Page 216 - E-BOOK

Expected credit losses (2019: Bad debts and doubtful accounts)
The company adopted the impairment of financial assets with credit impairment according to the new
accounting policy which has been applied since January 1, 2020. For the year ended December 31, 2020, the
Company recorded the expected credit losses of Baht 5,199 million mainly due to;
(1) the Company recorded the expected credit losses for “loans purchased of receivables” totaling Baht
5,162 million, divided into interest income- part of accrued interest receivable of Baht 5,047 million and
additional expected credit losses from impairment of loans purchased of receivables of Baht 115 million.
(2) Expected credit losses for installment sale receivables of Baht 40 million.

Income Tax and Deferred Tax Benefits (DTA/DTL)
For the year ended December 31, 2020, the Company has income tax expenses reported in statement of
comprehensive income of Baht 356 million. The main causes are the company recorded income tax record for 2020
taxable profit of Baht 719 million but deferred income taxes from temporary difference income of Baht 364 million.

In addition, the Company recognized deferred tax assets of Baht 4,130 million in respect to the past temporary
Annual Report 2020 differences in 2019 as an asset. This adjustment has been made on the Company’s statement of comprehensive

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.
214
Cash Collection from NPLs and NPAs management businesses

The Company believes that for the NPLs and NPAs management business, cash collection is a key performance
indicator which is applied by other operators in the same business and various investors. Cash collection is calculated
based on key items and recognizable cash items only, and so does not include all cash collection items from NPLs
and NPAs management business. However, cash collection is not a standard indicator prescribed by TFRS, and so
the methods of calculation may differ from methods of calculation used by other companies for similar items.

Cash Collection Receive from NPLs Management Business
The following table sets forth the cash collection received from NPLs management business for the years
ended December 31, 2018, 2019, 2020.