Page 50 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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

2022
Loans purchased of receivables and Allowance for expected
accrued interest receivables credit losses
Bangkok Commercial Asset Management Public Co., Ltd.
Purchased or originated 94,094 21,710
credit-impaired financial assets
Total 94,094 21,710

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 use for the settlement;
or (3) the debtors go out of business and there are other preferential creditors, whereas their total debts
exceed the total assets of such a debtor. For this case, the Company will request the approval for no further
legal proceedings, the termination of debt collection, and deplete the bad debt within the current accounting period.
- The debtors that after the legal proceedings are initiated: (1) in the Civil Court, the court has issued the
ruling but the debtors do not have any asset that can be used for the settlement; or for the case of bankruptcy,
whereas the court issues a compromising order or the court orders the debtor to be bankrupt and the
primary distribution of the debtor’s assets is complete. (2) The Company spends an appropriate amount
of effort and time to collect the debt and fails to collect the debt. (3) After the investigation for legal execution,
no other assets that can be used for the settlement are found.

For this case, the Company will request the approval for depleting the bad debt within the current accounting period.
• For the case of guaranteed debtors
The Company may deplete bad debt from the account receivable only when:
- The legal proceedings are complete for debtors, in which: (1) in the Civil Court, the final judgment is issued
and the Company submits the request for distributed share of the settlement or request for the preferential
settlement, for the case where there are multiple creditors; (2) for the case of bankruptcy, whereas the
court issues a compromising order or the court orders the debtor to be bankrupt and the primary distribution
of the debtor’s assets is complete.
- The Company spends an appropriate amount of effort and time to collect the debt and fails to collect the debt.
- After the investigation for legal execution, no other assets that can be used for the settlement are found.
- The legal execution for collateral enforcement and auction is complete and the debt was partially settled
by the cash flow generated herein.