SCI Annual Report 2015

• Report on the First Possession of Securities (Form 59-1) within 30 days from the date of appointment to hold the
post of a Director or an Executive.
2. The Company directs the Directors and Executives to make reports to the Securities and Exchange Commission on
the change in the possessions of securities in accordance with Section 59 of Securities and Exchange Act, B. E. 2535
(1992) and Office of SEC Notification No. Sor.Jor. 12/2552, Re: Preparation and Disclosure of Report on the Possession
of Securities of a Director, an Executive and an Auditor in order to enable the Company to check the securities
trading of all Directors and Executives.
• Report on the Change in the Possession of Securities (Form 59-2) every time when there is a trading, transfer or
receipt of securities within 3 days from the date of the rising of a transaction together with producing a copy
thereof to the Company Secretary as evidence every time.
3. The Company directs the Directors and Executives perceiving materially internal information having an effect on the
change in the price of the securities that they must stop trading the Company’s securities during the period of 1
month before such financial statements or internal information would be disclosed to the general public and that no
information being such material substance shall be disclosed to the other persons. In this respect, if any internal
information should be found to be used in a manner likely to suggest that the Company or shareholders would be
impaired or damaged by an act of any personnel in the level of the Executive Board of Directors, the Company
Board of Directors shall be the party to make a consideration in inflicting the punishment as reasonable upon such
personnel and if the offender should be in the Management level down the line, the Executive Board of Directors
shall be the party to make a consideration in inflicting the punishment upon such offender.
Risk Factors
In 2015, the Company established the working team in risk management to be responsible for implementing following the
risk management policies regulated by the Company including inspecting, evaluating, monitoring, and supervising the risk
amount of each agency in the organization and reporting to the Management Committees and/or Company’s Committees.
The Risk Audit and Management Committees will inspect, evaluate, and monitor in order to conform to the criteria regulated
by all relevant agencies as well as revising the adequacy of policies and system of risk management.
Risk in Business Operation
1. Risk from the dependence on unstable income gained from the project
In 2013 and 2014, the main income of the Company was from the project of providing and installing the equipment
improving the power distribution system in The Lao People’s Democratic Republic (Lao PDR) which was the development
project in the period of 3 years. The Company earned income from such project in 2013, 2014, and 2015 amounted to
50.58%, 47.66%, and 26.67% of total income respectively. This was the contract made with Lao’s electricity state enterprise.
After finishing the installation of such equipment in December, 2015, if the relevant agencies in Lao PDR could not continually
approved the project due to the lack of investment source or if the Company could not bid the job, the income and profits
of the Companywould be affected. The income and profits of the Company would be unstable or would decrease.
The Company had signed in the Memorandum of Understanding (MOU) to study the feasibility of the project and expected
to sign in the contract with Lao’s electricity state enterprise for the project to improve the power distribution system in
phase 2 in the 1st quarter in 2016. The project value is around 67 million US dollars (equaling to approximately 2,200 million
baht) in the period of 28 months. Moreover, the Company is still in the process of studying the feasibility of other projects
to create the future income from other projects in replacement, for example, the project to invest in the production plant
of high-voltage pole and communication pole in Republic of the Union of Myanmar (Burma) and the investment in the
wind power plant as well as the project to provide the service on the supply power and distribution power systems such
as in the project to construct the supplying line and power station of 500 KV or the hydroelectric dams in Lao PDR which
the Company already had the experience and performance in it. However, the Company is certain that the
Company’s previous performance could prove to customers to realize the potential and the quality of the Company’s
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Annual Report 2015