SCI Annual Report 2015

SCI ELECTRIC PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
(FORMERLY KNOW AS “SCI ELECTRIC MANUFACTURER COMPANY LIMITED”)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE TEAR ENDED 31 DECEMBER 2015
1. General Information
SCI Electric Public Company Limited (“the Company”) established in Thailand. The address of its registered office is as follows:
Head office is located at 107/1 Moo 1, Bangna-Trad Road, Bangprieng, Bangbo, Samutprakarn.The branch 1 is located at
1, Soi Bangna-Trad 25, Bang Na, Bang Na, Bangkok.
The Company registered to convert its company from a limited company to be a public company limited and changed its
company name from “SCI Electric Manufacturer Company Limited” to “SCI Electric Public Company Limited” with the Ministry
of Commerce on 1 May 2015.
The Company was listed on the Stock Exchange of Thailand on 13 October 2015 and the Company’s stocks were
traded on the SET (“Stock Exchange of Thailand”).
For purpose of report, the Company and its subsidiaries together referred to as the Group.
The principal business operations of the Group are as follows:
1. Manufacture and sell of low and medium voltage electrical switch board, cable tray, support system and related equipment;
2. Manufacturer and sell galvanized steel structure which are transmission line tower, telecommunication tower, substation
steel structure, Galvanizing steel structure and hot dip galvanized service;
3. Project management, engineering, procurement and construction in high-voltage transmission line system, substation and
power distribution system and;
4. Selling of electricity produced from the hydroelectric power plant.
The Group’s significant agreements and arrangements are summarised below:
Concession Agreement
On 3 February 2009, Tad Slen Power Company Limited, a subsidiary of the Group, entered into the Concession Agreement
(“CA”) with Government of Lao People’s Democratic Republic (“GOL”) represented by Ministry of Planning and Investment
(“MPI”). The CA provides for a term of 30 years which started from the date of effectiveness the CA, not less than five (5) years
prior to expiration of the original term hereof, the parties shall negotiate in good faith concerning and extension of this agreement.
The renewal period shall not be more than 5 years for the Power Plant projects.
Under the CA, the subsidiary has certain commitments to acquire, install, operate and maintain equipment for such hydroelectric
power plant. The subsidiary has to transfer to GOL all equipment pertaining to such hydroelectric power plant at
the end of concession period. The subsidiary has started the Commercial Operation on 16 January 2013 according to Certificate
for Commercial Operation Date approved by Ministry of Energy and Mines and Electricite Du Laos. The subsidiary shall
pay the royalties to the government of the sum equal 1% (one percent) of the Gross Operating Revenue of the subsidiary over
the Operating period but no obligation to pay the corporate income tax during the concession period.
Power Purchase Agreement
On 22 October 2008, the subsidiary entered into the Power Purchase Agreement (“PPA”) with EDL. The PPA provides for a
term of 30 years which is based on the term mentioned in CA.
The main source of the subsidiary’s revenue is the sale of electricity to EDL pursuant to the PPA of the electricity produced
by the Existing Generation Assets. The electricity sales are based on the tariffs as agreed with EDL.
Service Agreement for PDSR
On 12 December 2012, the Company entered into the Service Agreement for PDSR (Power Distribution System) for
procure and install equipment for power distribution system in Laos. The period of the agreement is 3 years.
Annual Report 2015
2. Basis For Financial Statements Preparation
The financial statements are prepared in accordance with Thai Financial Reporting Standards (TFRS); guidelines promulgated by
the Federation of Accounting Professions (“FAP”); and applicable rules and regulations of the Thai Securities and Exchange Commission.
The financial statements have been prepared under the historical cost convention except as disclosed in the accounting
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