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Form 56-1 One Report 2022

Under this accounting guidance, the Company may elect to adopt accounting treatments
consistent with the circular of the BoT No. BoT.RPD2.C.802/2564 dated 3 September 2021
“Guidelines regarding the provision of financial assistance to debtors affected by COVID-19

(sustainable debt resolution)”. The assistance to debtors can be classified into 2 categories
based on debt restructuring method as follows :

1. For debt restructuring for the purpose of reducing the debt burden of debtors that

involves more than just a payment timeline extension (Assistance type 1), the Company
may elect to apply the temporary relief measures relating to staging assessment and
setting aside of provisions.

- Loans that are not yet non-performing (Non-NPL) are immediately classified as
loans with no significant increase in credit risk (Performing or Stage 1) without
compliance monitoring, provided that the payment terms and conditions are clearly

stated in the debt restructuring agreement and the debtor is considered able to
comply with the debt restructuring agreement.

- Non-performing loans (NPL) are classified as performing loans or Stage 1 if the
debtor is able to make payment in accordance with the debt restructuring

agreement for 3 consecutive months or installments, whichever is longer period.

- Additional loans provided to a debtor for use as additional working capital or to
increase liquidity to enable the debtor to continue its business operations during

the debt restructuring are classified as performing loans or Stage 1 if the debtor is
considered able to comply with the payment terms and conditions as stated in the

debt restructuring agreement.

- Loans are classified as loans with a significant increase in credit risk
(Under-performing or Stage 2) only when principal or interest payments are more
than 30 days past due or 1 month past due.

- A new effective interest rate is applied to determine the present value of loans that

have been restructured if the debt restructuring causes the existing effective
interest rate to no longer reflect the estimated cash inflows from the loan.

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