Page 52 - E-BOOK

* These numbers are calculated based on the latest appraised price provided by the Appraisal
Committee (even for the case where there are more than 3 years of appraised prices available). On
the other hand, if the collaterals had been auctioned and bought, the purchased price after the
estimated expenses will be used for the calculation instead. The value of the collaterals will be
based on the appraised price first, before considering the debt obligation under the accrual basis
that the Company has with debtors, and before considering of the underlying collateral.
** These numbers are calculated by using the value of collaterals after the discount, specified under
BOT’s provision. The value of collaterals will not be used for the case where there are more than 3
years of appraised prices available, after the approval date of the appraised prices. On the other
hand, if the collaterals had been auctioned and bought, the purchased price after the estimated
expenses will be used for the calculation instead. The value of the underlying collateral will be based
on the appraised price first, before considering the debt obligation under the accrual basis that the
Company has with debtors, and before considering of the underlying collateral.

(2) The following table summarizes the loans purchased of receivables and accrued interest
receivables classified by classification were as follows:

Unit: Baht (in millions)

31 December 2020

Loans purchased of Allowance for
receivables and expected credit
accrued interest losses
receivables

50 Purchased or originated credit-impaired financial assets 90,969 13,243

Total 90,969 13,243

Also, in order to ensure the efficiency of the Company’s operation, the 12/2019 Board of Directors’ Meeting,
which was convened on July 23, 2019, approved the approval criterion for the depletion of the loans purchased of
debtors as the bad debt from the loans account. The process can be summarized, as follow.

• For the case of nonguaranteed debtors
The Company may deplete bad debt from the loans account only when:
- The Company is unable to exercise its legal claiming right against the debtor, on the credit provided
for purchasing of debtors, no matter how much is the total debt under the original agreement (the
debt obligation under the accrual basis, including other expenses). The Company will request the
approval for depleting the bad debt within the next accounting period after the transferring date of the
credit provide for purchasing of such debtors.
- The debtors of credit provided for purchasing of such debtors, with the total debt under the original
agreement of fewer than 100,000 Baht, whereas: (1) the Company spends an appropriate amount of
effort and time to collect the debt and deems that it is no longer worth the expense to use the judicial
process against such debtors; (2) debtors are dead or missing, and there is no other asset that can be