SCI Annual Report 2015

SCI Electric Public Company Limited
Unit: Million Baht
Liabilities under finance lease FY2015 FY2014 Increased (Decreased)
Amount Amount Amount %
17.76 12.35 5.41 43.80
Less Current portion
(6.11) (3.71) (2.40) 64.64
Liabilities under finance lease agreements 11.65 8.64 3.01 34.86
SHAREHOLDERS’ EQUITY
Total equity as at 31 December 2015 of Baht 1,859.61 million was increased by Baht 1,233.13 million or increased 196.83%
from as at 31 December 2014, Baht 626.48 million. The shareholder was continuous increased from the continuous profit from
the operation and the issued of common share during the year 2015
to restructure the company structure and expand the business.
The first time of issued the common share, the Company increased the share capital from Baht 165.00 million to Baht 562.50
million which approved at the General Shareholders Meeting No. 1/2558 was on 16 March 2015. At the same meeting, the
shareholders had a resolution to approve for dividend payment from retained earnings as at 31 December 2014 to the shareholders
of 1.65 million shares at Baht 267.67 per share, totaling of Baht 441.67 million. Such dividend paid to the shareholders
during March and April 2015 and allocate for the additional legal reserve amounting to Baht 15.68 million.
The second time of issue the common share according to the Extraordinary General Shareholders Meeting No. 1/2558 on
22 April 2015, the shareholders had the resolutions to increase the registered share capital from Baht 562.50 million to Baht 750.00
million by increase the registered share capital of 187.50 million shares at par value of Baht 1 to distribute to public during 5
October 2015 to 7 October 2015.
Premium share of Baht 879.04 million due to the fact that the Company made a public offering of the 187.5 million shares
at Baht 5.9 per share; total consideration is amounting to Baht 1,106.3 million and received the consideration of increased share
capital on 8 October 2015. All direct expenses related to the share offering amounting to approximately Baht 39.71 million,
presented net with share premium.
Legal reserve increased Baht 26.48 million from set aside at least 5% of its net profit until the reserve is not less than 10% of
the registered capital.
CAPITAL ADEQUACY
Upon analyzing the source of capital, it can be seen that the Group generate its capital from overdraft account, shortterm
and long-term borrowing from financial institutions, including from shareholders. It is believed by the management level
that the Company and subsidiaries have capital adequacy. If, however, the company or subsidiaries is experiencing the lack
of capital, both can request for financial supports through funds or intercompany loans.
Optimal Capital Structure
As at December 31, 2015, Debt to Equity Ratio is 0.56 which is lower than the year 2014 due to the decreased in total
liabilities by 19.42%, resulting from the decreased in short-term loan from financial institution and shareholders’ equity increased
by 196.83% due to issued of common share of Baht 585.00 million and from premium share of Baht 879.04 million.
According to the conditions stipulated in the loan agreements, Tad Slen Power Limited is required to comply with certain
terms and conditions; for examples, maintaining of a debt to equity ratio not less than 1.1:1 and maintaining a ratio of debt
coverage not over 2:1. As at 31 December 2015, the subsidiary made a reclassification of long-term loan to “Current portion
of long-term loans from financial institution” due to potential non-compliance of some financial ratios such as the debt-service
coverage ratio. However, the financial institution agreed to waive the debt covenant for the financial statement of the year
2014 and considered for waive the debt covenant for the financial statement of the year 2015.
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