Page 48 - BAM ONE REPORT 2564 (ENGLISH VERSION)

46 Part 1
Business Operation and Performance

In order to determine the price for bidding of NPAs, the Company will consider several factors, for example,
obligation of NPAs (if any), the assets’ value as determined by the Legal Execution Department, the Company’s internally
appraised price, etc.

The following table depicts the sources of NPAs.
Baht (in millions)

2021
Auction from Transferring of Unused Total
financial collaterals/ other assets branches
institution for the settlement

Real estate property
At the beginning of the year 6,046 30,195 41 36,282
Increase 33 6,210 - 6,243
Decrease (755) (4,178) - (4,933)
At the end of the year 5,324 32,227 41 37,592
Movable property
At the beginning of the year 4 353 - 357
Increase - 43 - 43
At the end of the year 4 396 - 400
Total year-end balance 5,328 32,623 41 37,992
Less Adjusting of NPAs’ values (7,817)
Less Allowance for impairment loss (509)
NPAs - net 29,666

The Company has many NPAs around the country, for example, vacant land (including the real estate properties
used for agriculture), hotels, commercial properties, residential properties such as single-houses, townhouses, and
condominiums, etc.

(2) NPAs management (including maintenance and renovation)
The Company will inspect all NPAs that it acquires, in order to determine the necessity for renovation or
maintenance of said assets. The Company relies on its expertise in NPAs management business for this task. Also, the
decision for investing money in the renovation of NPAs depends on the general condition of such assets and the
worthiness of the investment.

After acquiring NPAs, the Company will send a team to evaluate the value of such NPAs one more time.

This is because during this period, the Company has the legal right to more thoroughly inspect NPAs.

If the after the evaluation the Company deems that no maintenance or renovation is required, the Company
will initiate the sales process of those NPAs immediately. On the other hand, if maintenance or renovation is required,
the Company will renovate or repair such NPAs before initiating the sales process.