INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd

SAHA-UNION
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Regarding the interest coverage ratio for liabilities in 2011, which shall be payable within 1 year, was equal to 1.13
times, the Company was thus confident in its liquidity management for repayment of loans and other liabilities which
shall be payable within 1 year and the interest within each period of time when such liabilities shall be payable.
4.4.3 Shareholder’s Equity
According to the consolidated financial statements as of 31 December 2011, the Company had the shareholder’s equity
amounted to Baht 15,408.28 million, increasing by Baht 949.87 million when compared to Baht 14,458.41 million at
the end of 2010. (Restatements have been made in compliance with the accounting standard enacted from 1 January
2011 onwards.) The main causes of changes included:
• Regarding the operating result, the Company had the net profit increase of Baht 738.08 million; and during the
year, as per the resolution of general meeting, the profits were allocated as accrued dividends, amounted to Baht
525 million, which caused the shareholder’s equity increase of Baht 738.08 million; and a decrease of Baht 525
million, respectively.
• Regarding the non-actual operating result, which was the recognition of the net profits (losses), the net profits in
the shareholder’s equity increased by Baht 736.79 million, including:
1. Recognition of the net unrealized annual surplus profits from the revaluation of investments in the available-forsale
securities to the market prices, which have increased by Baht 41.69 million;
2. Exchange Differences on translation of financial statements in foreign currency, resulting in the increase of the
shareholder’s equity amounted to Baht 691.8 million;
3. In the financial statements of subsidiaries in foreign countries, other additional reserves were recognized in
the shareholder’s equity fell by Baht 14.24 million.
4. Reverse adjustment of the accrued dividends for the Company’s shares held by its subsidiaries under the
accounting standard amounted to Baht 17.54 million;
As above-mentioned, in total, the shareholder’s equity has increased by Baht 949.87 million; resulting in the
shareholder’s equity as of 31 December 2011 amounted to Baht 15,408.28 million.
4.5 Main factors and influences which may affect the operations or financial status in the future
As the main business of the Company was investment, therefore, its main incomes were from dividends received from the
enterprises in which the Company has put its investments; provided that there were domestic and overseas investment; and
the main factors or influences which may affect the Company’s operating results in the future, included:
1. Investments in domestic energy business, i.e., Ratchaburi Power Co., Ltd. (RPCL), which the Company had its proportion
of investment at 10% of the registered capital, or equal to Baht 732.50 million, generating electricity with the production
capacity of 1,400 Megawatt, to be sold to the Electricity Generating Authority of Thailand (EGAT); whereas, the Company
has received the dividends from 2010 onwards. The allocation of dividends refers to the net profits of the company.
Currently, there is quite a certain possibility that the international accounting standard in part of interpretation of lease
agreements and concession business will be enacted in 2013, which will cause the accounting record method of RPCL
to change, leading to a decrease in net profits during the early years when compared to the old estimation. Also, the
dividends RPCL will pay to shareholders may be less than the estimation, affecting the dividend income of the Company
to decrease accordingly.
2. The world’s prices of coal have increased in line with the energy prices, affecting the cost of production of power plants
in China invested by the Company, which mainly use coal as fuel. However, the electricity price cannot rise to the same
proportion to the rising cost, causing some plants to suffer from losses or less profits, which may affect the dividend in the
future. This incident is caused by external factors which cannot be controlled by the Company; therefore, the Company
will consider the effect of case by case and continue with the appropriate procedure to each situation.
Regarding the real estate business in China, which is estimated that Phase 1 of the project will be transferred to all buyers
within 2012, allowing the Company to recognize some parts of incomes within 2012, phase 2 and 3 will be proceeded
as planned afterwards.
3. The flood incident may reoccur in 2012, the group companies in Bang Chan District are considering the plan to invest
in the permanent flood prevention system, which may cost approximately at Baht 50 million that may shared among the
companies located within the area. This may affect profits and dividends proportionally.