Page 93 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

Consequently in 2009, the Company notified its suppliers to deliver the remaining raw materials
per the contract, and that if they were not able to make delivery on schedule without notification
of the reason for this to the Company, the Company would terminate the contracts and request

the return of advance payments based on the current market price for the outstanding raw
materials. However, the Company did not receive any contact from the suppliers regarding
delivery of the raw materials, and so wrote off Baht 282 million of the advance payments for

goods, representing the excess of the value of the raw materials at the contract prices over their
value at the market price as at the end of November 2009. The Company is pursuing collection
of the remaining USD 8.7 million (approximately Baht 219 million) of advance payment from the

two companies. The Company has set aside full allowance for doubtful debt
because it expects the remaining amounts will not be recoverable.

During the year 2010, a counterparty paid CNY 8.16 million (approximately USD 1.18 million or
approximately Baht 39 million) through the Company’s overseas related company and the

Company reversed allowance for doubtful debt in the same amount.

During the year 2019, the Company’s management expected there is probable that it will not
receive outstanding payment, so the Company write off all of the said balance.

11. Restricted bank deposits
These represent fixed deposits pledged with the banks to secure credit facilities that carried

interests between 0.55 and 1.25 percent per annum (2018: between 0.55 and 1.25 percent per
annum).

12. Investment in associate

12.1 Details of an associate:
(Unit: Thousand Baht)
Financial statement in
which equity method Separate
is applied financial statements
Carrying amounts
Country of Shareholding based on
Company’s name Nature of business incorporation percentage equity method Cost
2019 2018 2019 2018 2019 2018
(%) (%)
TY Steel Company Manufacture and Thailand 30.57 30.57 378,455 410,243 730,663 730,663
Limited distribution of
steel billet
Total 378,455 410,243 730,663 730,663

The Company has placed the shares of this associated company with banks as security for a
syndicated loan granted to the associated company by overseas banks.

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