SCI Annual Report 2015

SCI Electric Public Company Limited
on efficiency of collection the debts by asking for the payment of debts when it’s due date and give short term credit for the
new customers. In summarized, year 2015 the Average Collection Period equals to 129 days increased when compared to year
2014 as 65 days. The reason of increased was mainly came from the major customer as previous mentioned.
Other receivable decreased Baht 31.54 million or decreased 66.44% compared to the year 2014. Other receivable
comprised with advance payment for inventory, prepaid expense such as prepaid insurance, prepaid bank guarantee fee.
Other receivable decreased from recognized prepaid expenses as cost of sale and service in the year 2015.
Inventory
Inventories of the year 2015 were Baht 212.93 million, increased Baht 36.15 million or increased 1.36% compared to the
year 2014. The balance was represented as 7.32% of total asset. The detail of inventories is shown in table 8 below
Table 8 : Inventories Unit : Million Baht
Consolidation
Inventories
As 31/12/2015 As 31/12/2014 Increased (Decreased)
Amount % Amount % Amount %
Raw materials 114.56 53.80 100.08 47.64 14.48 14.47
Work in process 67.20 31.56 69.26 32.97 (2.06) (2.98)
Finished goods 31.17 14.64 40.73 19.39 (9.55) (23.46)
Inventories 212.93 100.00 210.06 100.00 2.87 1.36
Inventories comprised with raw material, work in process and finished goods. Major raw materials are steel, zinc, nut
(big size), electrical equipment as part of switch board and semi-product of electrical board. Major inventory were steel for
manufacture steel structure for high voltage electric tower and telecom tower and the electrical equipment as part of switch
board. Both of them were reserved for the continuous project
In consider of the Average Sale Period of the year 2015 and the year 2014 equal to 31 days and 27 days, respectively.
Both of the Average Sale Period was complied with the inventory turnover policy.
The Company has the policies to review the slow moving of inventories, defective inventories and diminishing of inventories
by review the inventory aging report. The defective inventories is identify by determine the quality of inventory. The value of
inventories is compared between the historical cost and the net realizable cost to determine the diminishing value. However,
the major inventories were steel which it is difficult to defect. Moreover, the Company has considered the purchase amount
to maintain the appropriate inventory balance. For switch board and cable tray product (made-to-order), the Company
purchases inventories when received the customer orders.
CASH FLOW ANALYSIS
Items
Unit: Million Baht
FY 2015 FY2014 Increased
(Decreased)
Net cash provided by operating activities 65.78 100.36 (34.58)
Net cash used in investing activities (1,056.02) (57.65) 998.37
Net cash generated from financing activities 843.67 50.96 792.71
Currency translation differences 0.45 0.71 (0.25)
Net (decreased) increased in cash and cash equivalents (146.11) 94.38 (240.49)
Cash and cash equivalents, beginning of year 269.08 174.69 94.38
Cash and cash equivalents, end of year 122.97 269.08 (146.11)
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