ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 149 Deloitte Touche Tohmatsu Jaiyos Audit ดีลอยท์ ทู้ช โธมัทสุ ไชยยศ สอบบัญชี - 2 - Key Audit Matter Key Audit Procedures Recognition of revenue from sales of electricity The Group has many sales of electricity agreements which have different terms and electricity charge rates for each power buyer. Revenue from sales of electricity was calculated based on electricity power transmission usage and electricity charge rates specified in the sales of electricity agreements.In addition, the Group recorded accrued electricity income for the electricity units over than capacity factor by using the electricity charge rate announced after the reporting period by each power buyer. Therefore, the key audit matter is the revenue from sales of electricity whether has been accurately recognized in accordance with TFRSs. Accounting policy of revenue recognition, detail of revenue from sales of electricity and operating segment were disclosed in the Notes 3.17, 34 and 35 to the financial statements, respectively. Key audit procedures included: • Understanding of the revenue recognition process relating to revenue from sales of electricity and related internal control procedures. • Testing the design and implementation including performing the operating effectiveness testing over the internal control procedures around revenue from sales of electricity recognition process. • Performing substantive testing as follows: - Examining terms and condition of the sales of electricity agreements and recalculating the revenues by checking the quantity of electricity power transmission and electricity charge rate specified in the sales of electricity agreements. - Examining the supporting documents for the revenue from sales of electricity including the electricity units over than capacity factor whether it has been recognized accurately. - Performing analytical procedures relating to revenue from sales of electricity. - Considering the presentation and related disclosures.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 150 Deloitte Touche Tohmatsu Jaiyos Audit ดีลอยท์ ทู้ช โธมัทสุ ไชยยศ สอบบัญชี - 3 - Other Information Management is responsible for the other information. The other information comprises information in the annual report, but does not include the consolidated and separate financial statements and our auditor’s report thereon. Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements Management is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with TFRSs, and for such internal control as management determines is necessary to enable the preparation of the consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. In preparing of the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with TSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 151 Deloitte Touche Tohmatsu Jaiyos Audit ดีลอยท์ ทู้ช โธมัทสุ ไชยยศ สอบบัญชี - 4 - As part of an audit in accordance with TSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtained sufficient appropriate audit evidences regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 152 Deloitte Touche Tohmatsu Jaiyos Audit ดีลอยท์ ทู้ช โธมัทสุ ไชยยศ สอบบัญชี - 5 - We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Chavala Tienpasertkij Certified Public Accountant (Thailand) BANGKOK Registration No. 4301 February 27, 2023 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 153 Notes 2022 2021 2022 2021 Current Assets Cash and cash equivalents 7.1 2,123,420 1,970,346 363,641 462,924 Trade and other current receivables 8 2,714,819 2,262,229 2,217,062 1,869,155 Finance lease current receivables 9 4,295 2,083 - - Short-term loans to related parties 6 - - 24,823,687 24,473,548 Short-term loans to other parties 10 281,973 225,458 - - Current portion of long-term loan to other party 16 232,267 163,517 - - Inventories 52,516 40,108 86,546 79,304 Current derivative asset 42 2,627 - 2,627 - Other current financial assets 42 1,008 3,961 - - Other current assets 11 209,569 370,341 7,267 3,364 Total Current Assets 5,622,494 5,038,043 27,500,830 26,888,295 Non-current Assets Deposits at financial institution used as collateral 12 3,106,840 2,697,668 2,117,937 1,811,659 Other non-current financial assets 13, 42 442,106 - 442,106 - Investments in associates 14 683,339 692,136 1,015,260 1,025,880 Investments in subsidiaries 15 - - 12,803,336 12,803,285 Long-term loan to other party 16 1,417,677 1,600,821 - - Finance lease non-current receivables 9 84,920 39,544 - - Investment properties 156,860 29,938 - - Property, plant and equipment 17 59,394,066 57,606,055 34,146 33,466 Right-of-use assets 18 1,707,305 1,697,676 138,707 50,793 Goodwill 19 185,071 185,071 - - Other intangible assets 20 631,153 580,385 81,949 24,036 Right to generate and sell of electricity 21 5,919,749 6,216,451 - - Right to sell untreated water and tap water 22 123,384 132,036 - - Deferred tax assets 23, 47 134,776 90,472 36,470 - Other non-current assets 24 4,241,713 3,923,638 351,622 329,052 Total Non-current Assets 78,228,959 75,491,891 17,021,533 16,078,171 Total Assets 83,851,453 80,529,934 44,522,363 42,966,466 Notes to the financial statements form an integral part of these statements Financial Statements ASSETS SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Separate Financial Statements
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 154 Notes 2022 2021 2022 2021 Current Liabilities Bank overdrafts and short-term borrowings from financial institutions 25 17,052,794 16,262,840 14,539,059 16,046,920 Trade and other current payables 26 3,746,799 6,724,824 312,886 148,056 Current portion of long-term borrowings from financial institutions 28 4,026,957 2,670,283 961,927 718,686 Current portion of lease liabilities 29 62,258 56,636 24,557 27,275 Short-term borrowings from related person and related parties 6 2,025 2,162 2,455,707 1,832,378 Short-term borrowings from other person or other parties 27 443,112 412,574 - - Current income tax payables 42,398 18,068 - - Current provisions for employee benefits 31 8,863 4,208 - - Current portion of long-term debentures 30 1,167,016 2,482,791 1,167,016 2,482,791 Other current liabilities 178,389 133,010 9,973 9,098 Total Current Liabilities 26,730,611 28,767,396 19,471,125 21,265,204 Non-current Liabilities Long-term borrowings from financial institutions 28 26,395,874 24,441,829 5,552,892 5,431,653 Non-current derivative liability 42 13,264 - - - Lease liabilities 29 390,463 303,305 117,126 28,430 Long-term debentures 30 7,415,220 4,074,017 7,415,220 4,074,017 Deferred tax liabilities 23, 47 387,625 416,988 - 32,434 Non-current provisions for employee benefits 31 23,429 17,666 8,677 4,532 Provision for decommissioning costs 17 385,265 546,996 - - Other non-current liabilities 44 610,176 528,142 17,095 30,153 Total Non-current Liabilities 35,621,316 30,328,943 13,111,010 9,601,219 Total Liabilities 62,351,927 59,096,339 32,582,135 30,866,423 LIABILITIES AND SHAREHOLDERS’ EQUITY Financial Statements Financial Statements SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Separate
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 155 Notes 2022 2021 2022 2021 SHAREHOLDERS’ EQUITY Share capital Authorized share capital 32,819,358,728 ordinary shares, Baht 0.10 par value 3,281,936 3,281,936 3,281,936 3,281,936 Issued and paid share capital 27,349,473,017 ordinary shares, fully paid 2,734,947 2,734,947 2,734,947 2,734,947 Share premium on ordinary shares 32 9,002,590 9,002,590 9,002,590 9,002,590 Surplus arising from change in ownership interest in subsidiary 567,451 528,546 - - Retained earnings Appropriated - Legal reserve 33, 47 48,160 41,508 48,160 41,508 Unappropriated - Retained earnings 47 7,841,205 7,346,628 283,295 320,998 Other components of shareholders’ equity 33 (458,998) (70,655) (128,764) - Total Shareholders’ Equity of the Parent 19,735,355 19,583,564 11,940,228 12,100,043 Non-controlling interests 1,764,171 1,850,031 - - Total Shareholders’ Equity 21,499,526 21,433,595 11,940,228 12,100,043 Total Liabilities and Shareholders’ Equity 83,851,453 80,529,934 44,522,363 42,966,466 Notes to the financial statements form an integral part of these statements LIABILITIES AND SHAREHOLDERS’ EQUITY (CONTINUED) SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Separate Financial Statements Financial Statements
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 156 Notes 2022 2021 2022 2021 Revenue from sales 34, 40 9,170,039 8,341,616 30,456 19,583 Revenue from rendering of services 34 191,075 188,447 485,380 487,216 Cost of sales (4,554,354) (4,195,400) (26,865) (18,289) Cost of rendering of services (131,604) (151,289) (382,617) (359,413) Gross profit 4,675,156 4,183,374 106,354 129,097 Gain (loss) on foreign exchange rate - net (546,098) 930,507 55,115 165,046 Gain (loss) on measurement at fair value of financial assets and financial liabilities (10,637) - 2,627 - Other income 8.2 99,014 454,866 81,115 108,099 Selling expenses (3,076) (2,712) - - Administrative expenses (824,532) (868,371) (132,262) (138,253) Profit from operating activities 3,389,827 4,697,664 112,949 263,989 Finance income 111,283 100,304 1,906,942 1,270,531 Finance costs 38 (2,784,378) (2,007,669) (1,923,563) (1,156,224) Share of profit from investment in associates using equity method 71,090 76,208 - - Profit before income tax expense 787,822 2,866,507 96,328 378,296 Income tax (expenses) revenue 39 (55,283) (132,987) 36,712 (57,555) Profit for the year 732,539 2,733,520 133,040 320,741 Other comprehensive income (loss): Item that will be reclassified subsequently to profit or loss Exchange rate differences on translation of financial statements (257,110) 351,096 - - Item that will not be reclassified subsequently to profit or loss Loss on valuation of other non-current financial assets - net of income tax (126,685) - (126,685) - Actuarial loss on defined benefit plan - net of income tax (3,729) (419) (2,079) - Total comprehensive income for the year 345,015 3,084,197 4,276 320,741 Profit attributable to: Owners of the Parent 665,320 2,407,391 133,040 320,741 Non-controlling interests 67,219 326,129 - - 732,539 2,733,520 133,040 320,741 Total comprehensive income attributable to: Owners of the Parent 276,977 2,671,527 4,276 320,741 Non-controlling interests 68,038 412,670 - - 345,015 3,084,197 4,276 320,741 Basic earnings per share Owners of the Parent (Baht) 41 0.0243 0.0880 0.0049 0.0117 Weighted average number of ordinary shares (Shares) 41 27,349,473,107 27,349,473,107 27,349,473,107 27,349,473,107 Notes to the financial statements form an integral part of these statements Financial Statements Financial Statements SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Separate
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 157 Non-controlling Total Share Notes premium on Appropriated ordinary shares Legal reserve Balance as at January 1, 2021 2,734,947 9,002,590 233,627 197,974 4,946,856 - - (334,791) (334,791) 16,781,203 3,841,874 20,623,077 Reclassification 47 - - - (187,998) 187,998 - - - - - - - Balance as at January 1, 2021 (after reclassification) 2,734,947 9,002,590 233,627 9,976 5,134,854 - - (334,791) (334,791) 16,781,203 3,841,874 20,623,077 Changes in shareholders’ equity : Acquisition of subsidiaries - - - - - - - - - - 10,987 10,987 Dividend paid 33 - - - - (164,085) - - - - (164,085) (11,011) (175,096) Legal reserve 33, 47 - - - 31,532 (31,532) - - - - - - - Changes in ownership interest in subsidiaries - - 294,919 - - - - - - 294,919 (2,404,489) (2,109,570) Total comprehensive income (loss) for the year - - - - 2,407,391 - (419) 264,555 264,136 2,671,527 412,670 3,084,197 Balance as at December 31, 2021 2,734,947 9,002,590 528,546 41,508 7,346,628 - (419) (70,236) (70,655) 19,583,564 1,850,031 21,433,595 Balance as at January 1, 2022 2,734,947 9,002,590 528,546 41,508 7,346,628 - (419) (70,236) (70,655) 19,583,564 1,850,031 21,433,595 Changes in shareholders’ equity : Establishment of subsidiaries - - - - - - - - - - 2,782 2,782 Dividend paid 33 - - - - (164,091) - - - - (164,091) (104,361) (268,452) Legal reserve 33 - - - 6,652 (6,652) - - - - - - - Received payment for shares - - - - - - - - - - 37,778 37,778 Changes in ownership interest in subsidiaries - - 38,905 - - - - - - 38,905 (90,097) (51,192) Total comprehensive income (loss) for the year - - - - 665,320 (126,685) (3,729) (257,929) (388,343) 276,977 68,038 345,015 Balance as at December 31, 2022 2,734,947 9,002,590 567,451 48,160 7,841,205 (126,685) (4,148) (328,165) (458,998) 19,735,355 1,764,171 21,499,526 Notes to the financial statements form an integral part of these statements ownership interest defined benefit plan other components in subsidiary net of income tax of equity on translation of financial statements Equity attributable to shareholders’ equity of the Parent Other components of shareholders’ equity equity of the Parent Issued and paid Retained earnings Total shareholders’ share capital from change in Unappropriated Actuarial loss on Total Exchange differences SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Financial Statements ordinary shares Loss on valuation of other non-current financial assets - net of income tax interests Surplus arising
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 158 Other components Note premium on Unappropriated of equity Total ordinary shares Balance as at January 1, 2021 2,734,947 9,002,590 25,471 180,379 - 11,943,387 Changes in shareholders’ equity : Dividend paid 33 - - - (164,085) - (164,085) Legal reserve 33 - - 16,037 (16,037) - - Total comprehensive income for the year - - - 320,741 - 320,741 Balance as at December 31, 2021 2,734,947 9,002,590 41,508 320,998 - 12,100,043 Balance as at January 1, 2022 2,734,947 9,002,590 41,508 320,998 - 12,100,043 Changes in shareholders’ equity : Dividend paid 33 - - - (164,091) - (164,091) Legal reserve 33 - - 6,652 (6,652) - - Total comprehensive income (loss) for the year - - - 133,040 (128,764) 4,276 Balance as at December 31, 2022 2,734,947 9,002,590 48,160 283,295 (128,764) 11,940,228 Notes to the financial statements form an integral part of these statements share capital Appropriated ordinary shares Legal reserve Issued and paid Share Retained earnings SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2022 Unit : Thousand Baht Separate Financial Statements
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 159 Notes 2022 2021 2022 2021 Cash flows from operating activities: Profit for the year 732,539 2,733,520 133,040 320,741 Adjustments: Income tax expenses (revenue) 39 55,283 132,987 (36,712) 57,555 Depreciation, amortization of right to generate and sell electricity, untreated water and tap water, amortization of 17, 18, 20 right-of-use assets and amortization of intangible assets 21, 22 3,387,010 3,174,232 34,882 32,408 Loss on impairment and written-off of assets 55,479 178,781 2,142 66 (Gain) loss from disposal of assets 1,053 (7,184) (23) (5) Expected credit loss 8, 16 35,664 - - - Share of profit from investments in associates (71,090) (76,208) - - Gain from sale of investment in a subsidiary (3,288) - (11,648) - Dividends received from associates 14 - - (68,742) (86,609) Unrealized loss on exchange rate - net (915,834) 138,504 (37,335) 301,836 (Gain) loss on changing of lease liabilities 14,663 (1,034) - 594 (Gain) loss on measurement at fair value of financial assets and financial liabilities 42 10,637 - (2,627) - Employee benefit expenses 31 5,850 3,063 1,546 787 Interest income (111,283) (100,304) (1,906,942) (1,270,531) Finance costs 38 2,784,378 2,007,669 1,923,563 1,156,224 Profit from operating activities before change in operating assets and liabilities 5,981,061 8,184,026 31,144 513,066 Change in operating assets (increase) decrease Trade and other current receivables (458,543) (747,978) 43,486 188,934 Inventories (12,408) 24,402 (7,242) (10,556) Other current assets 160,772 743,503 (3,903) 2,525 Deposits at financial institution used as collateral (409,172) (825,618) (306,278) (600,612) Other non-current assets (683,789) 549,909 (2,959) 24,025 Change in operating liabilities increase (decrease) Trade and other current payables (533,777) 791,804 72,070 (123,637) Employee benefit paid 31 (93) - - - Other current liabilities 45,515 14,118 875 905 Other non-current liabilities 82,034 (27,174) (13,058) - Cash received (paid) from operations 4,171,600 8,706,992 (185,865) (5,350) Interest received 100,357 98,420 1,400,250 455,779 Income tax paid (97,054) (101,329) (19,611) (46,809) Net cash provided by operating activities 4,174,903 8,704,083 1,194,774 403,620 SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2022 Unit : Thousand Baht Consolidated Separate Financial Statements Financial Statements
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 160 Notes 2022 2021 2022 2021 Cash flows from investing activities: Dividends received from associates 14 68,742 86,609 68,742 86,609 Cash paid for purchases of investment in associate 14 (3,800) - (3,800) - Cash paid for purchases of investments in subsidiaries (5,475) (2,263,609) (344) (168,125) Cash received from sale of investment in subsidiary 56,687 - 66,294 - Cash received from sales of property, plant and equipment 39,444 12,418 93 36 Cash received from sale of other current financial assets 2,953 4,579 - - Cash received from finance lease receivables 8,159 1,799 - - Cash paid for purchases of intangible assets 7.2 (27,582) (72,916) (13,671) (1,247) Cash paid for purchases of property, plant and equipment 7.2 (7,415,409) (13,154,970) (9,307) (11,124) Cash paid for purchases of investment properties (126,922) - - - Cash received from short-term loans to other party 202,483 311,262 - - Cash paid for short-term loans to other party (262,735) (322,957) - - Cash received from long-term loans to other party 96,250 165,000 - - Cash received from short-term loans to related parties - - 19,417,899 9,562,171 Cash paid for short-term loans to related parties - - (20,241,616) (20,243,519) Cash paid for purchases of digital asset 20 (45,000) - (45,000) - Cash paid for purchase of other non-current financial assets 13 (600,462) - (600,462) - Cash received from disposal of investment in an associate 14 14,420 - 14,420 - Net cash used in investing activities (7,998,247) (15,232,785) (1,346,752) (10,775,199) Cash flows from financing activities: Decrease in bank overdrafts 7.3 (100,758) (90,501) - (8,094) Proceeds from short-term borrowings from related parties 7.3 95,000 - 4,750,929 1,494,085 Repayments of short-term borrowings from related parties 7.3 (95,000) (29,863) (4,127,600) (693,294) Proceeds from short-term borrowings from other person or other parties 7.3 944,700 542,550 145,000 - Repayment of short-term borrowings from other person or other parties 7.3 (529,700) (678,125) (145,000) (72,290) Proceeds from short-term borrowings from financial institutions 7.3 6,004,729 11,182,722 3,838,244 10,745,922 Repayments of short-term borrowings from financial institutions 7.3 (4,873,093) (2,738,059) (4,873,093) (2,301,259) Proceeds from long-term borrowings from financial institutions 7.3 6,308,317 1,554,893 1,128,481 762,256 Repayments of long-term borrowings from financial institutions 7.3 (2,698,241) (2,550,951) (675,137) (682,859) Proceeds from long-term debentures 7.3 4,585,600 3,000,000 4,585,600 3,000,000 Repayment of long-term debentures 7.3 (2,500,000) (1,056,800) (2,500,000) (1,056,800) Payments of finance costs (2,812,351) (1,963,463) (1,879,115) (1,121,789) Repayments of liabilities under long-term finance leases 7.3 (79,177) (84,810) (31,523) (30,040) Proceeds from share subscription from non-controlling interests 2,782 - - - Cash paid for purchases of investment in subsidiary 5 (45,716) - - - Cash received from share subscription receivable 37,778 - - - Dividends payment (268,452) (175,096) (164,091) (164,085) Net cash provided by financing activities 3,976,418 6,912,497 52,695 9,871,753 Net increase (decrease) in cash and cash equivalents 153,074 383,795 (99,283) (499,826) Cash and cash equivalents at the beginning of the year 7.1 1,970,346 1,586,551 462,924 962,750 Cash and cash equivalents at the end of the year 7.1 2,123,420 1,970,346 363,641 462,924 Notes to the financial statements form an integral part of these statements Financial Statements Financial Statements Unit : Thousand Baht Consolidated Separate SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2022
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 161 SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 Notes Contents 1 The Company’s operations and General information 2 Basis of preparation and presentation of the financial statements 3 Significant accounting policies 4 Assets and business acquisitions 5 Changes in subsidiaries’ shareholding 6 Related party transactions and balances 7 Additional cash flow information 8 Trade and other current receivables 9 Finance lease receivables 10 Short-term loans to other parties 11 Other current assets 12 Deposits at financial institution used as collateral 13 Other non-current financial assets 14 Investments in associates 15 Investments in subsidiaries 16 Long-term loans to other party 17 Property, plant and equipment 18 Right-of-use assets 19 Goodwill 20 Other intangible assets 21 Right to generate and sale of electricity 22 Right to sell untreated water and tap water 23 Deferred tax assets and liabilities 24 Other non-current assets 25 Bank overdrafts and short-term borrowings from financial institutions 26 Trade and other current payables 27 Short-term borrowings from other persons or other parties 28 Long-term borrowing from financial institutions 29 Lease liabilities 30 Long-term debentures 31 Non-current provisions for employee benefits
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 162 SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 Notes Contents 32 Share premium on ordinary shares 33 Dividend, legal reserve and other components of shareholder’s equity 34 Revenue 35 Operating segment 36 Provident fund 37 Expenses by nature 38 Finance costs 39 Income tax expense 40 Promotional privileges according to Investment Promotion Act 41 Basic earnings per share 42 Fair value measurements 43 Financial instrument 44 Infrastructure fund 45 Contingent liabilities and commitments 46 Significant agreements 47 Reclassification 48 Events after the reporting period 49 Approval of the financial statements
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 163 SUPER ENERGY CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 1. THE COMPANY’S OPERATIONS AND GENERAL INFORMATION Super Energy Corporation Public Company Limited (the “Company”) was incorporated in Thailand and was registered under the Civil and Commercial Code on December 20, 1994 and became a public company limited on October 8, 2004. The Company was listed on the Stock Exchange of Thailand on April 19, 2005. The registered office is located at 223/61 Country Complex Tower A, 14th Floor, Sanpawut Road, Bangna Tai, Bangna, Bangkok. The Company, Subsidiaries and Associates are collectively called herein “the Group” which engage in three principal businesses as follows: - Generation and sale of electricity from alternative energy; - Information technology; and - Production and supply of untreated water and tap water. Detail of subsidiaries and associates as at December 31, 2022 and 2021, are as follows: Percentage of investments Name of the Company Type of Business Location 2022 2021 Direct subsidiaries Open Technology Plc. Information technology Thailand 76.25 76.25 Super Energy Group Co., Ltd. Investment in alternative energy business Thailand 100 100 Super Water Co., Ltd. Production and supply of untreated water and tap water Thailand 100 100 SUPER ENERGY (HONG KONG) Investment in alternative energy business Hong Kong 100 100 CO., LIMITED Super Earth Energy Co., Ltd. Investment in alternative generation of electricity Thailand 100 100 from bio-mass business Super Carbon X Co., Ltd. (1) Distribution of renewable green energy Thailand 100 - Super Earth Energy 2 Co., Ltd. (1) Investment in alternative generation of electricity Thailand - 100 from bio-mass business Super Green Mining Co., Ltd. (1,6) Trading, mining, and digital asset exchange Thailand - - Super Sky Energy Co., Ltd. (4) Investment in alternative energy business Thailand 95 - Super Earth Energy 9 Co., Ltd. (4) Investment in alternative generation of electricity Thailand 100 - from bio-mass business KHOKPIKHONG SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - Indirect subsidiaries PHONSAWANG SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - DINTHONG SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 78.53 - WANGKHONKHWANG SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - NONGKHAEM SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - NONGNAE SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - KANCHANABURI SOLAR ENERGY Co., Ltd. (14) Generation and sale of electricity from solar power Thailand 100 - THATAKO SOLAR ENERGY Co., Ltd. (17) Generation and sale of electricity from solar power Thailand 78.50 -
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 164 - 2 - Percentage of investments Name of the Company Type of Business Location 2022 2021 Indirect subsidiaries (Continue) BANPONG SOLAR ENERGY Generation and sale of electricity from solar power Thailand 100 - Co., Ltd. (17) KABIN GREEN ENERGY Co., Ltd. (17) Generation and sale of electricity Thailand 100 - from bio-mass business BANGPAIN GREEN ENERGY Generation and sale of electricity Thailand 100 - Co., Ltd. (17) from bio-mass business BANGKOK GREEN ENERGY Generation and sale of electricity Thailand 100 - Co., Ltd. (17) from bio-mass business HATYAI GREEN ENERGY Generation and sale of electricity Thailand 100 - Co., Ltd. (17) from bio-mass business SAMUTSAKHON GREEN ENERGY Generation and sale of electricity Thailand 100 - Co., Ltd. (17) from bio-mass business Super Solar Energy Co., Ltd. Investment in alternative energy business Thailand 100 100 Root Sun Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Pro Solar One Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Lemon Gold Farm Co., Ltd. (18) Generation and sale of electricity from wind power Thailand 99.98 76.01 PT Drive (Thailand) Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Green BI-O Mahasarakham Generation and sale of electricity from solar power Thailand 100 100 Co., Ltd. Millennium Act Co., Ltd. (7) Investment in alternative generation of electricity Thailand 100 100 from solar power business Media Mark Co., Ltd. (7) Generation and sale of electricity from solar power Thailand 100 85.65 Electrica Asia Power Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 17 Aunyawee Holding Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Health Planet Management Generation and sale of electricity from solar power Thailand 100 100 (Thailand) Co., Ltd. Energy Serve Land Co., Ltd. (16) Investment in alternative generation of electricity Thailand 100 100 from solar power business Power Technology International Investment in alternative generation of electricity Thailand 100 100 Land Co., Ltd. (16) from solar power business N.P.S Star Land Co., Ltd. Investment in alternative generation of electricity Thailand 100 100 from solar power business Generous Land Co., Ltd. Investment in alternative generation of electricity Thailand 100 100 from solar power business Super Sky Energy Co., Ltd. (4) Investment in alternative generation of electricity Thailand - 95 from bio-mass business Super Earth Energy 1 Co., Ltd. Investment in alternative generation of electricity Thailand 100 100 from bio-mass business Super Earth Energy 3 Co., Ltd. (1) Investment in alternative generation of electricity Thailand - 100 from bio-mass business Super Earth Energy 4 Co., Ltd. (4,16) Waste separation service and distribution of fuels Thailand 100 100 Super Earth Energy 5 Co., Ltd. (4) Investment in alternative generation of electricity Thailand 100 100 from bio-mass business North Solar Power Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 STFE Solar Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Tang Sae Yiang Green Power One Generation and sale of electricity from solar power Thailand 100 100 Co., Ltd. World Exchange Asia Land Investment in alternative generation of electricity Thailand 100 100 Co., Ltd. from solar power business Power Technology International Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Amanuve Co., Ltd. Generation and sale of electricity from solar power Thailand 56 56 Sri Naga Power Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Energy Serve Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Energy Serve One Co., Ltd. Investment in alternative generation of electricity Thailand 49* 49* from solar power business
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 165 - 3 - Percentage of investments Name of the Company Type of Business Location 2022 2021 Indirect subsidiaries (Continue) Energy Serve Two Co., Ltd. Investment in alternative generation of electricity Thailand 49* 49* from solar power business Energy Serve Three Co., Ltd. (16) Investment in alternative generation of electricity Thailand 100 49* from solar power business S2P Energy Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 WRP Energy Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 North East Future Energy Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Solkit Solar Co., Ltd. Generation and sale of electricity from solar power Thailand 74.50 74.50 Equator Solar Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* WXA 4 Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 WXA 5 Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 WXA 6 Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 WXA 7 Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 SPP SIX Co., Ltd. (16) Generation and sale of electricity from solar power Thailand 100 100 Enserv Technology Co., Ltd. Investment in other companies Thailand 100 100 SUPER ENERGY (EAST) PTE. LTD. Investment in other companies Singapore 100 100 SUPER ENERGY GROUP Investment in other companies Hong Kong 100 100 (HONG KONG) CO., LIMITED. (19) Apollo Solar Co., Ltd. Generation and sale of electricity from solar power Thailand 74.43 74.43 Green Power Energy Co., Ltd. (19) Generation and sale of electricity Thailand 100 100 from bio-mass business IQ Energy Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* Asta Power Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* IQ Green Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* IQ Solar Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* AIQ Energy Co., Ltd. Generation and sale of electricity from solar power Thailand 49* 49* SUPER ENERGY - GA JAPAN 1 GK Investment in other companies Japan 75 75 SUPER ENERGY - GA JAPAN 2 GK Investment in other companies Japan 100 100 SUPER SOLAR ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) 1 CO., LIMITED SUPER SOLAR ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) 2 CO., LIMITED(10) Super Wind Energy Co., Ltd. (18) Investment in other companies Thailand 100 100 Super Earth Energy 6 Co., Ltd. Generation and sale of electricity Thailand 49*,** 49*,** from bio-mass business IQ Good Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 PKT Green Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Thai Green Co., Ltd. Generation and sale of electricity from solar power Thailand 100 100 Super Solar (Thailand) Co., Ltd. Investment in other companies Thailand 100 100 Super Earth Energy 8 Co., Ltd. Investment in alternative generation of electricity Thailand 100 100 from bio-mass business Super Earth Energy 9 Co., Ltd.(4) Investment in alternative generation of electricity Thailand - 100 from bio-mass business Muangthainayu Co., Ltd. Investment in other companies Thailand 92.54 92.54 Nongkhainayu Co., Ltd. Investment in alternative generation of electricity Thailand 62 62 from bio-mass business SUPER WIND ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) CO., LIMITED SUPER WIND ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) 1 CO., LIMITED SUPER SOLAR ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) 3 CO., LIMITED SUPER SOLAR ENERGY Investment in other companies Hong Kong 100 100 (HONG KONG) 4 CO., LIMITED NAM THUAN ENERGY INVESTMENT Investment in other companies Vietnam 100 100 JOINT STOCK COMPANY(20)
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 166 - 4 - Percentage of investments Name of the Company Type of Business Location 2022 2021 Indirect subsidiaries (Continue) NAM BINH ENERGY INVESTMENT Investment in other companies Vietnam 100 100 JOINT STOCK COMPANY(21) NAM VIET PHAN LAM COMPANY Generation and sale of electricity from solar power Vietnam 100 100 LIMITED(20) VAN GIAO SOLAR POWER PLANT Generation and sale of electricity from solar power Vietnam 100 100 JOINT STOCK COMPANY(13) VAN GIAO SOLARENERGY PLANT Generation and sale of electricity from solar power Vietnam 100 100 JOINT STOCK COMPANY(13) EVERICH BINH THUAN ENERGY Generation and sale of electricity from solar power Vietnam 100 100 COMPANY LIMITED(21) Thai Panichnawa Construction and Production and supply of untreated water and tap water Thailand 100 100 Langnumthai Joint Venture Co., Ltd.(12) Super Water PPS Co., Ltd. Production and supply of untreated water and tap water Thailand 90 90 Super Speed Construction Co., Ltd. Production and supply of untreated water and tap water Thailand 100 100 THINH LONG PHU YEN SOLAR Generation and sale of electricity from solar power Vietnam 100 100 POWER JOINT STOCK COMPANY(11) SOLAR NT HOLDINGS PTE. LTD. (19, 20, 21) Investment in alternative energy business Singapore 100*** 100 SINENERGY NINH THUAN POWER Generation and sale of electricity from solar power Vietnam 100 100 LIMITED LIABILITY COMPANY(3) SUPER WIND ENERGY CONG LY Generation and sale of electricity from wind power Vietnam 90 90 BAC LIEU JOINT STOCK COMPANY SUPER WIND ENERGY CONG LY Generation and sale of electricity from wind power Vietnam 90 90 SOC TRANG JOINT STOCK COMPANY LOC NINH ENERGY JOINT STOCK Generation and sale of electricity from solar power Vietnam 99.99 99.99 COMPANY LOC NINH 2 ENERGY JOINT STOCK Generation and sale of electricity from solar power Vietnam 99.99 99.99 COMPANY LOC NINH 3 ENERGY JOINT STOCK Generation and sale of electricity from solar power Vietnam 99.99 99.99 COMPANY VIETNAM WIND HOLDING PTE. LTD. Investment in alternative energy business Singapore 100 100 SUPER ENERGY (EAST) 1 PTE. LTD. Investment in alternative energy business Singapore 100 100 HBRE GIA LAI WIND POWER JOINT Generation and sale of electricity from wind power Vietnam 99.91 99 STOCK COMPANY(9) SSE VIETNAM 1JOINT STOCK Investment in other companies Vietnam 100 100 COMPANY SSE LN2JOINT STOCK COMPANY Investment in other companies Vietnam 100 100 SSE BP3JOINT STOCK COMPANY Investment in other companies Vietnam 100 100 ASIA ENERGY COMPANY LIMITED Generation and sale of electricity from wind power Vietnam 95 95 Super Solar Hybrid Co., Ltd.(8) Generation and sale of electricity from solar power Thailand 100 100 AN CU SOLAR POWER INVESTMENT Investment in other companies Vietnam 100 - JOINT STOCK COMPANY(2) VAN GIAO SOLAR POWER Investment in other companies Vietnam 100 - INVESTMENT JOINT STOCK COMPANY(2) Sekong Solar Energy Company Limited(15) Generation and sale of electricity from solar power Laos 90 - Champasak Solar Energy Company Generation and sale of electricity from solar power Laos 90 - Limited(15) Direct associate Super Energy Power Plant Generation and sale of electricity from solar power Thailand 20 20 Infrastructure Fund (“SUPEREIF”) Super X Token Co., Ltd.(5) Trading, mining, and digital asset exchange Thailand 19 -
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 167 - 5 - * The Group holds 49 percent of ordinary shares and/or preferred shares in these companies, which are subsidiaries of the Group, because the Group has interest in the ownership and voting rights in these companies, more than one half in accordance with the Articles of Association of these companies and has control and command over the relevant operating and financing activities of such companies. Therefore, the Group classifies these companies as subsidiaries of the Group in accordance with Thai Financial Reporting Standard No. 10. ** On February 15, 2019, Super Earth Energy Co., Ltd. entered into the share purchase agreement with the existing shareholder of Super Earth Energy 6 Co., Ltd. of 928,197 shares, Baht 100 per share. Total value of the transaction is Baht 92.82 million. Subsequently, on June 10, 2020, Super Earth Energy Co., Ltd. entered into the additional share purchase agreement from increasing share capital of 1,621,800 shares, Baht 25 per share which represent the same proportion of holding of such subsidiary. However, the Company has not yet been transferred the ownership of the shares due to the fact that the Company has to comply with the conditions as specified in the contract. *** On January 28, 2022, the Board of Directors’ Meeting No. 1/2022 passed the resolution to SUPER ENERGY GROUP (HONG KONG) CO., LIMITED (“SEG HK”), which is an indirect subsidiary of the Company, entered into the share purchase agreement with AC ENERGY VIETNAM INVESTMENTS PTE. LTD. (“ACEV”) to sell shares in the proportion of 49% of SOLAR NT HOLDINGS PTE. LTD. (“Solar NT”) amount of USD 165 million or approximately Baht 5,490 million. At the present, the subsidiary is in the process of comply with the conditions as specified in the Share Purchase Agreement. After transferring shares, the proportion of ownership of SEG HK will be decreased from 100% to 51%. However, the subsidiary has not yet transferred the ownership of the shares due to the fact that the subsidiary has to comply with the conditions as specified in the contract. (1) On December 15, 2021, the Board of Directors Meeting No.8/2021 of the Company passed a resolution to restructure the shareholding structure of Super Earth Energy 3 Co., Ltd., an indirect subsidiary of the Company (registered to change the name to Super Green Mining Co., Ltd. on January 7, 2022). The Company has acquired all shares of Super Earth Energy 3 Co., Ltd. from Super Earth Energy 2 Co., Ltd., (registered to change the name to Super Carbon X Co., Ltd. on January 7, 2022). The share ownership was transferred on January 5, 2022. From shareholding structure change, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. (2) On February 24, 2022, SUPER SOLAR ENERGY (HONG KONG) 2 COMPANY LIMITED acquired investments in AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY and VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY total amount of VND 3,786.25 million or approximately Baht 5.35 million and VND 4,200 million or approximately Baht 5.93 million, respectively, which has a proportional shareholding of 100% of the total issued share capital. SOLAR NT HOLDINGS PTE. LTD., an indirect subsidiary of the Company, acquired all ordinary shares in AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY and VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY from SUPER SOLAR ENERGY (HONG KONG) 2 COMPANY LIMITED total amount of USD 0.01 million or approximately Baht 0.43 million and USD 0.19 million or approximately Baht 6.05 million, respectively, the share ownership was transferred as of the same date. Subsequently, on March 1, 2022, the Ordinary General Meeting of Shareholders of AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY and VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY passed a resolution to increase its registered share capital from the amount of VND 300 million to VND 41,250 million and amount of VND 4,200 million to VND 45,150 million, respectively, by issuing 4,095,000 new ordinary shares at par value of VND 10,000 each. The subsidiaries registered the increase in share capital on March 2, 2022. Subsequently, on July 10, 2022, the Ordinary General Meeting of Shareholders of VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY passed a resolution to increase its registered share capital from the amount of VND 45,150 million to VND 77,140 million by converting debt to equity and the subsidiary registered the increase in share capital on July 15, 2022. Subsequently, on September 19, 2022, the Ordinary General Meeting of Shareholders of AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY passed a resolution to decrease its registered share capital from the amount of VND 41,250 million to VND 5,510 million by decreasing 3,574,000 ordinary shares at par value of VND 10,000 each. The subsidiary registered the reduction in share capital on October 20, 2022. (3) On March 15, 2022, the Board of Directors Meeting of SOLAR NT HOLDINGS PTE. LTD. passed a resolution to increase its registered share capital in SINENERGY NINH THUAN POWER LIMITED LIABILITY COMPANY from the amount of VND 62,943 million to VND 300,000 million by converting debt to equity and the subsidiary registered the increase in share capital on March 29, 2022. (4) On January 28, 2022, the Board of Directors Meeting No.1/2022 of the Company passed a resolution to restructure the shareholding structure of Super Earth Energy 9 Co., Ltd. and Super Sky Energy Co., Ltd., indirect subsidiaries of the Company. The Company has acquired all shares on such shares from Super Carbon X Co., Ltd., andSuper Earth Energy 9 Co., Ltd. acquired all shares in Super Earth Energy 4 Co., Ltd. and Super Earth Energy 5 Co., Ltd. from Super Carbon X Co., Ltd. The share ownership was transferred on April 1, 2022. From shareholding structure changes, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. (5) On April 1, 2022, the Company purchased ordinary shares in Super X Token Co., Ltd. of 380,000 shares. Total purchase value is Baht 3.80 million with the proportion of 19% of the issued share capital which has 19% of voting rights and receiving benefit. Although the Company holds less than 20% shares in Super X Token Co., Ltd. and has less than 20% of voting rights in shareholders’ meetings, the Company has significant influence as it has one-three directors of the Board of Directors in associate company.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 168 - 6 - (6) On June 17, 2022, the Board of Directors Meeting No.5/2022 passed a resolution to sell ordinary shares in Super Green Mining Co., Ltd. of 13,599,998 shares in the proportion of 100% of the share capital to a company, total sales value is Baht 66 million. The Company entered into the share purchase agreement on June 28, 2022 and transferred the shares on July 1, 2022. After such shares transferring, Super Green Mining Co., Ltd. ended of being a subsidiary of the Company. The Company recognized gain from sale of investment in a subsidiary amount of Baht 3.28 million which has been included as part of other income in the consolidated statement of comprehensive income and amount of Baht 11.65 million in the separate statement of comprehensive income for the year ended December 31, 2022. (7) On July 1, 2022, Millennium Act Co., Ltd., an indirect subsidiary of the Company, purchased ordinary shares in Media Mark Co., Ltd. of 575,600 shares. Total purchase value is Baht 45.72 million. After the acquisition, Millennium Act Co.,Ltd. has a proportional ownership 100% of total issued and paid up share capital of such subsidiary and has voting rights and ownership interest of 100%(see Note 5). (8) On July 11, 2022, the Extraordinary General Meeting of Shareholders No.3/2022 of the Super Solar Hybrid Co., Ltd., an indirect subsidiary of the Company, passed a resolution to increase its registered share capital from the amount of Baht 500 million to Baht 600 million by issuing 1,000,000 new ordinary shares at par value of Baht 100 each. The subsidiary registered the increase in share capital on July 12, 2022. Super Energy Group Co., Ltd., a direct subsidiary of the Company, has purchased such capital increase shares and has remained proportion of 100% of the issued share capital of such subsidiary. (9) On August 10, 2022, the Extraordinary General Meeting of Shareholders of HBRE GIA LAI WIND POWER JOINT STOCK COMPANY passed a resolution to increase its registered share capital from the amount of VND 50,000 million to VND 530,000 million by converting debt to equity and the subsidiary registered the increase in share capital on August 11, 2022 which represent the increased proportion of holding of such subsidiary from 99% to 99.91% (10) On August 12, 2022, SUPER ENERGY GROUP (HONG KONG) CO., LTD. has restructured the shareholding structure of SUPER SOLAR ENERGY (HONG KONG) 2 CO., LIMITED which is an indirect subsidiary of the Company. SOLAR NT HOLDINGS PTE. LTD., an indirect subsidiary of the Company, acquired all shares of SUPER SOLAR ENERGY (HONG KONG) 2 CO., LIMITED from SUPER ENERGY GROUP (HONG KONG) CO., LTD. and the subsidiary has been transferred ownership of the shares. From the shareholding structure change, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. Subsequently, on September 27, 2022, the Board of Directors Meeting of SUPER SOLAR ENERGY (HONG KONG) 2 CO., LIMITED passed a resolution to increase its registered share capital from the amountHKD 0.05 million to HKD 75.05 million by issuing 75,000,000 new ordinary shares at par value of HKD 1 each. The subsidiary registered the increase in share capital on September 27, 2022. Subsequently, on October 10, 2022, the Board of Directors Meeting of SUPER SOLAR ENERGY (HONG KONG) 2 CO., LIMITED passed a resolution to increase its registered share capital from the amount of HKD 75.05 million to HKD 149.65 million, by issuing 74,600,000 new ordinary shares at par value of HKD 1 each. The subsidiary already registered the increase in share capital on October 10, 2022. Subsequently, on November 14, 2022, the Board of Directors Meeting No. 9/2022 of the Company passed a resolution to increase its registered share capital of SUPER SOLAR ENERGY (HONG KONG) 2 CO., LIMITED from the amount of HKD 149.65 million to HKD 258.80 million, by issuing 109,145,000 new ordinary shares at par value of HKD 1 each. The subsidiary already registered the increase in share capital on November 23, 2022. (11) On August 24, 2022, SUPER SOLAR ENERGY (HONG KONG) 3 CO., LIMITED has restructured the shareholding structure of THINH LONG PHU YEN SOLAR POWER JOINT STOCK COMPANY, which is an indirect subsidiary of the Company. SOLAR NT HOLDINGS PTE. LTD. acquired all shares of THINH LONG PHU YEN SOLAR POWER JOINT STOCK COMPANY from SUPER SOLAR ENERGY (HONG KONG) 3 CO., LIMITED. and the subsidiary has been transferred ownership of the shares. From the shareholding structure change, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. (12) On August 30, 2022, the Board of Directors Meeting No.3/2022 of Thai Panichnawa Construction and Langnumthai Joint Venture Co., Ltd. passed a resolution to call up on remaining 75% of investment from Super Water Co., Ltd., amount of Baht 37.50 million. (13) On August 9, 2022, the General Meeting of Shareholders of VAN GIAO SOLAR POWER PLANT JOINT STOCK COMPANY and VAN GIAO SOLARENERGY PLANT JOINT STOCK COMPANY, the indirect subsidiaries of the Company, passed a resolution to increase its registered share capital from the amount of VND 15,000 million to VND 273,000 million and amount of VND 15,000 million to VND 278,000 million, respectively, by issuing 3,870,000 new ordinary shares at par value of VND 10,000 each, and issuing 21,930,000 new preferred shares at par value of VND 10,000 each, and 3,945,000 new ordinary shares at par value of VND 10,000 each, and issuing 22,355,000 new preferred shares at par value of VND 10,000 each, respectively. SUPER SOLAR ENERGY (HONG KONG) 2 COMPANY LIMITED, VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY and AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY acquired all shares of VAN GIAO SOLAR POWER PLANT JOINT STOCK COMPANY and VAN GIAO SOLARENERGY PLANT JOINT STOCK COMPANY, which these 3 indirect subsidiaries of the Company, hold 85%, 14% and 1% of share capital, respectively. Therefore, the Group has shareholding proportion in subsidiaries total 100% of registered capital. The subsidiaries registered the increase in share capital on August 16, 2022 and have not yet received the share payments. Subsequently, on October 1, 2022, and October 4, 2022, VAN GIAO SOLAR POWER PLANT JOINT STOCK COMPANY and VAN GIAO SOLARENERGY PLANT JOINT STOCK COMPANY have been converted debt to equity amount of VND 258,000 million and VND 263,000 million, respectively, for receiving payment of share subscription receivables from SUPER SOLAR ENERGY (HONG KONG) 2 COMPANY LIMITED, VAN GIAO SOLAR POWER INVESTMENT JOINT STOCK COMPANY and AN CU SOLAR POWER INVESTMENT JOINT STOCK COMPANY.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 169 - 7 - (14) On September 21, 2022, the Board of Directors Meeting No.8/2022 of the Company passed a resolution to establish 7 subsidiaries as follows “KHOKPIKHONG SOLAR ENERGY Co., Ltd., PHONSAWANG SOLAR ENERGY Co., Ltd., DINTHONG SOLAR ENERGY Co., Ltd., WANGKHONKHWANG SOLAR ENERGY Co., Ltd., NONGKHAEM SOLAR ENERGY Co., Ltd., NONGNAE SOLAR ENERGY Co., Ltd. and KANCHANABURI SOLAR ENERGY Co., Ltd.”, with registered capital of Baht 0.10 million each company and registered the establishment with the Department of Business Development on September 23, 2022 and October 4, 2022. The Company and SPP SIX Co., Ltd., an indirect subsidiary of the Company, holds 49% and 51% of shares capital, respectively. Therefore, the Company has shareholding proportion in subsidiaries total 100% of registered capital. Subsequently, the Company sold ordinary shares of these 6 companies as follows “PHONSAWANG SOLAR ENERGY Co., Ltd., DINTHONG SOLAR ENERGY Co., Ltd., WANGKHONKHWANG SOLAR ENERGY Co., Ltd., NONGKHAEM SOLAR ENERGY Co., Ltd., NONGNAE SOLAR ENERGY Co., Ltd. and KANCHANABURI SOLAR ENERGY Co., Ltd.”, to SPP SIX Co., Ltd., an indirect subsidiary of the Company amount of Baht 0.29 million. The Company entered into the share purchase agreement and transferred the ownership of the shares on October 10, 2022, and October 18, 2022. However, the Company classified such investments as investments in subsidiaries in the statement of financial position as at December 31, 2022, due to the sale of such ordinary shares being under the common control of the Company. Subsequently, the Company sold ordinary shares of DINTHONG SOLAR ENERGY Co., Ltd., to other person, the Company entered into the share purchase agreement and transferred the ownership of the shares on October 27, 2022, of 2,150 shares, which has a proportional shareholding of 21.50% of this company registered capital. Therefore, the Company has shareholding proportion in subsidiary total 78.50% of registered capital. Subsequently,on November14, 2022,the Board of Directors Meeting No.9/2022 of the Company passed a resolution to certify the increase in registered share capital from the amount of Baht 0.10 million for each indirect subsidiary at totalling 6 companies as follows “PHONSAWANG SOLAR ENERGY Co., Ltd., NONGKHAEM SOLAR ENERGY Co., Ltd., WANGKHONKHWANG SOLAR ENERGY Co., Ltd., NONGNAE SOLAR ENERGY Co., Ltd., KANCHANABURI SOLAR ENERGY Co., Ltd. and DINTHONG SOLAR ENERGY Co., Ltd.” The new registered capital amounted of Baht 24 million, Baht 148.80 million, Baht 172 million, Baht 76 million, Baht 160 million and Baht 26.40 million, respectively. Such indirect subsidiaries have paid for share subscriptions of 25% of the increased registered shares capital in order to meet the condition of offering to sell electricity.After increasing such registered capital, the proportion of ownership of DINTHONG SOLAR ENERGY Co., Ltd. increased from 78.50%to 78.53%. (15) On June 17, 2022, the Board of Directors Meeting No.5/2022 of the Company passed a resolution to establish 2 new subsidiaries in Laos as follows “Sekong Solar Energy Company Limited and Champasak Solar Energy Company Limited”, with registered capital of Baht 1.93 million per the Company and registered the establishment on July 12, 2022, which Super Sky Energy Co., Ltd. and Super Energy Group Co., Ltd., direct subsidiaries of the Company, hold 89% and 1% of shares capital, respectively. Therefore, the Group has shareholding proportion in subsidiaries total 90% of registered capital. (16) On September 21, 2022, the Board of Directors Meeting No.8/2022 of the Company passed a resolution to restructure the shareholding structure of 5 companies which are indirect subsidiaries of the Company in order to offer to sell electricity. On November 14, 2022, the Board of Directors Meeting No.9/2022 of the Company passed a resolution to certify the result from offering to sell electricity which there were totally 4 companies that meet the conditions as follows: Energy Serve Three Co., Ltd., Energy Serve Land Co., Ltd., Power Technology International Land Co., Ltd., and Super Earth Energy 4 Co., Ltd. by SPP SIX Co., Ltd., which is an indirect subsidiary of the Company, holding 100% shares in such companies. On October 10, 2022, there have been transferred ownership of the shares. From shareholding structure change, it does not have any impact on the financial statements due to the fact that such subsidiaries are under common control of the Company. Furthermore, the Group has restructured the Shareholding structure of Energy Serve Three Co., Ltd. Previously, the Group held such sharesthrough a subsidiary in which the Group held 49% of shares capital in an indirect subsidiary. (17) On October 4, 2022, the Group established 2 new subsidiaries as follows: THATAKO SOLAR ENERGY Co., Ltd., and BANPONG SOLAR ENERGY Co., Ltd. On November 3, 2022, the Group established 5 new subsidiaries as follows: KABIN GREEN ENERGY Co., Ltd., BANGPAIN GREEN ENERGY Co., Ltd., BANGKOK GREEN ENERGY Co., Ltd., HATYAI GREEN ENERGY Co., Ltd. and SAMUTSAKHON GREEN ENERGY Co., Ltd. according to the resolution of the Board of Directors meeting No.8/2022 of the Company on September 21, 2022. The purpose is to support the expansion of generation and sale of electricity from solar power and bio-mass business in domestic. Subsequently, the Company sold ordinary shares of THATAKO SOLAR ENERGY Co., Ltd. to other person. The Company entered into the share purchase agreement and transferred the ownership of the shares on October 27, 2022, of 2,150 shares, which has a proportional shareholding of 21.50% of this company registered capital. Therefore, the Company has shareholding proportion in subsidiary total 78.50% of registered capital. Subsequently, On November 14, 2022, the Board of Directors Meeting No.9/2022 of the Company passed a resolution to certify the increase in registered share capital from the amount of Baht 0.10 million for each indirect subsidiary of totalling 2 company as follows: BANPONG SOLAR ENERGY Co., Ltd., and THATAKO SOLAR ENERGY Co., Ltd. The new registered capital amounted of Baht 80 million and Baht 24.80 million, respectively. Such indirect subsidiaries have paid for share subscriptions of 25% of the increased registered shares capital in order to meet the condition of offering to sell electricity. Subsequently, On November 21, 2022, the Extraordinary General Meeting of Shareholders No.1/2022 of the subsidiarypassed a resolution to increase its registered share each indirect subsidiary of totalling 5 companies as follows: BANGPAIN GREEN ENERGY Co., Ltd., KABIN GREEN ENERGY Co., Ltd., SAMUTSAKHON GREEN ENERGY Co., Ltd., BANGKOK GREEN ENERGY Co., Ltd. and HATYAI GREEN ENERGY Co., Ltd. The new registered capital in amounted of Baht 12.58 million per company. Such indirect subsidiaries have paid for share subscriptions of 25% of the increased registered shares capital in order to meet the conditions of offering to sell electricity.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 170 - 8 - (18) On October 31, 2022, the Extraordinary General Meeting of Shareholders No.1/2022 of Lemon Gold Farm Co., Ltd., an indirect subsidiary of the Company passed a resolution to increase its registered share from amount of Baht 1 million to Baht 1,040 million, by issuing 10,390,000 new ordinary shares at par value of Baht 100 each. Super Wind Energy Co., Ltd., a direct subsidiary of the Company, has purchased such capital increase shares from 76.01% to 99.98% of registered share. (19) On November 14, 2022, the Board of Directors Meeting No.9/2022 of the Company passed a resolution to increase its registered share each indirect subsidiary of totalling 3 companies; passed a resolution to increase its registered share of Green Power Energy Co., Ltd., an indirect subsidiary of the Company, from Baht 612 million to not exceed Baht 862 million by issuing 25,000,000 new ordinary shares at par value of Baht 10 per share, passed a resolution to increase its registered share of SUPER ENERGY GROUP (HONG KONG) CO., LTD., an indirect subsidiary of the Company, from HKD 0.10 million to not exceed HKD 605.12 million by issuing 605,015,000 new ordinary shares at par value of HKD 1 per share and passed a resolution to increase its registered share of SOLAR NT HOLDINGS PTE. LTD., an indirect subsidiary, from USD 1 million to not exceed USD 108 million by issuing not over 107,000,000 new ordinary shares at par value of USD 1 per share. (20) On November 10, 2022, the Board of Directors Meeting of NAM THUAN ENERGY INVESTMENT JOINT STOCK COMPANY passed a resolution to restructure the shareholding structure of NAM VIET PHAN LAM COMPANY LIMITED, an indirect subsidiary of the Company. SOLAR NT HOLDINGS PTE. LTD. acquired all shares from NAM THUAN ENERGY INVESTMENT JOINT STOCK COMPANY, and the share ownership was transferred on December 2, 2022. From the shareholding structure change, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. (21) On November 22, 2022, the Board of Directors Meeting of NAM BINH ENERGY INVESTMENT JOINT STOCK COMPANY passed a resolution to restructure the shareholding structure of EVERICH BINH THUAN ENERGY COMPANY LIMITED, an indirect subsidiary of the Company. SOLAR NT HOLDINGS PTE. LTD. acquired all shares from NAM BINH ENERGY INVESTMENT JOINT STOCK COMPANY, and the share ownership was transferred on December 7, 2022. From the shareholding structure change, it does not have any impact on the financial statements due to such subsidiaries are under common control of the Company. As at December 31, 2022, the Group’s total current liabilities exceeded total current assets of Baht 21,108.12 million due to the Company had short-term borrowings from a financial institution to pay for project construction for several subsidiaries in Vietnam amounting to Baht 11,690.25 million. Upon completion of Project finance approval for such subsidiaries sponsored by the Company, such short-term borrowings will have repayment terms ranging from 9 to 13 years in accordance with the terms and conditions which the Company received from the financial institution. Therefore, the Group’s management considered that the preparation of the financial statements by adopting the going concern basis is still appropriate with above reason. During the year 2022, such financial institution has approved for long-term borrowings amount of USD 453.20 million or approximately Baht 15,741.22 million. However, the partial of approved borrowings is signed according to agreement in total amount of USD 154.98 million or approximately Baht 5,383 million and is repaid for the short-term borrowings of the Company on October 26, 2022 in amount of USD 96.44 million or approximately Baht 3,349.70 million and on February 27, 2023 in amount of USD 29.80 million or approximately Baht 1,035.06 million.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 171 - 9 - Composition of the Group Information about the composition of the Group as at December 31, 2022 and 2021 are as follows: Principal activity Country of incorporation Number of wholly-owned subsidiaries 2022 2021 Generation and sale of electricity from alternative energy Thailand 75 63 Vietnam 18 16 Singapore 1 1 Laos 2 - Information technology Thailand 1 1 Production and supply of untreated water and tap water Thailand 4 4 Others Thailand 1 - Singapore 3 3 Japan 2 2 Hong Kong 8 8 Vietnam 2 2 117 100 Details of non-wholly owned subsidiaries which have material non-controlling interests as at December 31, 2022 and 2021, are as follows: Unit : Thousand Baht Name of the entity Country of incorporation Percentage of voting rights held by non-controlling interests as at December 31, Comprehensive income (loss) allocated to non-controlling interests for the years ended December 31, Accumulated non-controlling interests as at December 31, 2022 2021 2022 2021 2022 2021 Power Technology International Co., Ltd. Thailand - - - 90,725 - - Energy Serve Co., Ltd. Thailand - - - 48,237 - - Amanuve Co., Ltd. Thailand 12.07 12.07 8,289 13,308 241,176 232,887 AIQ Energy Co., Ltd. Thailand 49.00 49.00 (2,332) (7,607) (2,722) (390) Media Mark Co., Ltd. Thailand - 14.35 7,293 12,572 - 82,801 SPP SIX Co., Ltd. Thailand - - - 5 - - Apollo Solar Co., Ltd. Thailand 24.48 24.48 2,290 3,177 84,376 83,311 IQ Energy Co., Ltd. Thailand 49.00 49.00 15,492 23,883 134,129 177,431 Asta Power Co., Ltd. Thailand 49.00 49.00 34,417 31,649 270,186 280,038 IQ Green Co., Ltd. Thailand 49.00 49.00 7,899 6,109 54,888 46,989 Energy Serve One Co., Ltd. Thailand 49.00 49.00 1,687 1,778 10,037 8,350 Energy Serve Two Co., Ltd. Thailand 49.00 49.00 1,718 1,708 9,986 8,268 Energy Serve Three Co., Ltd. Thailand - 49.00 826 1,153 7,532 6,706 IQ Solar Co., Ltd. Thailand 49.00 49.00 8,730 7,242 75,644 66,914 DINTHONG SOLAR ENERGY Co., Ltd. Thailand 21.47 - (15) - 1,418 - THATAKO SOLAR ENERGY Co., Ltd. Thailand 21.50 - (13) - 1,337 - LOC NINH ENERGY JOINT STOCK COMPANY Vietnam 0.01 0.01 (6) 28,037 2,524 2,555 LOC NINH 2 ENERGY JOINT STOCK COMPANY Vietnam 0.01 0.01 (1) 75,227 7,019 7,048 LOC NINH 3 ENERGY JOINT STOCK COMPANY Vietnam 0.01 0.01 - 58,607 5,761 5,778 Individually immaterial subsidiaries with non-controlling interests (18,236) 16,860 860,880 841,345 Total 68,038 412,670 1,764,171 1,850,031
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 172 - 10 - The summarized financial information before intragroup eliminations of each non-wholly owned subsidiary which has material non-controlling interests for the years ended December 31, 2022 and 2021, are as follows: Unit : Thousand Baht Name of subsidiaries Power Technology International Co., Ltd. Energy Serve Co., Ltd. Amanuve Co., Ltd. AIQ Energy Co., Ltd. Media Mark Co., Ltd. 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Condensed statement of financial position As at December 31, Current assets 1,709,322 1,027,220 1,068,698 671,905 627,903 495,130 20,227 2,861 539,058 414,670 Non-current assets 2,249,224 2,328,547 3,062,434 2,917,437 1,152,584 1,218,824 142,358 143,458 955,599 1,008,629 Current liabilities (278,714) (114,481) (384,423) (176,276) (75,703) (67,593) (156,999) (132,030) (67,527) (53,333) Non-current liabilities (1,733,975) (1,496,944) (1,452,421) (1,353,400) (767,863) (811,776) (12,631) (17,140) (639,475) (670,315) Equity attributable to owners of the Company (1,945,857) (1,744,342) (2,294,288) (2,059,666) (695,745) (601,698) 4,323 2,461 (787,655) (616,850) Non-controlling interests - - - - (241,176) (232,887) 2,722 390 - (82,801) Condensed statement of comprehensive income For the years ended December 31, Total revenues 477,212 451,534 514,426 503,284 237,272 240,618 8,092 8,201 199,827 197,589 Total expenses (275,697) (247,393) (279,804) (270,725) (134,937) (135,739) (12,851) (23,725) (111,823) (109,978) Profit (loss) for the year 201,515 204,141 234,622 232,559 102,335 104,879 (4,759) (15,524) 88,004 87,611 Profit (loss) attributable to: Owner of the Parent 201,515 113,416 234,622 184,322 94,046 91,571 (2,427) (7,917) 80,711 75,039 Non-controlling interests - 90,725 - 48,237 8,289 13,308 (2,332) (7,607) 7,293 12,572 Total comprehensive income for the year Owner of the Parent - - - - - - - - - - Non-controlling interests - - - - - - - - - - Total comprehensive income attributable to: Owner of the Parent 201,515 113,416 234,622 184,322 94,046 91,571 (2,427) (7,917) 80,711 75,039 Non-controlling interests - 90,725 - 48,237 8,289 13,308 (2,332) (7,607) 7,293 12,572 Condensed statement of cash flows Dividends paid to non-controlling interests - - - - - - - - - - Net cash inflow (outflow) from operating activities 249,431 341,436 412,151 389,930 165,913 187,716 (10,220) 4,073 136,285 148,402 Net cash inflow (outflow) from investing activities (657,206) (221,358) (635,396) (226,703) (140,552) (116,199) (541) 104 (135,149) (65,034) Net cash inflow (outflow) from financing activities 400,337 (112,103) 212,932 (149,942) (35,719) (59,901) 11,708 (5,012) (16,966) (52,527) Net cash inflow (outflow) (7,438) 7,975 (10,313) 13,285 (10,358) 11,616 947 (835) (15,830) 30,841
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 173 - 11 - Unit : Thousand Baht Name of subsidiaries SPP SIX Co., Ltd. Apollo Solar Co., Ltd. IQ Energy Co., Ltd. Asta Power Co., Ltd. IQ Green Co., Ltd. 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Condensed statement of financial position As at December 31, Current assets 469,638 1,015,552 157,688 145,588 103,356 164,938 242,791 249,710 15,476 11,985 Non-current assets 2,747,002 1,969,383 235,123 252,543 700,709 656,187 843,682 831,396 225,811 236,274 Current liabilities (388,186) (160,608) (14,862) (15,038) (34,847) (32,266) (42,238) (39,555) (9,584) (28,541) Non-current liabilities (1,238,324) (1,393,978) (146,563) (156,290) (422,767) (398,204) (509,237) (479,839) (109,529) (112,683) Equity attributable to owners of the Company (1,590,130) (1,430,349) (147,010) (143,492) (212,322) (213,224) (264,812) (281,674) (67,286) (60,046) Non-controlling interests - - (84,376) (83,311) (134,129) (177,431) (270,186) (280,038) (54,888) (46,989) Condensed statement of comprehensive income For the years ended December 31, Total revenues 347,633 336,856 46,821 47,966 121,139 125,736 159,278 161,495 42,409 42,058 Total expenses (187,854) (174,665) (36,824) (34,318) (86,329) (76,588) (89,261) (96,593) (26,328) (29,191) Profit for the year 159,779 162,191 9,997 13,648 34,810 49,148 70,017 64,902 16,081 12,867 Profit attributable to: Owner of the Parent 159,779 162,186 7,707 10,471 19,318 25,265 35,600 33,253 8,182 6,758 Non-controlling interests - 5 2,290 3,177 15,492 23,883 34,417 31,649 7,899 6,109 Total comprehensive income for the year Owner of the Parent - - - - - - - - - - Non-controlling interests - - - - - - - - - - Total comprehensive income attributable to: Owner of the Parent 159,779 162,186 7,707 10,471 19,318 25,265 35,600 33,253 8,182 6,758 Non-controlling interests - 5 2,290 3,177 15,492 23,883 34,417 31,649 7,899 6,109 Condensed statement of cash flows Dividends paid to non-controlling interests - - (1,225) (10,584) (58,795) - (44,268) - - - Net cash inflow (outflow) from operating activities 431,125 281,442 21,602 (12,777) (41,654) 85,993 14,750 107,565 30,295 31,665 Net cash inflow (outflow) from investing activities (296,023) (442,867) (5,677) (16,534) (62,859) 40,094 (40,377) 27,408 (2) 2,741 Net cash inflow (outflow) from financing activities (152,125) 181,394 (10,538) 36,558 12,596 (25,182) (30,060) (65,995) (26,780) (39,943) Net cash inflow (outflow) (17,023) 19,969 5,387 7,247 (91,917) 100,905 (55,687) 68,978 3,513 (5,537)
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 174 - 12 - Unit : Thousand Baht Name of subsidiaries Energy Serve One Co., Ltd. Energy Serve Two Co., Ltd. Energy Serve Three Co., Ltd. IQ Solar Co., Ltd. DINTHONG SOLAR ENERGY Co., Ltd. 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Condensed statement of financial position As at December 31, Current assets 7,361 3,942 6,766 3,075 12,220 5,217 18,648 13,367 23 - Non-current assets 196,472 196,471 196,472 196,472 233,849 228,649 330,125 340,857 12,267 - Current liabilities (324) (347) (15,183) (14,998) (203,191) (199,943) (14,508) (31,704) (5,684) - Non-current liabilities (50) (50) (50) (50) (50) (50) (182,971) (190,626) - - Equity attributable to owners of the Company (193,422) (191,666) (178,019) (176,231) (35,296) (27,167) (75,650) (64,980) (5,188) - Non-controlling interests (10,037) (8,350) (9,986) (8,268) (7,532) (6,706) (75,644) (66,914) (1,418) - Condensed statement of comprehensive income For the years ended December 31, Total revenues 4,755 4,750 4,755 4,750 5,751 5,907 53,870 53,579 - - Total expenses (1,312) (1,121) (1,249) (1,264) (3,508) (3,555) (36,096) (38,149) (69) - Profit (loss) for the year 3,443 3,629 3,506 3,486 2,243 2,352 17,774 15,430 (69) - Profit (loss) attributable to: Owner of the Parent 1,756 1,851 1,788 1,778 1,417 1,199 9,044 8,188 (54) - Non-controlling interests 1,687 1,778 1,718 1,708 826 1,153 8,730 7,242 (15) - Total comprehensive income for the year Owner of the Parent - - - - - - - - - - Non-controlling interests - - - - - - - - - - Total comprehensive income attributable to: Owner of the Parent 1,756 1,851 1,788 1,778 1,417 1,199 9,044 8,188 (54) - Non-controlling interests 1,687 1,778 1,718 1,708 826 1,153 8,730 7,242 (15) - Condensed statement of cash flows Dividends paid to non-controlling interests - - - - - - - - - - Net cash inflow (outflow) from operating activities 3,414 3,453 3,687 3,511 (1,029) 4,656 36,777 35,084 (2,420) - Net cash inflow (outflow) from investing activities (5,700) - (5,200) - (288) - 72 37 1,008 - Net cash inflow (outflow) from financing activities - - - (1,000) 688 (1,000) (29,550) (44,030) 1,435 - Net cash inflow (outflow) (2,286) 3,453 (1,513) 2,511 (629) 3,656 7,299 (8,909) 23 -
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 175 - 13 - Unit : Thousand Baht Name of subsidiaries THATAKO SOLAR LOC NINH ENERGY LOC NINH 2 ENERGY LOC NINH 3 ENERGY. ENERGY Co., Ltd. JOINTSTOCK COMPANY JOINT STOCK JOINT STOCK COMPANY COMPANY 2022 2021 2022 2021 2022 2021 2022 2021 Condensed statement of financial position As at December 31, Current assets 31 - 288,149 308,011 244,070 305,557 189,694 313,080 Non-current assets 11,533 - 4,374,227 4,644,390 3,961,412 4,214,271 2,978,645 3,174,323 Current liabilities (5,348) - (4,545,108) (4,521,650) (4,091,826) (4,128,723) (3,052,840) (3,196,765) Non-current liabilities - - (36,652) (53,027) (39,415) (57,037) (33,862) (46,792) Equity attributable to owners of the Company (4,879) - (78,092) (375,169) (67,222) (327,020) (75,876) (238,068) Non-controlling interests (1,337) - (2,524) (2,555) (7,019) (7,048) (5,761) (5,778) Condensed statement of comprehensive income For the years ended December 31, Total revenues - - 624,051 723,516 617,417 697,394 454,377 555,597 Total expenses (59) - (677,162) (496,848) (616,516) (453,143) (446,500) (396,044) Profit (loss) for the year (59) - (53,111) 226,668 901 244,251 7,877 159,553 Profit (loss) attributable to: Owner of the Parent (46) - (40,961) 210,778 27,781 195,905 29,083 122,152 Non-controlling interests (13) - (12,150) 15,890 (26,880) 48,346 (21,206) 37,401 Total comprehensive income for the year Owner of the Parent - - - - - - - - Non-controlling interests - - 12,144 12,147 26,879 26,881 21,206 21,206 Total comprehensive income attributable to: Owner of the Parent (46) - (40,961) 210,778 27,781 195,905 29,083 122,152 Non-controlling interests (13) - (6) 28,037 (1) 75,227 - 58,607 Condensed statement of cash flows Dividends paid to non-controlling interests - - (25) - (27) - (17) - Net cash inflow (outflow) from operating activities (2,261) - 48,667 555,239 (105,864) 577,312 22,863 482,073 Net cash inflow (outflow) from investing activities 942 - (21,846) (4,099,015) (186,268) (3,502,634) (96,038) (2,793,339) Net cash inflow (outflow) from financing activities 1,350 - (8,190) 3,545,713 318,141 2,944,124 64,309 2,320,558 Net cash inflow (outflow) 31 - 18,631 1,937 26,009 18,802 (8,866) 9,292
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 176 - 14 - The financial information of associates which is material for the years ended December 31, 2022 and 2021, are as follows; Unit : Thousand Baht Associates name Super Energy Power Plant Infrastructure Fund (“SUPEREIF”) Condensed statement of financial position as at December 31, 2022 2021 Current assets 294,397 320,075 Non-current assets 7,106,000 7,664,000 Current liabilities (7,162) (7,743) Non-current liabilities (2,268,501) (2,509,225) Shareholders’ equity (5,051,296) (5,005,478) Condensed statement of comprehensive income for the year ended December 31, Total revenues 241,472 638,369 Total expenses (168,034) (176,740) Profit for the year 73,438 461,629 The following table presents net assets of the associate as included in its own financial statements, adjusted for fair value adjustments at acquisition and differences in accounting policies. The table also reconciles the summarised financial information to the carrying amount of the Group’s interest in the associate. Unit : Thousand Baht Super Energy Power Plant Infrastructure Fund (“SUPEREIF”) As at December 31, 2022 Net assets 5,124,734 Proportion of the Group’s ownership interest in associate (%) 20 Carrying amount of interest in investee 1,024,946 Less Deferred gain on disposal of assets to SUPEREIF in proportion to the Company’s unit holding (275,040) Less Profit from the Revenue Transfer Agreement (69,563) Net carrying amount of interest in investee 680,343 The financial information of associates which is immaterial for the years ended December 31, 2022 and 2021, are as follows; Unit : Thousand Baht Immaterial associates For the years ended December 31, 2022 2021 Carrying amount of interests in immaterial associates 3,800 - Group’s share of: Loss for the year (804) - Total comprehensive loss for the year (804) -
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 177 - 15 - The following table summarises the financial information of the associate as included in its own financial statements, adjusted for fair value adjustments at acquisition and differences in accounting policies. The table also reconciles the summarised financial information to the carrying amount of the Group’s interest in the associate. Unit : Thousand Baht Super X Token Co., Ltd. For the period from April 1, 2022 to December 31, 2022 Statement of income Revenue 1,066 Loss for the year (1,471) Total comprehensive loss for the year (1,471) As at December 31, 2022 Statement of financial position Current assets 160,486 Non-current assets 20,987 Current liabilities (162,944) Net assets 18,529 Proportion of the Group’s ownership interest in associate (%) 19 Carrying amount of interest in investee 3,520 Related transaction between the Group and associate (524) Net carrying amount of interest in investee 2,996 2. BASIS OF PREPARATION AND PRESENTATION OF THE FINANCIAL STATEMENTS 2.1 Statement of compliance (1) The Group maintains its accounting records in Thai Baht and prepares its statutory financial statements in the Thai language in conformity with Thai Financial Reporting Standards and accounting practices generally accepted in Thailand. (2) The Group’s financial statements have been prepared in accordance with the Thai Accounting Standard (TAS) No. 1 “Presentation of Financial Statements”, which was effective for financial periods beginning on or after January 1, 2022 onward, and the Regulation of The Stock Exchange of Thailand (SET) dated October 2, 2017, regarding the preparation and submission of financial statements and reports for the financial position and results of operations of the listed companies B.E. 2560 and the Notification of the Department of Business Development regarding “The Brief Particulars in the Financial Statement (No.3) B.E. 2562” dated December 26, 2019 which was effective for financial periods beginning on or after January 1, 2020.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 178 - 16 - (3) The consolidated and separate statements of financial position for the year ended December 31, 2021, presented herein for comparison, have been derived from the consolidated and separate financial statements of the Group and the Company for the year then ended which had been audited. (4) Thai Financial Reporting Standards affecting the presentation and disclosure in the current year financial statements. During the year, the Group has adopted the revised financial reporting standards issued by the Federation of Accounting Professions which are effective for fiscal years beginning on or after January 1, 2022. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards, with most of the changes directed towards revision of wording and terminology and accounting requirements for interest rate reform - Phrase 2. The adoption of these financial reporting standards does not have any significant impact on the Group’s financial statements. (5) Thai Financial Reporting Standard announced in the Royal Gazette but not yet effective. On September 26, 2022, the revised TFRSs have been announced in the Royal Gazette which will be effective for the financial statements for the period beginning on or after January 1, 2023 onwards. TFRSs which have been amended and relevant to the Group are as follows: Thai Accounting Standard No.16 “Property, Plant and Equipment” The amendments require an entity recognises any proceeds from selling items produced before that asset is available for use in profit or loss, instead of deducting from the cost of such asset. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments. The entity shall recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of that earliest period presented.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 179 - 17 - Thai Accounting Standard No.37 “Provisions, Contingent Liabilities and Contingent Assets” The amendments specify that the “cost of fulfilling a contract” comprises the “costs that relate directly to the contract”. Costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract (examples would be direct labor or materials) and an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at the beginning of the annual reporting period in which the entity first applies the amendments. Comparatives are not restated. Instead, the entity shall recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or other component of equity, as appropriate. Thai Financial Reporting Standard No.3 “Business Combinations” The amendments update TFRS 3 so that it refers to the Conceptual Framework which is currently effective. In addition, they also add to TFRS 3 a requirement that, for obligations within the scope of TAS 37, an acquirer applies TAS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. For a levy that would be within the scope of TFRIC 21 “Levies”, the acquirer applies TFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date. The amendments also add an explicit statement that an acquirer does not recognize contingent assets acquired in a business combination. Thai Financial Reporting Standard No.9 “Financial Instruments” The amendment clarifies that in applying the “10 percent” test to assess whether to derecognize a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the amendment. The Group’s management will adopt such TFRSs in the preparation of the Group’s financial statements when it becomes effective. The Group’s management is in the process to assess the impact of these TFRSs on the financial statements of the Group in the period of initial application.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 180 - 18 - 2.2 Basis of consolidation The consolidated financial statements relate to the Company and its subsidiaries’ financial statements and the Group’s interest in associates. Business combinations The Group applies the acquisition method for all business combinations except for the business combination under common control. The Group’s control is achieved when the Group (1) has power over the investee (2) is exposed, or has rights, to variable returns from its involvement with the investee and (3) has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Goodwill from acquisition of subsidiary recognized in intangible asset, right to sell untreated water and tap water and right to generate and sale electricity. The measured at the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. If the net realized amount (fair value) of identifiable assets acquired and liability assumed is higher than the fair value of the consideration transfer, the Group will recognize the surplus as gain in statement of comprehensive income. After initial recognition, goodwill is measured at cost less impairment losses. The Group assesses the impairment of goodwill annually, regardless of whether there is any indication of impairment. Rights to sell untreated water and tap water and rights to generate and sale electricity are stated at cost less accumulated amortization and allowance for impairment (if any). Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing relationships between the Group and the acquiree, then the lower of the termination amount, as contained in the agreement, and the value of the off-market element is deducted from the consideration transferred and recognized in other expenses. A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 181 - 19 - The Group measures any non-controlling interest at its proportionate interest in the identifiable net assets of the acquiree. Transaction costs that the Group incurs in connection with a business combination, such as legal fees, and other professional and consulting fees are expensed as incurred. Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, at the date that common control was established; for this purpose comparatives are revised. The assets and liabilities acquired are recognized at the carrying amounts recognized previously in the Group controlling shareholder’s consolidated financial statements. Surplus arising from business combination under common control represents the difference between the cost of the combination and the carrying amounts of net identifiable assets at the date of combination. The difference arising from common control transactions is recognized under shareholders’ equity until disposal of the investment. Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. Transactions eliminated on consolidation Significant intra-group balances and transactions have been eliminated in the preparation of the consolidated financial statements. The consolidated financial statements for the years ended December 31, 2022 and 2021 were prepared by using the financial statements of its subsidiaries and associates as of the same date. 3. SIGNIFICANT ACCOUNTING POLICIES The consolidated and separate financial statements are prepared in English version from the consolidated and separate financial statements followed the laws in Thai language. In the event of any conflict or be interpreted in two different languages, the Thai version consolidated and separate financial statements in accordance with Thai laws is superseded. The financial statements have been prepared under the measurement basis of historical cost except as disclosed in the significant accounting policies as follows: 3.1 Foreign currencies Transactions in foreign currencies Transactions in foreign currencies are translated to Thai Baht at the foreign exchange rates ruling at the dates of the transactions.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 182 - 20 - Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Thai Baht at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognized as profit or loss in statement of comprehensive income. Non-monetary assets and liabilities measured at historical cost in foreign currencies are translated to Thai Baht using the foreign exchange rates ruling at the dates of transactions. Foreign entities The assets and liabilities of foreign entities are translated to Thai Baht at the foreign exchange rates ruling at the reporting date. The revenues and expenses of foreign entities are translated to Thai Baht at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on translation are recognized as other comprehensive income in the statement of comprehensive income and presented in the foreign currency translation reserve in equity until disposal of the investment. 3.2 Cash and cash equivalents Cash and cash equivalents comprise of cash balances, all deposits at financial institutions with maturities of three months or less and highly liquid short-term investments excluding cash at banks used as collateral. 3.3 Financial instruments Financial assets and financial liabilities are recognized in the Group’s consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value, except for trade receivables that do not have a significant financing component which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Financial assets All recognized financial assets are measured subsequently in their entirely at either amortized cost or fair value, depending on the classification of the financial assets.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 183 - 21 - Classification of financial assets Debt instruments that meet the following conditions are measured subsequently at amortized cost; • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at FVTPL Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss. Financial assets at FVTOCI Financial assets in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at FVTOCI, finance lease receivable, trade receivables, as well as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting period date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime ECL for trade receivables and finance lease receivable. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Individual impairment assessment of accounts receivable. Expected credit loss is present value of total uncollected amount over the life time of financial asset discounted by effective interest rate. In other words, calculated from estimate of default risk multiply by probability of default and loss given default discount by effective interest rate calculate under each possible situation. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 184 - 22 - Derecognition of financial assets The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognized in profit or loss. Financial liabilities All financial liabilities are measured subsequently at amortized cost using the effective interest method. However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, and financial guarantee contracts issued by the Group, are measured in accordance with the specific accounting policies set out below. Financial liabilities measured subsequently at amortized cost Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective date is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between; (1) the carrying amount of the liability before the modification; and (2) the present value of cash flows after modification should be recognized in profit or loss as the modification gain or loss within other gains and losses.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 185 - 23 - Derivative financial instruments The Company enters into a variety of derivative financial instruments to manage its exposure to interest rate and interest rate swaps. Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognized as a financial asset whereas a derivative with a negative fair value is recognized as a financial liability. Derivatives are not offset in the financial statements unless the Company has both legal right and intention to offset. A derivative is presented as a non-current asset or noncurrent liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. 3.4 Trade and other current receivables Trade receivables and other current receivables are stated at their invoice value less allowance for expected credit losses. The allowance for expected credit losses has disclosed in Note 3.3. 3.5 Inventories Inventories are measured at the lower of cost and net realizable value. Cost of inventories are calculated using the weighted average method for the company that operates waste sorting service and trade carbon credit and digital asset and using first-in first-out method for the company that operates production and supply of untreated water and tap water. Cost of inventory comprises all costs of purchase, costs of conversion or other costs incurred in bringing the inventories to their present location and condition. In the case of finished goods, cost includes an appropriate share of production overheads based on normal operating capacity, and manufactured inventories, cost is presented at actual cost per stage-of-completion. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to complete and to make the sale. 3.6 Investmentsin subsidiaries and associates Investments in subsidiaries and associates in the separate financial statements of the Company are accounted by using the cost method. Investments in associates in the consolidated financial statements are accounted by using the equity method.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 186 - 24 - Investments in associates An associate is an entity which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate equals or exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill or right to generate and sale electricity, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment is recognized immediately in profit or loss in the statement of comprehensive income in the period in which the investment is acquired. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest in the statement of comprehensive income if that gain or loss would be reclassified to profit or loss upon the disposal of the related assets or liabilities. When the Group entity has the transactions with an associate, profits and losses resulting from such transactions are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. Disposal of investments On disposal of an investment, the difference between net disposal proceeds and the carrying amount is recognized as profit or loss in the statement of comprehensive income. If the Group disposes a partial of its holding investment, the deemed cost of the sold investment is determined using the weighted average method applied to the carrying value of the total holding of the investment.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 187 - 25 - 3.7 Investment Properties Investment properties are properties which are held to earn for rental income or for capital appreciation or both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment properties are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labor, and other costs directly attributable to bringing the investment property to a working condition for its intended use and capitalized borrowing costs. Depreciation is charged as an expense to the statement of comprehensive income on a straight-line basis over the estimated useful lives of each property. The estimated useful lives are as follows: Investment properties 20 years 3.8 Property, plant and equipment Recognition and measurement Land is measured at cost less allowance for impairment losses, if any. Plant and equipment are measured at cost less accumulated depreciation and allowance for impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use and capitalized borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for separately by major components. Gains and losses on disposal of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net within other income in the statement of comprehensive income. Subsequent costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized as an expense in statement of comprehensive income as incurred.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 188 - 26 - Depreciation Depreciation is calculated based on the depreciable amount of plant and equipment, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is charged as an expense to the statement of comprehensive income on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. The estimated useful lives are as follows: Buildings and building improvement 10 - 50 years Office and office improvement 5 - 20 years Utility systems 5 - 20 years Machinery and equipment 5 - 25 years Furniture, fixtures and office equipment 3 - 10 years Vehicles 5 - 10 years No depreciation is provided on land and construction in progress. Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Finance costs which occur from borrowings that specified for construction-in-progress projects and equipment installation projects will be capitalized as cost of construction in progress until the project is in ready condition as per management’s intended purpose. 3.9 Goodwill Goodwill that arises upon the acquisition of subsidiaries is recognized as intangible assets. The measurement of goodwill at initial recognition is described in Note 2.2. Subsequent to the initial recognition, goodwill is measured at cost less allowance for impairment. The Group assesses an impairment of goodwill annually, regardless of consideration of indication that such goodwill may be impaired. 3.10 Intangible assets Intangible assets are right of using assets, computer software, right of using Electrical Poles and transmission lines and right for using land which the Group has amortized as expenses, using straight-line method over the estimated useful lives of 5 years, 10 years and 25 years. Amortization Amortization is calculated over the cost of the asset, or other amount substituted for cost, less its residual value. Amortization is recognized as an expense in the statement of comprehensive income on a straight-line basis over the estimated useful lives of intangible asset, other than goodwill, from the date that they are available for use.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 189 - 27 - Amortization methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Intangible assets with indefinite useful lives are tested for impairment when there is an indicator that the asset may be impaired. Digital assets The digital assets business is a new business globally and there are not yet any directly applicable financial reporting standards. The Group considers the objective of investing in digital assets to be for long-term investment. The Group has adopted the principles of TAS 38, Intangible Assets, and classifies them as non-current assets. The Group initially recognises digital assets at cost. Following initial recognition, the digital assets are carried at cost less any accumulated impairment losses, if any. The Group does not amortize digital assets because they are indefinite useful lives. The assessment of their status with indefinite useful lives is reviewed annually. At the end of each reporting period, the Group performs impairment reviews on digital assets. An impairment loss is recognised when the carrying amount is higher than the asset’s fair value at the end of the reporting period. Digital assets will derecognise upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on disposal of an asset is included in profit or loss when the asset is derecognised. 3.11 Right to generate and sale of electricity and its amortization The Group recorded initial cost of right to generate and sale electricity which obtained from business combination at fair value as at asset acquisition date and business combination date. After initial recognition, right to generate and sale electricity is presented at cost less accumulated amortization and allowance for impairment, if any. Amortization The Group amortizes based on period of agreement 20 - 25 years for right to generate and sale the electricity by using straight-line method for the remaining period of its subsidiaries since the Group sells electricity into commercial operation date. 3.12 Right to sell untreated water and tap water and its amortization The Group recorded initial cost of right to sell untreated water and tap water which obtained from business combination at fair value of those assets as at business acquisition date. Right to sell untreated water and tap water is presented at cost less accumulated amortization and allowance for impairment, if any. Amortization The Group amortizes based on period of agreement 12 and 20 years for right to sell untreated water and tap water by using straight-line method for the remaining period of its subsidiaries since the date which the subsidiary has obtained right to sell untreated water and tap water.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 190 - 28 - 3.13 Impairment The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amounts are estimated. For goodwill and right to generate and sale electricity, the Group assesses an impairment annually. An impairment loss is recognized if the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount. The impairment loss is recognized as an expense in the statement of comprehensive income unless it reverses a previous revaluation credited to equity, in which case it is charged to statement of comprehensive income. Calculation of recoverable amount The recoverable amount of a non-financial asset is the greater of the asset’s value in use or fair value less costs of sale. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cashgenerating unit to which the asset belongs. Reversals of impairment An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognized as an expense in the statement of comprehensive income. An impairment loss in respect of goodwill is not reversed. Impairment losses recognized in prior periods in respect of other non-financial assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. 3.14 Provision for Decommissioning Costs The Group records a provision for decommissioning costs whenever it is highly probable that an obligation will arise as a result of a past event and the amount of the obligation can be reliably estimated. The Group recognizes a provision for decommissioning costs based on an estimate of the eventual costs relate to the removal of plant and equipment. These costs are included as part of plant and equipment and are amortized based on the straight-line method over the estimated useful lives of each category of the assets. The estimates of decommissioning costs are determined based on reviewed and estimated by the independence appraisal and management’s judgment.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 191 - 29 - 3.15 Employee benefits Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted cash flow basis and are recognized as an expense the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity (provident fund) and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in the statement of comprehensive income in the periods during which services are rendered by employees. Defined benefit plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value based on salary, mortality rate, service period and other factors. The discount rate is the yield of the government bond. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the vested benefit is recognized immediately as an expense in the statement of comprehensive income. The Group recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income and all expenses related to defined benefit plans in the statement of comprehensive income. Past service cost related to the plan amendment is recognized as an expense in the statement of comprehensive income when the plan amendment is effective. Provident fund The Group has set up a provident fund for employees which amount will be deducted from salary and the Group also contributes to the funds. The Group records the contribution amount paid as expenses when occurred.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 192 - 30 - 3.16 Deferred financing fees Finance cost from borrowings which occurred before or as at contract date and before draw down will be recognized as deferred financing fee. The amount will be presented separately from related borrowings and will be amortized by effective interest rate. 3.17 Revenues and expenses Revenues exclude value added taxes and present as net after trade discount. Revenue from sales of electricity Revenue from sales of electricity generated from alternative energy includes adder and fuel adjustment charge (Ft rate) and average selling price for electricity unit over than Capacity Factor is recognized when control of ownership have been transferred to the electricity buyer at the delivery point. Revenue from sales of untreated water and tap water Revenue from sales of untreated water and tap water is recognized when control of ownership have been transferred to the untreated water and tap water buyer at the delivery point. Sales of goods and rendering of services Revenue from sale of goods is recognized when the significant control of ownership have been transferred to the buyer. Revenue will not be recognized if there is continuing management involvement with the goods or there are significant uncertainties regarding recovery of the consideration due, revenues and costs cannot be measurable and available, or there is certainly probability of sale return. Service income is recognized when services are rendered to the customer. Service income from maintenance of equipment is recognized revenue over the time a performance obligation is satisfied. Rental income Rental income from an investment property is recognized on a straight-line basis over the term of the rental agreement. Contingent rentals are recognized as income in the accounting period in which they are earned. Other income Other income is recognized on accrual basis. Dividend received Dividend received is recognized on the date the Group’s right to receive payments is established.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 193 - 31 - Finance income Finance income is recognized in the statement of comprehensive income on an accrual basis. Expenses Expenses are recognized in the statement of comprehensive income on an accrual basis. 3.18 Finance costs Finance costs comprise of interest expense on borrowings and contingent consideration. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in statement of comprehensive income using the effective interest method. 3.19 Borrowing cost General and specific borrowing costs directly attributable to the acquisition or construction of qualifying assets (assets that takes a substantial period of time to get ready for its intended use or sale) are added to the cost of those assets less investment income earned from those specific borrowings. The capitalisation of borrowing costs is ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. 3.20 Lease The Group as lessee The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognizes a right-of-use asset and corresponding lease liability with respect to all lease arrangements in which it is the lease, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leases assets are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. The incremental borrowing rate depends on the term, currency and start date of the lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates; a country-specific risk adjustment; a credit risk adjustment based on bond yields; and an entity-specific adjustment when the risk profile of the entity that enters into the lease is different to that of the Group and the lease does not benefit from a guarantee from the Group.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 194 - 32 - Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; • The amount expected to be payable by the lease under residual value guarantees; • The exercise price of purchase options, if the lease is reasonably certain to exercise the options; and • Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. The lease liability is presented as a separate line in the consolidated statement of financial position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: • The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. • The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). • A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group did not make any such adjustments during the year presented. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement date, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 195 - 33 - Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under TAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories. Right-of-use assets are depreciated over the shorter period of lease term and useful life of right-of-use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of right-of-use asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the consolidated statement of financial position. The Group applies TAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the “Property, Plant and Equipment” policy. As a practical expedient, TFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Group has not used this practical expedient. For a contracts that contain a lease component and one or more additional lease or nonlease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The Group as lessor Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sub-lease is classified as a finance lease or operating lease by reference to the right-of-use asset arising from the head lease. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Subsequent to initial recognition, the Group regularly reviews the estimated unguaranteed residual value and applies the impairment requirements of TFRS 9, recognizing an allowance for expected credit losses on the lease receivables.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 196 - 34 - Finance lease income is calculated with reference to the gross carrying amount of the lease receivables, except for credit-impaired financial assets for which interest income is calculated with reference to their amortized cost (i.e. after a deduction of the loss allowance). When a contract includes both lease and non-lease components, the Group applies TFRS 15 to allocate the consideration under the contract to each component. 3.21 Income tax expenses Income tax expense for the year comprises current and deferred tax. Current and deferred tax are recognized as income or expense in the statement of comprehensive income except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable derived from a computation of profit or loss using tax rates enacted and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill in the consolidated financial statements; the initial recognition of assets or liabilities in a transaction in the consolidated financial statement that is not a business combination and that affects neither accounting nor taxable profit or loss; and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected using tax rates enacted at the reporting date. In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Group to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset when they relate to income tax levied by the same taxation authority and the Company and subsidiaries intends to settle its current tax assets and liabilities on a net basis. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Company recognizes deferred tax liabilities for all taxable temporary differences in the consolidated and separate financial statements.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 197 - 35 - 3.22 Basic earnings per share The calculations of basic earnings per share were based on the profit for the year attributable to equity holders divided by the weighted average number of ordinary shares held by outsiders outstanding during the year. The calculations of diluted earnings per share were based on the weighted average number of ordinary shares on the assumption that all dilutive potential ordinary shares have been converted to ordinary shares. 3.23 Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis. In addition, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirely, which are described as follows: - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. - Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. - Level 3 fair value measurements are those derived from valuation techniques that include inputs for the assets or liability that are not based on observable market data (unobservable inputs). 3.24 Accounting estimated and source of estimation uncertainty (1) Use of management’s critical judgements in applying accounting policies The preparation of financial statements in conformity in conformity with Thai Financial Reporting Standards (TFRSs) requires the Group’s management to exercise judgments in order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the statements of financial position and the reported amounts of revenue and expense during the reporting period. Although these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates.
ANNUAL REPORT 2022 FORM 56-1 ONEREPORT 198 - 36 - Critical judgements in applying accounting policies are as follows: Significant increase in credit risk As explained in Note 3.3, expected credit losses are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL for stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. TFRS 9 does not define what constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased the Group takes into account qualitative and quantitative reasonable and supportable forward looking information. Impairment The Group’s balance assets with definite useful lives are tested for impairment when there is an indicator that the asset may be impaired. For the assets balance with indefinite useful lives are tested for impairment annually or when there is an indicator that the asset may be impaired, the recoverable amounts are estimated. Provision for decommissioning costs The Group’s management has reviewed the provision for decommissioning costs at the end of the reporting period. The additional information is described in Note 3.14. Key sources of estimation uncertainty The Group have estimates with the assumptions concerning the future. Although these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. 2.1 Fair value measurements and valuation processes Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group uses other observable information either directly or indirectly. Information about valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in Note 42.