Page 81 - BAM ONE REPORT 2564 (ENGLISH VERSION)

Form 56-1 One Report 2021
Bangkok Commercial Asset Management Public Co., Ltd. 79

Accounting Standards (TAS). In this respect, the court’s ruling or decision on the legal disputes in which the Company
is involved may not be in the Company’s favor, and the provisions for litigation may be inadequate to fully cover the
actual damages arising from the court proceedings or other disputes. Nevertheless, if there is a change in the Company’s
risk assessment, this may cause a relative change in the provisions for litigation.

In addition, such lawsuits and disputes may lead to further investigation, inquiry and consideration process of
the concerned authorities, which may tarnish the Company’s reputation and increase its cost and expense in relation
to such disputes. The Company may have to reallocate the resources used for its core business operation to such
process. In its normal course of business operation in the future, the Company may remain involved in legal disputes
and other disputes. As such, discontinuities in the Company’s business operation as a result of the court proceedings
or ruling against the Company, its directors or key executives may have a significant adverse impact on the Company’s
business, reputation, financial position, performance, and business opportunity.

Risk from competition that may affect the Company’s business and growth strategy
The Company possesses a number of large-sized NPLs. As of December 31, 2021, the largest NPL of the Company
accounted for 4.10 percent of its net loans purchased of receivables, and the top 10 largest NPLs made up an aggregate
of approximately 8.60 percent of its net loans purchased of receivables. Therefore, if any of these major debtors fail
to pay their debts within the specified period or default on their payment for whatever reasons, or if the Company fails
to receive the full payment from the underlying collateral or fails to receive any payment from collateral enforcement,
this will have a significant adverse impact on the Company’s financial position and performance.

Moreover, since a large number of the Company’s NPAs are located in Bangkok and its vicinities, the Company
is accordingly prone to risk from a decline in prices of land in the country and prices of land in Bangkok and its vicinities.
Any factors that lead to such land price decline may have a significant adverse impact on the Company’s business,
cash flow, financial position, and performance.

Risk associated with the dissatisfied debtors and protestors that may undermine the Company’s
reputation
The Company’s business is concerned with debt restructuring negotiation, debt collection and/or collateral
enforcement, which could arouse dissatisfaction among its debtors. It once appeared that a group of debtors staged a
protest at the Company’s headquarters and also at some of its branch offices, calling for the Company to reduce their
debts. Although its business was unaffected by such event, the Company’s operation and its relationship with and
reputation among debtors might be ruined, given a repetition of similar incident in the future. A damage to the Company’s
reputation may affect its business and relationship with its customers, debtors and other contracted parties. Previously,
the Company used to be sued by the dissatisfied debtors, which may occur again in the future and, if so, will incur
litigation expenses together with potential liability from the lawsuit. Moreover, any criticism and dissemination of negative
information against the Company may lead to a complaint or protest, which could obstruct or hinder the Company’s
business operation. These incidents may have a significant adverse impact on the Company’s business, reputation,
financial position, and performance.