Page 212 - E-BOOK

Management Discussion and Analysis

Management Discussion and Analysis for the year 2020
Selected Financial Position for the year ended 2020
Significant items in Balance Sheet (for the year ended December 31, 2020)
Assets
As of December 31, 2020, the Company has total assets of Baht 132,070 million, which increased by 10.1%
from the year ended 2019. This results from the reclassified of financial assets regarding the first time adoption of
the current Thai Financial Reporting Standards or TFRS after January 1, 2020 along with the deferred tax assets
benefits receiving through retained earnings (unappropriated) of the year ended 2019.

• As of December 31, 2020, the Company has interbank and money market items - cash at financial
institutions of Baht 7,708 million, which increased by 459.0%. This is because the proceeds of debentures issuance
of Baht 10,000 million, which is partially prepared for debentures repayment due in Q1/2021.

• In Q4/2020, the Company acquired NPLs (Loans purchased of receivables) of Baht 2,431 million and
NPAs of Baht 49 million. There was a cumulative purchase of NPLs / NPAs of Baht 11,748 million for the year ended
Annual Report 2020 2020.

• The Company recognized deferred tax assets of Baht 4,130 million in respect to the past temporary

differences in 2019 as an asset. This adjustment has been made on the Company’s statement of comprehensive
210 income of the year 2019, leading to the Company’s Net profit of the respective year to be restated to Baht 10,679

million (Net profit in 2019 - before adjustment Baht 6,549 million). Therefore, the Company’s retained earnings
(unappropriated) as of December 31, 2019, has increased from Baht 17,034 million to Baht 21,163 million.

• As of December 31, 2020, the Company has deferred tax assets of Baht 5,380 million which increased
16.4% from the year ended 2019. It is mainly due to the recording of deferred tax assets as a result of temporary
differences in accounting and taxation as follows;
1. Interest income on loans purchased of receivables decreased by Baht 893 million.
2. Interest income / gain on installment sale receivables increased by Baht 137 million.
3. Allowance for expected credit losses increased by Baht 1,558 million.
4. The cumulative effects of changes in accounting policies due to the adaptation of new financial
reporting standards from January 1, 2020.

Liabilities
As of December 31, 2020, the Company has Baht 90,273 million in total liabilities, which increased by 14.7%
from the year ended 2019.
• Debenture issuance and borrowing are the main component in total liabilities which used to invest in
NPLs and NPAs. The details are as follows:
1. Total notes payable Baht 4,507 million which increased by 58.9% from the year ended 2019 from
assets purchase