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Amanah Leasing Public Company Limited
Notes to interim financial statements
For the three-month periods ended 31 March 2023
1. General information
1.1 Corporate information
Amanah Leasing Public Company Limited (“the Company”) is incorporated in Thailand and
has its registered head office at 16-16/1 Soi Kasemsan 1, Phayathai Road, Wangmai,
Pathumwan, Bangkok, Thailand. As at 31 March 2023, the Company has totalled 47
branches. (31 December 2022: 46 branches)
The Company was listed on the Stock Exchange of Thailand in December 2001.
The Company’s major shareholder during the period was Islamic Bank of Thailand (48%
shareholding), which is incorporated in Thailand.
The principal activities of the Company are to provide finance services in hire-purchase,
loans secured against vehicle registrations and inventory finance.
1.2 Basis for the preparation of interim financial statements
These interim financial statements are prepared in accordance with Thai Accounting
Standard No. 34 Interim Financial Reporting, including guidelines promulgated by the
Federation of Accounting Professions (“TFAC”), with the Company choosing to present
condensed interim financial statements. However, the Company has presented the
statements of financial position, comprehensive income, changes in shareholders' equity,
and cash flows in the same format as that used for the annual financial statements.
The interim financial statements are intended to provide information additional to that
included in the latest annual financial statements. Accordingly, they focus on new activities,
events and circumstances so as not to duplicate information previously reported. These
interim financial statements should therefore be read in conjunction with the latest annual
financial statements.
The interim financial statements in Thai language are the official statutory financial
statements of the Company. The interim financial statements in English language have
been translated from the Thai language interim financial statements. In case of a conflict or
a difference in interpretation between the two languages, the Thai language interim financial
statements shall prevail.
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1.3 New financial reporting standards
1.3.1 Financial reporting standards that became effective in the current period
The revised financial reporting standards, which are effective for fiscal years beginning on or
after 1 January 2023, do not have any significant impact on the Company’s financial
statements.
1.3.2 Accounting Guidance on the Guidelines Regarding the Provision of Financial
Assistance to Debtors Affected by COVID-19
The Federation of Accounting Professions announced Accounting Guidance on the
Guidelines Regarding the Provision of Financial Assistance to Debtors Affected by COVID- 19. Its objectives are to provide temporary relief measures and an alternative for all entities
providing assistance to debtors in accordance with guidelines of the Bank of Thailand. The
accounting guidance is applicable for provisions of assistance to such debtors made during
the period from 1 January 2022 to 31 December 2023 or until the Bank of Thailand makes
changes.
Under this accounting guidance, the Company may elect to adopt the accounting treatments
consistent with the circular of the Bank of Thailand No. BOT.RPD2.C. 802/2564 “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 groups by debt
restructuring method as follows:
For debt restructuring for the purpose of reducing the debt burden of debtors that
involves more than just a payment timeline extension, the Company may elect to apply
the temporary relief measures relating to staging assessment and setting aside of
provisions. (Assistance type 1)
For debt restructuring involving only a payment timeline extension, the Company is
required to perform staging assessment and set aside provisions in accordance with the
relevant financial reporting standards. (Assistance type 2)
1.4 Significant accounting policies, judgments and estimates
These interim financial statements are prepared by using the same accounting policies,
methods of computation, and accounting judgments and estimates as were used for
financial statements for the year ended 31 December 2022.
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2. Loans to customers and accrued income receivables, net
2.1 Loans to customers and accrued income receivables classified by type of loans are as
follows:
(Unit: Thousand Baht)
31 March 2023
Amounts due
within 1 year
Amounts due
over 1 year Total
Hire-purchase receivables 1,453,269 3,462,693 4,915,962
Loan receivables 151,326 707,520 858,846
Inventory finance receivables 25,262 - 25,262
Less: Unearned income and expenses (680,246) (1,032,187) (1,712,433)
Total loans to customers, net of unearned income and
expenses 949,611 3,138,026 4,087,637
Add: Accrued income receivables 130,076 - 130,076
Total loans to customers and accrued income
receivables 1,079,687 3,138,026 4,217,713
Less: Allowance for expected credit losses (54,932) (149,397) (204,329)
Total loans to customers and accrued income
receivables, net 1,024,755 2,988,629 4,013,384
(Unit: Thousand Baht)
31 December 2022
Amounts due
within 1 year
Amounts due
over 1 year Total
Hire-purchase receivables 1,592,631 4,017,484 5,610,115
Loan receivables 60,871 295,417 356,288
Inventory finance receivables 32,540 - 32,540
Less: Unearned income and expenses (772,026) (1,235,334) (2,007,360)
Total loans to customers, net of unearned income and
expenses 914,016 3,077,567 3,991,583
Add: Accrued income receivables 132,064 - 132,064
Total loans to customers and accrued income
receivables 1,046,080 3,077,567 4,123,647
Less: Allowance for expected credit losses (52,887) (134,918) (187,805)
Total loans to customers and accrued income
receivables, net 993,193 2,942,649 3,935,842
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2.2 Loans to customers and accrued income receivables classified by stage are as follows:
(Unit: Thousand Baht)
Loans to customers and
accrued income receivables
Allowance for
expected credit losses
31 March
2023
31 December
2022
31 March
2023
31 December
2022
Financial assets where there has not
been a significant increase in
credit risk (Performing) 3,059,498 3,092,844 44,513 44,190
Financial assets where there has been
a significant increase in credit risk
(Under - performing) 981,468 872,261 99,618 86,146
Financial assets that are credit-impaired
(Non - performing) 176,747 158,542 60,198 57,469
Total 4,217,713 4,123,647 204,329 187,805
2.3 Hire-purchase receivables
(Unit: Thousand Baht)
31 March 2023
Portion
due within
one year
Portion
due over
one year
but within
two years
Portion
due over
two years
but within
three years
Portion
due over
three years
but within
four years
Portion
due over
four years
but within
five years
Portion
due over
five years Total
Hire-purchase receivables 1,453,269 1,160,307 935,881 661,775 408,755 295,975 4,915,962
Less: Unearned income and
deferred commission (567,883) (434,539) (293,878) (176,148) (87,175) (38,473) (1,598,096)
Present value of the minimum
lease payment receivables 885,386 725,768 642,003 485,627 321,580 257,502 3,317,866
Less: Allowance for expected
credit losses (49,964) (31,860) (31,396) (27,361) (19,818) (18,300) (178,699)
Hire-purchase receivables - net 835,422 693,908 610,607 458,266 301,762 239,202 3,139,167
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(Unit: Thousand Baht)
31 December 2022
Portion
due within
one year
Portion
due over
one year
but within
two years
Portion
due over
two years
but within
three years
Portion
due over
three years
but within
four years
Portion
due over
four years
but within
five years
Portion
due over
five years Total
Hire-purchase receivables 1,592,631 1,287,557 1,056,520 770,345 504,986 398,076 5,610,115
Less: Unearned income and
deferred commission (644,610) (501,026) (347,277) (215,674) (112,781) (57,650) (1,879,018)
Present value of the minimum
lease payment receivables 948,021 786,531 709,243 554,671 392,205 340,426 3,731,097
Less: Allowance for expected
credit losses (52,045) (33,056) (32,800) (28,066) (20,882) (16,032) (182,881)
Hire-purchase receivables - net 895,976 753,475 676,443 526,605 371,323 324,394 3,548,216
As at 31 March 2023, the Company had assigned collection right to claim from
hire-purchase receivables with outstanding balances (after net of unearned income) of Baht
485 million which are not less than 150 percent of the credit facilities, in order to secure the
credit facilities granted by local bank, as discussed in Note 4 to interim financial statements.
2.4 Allowance for expected credit losses
Movements of allowance for expected credit losses for loans to customers and accrued
income receivables are as follows:
(Unit: Thousand Baht)
For the three-month period ended 31 March 2023
12-month
ECL (Stage 1)
Lifetime ECL
(Stage 2)
Lifetime ECL
(Stage 3) Total
Beginning balance 44,190 86,146 57,469 187,805
Add: Increase in allowance for expected
credit losses during the period 323 13,472 42,107 55,902
Less: Bad debt written-off during the period - - (39,378) (39,378)
Ending balance 44,513 99,618 60,198 204,329
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3. Properties foreclosed, net
(Unit: Thousand Baht)
31 March 2023 31 December 2022
Immovable properties 27,328 27,848
Less: Allowance for impairment (1,683) (1,683)
25,645 26,165
Movable properties 145,259 128,991
Less: Allowance for impairment (5,331) (4,534)
139,928 124,457
Properties foreclosed - net 165,573 150,622
As at 31 March 2023, land and condominium at net book value of Baht 20 million was
mortgaged as guarantee against bank overdrafts and short-term loan facilities total
amounting to Baht 110 million obtained from a local bank. Such facilities have not yet drawn
down amounting to Baht 70 million (31 December 2022: Baht 110 million).
4. Long-term loan from financial institution
As at 31 March 2023 and 31 December 2022, the following is loan from local bank.
(Unit: Thousand Baht)
Loan facility / Repayment schedule 31 March 2023 31 December 2022
Credit facility amounting to Baht 322 million, principal
repayment every 6 month after finished 1-year grace
period from drawdown date, and finance cost charged
at rate MLR-2.0% per annum, payment on a monthly
basis. Credit facility matures in August 2025. 322,000 322,000
Total 322,000 322,000
Less: Deferred of loan issuance costs (640) (706)
Long-term loan from financial institution 321,360 321,294
Less: Current portion due within one year (80,231) -
Long-term loan from financial institution - net of
current portion 241,129 321,294
The above-mentioned loan is secured by registration of business securities such as the right
to claim from hire-purchase receivables which guaranteed amount not less than 150 percent
of the credit facility, as discussed in Note 2.3 to interim financial statements.
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The Company is required to comply with certain terms and conditions to maintain ratios of
total debt to equity, the proportionate shareholdings of the major shareholder and the
proportionate of non-performing receivables (overdue more than 3 months) to total
receivables.
5. Income from loans to customers
Income from loans to customers for the three-month periods ended 31 March 2023 and
2022 are as follows:
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Income from hire-purchase contracts 169,560 167,263
Income from loans 33,859 -
Income from inventory finance receivables 846 590
Total income from loans to customers 204,265 167,853
6. Income tax expenses
Income tax expenses for the three-month periods ended 31 March 2023 and 2022 are as
follows:
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Current income tax:
Current income tax charge for the period 15,829 18,539
Deferred tax:
Relating to origination and reversal of temporary differences (5,288) (2,943)
Total income tax expenses reported in the statements
of comprehensive income 10,541 15,596
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Reconciliations between income tax expenses and the product of accounting profit
multiplied by the applicable tax rates for the three-month periods ended 31 March 2023 and
2022 are as follows:
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Accounting profit before tax 53,843 90,356
Applicable tax rates 20% 20%
Accounting profit before tax multiplied by applicable tax rates 10,769 18,071
Temporary differences that have not been recognised (455) (2,539)
Effects of:
Non-deductible expenses 227 64
Total (228) (2,475)
Total income tax expenses 10,541 15,596
7. Financial information classified by operating segments
The Company operations relate to a single business segment which is the financial services
business and are carried out in a single geographic area which is Thailand. Segment
performance is measured based on operating profit or loss, on a basis consistent with that
used to measure operating profit or loss in the financial statements. As a result, all of the
revenues, operating profits and assets as reflected in these financial statements pertain
exclusively to the aforementioned reportable operating segment and geographical area.
8. Related party transactions
During the period, the Company has significant business transactions with related parties.
Such transactions are in the ordinary course of business and were concluded on
commercial terms and bases agreed upon between the Company and those related parties.
A summary of related parties and transactions with those parties is below:
Name of related parties Relationship with the Company
Islamic Bank of Thailand Major shareholder
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Significant transactions for the three-month periods ended 31 March 2023 and 2022 with
related parties were as follows:
(Unit: Thousand Baht)
For the three-month periods
ended 31 March
2023 2022 Transfer Pricing Policy
(For the period 2023)
Transactions with major shareholder
Finance costs 19,460 15,236 At 4.00% and 4.15% per annum
Selling expenses 169 401 Mutually agreed rate
As at 31 March 2023 and 31 December 2022, the balances of the accounts between the
Company and those related parties are as follows:
(Unit: Thousand Baht)
31 March 2023 31 December 2022
Major shareholder
Finance cost payable 216 712
Short-term loan from related parties 1,910,000 1,850,000
Long-term loan from related parties 57,663 84,228
Movements of short-term loan and long-term loan from related parties for the three-month
periods ended 31 March 2023 and 2022 are as follows:
Short-term loan
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Major shareholder
Balance as at 1 January 1,850,000 1,370,000
Increase 2,030,000 1,410,000
Decrease (1,970,000) (1,450,000)
Balance as at 31 March 1,910,000 1,330,000
As at 31 March 2023, the Company has a revolving credit agreement with its major
shareholder amounting to Baht 2,000 million (31 December 2022: Baht 2,000 million).
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Long-term loan
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Major shareholder
Balance as at 1 January 84,228 210,033
Decrease (26,565) (45,739)
Balance as at 31 March 57,663 164,294
As at 31 March 2023, the Company has a non-revolving credit agreement with its major
shareholder amounting to Baht 500 million, the finance cost is charged at rate SPRL-3.25%
per annum, with principle repayment and finance cost payment every month-end
(31 December 2022: Baht 500 million).
Directors and management’s benefits
During the three-month periods ended 31 March 2023 and 2022, the Company had the
following employee benefits expenses payable to their directors and management.
(Unit: Thousand Baht)
For the three-month periods ended
31 March
2023 2022
Short-term employee benefits 9,090 8,445
Post-employment benefits 782 601
Directors’ remuneration 3,333 3,380
Total 13,205 12,426
9. Event after the reporting period
On 5 April 2023, the Annual General Meeting of shareholders for the year 2023 passed the
resolution of a cash dividend payment to the shareholders from net profit for the year 2022
of Baht 0.20 per share, or a total of Baht 207 million. Dividends were paid to the
shareholders on 2 May 2023.
10. Approval of interim financial statements
These interim financial statements were authorised for issue by the Company’s Board of
Directors on 10 May 2023.