

Total non-current liabilities 148,204 165,380 148,204 165,380

Total liabilities 1,562,982 1,810,147 1,562,982 1,810,147



in which equity method is applied Separate financial statements


Statement of financial position (continued)



30 September 2016 31 December 2015 30 September 2016 31 December 2015



Shareholders' equity

Share capital

Registered

206,320,897 ordinary shares of Baht 5 each 1,031,604 1,031,604 1,031,604 1,031,604

Issued and fully paid-up

206,320,897 ordinary shares of Baht 5 each 1,031,604 1,031,604 1,031,604 1,031,604

Share premium 303,437 303,437 303,437 303,437

Retained earnings

Appropriated-statutory reserve 103,161 103,161 103,161 103,161

Unappropriated 1,329,998 1,424,154 1,360,504 1,441,378

Total shareholders' equity 2,768,200 2,862,356 2,798,706 2,879,580

Total liabilities and shareholders' equity 4,331,182 4,672,503 4,361,688 4,689,727

- - - -


Directors

in which equity method is applied Separate financial statements


(Unaudited but reviewed)


Statement of comprehensive income

For the three-month period ended 30 September 2016

(Unit: Thousand Baht except earnings per share expressed in Baht)


in which

equity method Consolidated

is applied financial statements

Note 2016 2015 2016 2015

Profit or loss

Revenues

Sales and service income 1,084,557 1,088,703 1,084,557 1,063,406

Rental and service income from equipment for lease 42,194 33,751 42,194 33,751

Gain on sale of investments in subsidiary - 37,283 - -

Other income 17,731 14,634 17,731 14,407

Total revenues 1,144,482 1,174,371 1,144,482 1,111,564

Expenses

Cost of sales and service 818,069 845,000 818,069 823,398

Cost of equipment for lease 25,087 21,580 25,087 21,580

Selling expenses 71,066 61,945 71,066 60,884

Administrative expenses 93,724 74,089 93,724 65,228

Total expenses 1,007,946 1,002,614 1,007,946 971,090

Profit before share of loss from investments

in jointly controlled entities, finance cost

and income tax expenses 136,536 171,757 136,536 140,474

Share of loss from investments in jointly controlled entities 4 (5,010) (2,505) - -

Profit before finance cost and income tax expenses 131,526 169,252 136,536 140,474

Finance cost (372) (1,009) (372) (143)

Profit before income tax expenses 131,154 168,243 136,164 140,331

Income tax expenses 11 (29,120) (21,121) (29,120) (21,429)

Profit for the period 102,034 147,122 107,044 118,902

Other comprehensive income for the period - - - -

Total comprehensive income for the period 102,034 147,122 107,044 118,902

Profit (loss) attributable to

Equity holders of the Company 102,034 148,835 107,044 118,902

Non-controlling interests of the subsidiaries - (1,713)

102,034 147,122

Basic earnings per share 12

Profit attributable to equity holders of the Company 0.49 0.72 0.52 0.58


Separate financial statements



Statement of comprehensive income

For the nine-month period ended 30 September 2016

(Unit: Thousand Baht except earnings per share expressed in Baht)


in which



Note 2016 2015 2016 2015

Profit or loss

Revenues

Sales and service income 3,322,149 3,652,976 3,322,149 3,553,643

Rental and service income from equipment for lease 120,999 96,549 120,999 96,549

Gain on sale of investments in subsidiary - 37,283 - -

Other income 36,205 51,217 36,205 50,741

Total revenues 3,479,353 3,838,025 3,479,353 3,700,933

Expenses

Cost of sales and service 2,541,506 2,773,825 2,541,506 2,690,230

Cost of equipment for lease 75,417 65,975 75,417 65,975

Selling expenses 191,579 214,958 191,579 210,645

Administrative expenses 249,280 261,279 249,280 223,715

Total expenses 3,057,782 3,316,037 3,057,782 3,190,565

Profit before share of loss from investments

in jointly controlled entities, finance cost

and income tax expenses 421,571 521,988 421,571 510,368

Share of loss from investments in jointly controlled entities 4 (13,282) (10,218) - -

Profit before finance cost and income tax expenses 408,289 511,770 421,571 510,368

Finance cost (1,213) (4,913) (1,213) (462)

Profit before income tax expenses 407,076 506,857 420,358 509,906

Income tax expenses 11 (88,590) (101,195) (88,590) (102,425)

Profit for the period 318,486 405,662 331,768 407,481

Other comprehensive income for the period - - - -

Total comprehensive income for the period 318,486 405,662 331,768 407,481

Profit (loss) attributable to

Equity holders of the Company 318,486 415,677 331,768 407,481

Non-controlling interests of the subsidiaries - (10,015)

318,486 405,662

Basic earnings per share 12

Profit attributable to equity holders of the Company 1.54 2.01 1.61 1.97





Statement of changes in shareholders' equity



Other components

of equity

Deficit on investment Equity

due to change Total attributable to

Issued and in proportion of equity attributable non-controlling Total

paid-up Share shareholding in to owners interests shareholders'

share capital premium Appropriated Unappropriated subsidiary of the Company of the subsidiaries equity

Balance as at 1 January 2015 1,031,604 303,437 97,200 1,238,035 - 2,670,276 11,026 2,681,302

Deficit on investment in subsidiary arising as

a result of acquisition of additional shares

at a price over than the net book value of

the subsidiary at the acquisition date - - - - (11,100) (11,100) 11,100 -

Total comprehensive income for the period - - - 415,677 - 415,677 (10,015) 405,662

Dividend paid (Note 13) - - - (340,429) - (340,429) - (340,429)

Sales of investment in subsidiary - - - - 11,100 11,100 (12,111) (1,011)

Balance as at 30 September 2015 1,031,604 303,437 97,200 1,313,283 - 2,745,524 - 2,745,524


Issued and Total

paid-up Share shareholders'

share capital premium Appropriated Unappropriated equity

Balance as at 1 January 2016 1,031,604 303,437 103,161 1,424,154 2,862,356

Total comprehensive income for the period - - - 318,486 318,486

Dividend paid (Note 13) - - - (412,642) (412,642)

Balance as at 30 September 2016 1,031,604 303,437 103,161 1,329,998 2,768,200

-


Retained earnings

Consolidated financial statements

Retained earnings

Equity attributable to owners of the Company

Financial statements in which equity method is applied



Statement of changes in shareholders' equity (continued)



Issued and Total

paid-up Share shareholders'

share capital premium Appropriated Unappropriated equity









-


Retained earnings




in which



2016 2015 2016 2015

Cash flows from operating activities

Profit before tax 407,076 506,857 420,358 509,906

Adjustments to reconcile profit before tax to net cash provided by

(paid from) operating activities

Unrealised gain from changes in value of current investments - (2,081) - (2,081)

Depreciation and amortisation 110,431 120,271 110,431 95,894

Allowance for doubtful accounts (Reversal) 21,026 (5,425) 21,026 (5,425)

Share of loss from investments in jointly controlled entities 13,282 10,218 - -

Provision for penalty on projects delay 25,200 40,420 25,200 40,420

Provision for long-term employee benefits 7,929 7,934 7,929 7,528

Loss (gain) on sales/write-off of equipment (29) 283 (29) 406

Gain on sales of equipment for services - (28) - -

Loss (gain) on sales of investment in subsidiary - (37,283) - 317

Unrealised loss (gain) on exchange 2,301 (1,182) 2,301 (1,182)

Interest paid 4,922 8,081 4,922 3,630

Profit from operating activities before changes in

operating assets and liabilities 592,138 648,065 592,138 649,413

Operating assets (increase) decrease

Trade and other receivables 65,826 22,089 65,826 30,834

Unbilled receivables (199,155) (32,371) (199,155) (32,399)

Inventories 236,717 (17,389) 236,717 (12,926)

Other current assets (55,582) 45,675 (55,582) 46,898

Other non-current assets (146) (1,469) (146) (744)

Operating liabilities increase (decrease)

Trade and other payables (227,882) 286,298 (227,882) 287,958

Unbilled payables (37,206) 87,858 (37,206) 87,858

Advanced receipts from customers 14,940 24,107 14,940 24,619

Cash paid for penalty on project delay (620) - (620) -

Other current liabilities (13,079) (13,373) (13,079) (13,714)

Cash from operating activities 375,951 1,049,490 375,951 1,067,797

Interest paid (3,710) (8,122) (3,710) (3,671)

Income tax paid (103,920) (128,682) (103,920) (126,061)

Net cash from operating activities 268,321 912,686 268,321 938,065




Cash flow statement





in which



2016 2015 2016 2015

Cash flows from investing activities

Decrease (increase) in current investments 504,834 (320,000) 504,834 (320,000)

Decrease in restricted bank deposits - 173 - -

Proceeds from sales of investments in subsidiary - 77,668 - 80,000

Cash paid for investments in subsidiary - - - (50,000)

Cash paid for investment in jointly-controlled entity (4,000) - (4,000) -

Proceeds from sales of equipment 41 475 41 306

Proceeds from sales of equipment for services - 200 - -

Cash payment for purchase building improvement, plant and equipment (31,517) (27,236) (31,517) (26,794)

Cash payment for purchase equipment for lease and services (1,170) (164,408) (1,170) (157,450)

Cash payment for purchase computer software (3,766) (4,507) (3,766) (4,285)

Net cash from (used in) investing activities 464,422 (437,635) 464,422 (478,223)

Cash flows from financing activities

Decrease in bank overdraft and short-term loans from

financial institutions - (8,395) - -

Cash receipt from long-term loans - 160,695 - 160,695

Repayment of long-term loans (38,850) (32,873) (38,850) (24,871)

Cash received from sales and lease back under

finance lease agreement 31,937 - 31,937 -

Decrease in liabilities under finance lease agreements (23,090) (15,057) (23,090) (14,054)

Dividend paid (412,462) (340,305) (412,462) (340,305)

Net cash used in financing activities (442,465) (235,935) (442,465) (218,535)

Net increase in cash and cash equivalents 290,278 239,116 290,278 241,307

Cash and cash equivalents at beginning of period 1,291,641 1,312,984 1,291,641 1,310,793

Cash and cash equivalents at end of period 1,581,919 1,552,100 1,581,919 1,552,100

- -

Supplemental cash flows information

Non-cash transactions

Purchase of building improvement and equipment for which

no cash has been paid 1,131 - 1,131 -

Purchase of equipment for lease for which no cash has been paid 12,040 - 12,040 -

Purchase of computer software for which no cash has been paid 375 - 375 -





Cash flow statement (continued)



1


Notes to interim financial statements

For the three-month and nine-month periods ended 30 September 2016

1. General information

1.1 Corporate information

Advanced Information Technology Public Company Limited (“the Company”) is a public

company incorporated and domiciled in Thailand. The Company is principally engaged in

the sale, design, installation, service, ongoing repair and maintenance, training and lump

sum turnkey for information and communication technology network systems and the

renting of computers and electronic equipment. The registered office of the Company is

at 37/2 Suthisarnvinijchai Road, Samsaennok, Huaykwang, Bangkok.

1.2 Basis for the preparation of interim financial statements

These interim financial statements are prepared in accordance with Thai Accounting

Standard No. 34 (revised 2015) “Interim Financial Reporting”, with the Company

choosing to present condensed interim financial statements. However, the Company has

presented the statements of financial position, comprehensive income, changes in

shareholders’ equity, and cash flows in the same format as that used for the annual

financial statements.

The interim financial statements are intended to provide information additional to that

included in the latest annual financial statements. Accordingly, they focus on new

activities, events and circumstances so as not to duplicate information previously

reported. These interim financial statements should therefore be read in conjunction with

the latest annual financial statements.

The interim financial statements in Thai language are the official statutory financial

statements of the Company. The interim financial statements in English language have

been translated from the Thai language financial statements.

1.3 New financial reporting standards

During the period, the Company has adopted the revised and new financial reporting

standards and accounting treatment guidance issued by the Federation of Accounting

Professions which become effective for fiscal years beginning on or after 1 January

2016. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards, with most of the changes

directed towards revision of wording and terminology, and provision of interpretations

and accounting guidance to users of standards. The adoption of these financial reporting

standards does not have any significant impact on the Company’s financial statements.


2

1.4 Significant accounting policies

The interim financial statements are prepared using the same accounting policies and

methods of computation as were used for the financial statements for the year ended

31 December 2015.

2. Related party transactions

During the three-month and nine-month periods ended 30 September 2016, the

Company has no significant business transactions with related parties.

Directors and management’s remuneration

During the three-month and nine-month periods ended 30 September 2016 and 2015, the

Company and its subsidiaries have employee benefit expenses payable to their directors

and management as below. (Unit: Million Baht)

For the three-month periods ended 30 September

Related parties Related transactions

Financial

statements

in which

equity

method is

applied

Consolidated

financial

statements

Separate

financial statements

2016 2015 2016 2015

Audit committee Short-term employee benefits 0.5 0.4 0.5 0.4

Management and executive Short-term employee benefits 19.7 20.1 19.7 18.8

directors Post-employment benefits 1.9 1.9 1.9 1.9

Directors who are not members

of the audit committee or

management committee

Short-term employee benefits 0.3 0.3 0.3 0.3

(Unit: Million Baht)

For the nine-month periods ended 30 September

Related parties Related transactions

Financial

statements

in which

equity

method is

applied

Consolidated

financial

statements

Separate

financial statements

2016 2015 2016 2015

Audit committee Short-term employee benefits 5.3 6.1 5.3 6.1

Management and executive Short-term employee benefits 61.5 72.0 61.5 67.2

directors Post-employment benefits 5.7 5.7 5.7 5.7

Directors who are not members

of the audit committee or

management committee

Short-term employee benefits 6.8 8.2 6.8 8.2


3

3. Trade and other receivables


30 September 2016 31 December 2015

Trade receivables

Aged on the basis of due dates

Not yet due 658,178 787,587

Past due

Up to 3 months 537,996 667,251

3-6 months 230,111 51,618

6-12 months 63,401 38,327

Over 12 months 91,734 98,749

Total trade receivables 1,581,420 1,643,532

Less: Allowance for doubtful accounts (72,910) (51,884)

Total trade receivables - net 1,508,510 1,591,648

Other receivable

Receivable under installment 676 4,390

Total other receivable 676 4,390

Total trade and other receivables - net 1,509,186 1,596,038

Most of the overdue trade receivables balances are those receivables from government

agencies and companies of which the government is a major shareholder. The Company’s

management believes that payment of these balances will be received in full and that the

above allowance for doubtful accounts is adequate in the current circumstance.

4. Investments in jointly controlled entities


Company’s name Nature of business

Country of

incorporation Shareholding percentage

Investment under

cost method

Investment under

equity method

30 September

2016

31 December

2015

30 September

2016

31 December

2015

30 September

2016

31 December

2015

(%) (%)

Loxley & AIT Holding

Co., Ltd.

Lump sum turnkey

contracting for the

installation of

communication tools,

electricity plants and

sales of related

equipment

Thailand 50.00 50.00 75 75 44 58

Genesis Data Center

Co., Ltd.

Data center service Thailand 33.33 - 4 - 4 -

79 75 48 58


4

On 22 September 2016, the Company invested in 39,999 ordinary shares of Baht 100

each, totaling Baht 4 million or 33.33% of the issued and paid-up share capital of

Genesis Data Center Co., Ltd.

For the three-month and nine-month periods ended 30 September 2016, the Company

has recognised its share of loss from investments in jointly controlled entities in the

financial statements in which equity method is applied amounting to Baht 5.0 million

and Baht 13.3 million, respectively (2015: Consolidated financial statements of Baht

2.5 million and Baht 10.2 million, respectively).

5. Property, plant and equipment


Net book value as at 1 January 2016 125,887

Acquisitions during the period - at cost 32,648

Disposal/Write-off (12)

Depreciation for the period (32,876)

Net book value as at 30 September 2016 125,647

6. Equipment for lease




Depreciation for the period (75,417)


As at 30 September 2016, the Company has equipment for lease acquired under sales

and lease back agreement which regarded as finance lease agreement (Note 10), with

net book values amounting to approximately Baht 27 million (31 December 2015:

None).

7. Intangible assets




Amortisation for the period (2,138)



5

8. Trade and other payables



Trade payables

Related party - 1

Unrelated parties 306,740 598,711

Total trade payables 306,740 598,712

Other payables 25,618 4,283

Accrued expenses 198,092 142,170

Total trade and other payables 530,450 745,165

9. Long-term loans



Long-term loans 93 132

Less: Portion due within one year (51) (52)

Long-term loans, net of current portion 42 80

Movements in the long-term loans account during the nine-month period ended

30 September 2016 are summarised below.


Balance as at 1 January 2016 132

Less: Repayment (39)

Balance as at 30 September 2016 93

The loan agreements contain certain covenants which, among other thing, require the

Company to maintain certain debt to equity ratios and debt service coverage ratios at

the rate presented in to the agreements.


6

10. Liabilities under finance lease agreements



Liabilities under finance lease agreements 59 49

Less: Deferred interest expenses (2) (1)

Total 57 48

Less: Portion due within one year (19) (23)

Liabilities under finance lease agreements,

net of current portion 38 25

In January 2016, the Company entered into an agreement to sales and lease back

equipment for lease totaling Baht 32 million. This agreement is regarded as finance

lease agreement. The liabilities under the agreement are payable on monthly basis.

The term of agreement is generally 5 years. Upon the expiration of the agreement, the

Company has the right to purchase the equipment at prices specified in the agreement.

As at 30 September 2016, the Company has future minimum lease payments required

under the finance lease agreements as follows:


Less than

1 year 1 - 5 years

Total

Future minimum lease payments under finance

lease agreements 20 39 59

Deferred interest expenses (1) (1) (2)

Present value of future minimum lease payments

under finance lease agreements 19 38 57


7

11. Income tax

Interim corporate income tax was calculated on profit before income tax for the period,

using the estimated effective tax rate for the year.

Income tax expenses for the three-month and nine-month periods ended 30 September

2016 and 2015 are made up as follows:


For the three-month periods ended 30 September

Financial

statements in

which equity

method is applied

Consolidated

financial

statements Separate financial statements

2016 2015 2016 2015

Current income tax:

Interim corporate income tax charge 33,588 22,655 33,588 22,655

Deferred tax:

Relating to origination and reversal

of temporary differences (4,468) (1,534) (4,468) (1,226)

Income tax expense reported in

the statements of

comprehensive income 29,120 21,121 29,120 21,429


For the nine-month periods ended 30 September

Financial

statements in

which equity

method is applied

Consolidated

financial

statements Separate financial statements

2016 2015 2016 2015

Current income tax:

Interim corporate income tax charge 100,237 108,766 100,237 108,766

Deferred tax:

Relating to origination and reversal

of temporary differences (11,647) (7,571) (11,647) (6,341)

Income tax expense reported in

the statements of

comprehensive income 88,590 101,195 88,590 102,425


8

12. Basic earnings per share

Basic earnings per share is calculated by dividing profit for the period attributable to

equity holders of the Company (excluding other comprehensive income) by the

weighted average number of ordinary shares in issue during the period.

13. Dividends

Dividends Approved by

Total

dividends

Dividend per

share

(Million Baht) (Baht)

Final dividends of 2014 Annual General Meeting of the

Company’s shareholders held on

10 April 2015 227.0

1.10

Interim dividends of 2015 Board of Directors’ meeting of the

Company held on 6 August 2015 113.4 0.55

340.4 1.65

Final dividends of 2015 Annual General Meeting of the

Company’s shareholders held on

8 April 2016 309.5 1.50

Interim dividends of 2016 Board of Directors’ meeting of the

Company held on 11 August 2016 103.1 0.50

412.6 2.00

14. Segment information

Operating segment information is reported in a manner consistent with the internal

reports of the Company that are regularly reviewed by the chief operating decision

maker in order to make decisions about allocation of resources to the segment and

access its performance. The chief operating decision maker has been identified as the

Company’s Board of Directors.

The Company’s business operations involve 2 principal segments: (1) sales and

service and (2) rental of equipment. These operations are mainly carried on in

geographical area of Thailand. The Company measured segment performance based

on operating profit or loss, on a basis consistent with that used to measure operating

profit or loss in the financial statements. During the three-month and nine-month

periods ended 30 September 2016 and 2015, there were no material activities

pertaining to rental segment. For this reason, financial information has not been

presented by either industry segment or geographical area.


9

15. Commitments and contingent liabilities

15.1 Operating lease commitments

The Company has entered into lease agreements in respect of leases of buildings and

motor vehicles. The terms of the agreements are generally between 1 to 3 years.

The Company has future minimum lease payments required under these operating

leases agreements as follows:



Payable within

Less than 1 year 9 9

1 to 3 years 11 16

15.2 Obligations to sales and services in accordance with contracts

1. The Company has engaged in undelivered and unrendered contracts of selling

goods and rendering services to its customers of approximately Baht 1,091 million

(31 December 2015: Baht 1,562 million).

2. The Company has engaged in various contracts, totaling contract value of future

service rendering of Baht 360 million (31 December 2015: Baht 344 million), to lease

the electronic equipment to companies of which the government is a major

shareholder, government agencies, and various private companies. The Company

has obliged to complete the equipment installation and render maintenance services

of these equipment in accordance with conditions stipulated in the contracts.

15.3 Guarantees

As at 30 September 2016, there were outstanding bank guarantees, guaranteed by the

Company of approximately Baht 917 million (31 December 2015: Baht 1,088 million)

on behalf of the Company and consortium, in respect of certain performance bonds as

required in the ordinary course of its business. These included letters of guarantee

amounting to Baht 915 million (31 December 2015: Baht 1,086 million) to guarantee

contractual performance and Baht 2 million (31 December 2015: Baht 2 million) to

guarantee payments due to creditors.


10

16. Fair value hierarchy

As at 30 September 2016, the Company has the assets and liabilities that were

measured at fair value as level 2 of inputs as follows:


Assets measured at fair value

Highly liquid investments - Unit trusts in fixed income open-ended fund 871

Liabilities measured at fair value

Payables under forward contracts 3

17. Financial instruments

As at 30 September 2016, the Company has outstanding balance of trade payables

denominated in foreign currency of USD 6.5 million (31 December 2015: USD 8.3

million), and has outstanding buying forward exchange contracts which has been made to cover the purchase of inventories totaling USD 7.5 million (31 December 2015: USD

6.8 million), at exchange rates ranging between Baht 34.73 to 35.81 per USD

(31 December 2015: Baht 34.96 to 36.34 per USD).

18. Approval of interim financial statements

These interim financial statements were authorised for issue by the Company’s Board

of Directors on 8 November 2016.

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