Siam City Cement Public Company Limited and its ...

Siam City Cement Public Company Limited

and its subsidiaries

Review report and interim financial information

For the three-month and six-month periods ended 30 June 2021

Independent Auditor’s Report on Review of Interim Financial Information

To the Shareholders of Siam City Cement Public Company Limited

I have reviewed the accompanying consolidated statement of financial position of Siam City

Cement Public Company Limited and its subsidiaries as at 30 June 2021, the related

consolidated statements of income and comprehensive income for the three-month and

six-month periods then ended, and the related consolidated statements of changes in

shareholders’ equity and cash flows for the six-month period then ended, as well as the

condensed notes to the interim consolidated financial statements. I have also reviewed the

separate financial information of Siam City Cement Public Company Limited for the same

periods (collectively “interim financial information”). Management is responsible for the

preparation and presentation of this interim financial information in accordance with Thai

Accounting Standard No. 34 Interim Financial Reporting. My responsibility is to express a

conclusion on this interim financial information based on my review.

Scope of Review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, Review

of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of

interim financial information consists of making inquiries, primarily of persons responsible for

financial and accounting matters, and applying analytical and other review procedures. A review

is substantially less in scope than an audit conducted in accordance with Thai Standards on

Auditing and consequently does not enable me to obtain assurance that I would become aware

of all significant matters that might be identified in an audit. Accordingly, I do not express an

audit opinion.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the

accompanying interim financial information is not prepared, in all material respects, in

accordance with Thai Accounting Standard No. 34 Interim Financial Reporting.

Siriwan Nitdamrong

Certified Public Accountant (Thailand) No. 5906

EY Office Limited

Bangkok: 29 July 2021

Siam City Cement Public Company Limited and its subsidiaries

Statements of financial position

As at 30 June 2021

(Unit: Thousand Baht)

Separate financial statements

Note 30 June 2021 31 December 2020 30 June 2021 31 December 2020

(Unaudited (Audited) (Unaudited (Audited)

but reviewed) but reviewed)

Assets

Current assets

Cash and cash equivalents 2, 3 6,818,881 7,675,790 3,260,823 2,929,775

Trade and other receivables 2, 4 4,593,973 4,835,210 2,900,236 2,721,302

Short-term loans to related parties 2 - - 2,655,000 2,700,000

Derivative assets 458 4,129 - 261

Inventories 5 3,920,544 3,373,603 1,704,539 1,413,310

Advance payments for purchases of goods 588,163 360,329 11,794 17,158

Non-current assets held for sale 15,824 59,605 - -

Other current assets 2 278,460 258,321 81,771 90,726

Total current assets 16,216,303 16,566,987 10,614,163 9,872,532

Non-current assets

Restricted bank deposits 3 12,125 16,810 - -

Investments in subsidiary companies 6 - - 39,900,676 39,900,676

Investment in joint venture 7 2,058,713 1,896,326 2,145,611 2,145,611

Investments in associated companies 8 2,249,242 2,077,289 577,896 577,896

Investment properties 9 405,957 318,792 730,840 639,917

Property, plant and equipment 10 29,527,984 29,998,400 11,563,394 12,129,032

Right-of-use assets 11.1 1,644,724 1,747,382 242,569 291,549

Assets not used in operations 12 59,510 60,710 34,502 35,702

Goodwill 13 14,273,941 13,475,487 - -

Intangible assets 14 9,921,847 10,128,377 3,562,467 3,629,931

Deferred tax assets 1,110,587 1,101,251 590,960 618,594

Other non-current assets 2 406,306 282,558 140,177 142,561

Total non-current assets 61,670,936 61,103,382 59,489,092 60,111,469

Total assets 77,887,239 77,670,369 70,103,255 69,984,001

The accompanying notes are an integral part of the financial statements.

Consolidated financial statements


Statements of financial position (continued)

As at 30 June 2021



Note 30 June 2021 31 December 2020 30 June 2021 31 December 2020



Liabilities and shareholders' equity

Current liabilities

Short-term loans from related financial institution 2 - 120,000 - -

Bank overdrafts and short-term loans

from other financial institutions 15 2,886,884 3,356,312 - -

Trade and other payables 2, 16 5,134,991 4,294,170 2,420,235 1,995,036

Current portion of long-term loans from

other financial institutions 17 7,212,215 339,184 6,994,750 -

Current portion of lease liabilities 2, 11.2 441,482 403,550 93,176 97,947

Current portion of long-term liabiities for concession

and license fee 125,965 113,862 124,092 112,232

Current derivative liabilities 163,321 41 155,715 -

Income tax payable 351,621 636,677 177,492 163,919

Deferred revenue 957,168 842,523 479,036 404,889

Accrued electricity 256,961 287,959 247,180 277,562

Other accrued expenses 1,271,318 1,336,465 599,786 626,868

Other current liabilities 214,981 230,755 47,845 52,675

Total current liabilities 19,016,907 11,961,498 11,339,307 3,731,128

Non-current liabilities

Long-term loans from other financial institutions

- net of current portion 17 296,495 7,239,181 - 6,989,500

Lease liabilities - net of current portion 2, 11.2 1,146,522 1,259,867 145,276 193,930

Debentures 18 15,977,008 15,975,131 15,977,008 15,975,131

Long-term liabilities for concession and license fee

- net of current portion 909,478 1,044,896 902,434 1,035,793

Non-current derivative liabilities - 221,941 - 221,941

Provision for long-term employee benefits 2,497,799 2,479,451 1,661,575 1,678,165

Provision for site restoration and decommissioning costs 338,860 343,020 128,734 135,305

Deferred tax liabilities 1,647,622 2,319,958 - -

Other non-current liabilities 102,874 112,943 - -

Total non-current liabilities 22,916,658 30,996,388 18,815,027 26,229,765

Total liabilities 41,933,565 42,957,886 30,154,334 29,960,893




Statements of financial position (continued)

As at 30 June 2021



30 June 2021 31 December 2020 30 June 2021 31 December 2020



Liabilities and shareholders' equity (continued)

Shareholders' equity

Share capital

Registered

298,000,000 ordinary shares of Baht 10 each 2,980,000 2,980,000 2,980,000 2,980,000

Issued and fully paid up

298,000,000 ordinary shares of Baht 10 each 2,980,000 2,980,000 2,980,000 2,980,000

Share premium 26,412,551 26,412,551 26,412,551 26,412,551

Retained earnings

Appropriated - statutory reserve 300,000 300,000 300,000 300,000

Unappropriated 11,257,994 11,431,755 10,321,796 10,454,569

Other components of shareholders' equity (6,358,829) (7,760,146) (65,426) (124,012)

Equity attributable to owners of the Company 34,591,716 33,364,160 39,948,921 40,023,108

Non-controlling interests of the subsidiaries 1,361,958 1,348,323 - -

Total shareholders' equity 35,953,674 34,712,483 39,948,921 40,023,108

Total liabilities and shareholders' equity 77,887,239 77,670,369 70,103,255 69,984,001


Directors


(Unaudited but reviewed)


Income statements

For the three-month period ended 30 June 2021

(Unit: Thousand Baht except earnings per share expressed in Baht)

Consolidated financial statements Separate financial statements

Note 2021 2020 2021 2020

Revenues

Revenue from contracts with customers 19 10,050,617 10,165,270 4,522,147 5,031,737

Dividend income - - 495,939 315,039

Other income 56,341 78,318 27,347 19,547

Total revenues 10,106,958 10,243,588 5,045,433 5,366,323

Expenses

Cost of sales 7,025,562 6,717,939 2,873,394 3,188,776

Cost of services 148,287 145,675 40,226 50,056

Selling and distribution expenses 1,495,153 1,459,994 647,640 714,894

Administrative expenses 469,917 413,641 372,367 342,741

Other expenses 11,596 31,494 885 2,694

Total expenses 9,150,515 8,768,743 3,934,512 4,299,161

Operating profit 956,443 1,474,845 1,110,921 1,067,162

Share of profit from investment in joint venture 7 111,126 111,470 - -

Share of profit from investments in associated companies 8 113,467 50,241 - -

Finance income 18,595 19,772 14,162 23,226

Finance cost (295,296) (353,765) (236,380) (264,851)

Profit before income tax 904,335 1,302,563 888,703 825,537

Income tax 20 563,852 (174,778) (109,193) (98,246)

Profit for the period 1,468,187 1,127,785 779,510 727,291

Profit attributable to:

Equity holders of the Company 1,445,295 1,024,182 779,510 727,291

Non-controlling interests of the subsidiaries 22,892 103,603

1,468,187 1,127,785

Basic earnings per share 21

Profit attributable to equity holders

of the Company (Baht) 4.85 3.44 2.62 2.44

Weighted average number of ordinary shares

(Thousand shares) 298,000 298,000 298,000 298,000




Statements of comprehensive income

For the three-month period ended 30 June 2021



2021 2020 2021 2020

Profit for the period 1,468,187 1,127,785 779,510 727,291

Other comprehensive income:

Other comprehensive income to be reclassified

to profit or loss in subsequent periods

Exchange differences on translation of

financial statements in foreign currency 647,331 (1,127,717) - -

Gain (loss) on cash flow hedge - net of tax 26,379 (1,643) 26,379 (1,643)

Share of other comprehensive income of joint venture

and associated companies - exchange differences

on translation of financial statements in foreign currency 76,091 (74,090) - -


to profit or loss in subsequent periods 749,801 (1,203,450) 26,379 (1,643)

Other comprehensive income not to be reclassified


Share of other comprehensive income of associated companies -

actuarial gain 1,695 - - -


to profit or loss in subsequent periods 1,695 - - -

Other comprehensive income for the period 751,496 (1,203,450) 26,379 (1,643)

Total comprehensive income for the period 2,219,683 (75,665) 805,889 725,648

Total comprehensive income attributable to:

Equity holders of the Company 2,135,808 (84,877) 805,889 725,648


2,219,683 (75,665)




Income statements

For the six-month period ended 30 June 2021

(Unit: Thousand Baht except earnings per share expressed in Baht)


Note 2021 2020 2021 2020

Revenues

Revenue from contracts with customers 19 20,428,531 21,180,788 9,292,732 10,568,500

Dividend income 6, 7, 8 - - 1,850,730 598,688

Other income 96,459 149,347 55,359 38,961

Total revenues 20,524,990 21,330,135 11,198,821 11,206,149

Expenses

Cost of sales 14,086,109 13,982,274 5,870,951 6,795,007

Cost of services 269,575 311,558 70,789 87,521

Selling and distribution expenses 3,004,525 3,456,621 1,281,221 1,566,530

Administrative expenses 919,470 881,079 749,955 707,573

Other expenses 26,401 47,641 14,962 12,054

Total expenses 18,306,080 18,679,173 7,987,878 9,168,685

Operating profit 2,218,910 2,650,962 3,210,943 2,037,464

Share of profit from investment in joint venture 7 273,164 247,333 - -

Share of profit from investments in associated companies 8 246,635 112,969 - -

Finance income 39,945 37,867 28,257 47,175

Finance cost (585,422) (711,818) (470,044) (526,549)

Profit before income tax 2,193,232 2,337,313 2,769,156 1,558,090

Income tax 20 359,282 (338,737) (219,938) (188,365)

Profit for the period 2,552,514 1,998,576 2,549,218 1,369,725

Profit attributable to:

Equity holders of the Company 2,508,650 1,849,892 2,549,218 1,369,725


2,552,514 1,998,576

Basic earnings per share 21

Profit attributable to equity holders

of the Company (Baht) 8.42 6.21 8.55 4.60

Weighted average number of ordinary shares

(Thousand shares) 298,000 298,000 298,000 298,000




Statements of comprehensive income




2021 2020 2021 2020

Profit for the period 2,552,514 1,998,576 2,549,218 1,369,725

Other comprehensive income:



Exchange differences on translation of

financial statements in foreign currency 1,375,484 402,024 - -

Gain (loss) on cash flow hedge - net of tax 58,586 (22,238) 58,586 (22,238)

Share of other comprehensive income of joint venture

and associated companies - exchange differences

on translation of financial statements in foreign currency 126,022 88,732 - -


to profit or loss in subsequent periods 1,560,092 468,518 58,586 (22,238)



Share of other comprehensive income of associated companies -

actuarial loss (420) (3,777) - -


to profit or loss in subsequent periods (420) (3,777) - -

Other comprehensive income for the period 1,559,672 464,741 58,586 (22,238)

Total comprehensive income for the period 4,112,186 2,463,317 2,607,804 1,347,487

Total comprehensive income attributable to:

Equity holders of the Company 3,909,547 2,265,188 2,607,804 1,347,487


4,112,186 2,463,317




Statements of cash flows




2021 2020 2021 2020

Cash flows from operating activities

Profit before tax 2,193,232 2,337,313 2,769,156 1,558,090

Adjustments to reconcile profit before tax to

net cash provided by (paid from) operating activities:

Share of profit from investments in joint venture and

associated companies (519,799) (360,302) - -

Dividend income - - (1,850,730) (598,688)

Depreciation and amortisation 1,960,326 1,952,941 747,378 765,722

Impairment loss on financial assets 7,972 50,429 3,905 16,058

Reduction of inventory to net realisable value (reversal) 42,826 19,623 (544) (3,646)

Loss on disposal of non-current assets held for sale 7,367 384 - -

Reversal of impairment loss on non-financial assets (37,899) (42,610) (17,395) (13,313)

Net loss on disposals/write-off of property, plant and equipment,

assets not used in operations and intangible assets 51,968 49,027 30,317 22,964

Provision for long-term employee benefits and other provisions 105,834 98,763 58,455 60,890

Amortisation of deferred income from grants related to assets (4,304) (4,304) - -

Net loss on derivative instruments at fair value through profit or loss 19,353 188 8,378 561

Unrealised loss (gain) on exchange 1,832 (3,739) (13,678) (3,206)

Finance income (39,945) (37,867) (28,257) (47,175)

Interest expenses 537,563 674,230 438,465 491,302

Profit from operating activities before changes in

operating assets and liabilities 4,326,326 4,734,076 2,145,450 2,249,559

Operating assets (increase) decrease:

Trade and other receivables (101,985) 491,863 180,833 512,500

Inventories (589,767) 1,185,732 (290,685) 895,935

Advance payments for purchases of goods (227,834) (16,877) 5,364 11,502

Other current assets (26,745) 63,899 2,657 63,454

Operating liabilities increase (decrease):

Trade and other payables 949,234 (622,016) 433,215 (1,333,368)

Accrued expenses and other current liabilities 4,565 (67,211) 14,433 (19,397)

Other non-current liabilities (7,372) (7,096) - -

Provision for long-term employee benefits (98,403) (508,699) (76,208) (428,693)

Provision for site restoration (20,109) (758) (10,413) (755)

Cash from operating activities 4,207,910 5,252,913 2,404,646 1,950,737

Interest received 40,337 40,462 27,849 55,621

Interest paid (361,693) (500,922) (297,397) (357,488)

Cash paid for income tax (436,081) (283,165) (186,888) (226,361)

Net cash from operating activities 3,450,473 4,509,288 1,948,210 1,422,509




Statements of cash flows (continued)




2021 2020 2021 2020

Cash flows from investing activities

Net decrease (increase) in short-term loans to related parties - - 45,000 (16,000)

Decrease in restricted bank deposits 5,799 279 - -

Proceed from disposal of non-current assets held for sale 46,853 23,154 - -

Proceeds from disposals of property, plant and equipment 4,744 391 3,708 -

Acquisitions of property, plant and equipment (575,361) (438,312) (169,387) (79,928)

Increase in intangible assets (11,967) (15,439) (9,435) (11,008)

Decrease (increase) in other non-current assets (6,441) 20,375 (1,661) 31,485

Dividend received 311,061 219,039 1,503,785 598,688

Net cash from (used in) investing activities (225,312) (190,513) 1,372,010 523,237

Cash flows from financing activities

Net increase (decrease) in short-term loans from

related financial institution (120,000) 1,135,000 - 1,100,000

Net increase (decrease) in bank overdrafts and

short-term loans from other financial institutions (646,180) 293,358 - 1,600,000

Increase in long-term loans from other financial institutions 158,709 3,085,425 - 3,000,000

Repayment of long-term loans from other financial institutions (263,039) (215,517) - -

Payment of lease liabilities (273,771) (284,967) (60,539) (65,934)

Payment of liabilities for acquisitions of concession and license fee (141,510) (6,049) (139,510) (6,049)

Repayment of debentures - (3,000,000) - (3,000,000)

Dividend paid (2,870,995) (1,291,424) (2,681,991) (1,191,998)

Interest paid (107,608) (107,629) (107,379) (107,134)

Net cash from (used in) financing activities (4,264,394) (391,803) (2,989,419) 1,328,885

Increase in translation adjustments 182,077 20,565 - -

Net increase (decrease) in cash and cash equivalents (857,156) 3,947,537 330,801 3,274,631

Cash and cash equivalents at beginning of period 7,675,790 4,820,998 2,929,775 1,449,904

Effect of change in foreign exchange rate on cash at bank balance 247 (147) 247 (147)

Cash and cash equivalents at end of period 6,818,881 8,768,388 3,260,823 4,724,388




Statements of cash flows (continued)




2021 2020 2021 2020

Supplemental disclosures of cash flows information:

Non-cash related transactions from investing activities:

Payables for purchases of property, plant and equipment 153,723 201,525 16,360 2,197

Disposals of property, plant and equipment

under finance lease contract - 38,905 - -

Transfer investment properties to property, plant and equipment 12,282 - - -

Transferred property, plant and equipment to investment properties 96,235 - 96,235 -

Transferred property, plant and equipment to intangible assets 1,914 - - -

Transferred right-of-use assets to property, plant and equipment 18,463 - - -

Transferred assets not used in operations to

non-current assets held for sale - 22,637 - -

Transferred assets not used in operations to

property, plant and equipment - 4,472 - -

Transferred intangible assets to property, plant and equipment - 6,128 - -

Increase in property, plant and equipment from provision for

site restoration and decommissioning costs 4,731 15,151 904 13,913

Increase in right-of-use assets from provision for

decommissioning costs 2,593 - - -

Increase (decrease) in intangible assets from long-term liabilities

for license fee 255 (949) 255 (949)

Dividend receivable from subsidiary - - 362,602 -

Non-cash related transactions from financing activities:

Acquisitions of right-of-use assets under lease contracts 129,720 123,061 6,390 37,327

Increase (decrease) in assets and liabilities from

lease reassessment/modification

- Right-of-use assets 2,215 - (3,895) -

- Finance lease receivables - - 517 -

- Lease liabilities 4,142 - (3,072) -

- Provision for decommissioning costs (1,989) - (363) -




Statements of changes in shareholders' equity



Exchange

differences on Equity

translation of Total other Total equity attributable to

Issued and financial components of attributable to non-controlling Total

paid up Appropriated - statements in Cash flow hedge shareholders owners of interests of shareholders'

share capital Share premium statutory reserve Unappropriated foreign currency reserve requity the Company the subsidiaries equity

Balance as at 1 January 2021 2,980,000 26,412,551 300,000 11,431,755 (7,636,134) (124,012) (7,760,146) 33,364,160 1,348,323 34,712,483

Profit for the period - - - 2,508,650 - - - 2,508,650 43,864 2,552,514

Other comprehensive income for the period - - - (420) 1,342,731 58,586 1,401,317 1,400,897 158,775 1,559,672

Total comprehensive income for the period - - - 2,508,650 1,342,731 58,586 1,401,317 3,909,547 202,639 4,112,186

Dividend paid (Note 22) - - - (2,681,991) - - - (2,681,991) - (2,681,991)

Decrease in non-controlling interests of the subsidiaries

from dividend payment of subsidiaries - - - - - - - - (189,004) (189,004)

Balance as at 30 June 2021 2,980,000 26,412,551 300,000 11,257,994 (6,293,403) (65,426) (6,358,829) 34,591,716 1,361,958 35,953,674

Balance as at 1 January 2020 2,980,000 26,412,551 300,000 8,973,491 (7,272,134) (141,716) (7,413,850) 31,252,192 1,277,088 32,529,280

Profit for the period - - - 1,849,892 - - - 1,849,892 148,684 1,998,576

Other comprehensive income for the period - - - (3,777) 441,311 (22,238) 419,073 415,296 49,445 464,741

Total comprehensive income for the period - - - 1,846,115 441,311 (22,238) 419,073 2,265,188 198,129 2,463,317

Dividend paid (Note 22) - - - (1,191,998) - - - (1,191,998) - (1,191,998)

Decrease in non-controlling interests of the subsidiaries

from dividend payment of subsidiary - - - - - - - - (99,426) (99,426)

Balance as at 30 June 2020 2,980,000 26,412,551 300,000 9,627,608 (6,830,823) (163,954) (6,994,777) 32,325,382 1,375,791 33,701,173



Equity attributable to owners of the Company

Retained earnings

Other components of shareholders' equity

Other comprehensive income



Statements of changes in shareholders' equity (continued)



Other components of

shareholders' equity

Other comprehensive

Issued and income - Total

paid up Appropriated - Cash flow hedge shareholders'

share capital Share premium statutory reserve Unappropriated reserve equity

Balance as at 1 January 2021 2,980,000 26,412,551 300,000 10,454,569 (124,012) 40,023,108

Profit for the period - - - 2,549,218 - 2,549,218

Other comprehensive income for the period - - - - 58,586 58,586

Total comprehensive income for the period - - - 2,549,218 58,586 2,607,804

Dividend paid (Note 22) - - - (2,681,991) - (2,681,991)

Balance as at 30 June 2021 2,980,000 26,412,551 300,000 10,321,796 (65,426) 39,948,921

Balance as at 1 January 2020 2,980,000 26,412,551 300,000 7,476,419 (141,716) 37,027,254

Profit for the period - - - 1,369,725 - 1,369,725

Other comprehensive income for the period - - - - (22,238) (22,238)

Total comprehensive income for the period - - - 1,369,725 (22,238) 1,347,487

Dividend paid (Note 22) - - - (1,191,998) - (1,191,998)

Balance as at 30 June 2020 2,980,000 26,412,551 300,000 7,654,146 (163,954) 37,182,743



Retained earnings


1


Notes to interim financial statements

For the three-month and six-month periods ended 30 June 2021

1. General information

1.1 Corporate information

Siam City Cement Public Company Limited (“the Company”) was incorporated as a limited

company under Thai laws and registered the change of its status to a public limited

company under the Public Limited Companies Act on 5 November 1993. The Company

operates in Thailand and its principal activity is the manufacture of cement, with the

registered office address at 199, 3rd, 10th, 12th Floor, Column Tower, Ratchadapisek

Road, Klongtoey, Bangkok, and its address of factory no.1 and no. 3 is at 99 Moo 9, factory

no. 2 is at 219, mortar factory is at 41/2 and AFR Platform is at 301 Moo 5, Mitraparp Road

Km. 129-133, Tabkwang, Kaengkhoi, Saraburi.

1.2 COVID-19 pandemic

A new wave of the COVID-19 pandemic has slowed down the economic recovery, adversely

impacting most businesses and industries. In addition, the government announced for 30-

day cease of construction sites and workers' camps in Bangkok and surrounding provinces

starting from 28 June 2021. Subsequently, the Government eased the restrictions for some

construction projects to resume work on the essential and emergency cases. This situation

may bring uncertainties and have an impact on the environment in which the Group

operates. The Group’s management has continuously monitored ongoing developments

and assessed the financial impact in respect of the valuation of assets, provisions and

contingent liabilities, and has used estimates and judgement in respect of various issues as

the situation has evolved.

1.3 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”, with the Company choosing to present

condensed interim financial statements. However, the Company has presented the

statements of financial position, income, comprehensive income, changes in shareholders’

equity, and cash flows in the same format as that used for the annual financial statements.

These 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 financial statements.


2

1.4 Basis of consolidation

The interim consolidated financial statements included the financial statements of Siam City

Cement Public Company Limited and its subsidiaries and have been prepared on the same

basis as that applied for the consolidated financial statements for the year ended

31 December 2020. There have been no changes in the composition of the subsidiaries

during the current period.

1.5 New financial reporting standards

a) Financial reporting standards that became effective in the current period

During the period, the Group has adopted the revised financial reporting standards

and interpretations which are effective for fiscal years beginning on or after 1 January

2021. These financial reporting standards were aimed at alignment with the

corresponding International Financial Reporting Standards with most of the changes

directed towards clarifying accounting treatment and providing accounting guidance

for users of the standards.

The adoption of these financial reporting standards does not have any significant

impact on the Group’s financial statements.

However, the Group has early adopted the temporary exemptions from applying

specific hedge accounting requirements in accordance with TFRS 9 Financial Instruments

and TFRS 7 Disclosure of Financial Instruments, which apply to all hedging relationships

directly affected by interest rate benchmark reform since the preparation of the

financial statements for the year ended 31 December 2020. Consequently, the Group

can continue to apply hedge accounting for those hedging relationships in the period

when there is uncertainty about the timing or the amount of interest rate benchmark-

based cash flows of the hedged item or of the hedging instrument.

The adoption of these temporary exemptions does not have any significant impact on

the Group’s financial statements.

b) Financial reporting standards that will become effective for fiscal years beginning

on or after 1 January 2022

The Federation of Accounting Professions issued a number of revised financial

reporting standards, which are effective for fiscal years beginning on or after

1 January 2022. These financial reporting standards were aimed at alignment with the

corresponding International Financial Reporting Standards with most of the changes

directed towards clarifying accounting treatment and, for some standards, providing

temporary reliefs or temporary exemptions for users.

The management of the Group is currently evaluating the impact of these standards

on the financial statements in the year when they are adopted.


3

1.6 Significant accounting policies

The interim financial information is prepared by using the same accounting policies and

methods of computation as were used for the financial statements for the year ended

31 December 2020.

2. Related party transactions

During the periods, the Group had significant business transactions with related parties.

Such transactions, which are summarised below, arose in ordinary course of business and

were concluded on commercial terms and bases agreed upon between the Group and

those related parties.

(Unit: Million Baht)

For the three-month periods ended 30 June

Consolidated

financial statements

Separate

financial statements Transfer pricing policy

2021 2020 2021 2020

Transactions with subsidiaries

(eliminated from the consolidated

financial statements)

Sales of goods and service income - - 905 1,202 Market price

Dividend income - - 274 96 At the declared rate

Interest income - - 10 17 Market interest rate

Other income - - 62 46 Cost plus margin

Purchase of goods - - 250 2 Market price

Purchase of utility - - 240 293 Market price

Service fee expenses - - 113 106 Contractual agreed price

Transactions with joint venture

Sales of goods and service income 163 77 4 - Market price


Service fee expenses 3 6 3 6 Contractual agreed price

Transactions with associated companies


Purchases of goods 183 446 183 446 Market price

Transactions with related companies

Sales of goods and service income 1 - - - Market price

Interest income 1 2 - 1 Market interest rate

Purchases of goods 208 139 4 - Market price


Other expenses 28 20 27 19 Contractual agreed price

Interest expenses - 5 - 4 Market interest rate


4


For the six-month periods ended 30 June

Consolidated


Separate

financial statements Transfer pricing policy

2021 2020 2021 2020

Transactions with subsidiaries

(eliminated from the consolidated

financial statements)

Sales of goods and service income - - 1,827 2,715 Market price

Dividend income - - 1,540 380 At the declared rate

Interest income - - 20 36 Market interest rate

Other income - - 113 100 Cost plus margin

Purchase of goods - - 257 121 Market price

Purchase of utility - - 492 563 Market price

Service fee expenses - - 235 213 Contractual agreed price

Transactions with joint venture

Sales of goods and service income 291 300 9 48 Market price


Other income - 6 - 6 Contractual agreed price


Transactions with associated companies Dividend income - - 72 78 At the declared rate

Purchases of goods 318 608 318 608 Market price

Transactions with related companies

Sales of goods and service income 2 1 - - Market price

Interest income 1 2 - 1 Market interest rate

Purchases of goods 320 321 4 - Market price


Other expenses 56 43 52 38 Contractual agreed price

Interest expenses 1 6 - 4 Market interest rate


5

The balances of the accounts as at 30 June 2021 and 31 December 2020 between the

Company and those related parties are as follows:


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Deposits and short-term investments at

related financial institution (Note 3)

Related financial institution (related by

common directors) 925,536 1,438,315 667,345 965,895

Total deposits and short-term investments at

related financial institution 925,536 1,438,315 667,345 965,895

Trade and other receivables - related

parties (Note 4)

Subsidiaries - - 1,283,444 1,198,954

Joint venture 55,535 33,774 644 3,751

Total trade and other receivables -

related parties 55,535 33,774 1,284,088 1,202,705

Short-term loans to related parties

Subsidiaries

Conwood Company Limited - - 1,620,000 1,520,000

INSEE Digital Company Limited - - 265,000 345,000

INSEE Superblock Company Limited - - 590,000 605,000

Globe Cement Company Limited - - 180,000 180,000

INSEE Ecocycle Company Limited - - - 50,000

Total short-term loans to related parties - - 2,655,000 2,700,000

Movements in short-term loans to related parties during the six-month period ended

30 June 2021 are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Balance as at 1 January 2021 - 2,700,000

Add: Increase during the period - 505,000

Less: Repayment during the period - (550,000)

Balance as at 30 June 2021 - 2,655,000


6

As at 30 June 2021, the Company had short-term loans to related parties of Baht 2,655

million (31 December 2020: Baht 2,700 million) which carry interest at the rate of 1.43 -

1.49 percent per annum (31 December 2020: 1.37 - 1.49 percent per annum) and are due

for repayment within one year from drawing dates.


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Other current assets - related parties

Current portion of finance lease receivables

- subsidiaries - - 559 288

Prepaid expenses - related party (related by

common director) 3,112 31,477 1,853 30,150

Total other current assets - related parties 3,112 31,477 2,412 30,438

Other non-current assets - related parties

Finance lease receivables - net of current

portion - subsidiaries - - 560 570

Total other non-current assets - related parties - - 560 570

Short-term loans from related financial

institution

Related financial institution (related by

common directors) - 120,000 - -

Total short-term loans from related financial

institution - 120,000 - -

Movements in short-term loans from related financial institution during the six-month period

ended 30 June 2021 are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Balance as at 1 January 2021 120,000 -

Less: Repayment during the period (120,000) -

Balance as at 30 June 2021 - -

As at 31 December 2020, the Group had short-term loans from related financial institution

of Baht 120 million which carried interest at the rate of 1.49 percent per annum.


7


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Trade and other payables - related parties

(Note 16)

Subsidiaries - - 322,398 349,250

Associated company 68,034 94,021 68,034 94,021

Joint venture 24,365 34,148 24,357 34,140

Related companies (related by common

shareholders and/or common directors) 139,560 56,275 8,244 7,219

Total trade and other payables -

related parties 231,959 184,444 423,033 484,630

Lease liabilities - related party (Note 11.2)

Related company (related by common

shareholders and/or common directors) 10,175 14,682 10,175 14,682

Less: Portion due within one year (7,602) (7,931) (7,602) (7,931)

Total lease liabilities - related party - net

of current portion 2,573 6,751 2,573 6,751

Directors and management’s benefits

During the three-month and six-month periods ended 30 June 2021 and 2020, the Group

had employee benefit expenses payable to their directors and management as below.



Consolidated


Separate


2021 2020 2021 2020

Short-term employee benefits 42 39 42 39

Total 42 39 42 39



Consolidated


Separate


2021 2020 2021 2020

Short-term employee benefits 91 66 91 66

Post-employment benefits and other long-term

employee benefits 1 1 1 1

Total 92 67 92 67


8

3. Cash and cash equivalents/Restricted bank deposits

As at 30 June 2021 and 31 December 2020, cash and cash equivalents consist of the

following:


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Cash and bank deposits 4,469,256 3,617,715 3,260,823 1,902,775

Short-term investments in fixed deposits 2,361,750 4,074,885 - 1,027,000

Total 6,831,006 7,692,600 3,260,823 2,929,775

Less: Restricted bank deposits (12,125) (16,810) - -

Total cash and cash equivalents 6,818,881 7,675,790 3,260,823 2,929,775

Of which at related financial institution 925,536 1,438,315 667,345 965,895

As at 30 June 2021, bank deposits in savings accounts and fixed deposits carried interest

between 0.01 and 4.00 percent per annum (31 December 2020: between 0.01 and 7.00

percent per annum).

As at 30 June 2021, a subsidiary had placed its deposits of Taka 32 million or

approximately Baht 12.1 million (31 December 2020: Taka 47 million or approximately Baht

16.8 million) with bank to secure bank guarantees issued by bank on behalf of the

subsidiary.


9

4. Trade and other receivables


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Trade receivables - related parties

Aged on the basis of due dates:

Current to 30 days 54,495 29,788 778,658 1,011,755

Over 30 days to 60 days - - 2,375 -

Over 90 days - 43 - 43

Total trade receivables - related parties 54,495 29,831 781,033 1,011,798

Trade receivables - unrelated parties

Aged on the basis of due dates:

Current to 30 days 3,831,786 3,772,913 1,597,792 1,474,875

Over 30 days to 60 days 87,011 115,204 - 1,476

Over 60 days to 90 days 89,348 51,381 6,634 -

Over 90 days 416,854 366,991 51,771 51,325

Total trade receivables - unrelated parties 4,424,999 4,306,489 1,656,197 1,527,676

Less: Allowance for expected credit losses (243,536) (240,491) (40,976) (41,308)

Total trade receivables - unrelated parties - net 4,181,463 4,065,998 1,615,221 1,486,368

Total trade receivables - net 4,235,958 4,095,829 2,396,254 2,498,166

Other receivables

Other receivables - related parties 1,040 3,943 503,055 190,907

Other receivables - unrelated parties 68,265 78,957 6,060 33,125

Receivables from the Revenue Department 178,797 479,580 - -

Unbilled revenues 128,092 190,153 - -

Total other receivables - unrelated parties 375,154 748,690 6,060 33,125

Less: Allowance for expected credit losses (18,179) (13,252) (5,133) (896)

Total other receivables - unrelated parties - net 356,975 735,438 927 32,229

Total other receivables - net 358,015 739,381 503,982 223,136

Total trade and other receivables - net 4,593,973 4,835,210 2,900,236 2,721,302


10

5. Reduction of inventories to net realisable value

Movements in reduction of inventories to net realisable value account during the six-month

period ended 30 June 2021 are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Balance as at 1 January 2021 343,497 36,579

Add: Reduction of inventory value during the period 43,585 -

Less: Reversal of reduction of inventory value during the period (759) (544)

Balance as at 30 June 2021 386,323 36,035

6. Investments in subsidiary companies

Details of investments in subsidiary companies as presented in the separate financial

statements are as follows:

Company’s name Type of relation

Shareholding

percentage Cost

Dividends income during the

six-month periods

30 June 31 December 30 June 31 December ended 30 June

2021 2020 2021 2020 2021 2020

(%) (%) (Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

Local subsidiaries

Siam City Concrete Co., Ltd. Direct holding 100.00 100.00 2,500,000 2,500,000 300,000 25,000

Siam City Power Co., Ltd. Direct holding 100.00 100.00 2,000,000 2,000,000 293,000 128,000

Conwood Co., Ltd. Direct holding 100.00 100.00 300,000 300,000 - -

INSEE Superblock Co., Ltd. Direct holding 100.00 100.00 499,999 499,999 - -

INSEE Ecocycle Co., Ltd. Direct holding 100.00 100.00 400,000 400,000 30,000 20,000

INSEE Digital Co., Ltd. Direct holding 100.00 100.00 700,000 700,000 - -

Globe Cement Co., Ltd. Direct holding 100.00 100.00 63,802 63,802 - -

Siam City Cement Trading Co., Ltd. Direct holding 100.00 100.00 10,000 10,000 123,000 22,000

Overseas subsidiaries

Siam City Cement (Bangladesh) Ltd. Direct holding 100.00 100.00 2,124,391 2,124,391 - -

Siam City Cement (Lanka) Ltd. Direct holding 98.95 98.95 13,191,469 13,191,469 451,540 -

Siam City Cement (Vietnam) Ltd. Direct holding 65.00 65.00 18,111,015 18,111,015 342,129 184,649

Total 39,900,676 39,900,676 1,539,669 379,649

7. Investment in joint venture

Consolidated


Separate


Nature of Country of Shareholding Carrying amount Carrying amount

Joint venture business incorporation percentage based on equity method based on cost method

30 June 31 December 30 June 31 December 30 June 31 December

2021 2020 2021 2020 2021 2020

(%) (%) (Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

Chip Mong INSEE

Cement Corporation

Cement

Manufacturing

Cambodia 40 40 2,058,713 1,896,326 2,145,611 2,145,611

Total 2,058,713 1,896,326 2,145,611 2,145,611


11

The Company pledged the share certificate of the joint venture to secure the credit facilities

agreement of the joint venture with a financial institution. The credit facilities agreement

contains covenants with which the Company must comply, pertaining to maintaining of

shareholding percentage. Subsequently on 27 January 2021, the joint venture made

amendment to the credit facilities agreement to release the pledge of the Company’s share

certificate. The Company received the share certificate from the bank on 2 February 2021.

During the three-month and six-month periods ended 30 June 2021 and 2020, the

Company recognised share of profit and other comprehensive income from investment in

joint venture in the consolidated financial statements and dividend income in the separate

financial statements as follows:



Consolidated


Separate


Joint venture

Share of profit

from investment in

joint venture

Share of other

comprehensive income

from investment in

joint venture Dividend received

2021 2020 2021 2020 2021 2020

Chip Mong INSEE Cement

Corporation 111,126 111,470 45,281 (122,809) 149,906 141,101

Total 111,126 111,470 45,281 (122,809) 149,906 141,101



Consolidated


Separate


Joint venture

Share of profit

from investment in

joint venture

Share of other


from investment in

joint venture Dividend received

2021 2020 2021 2020 2021 2020

Chip Mong INSEE Cement

Corporation 273,164 247,333 128,251 48,446 239,028 141,101

Total 273,164 247,333 128,251 48,446 239,028 141,101

8. Investments in associated companies

Consolidated


Separate


Company’s Nature of Country of Type of Shareholding Carrying amount Carrying amount

name business incorporation relation percentage based on equity method based on cost method

30 June 31 December 30 June 31 December 30 June 31 December

2021 2020 2021 2020 2021 2020

(%) (%) (Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

(Thousand

Baht)

Lanna Resources

Public Co., Ltd.

Coal mining Thailand Direct

holding

44.99 44.99 2,148,910 1,975,966 483,427 483,427

Thai Agro Energy

Public Co., Ltd.

Ethanol production

and distribution

Thailand Direct

holding

4.72 4.72 100,332 101,323 94,469 94,469

Total 2,249,242 2,077,289 577,896 577,896


12

During the three-month and six-month periods ended 30 June 2021 and 2020, the

Company recognised its share of profit (loss) and other comprehensive income from

investments in associated companies in the consolidated financial statements and dividend

income in the separate financial statements as follows:



Consolidated


Separate


Company’s name

Share of profit (loss)

from investments in

associated companies

Share of other


from investments in

associated companies Dividend received

2021 2020 2021 2020 2021 2020

Lanna Resources Public Co., Ltd. 115,909 49,141 32,505 48,719 70,853 70,853

Thai Agro Energy Public Co., Ltd. (2,442) 1,100 - - 1,180 7,085

Total 113,467 50,241 32,505 48,719 72,033 77,938



Consolidated


Separate


Company’s name

Share of profit

from investments in


Share of other


from investments in

associated companies Dividend received

2021 2020 2021 2020 2021 2020

Lanna Resources Public Co., Ltd. 246,337 108,453 (2,540) 36,509 70,853 70,853

Thai Agro Energy Public Co., Ltd. 298 4,516 (109) - 1,180 7,085

Total 246,635 112,969 (2,649) 36,509 72,033 77,938

Fair values of investments in associated companies that are listed on the Stock Exchange

of Thailand which were based on the closing price as quoted on the Stock Exchange of

Thailand are as follows:


Fair values

30 June

2021

31 December

2020

Lanna Resources Public Co., Ltd. 3,779 1,819

Thai Agro Energy Public Co., Ltd. 118 111

Total 3,897 1,930


13

9. Investment properties

Movements in the investment properties account during the six-month period ended



Consolidated

financial

statements

Separate

financial

statements

Cost


Addition 3,212 -

Transfer in 83,953 96,235


Accumulated depreciation

Balance as at 1 January 2021 - 118,779

Depreciation for the period - 5,312

Balance as at 30 June 2021 - 124,091

Allowance for impairment



Net book value




14

10. Property, plant and equipment

Movements in the property, plant and equipment account during the six-month period



Consolidated

financial

statements

Separate

financial

statements

Cost

Balance as at 1 January 2021 75,619,462 40,276,271

Acquisitions 471,935 159,464

Transfer out (67,404) (96,235)

Disposals and write-off (545,616) (259,243)

Translation adjustment 1,218,657 -

Balance as at 30 June 2021 76,697,034 40,080,257



Depreciation for the period 1,390,849 613,706

Accumulated depreciation on disposals and write-off (490,917) (226,687)

Translation adjustment 677,437 -




Decrease during the period (29,493) (17,395)

Translation adjustment 112 -


Net book value




15

11. Leases

11.1 Right-of-use assets

Movements in right-of-use assets account during the six-month period ended 30 June 2021

are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Balance as at 1 January 2021 1,747,382 291,549

Additions 129,720 6,390

Transfer out (18,463) -

Adjustment from lease reassessment/modification 2,215 (3,895)

Depreciation for the period (242,989) (51,475)


Balance as at 30 June 2021 1,644,724 242,569

11.2 Lease liabilities


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Lease liabilities 2,134,833 2,234,294 253,738 307,950

Less: Deferred interest expenses (546,829) (570,877) (15,286) (16,073)

Total 1,588,004 1,663,417 238,452 291,877

Of which of related party 10,175 14,682 10,175 14,682

Comprise of:

Current lease liabilities 441,482 403,550 93,176 97,947

Non-current lease liabilities 1,146,522 1,259,867 145,276 193,930

1,588,004 1,663,417 238,452 291,877


16

Movements in lease liabilities during the six-month period ended 30 June 2021 are

summarised below.


Consolidated

financial

statements

Separate

financial

statements


Additions during the period 127,127 6,390

Accretion of interest 37,768 3,796

Adjustment from lease reassessment/modification 4,142 (3,072)

Payments during the period (273,771) (60,539)



12. Assets not used in operations

Movements in the assets not used in operations account during the six-month period ended



Consolidated

financial

statements

Separate

financial

statements

Cost





Depreciation for the period 1,200 1,200





Net book value




17

13. Goodwill

Movements in the goodwill account in the consolidated financial statements during the six-

month period ended 30 June 2021 are summarised below.


Book value as at 1 January 2021 13,475,487

Add: Translation adjustment 798,454

Book value as at 30 June 2021 14,273,941

14. Intangible assets

Movements in the intangible assets account during the six-month period ended 30 June

2021 are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Cost


Purchases 12,222 9,690

Transfer in 1,914 -

Write-off (35,134) (34,590)



Accumulated amortisation


Amortisation for the period 325,288 75,685

Write-off (33,121) (33,121)



Net book value




18

15. Bank overdrafts and short-term loans from other financial institutions

Movements in bank overdrafts and short-term loans from other financial institutions during

the six-month period ended 30 June 2021 are summarised below.


Consolidated

financial

statements

Separate

financial

statements

Balance as at 1 January 2021 3,356,312 -

Add: Increase during the period 4,911,526 -

Less: Repayment during the period (5,557,706) -


Balance as at 30 June 2021 2,886,884 -

As at 30 June 2021, the Group had bank overdrafts and short-term loans from commercial

banks of Baht 2,887 million (31 December 2020: Baht 3,356 million) which carry interest at

the rate of 1.71 - 9.00 percent per annum (31 December 2020: 0.86 - 9.00 percent per

annum).

As at 30 June 2021, a portion of bank overdrafts of an overseas subsidiary of Indonesian

Rupiah 52,714 million or approximately Baht 116.7 million (31 December 2020: Indonesian Rupiah

49,123 million or approximately Baht 104.9 million) is secured by the credit utilisation

agreements entered into by a subsidiary in Thailand with a financial institution, obtaining

standby letter of credit facilities. The credit utilisation agreements contain covenants with

which the subsidiary has to comply, pertaining to matters such as maintaining of certain

financial ratios, maintaining of percentage of shares held by the major shareholder and

negative pledge.

16. Trade and other payables


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Trade payables - related parties 195,450 138,458 80,122 126,700

Trade payables - unrelated parties 4,609,530 3,810,709 1,944,760 1,430,211

Other payables - related parties 36,509 45,986 342,911 357,930

Other payables - unrelated parties 227,523 183,188 31,254 40,034

Retention payable 19,201 16,545 2,612 2,680

VAT payable 46,778 99,284 18,576 37,481

Total trade and other payables 5,134,991 4,294,170 2,420,235 1,995,036


19

17. Long-term loans from other financial institutions


Consolidated


Separate


30 June

2021

31 December

2020

30 June

2021

31 December

2020

Long-term loans from other financial

institutions 7,508,710 7,578,365 6,994,750 6,989,500

Less: Portion due within one year (7,212,215) (339,184) (6,994,750) -

Long-term loans from other financial

institutions - net of current portion 296,495 7,239,181 - 6,989,500

Movements in long-term loans from other financial institutions during the six-month period



Consolidated

financial

statements

Separate

financial

statements


Add: Increase during the period 158,709 -

Amortisation of transaction costs during the period 5,250 5,250

Less: Repayment during the period (263,039) -



On 16 December 2016, the Company entered into a loan agreement with a financial

institution obtaining loan facilities of Baht 7,000 million. The loans carry interest at THBFIX

6 months reference rate plus a margin and are repayable in full amount at the end of the

fifth year from drawing date. The loan facilities of Baht 7,000 million had been drawn by the

Company on 17 January 2017.

The loan agreement contains covenants with which the Company has to comply, pertaining

to matters such as maintaining of certain financial ratios, maintaining of percentage of

shares held by the major shareholders and negative pledge.

As at 30 June 2021, the overseas subsidiaries had long-term loans from other financial

institutions of LKR 750 million and VND 282,566 million or equivalent to Baht 514.0 million

(31 December 2020: LKR 1,217 million and VND 303,650 million or equivalent to Baht

588.9 million) which carry interest at the rate of 3.25 - 6.52 percent per annum

(31 December 2020: 3.20 - 6.84 percent per annum) and are repayable within 2024.


20

18. Debentures

As at 30 June 2021 and 31 December 2020, the details of debentures account in the

consolidated financial statements and the separate financial statements are made up as follows:


Carrying values

Number of

units

Price per

unit Period Maturity date Interest rate

30 June

2021

31 December

2020

(Baht) (Years)

(percent per

annum)

(Thousand Baht) (Thousand Baht)

Debenture Series No. 1/2016 2,000,000 1,000 8 29 April 2024 2.46 2,000,000 2,000,000

Debenture Series No. 2/2016 2,000,000 1,000 10 29 April 2026 2.70 2,000,000 2,000,000

Debenture Series No. 2/2017 2,500,000 1,000 7 9 May 2024 3.65 2,500,000 2,500,000



Total 16,000,000 16,000,000

Less: Deferred transaction costs (22,992) (24,869)

Total debentures 15,977,008 15,975,131

Movement in debentures during the six-month period ended 30 June 2021 is summarised

below.


Consolidated

financial

statements

Separate

financial

statements


Add: Amortisation of transaction costs during the period 1,877 1,877


The above debentures are unsubordinated, unsecured and no discount with a name-

registered debenture certificates. Debenture agreements contain a covenant with which the

Company must comply, pertaining to maintaining financial ratio.


21

19. Revenue from contracts with customers



Consolidated


Separate


2021 2020 2021 2020

Type of goods or services:

Sales of cement and cement-related products 8,423,111 8,340,372 4,482,459 4,985,797

Sales of concrete and aggregates 1,271,875 1,478,547 - -

Revenues from industrial waste disposal and

industrial cleaning services 274,407 243,533

-

-

Others 81,224 102,818 39,688 45,940

Total revenue from contracts with customers 10,050,617 10,165,270 4,522,147 5,031,737

Timing of revenue recognition:

Revenue recognised at a point in time 9,954,653 10,041,222 4,522,147 5,031,737

Revenue recognised over time 95,964 124,048 - -




Consolidated


Separate


2021 2020 2021 2020

Type of goods or services:

Sales of cement and cement-related products 17,037,349 17,099,148 9,219,215 10,478,091

Sales of concrete and aggregates 2,706,505 3,316,874 - -

Revenues from industrial waste disposal and

industrial cleaning services 510,108 563,013

-

-

Others 174,569 201,753 73,517 90,409


Timing of revenue recognition:

Revenue recognised at a point in time 20,232,037 20,895,823 9,292,732 10,568,500

Revenue recognised over time 196,494 284,965 - -



22

20. Income tax

Interim corporate income tax is calculated on profit before income tax for the periods, using

the estimated effective tax rate for the year.

Income tax for the three-month and six-month periods ended 30 June 2021 and 2020 are

made up as follows:



Consolidated


Separate


2021 2020 2021 2020

Current income tax:

Interim corporate income tax charge 174,290 149,433 97,755 33,764

Income tax of overseas subsidiary paid for tax

importation of materials during the period 4,958 1,223 - -

Adjustment in respect of income tax of

previous years (27,244) 1,042 (314) 980

Withholding tax deducted at source recognised

as expenses during the period 15,390 14,131 15,000 14,131

Deferred tax:

Relating to origination and reversal of temporary

differences (53,036) 8,949 (3,248) 49,371

Effect of the change in tax rate (678,210) - - -

Income tax reported in the income statements (563,852) 174,778 109,193 98,246



Consolidated


Separate


2021 2020 2021 2020

Current income tax:

Interim corporate income tax charge 356,980 298,869 183,310 104,085

Income tax of overseas subsidiary paid for tax

importation of materials during the period 12,293 10,297 - -

Adjustment in respect of income tax of

previous years (28,018) 5,817 (314) 980

Withholding tax deducted at source recognised

as expenses during the period 24,603 14,131 23,954 14,131

Deferred tax:

Relating to origination and reversal of temporary

differences (46,930) 9,623 12,988 69,169

Effect of the change in tax rate (678,210) - - -

Income tax reported in the income statements (359,282) 338,737 219,938 188,365


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The amounts of income tax relating to each component of other comprehensive income for

the six-month periods ended 30 June 2021 and 2020 are as follows:



Consolidated


Separate


2021 2020 2021 2020

Deferred tax relating to gain (loss) on

cash flow hedge 6,594 (411) 6,594 (411)



Consolidated


Separate


2021 2020 2021 2020

Deferred tax relating to gain (loss) on

cash flow hedge 14,646 (5,560) 14,646 (5,560)

On 13 May 2021, the Inland Revenue (Amendment) Act. No. 10 of 2021 was published in

the Gazette of the Democratic Socialist Republic of Sri Lanka whereby corporate income

tax rate on the business of the subsidiaries in Sri Lanka is reduced from 28 percent to 18

percent with effect from 1 January 2020. The Group reflected the change in tax rate by

adjusting income tax expenses of the previous year and the current period of the

subsidiaries in Sri Lanka amounting to Baht 35.3 million and Baht 15.0 million, respectively,

and adjusting deferred tax liabilities to decrease by Baht 678.7 million in the consolidated

financial statements for the three-month and six-month periods ended 30 June 2021.

21. Earnings per share

Basic earnings per share is calculated by dividing profit for the period attributable to equity

holders of the Company (excluding other comprehensive income) by the weighted average

number of ordinary shares in issue during the period.

22. Dividends

On 26 March 2020, the Annual General Meeting of the shareholders of the Company

passed a resolution to approve a final dividend for 2019 of Baht 4.0 per share, totaling Baht

1,192 million. Thus, including the interim dividend of Baht 4.0 per share, the total dividend

payment for 2019 amounted to Baht 8.0 per share. The dividend was paid on 3 April 2020.

On 25 March 2021, the Annual General Meeting of the shareholders of the Company

passed a resolution to approve a final dividend for 2020 of Baht 9.0 per share, totaling Baht

2,682 million. The dividend was paid on 5 April 2021.


24

23. Segment information

The Group is organised into business units based on its products and services. During the current period, the Group has not changed the

organisation of its reportable segments.

The following table presents revenue and profit information regarding the Group’s operating segments for the three-month and six-month periods

ended 30 June 2021 and 2020.



Cement

Concrete and

aggregates Trading

Light building

materials Others Total segments

Adjustments and

eliminations Consolidated

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Revenue

External customers 7,025 6,500 1,329 1,550 855 1,345 572 522 270 248 10,051 10,165 - - 10,051 10,165

Inter-segment 1,156 1,457 73 78 1,052 262 4 3 234 278 2,519 2,078 (2,519) (2,078) - -

Total revenue 8,181 7,957 1,402 1,628 1,907 1,607 576 525 504 526 12,570 12,243 (2,519) (2,078) 10,051 10,165

Results

Segment gross profit 2,360 2,684 200 320 262 189 164 128 77 121 3,063 3,442 (186) (140) 2,877 3,302

Other income 56 78

Selling and distribution expenses (1,495) (1,460)

Administrative expenses (470) (414)

Other expenses (12) (31)

Share of profit from investment in joint venture 111 111

Share of profit from investments in


113 50

Finance income 19 20

Finance cost (295) (353)

Profit before income tax 904 1,303

Income tax 564 (175)

Profit for the period 1,468 1,128


25



Cement

Concrete and

aggregates Trading

Light building

materials Others Total segments

Adjustments and

eliminations Consolidated

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Revenue

External customers 13,933 13,199 2,831 3,455 1,929 2,783 1,227 1,169 509 575 20,429 21,181 - - 20,429 21,181

Inter-segment 2,331 3,205 156 169 1,699 1,313 10 4 493 575 4,689 5,266 (4,689) (5,266) - -

Total revenue 16,264 16,404 2,987 3,624 3,628 4,096 1,237 1,173 1,002 1,150 25,118 26,447 (4,689) (5,266) 20,429 21,181

Results

Segment gross profit 4,888 5,232 472 717 536 670 378 340 155 243 6,429 7,202 (356) (315) 6,073 6,887

Other income 96 150

Selling and distribution expenses (3,005) (3,457)

Administrative expenses (919) (881)

Other expenses (26) (48)

Share of profit from investment in joint venture 273 247

Share of profit from investments in


247 113

Finance income 39 38

Finance cost (585) (712)

Profit before income tax 2,193 2,337

Income tax 359 (339)

Profit for the period 2,552 1,998


26

24. Contingent liabilities

24.1 Bank guarantees

24.1.1 As at 30 June 2021, there were outstanding bank guarantees of Baht 1,004.5 million,

LKR 1,718.8 million, Taka 32.1 million and VND 16,186.9 million (Separate financial

statements: Baht 79.1 million) issued by banks on behalf of the Group in respect of

electricity usage and other guarantees as required in the normal course of its business.

24.1.2 As at 30 June 2021, the associated companies and joint venture had outstanding

bank guarantees of Baht 5.9 million, Indonesian Rupiah 19,990 million and USD 0.2

million issued by banks on behalf of the associated companies and joint venture as

required in the normal course of their businesses.

24.2 Litigation of overseas subsidiaries and joint venture

24.2.1 A subsidiary in Sri Lanka has a dispute which was filed against the Arbitrator dated

14 June 2017 regarding obligation to retrospectively pay the allowance of LKR

10,000 being paid to certain employees of a company. Currently, the case is in the

arbitration process. However, the management of the subsidiary could not currently

assess the impact of this dispute but believes that possibility of the unfavourable

result of the dispute to the subsidiary is remote and provision has not therefore

been recorded.

24.2.2 A subsidiary in Sri Lanka was alleged by the Customs Department of Sri Lanka for

failure to pay customs levies and tax on certain payments such as demurrage,

calorific value and moisture adjustment, war risk premium, loading-unloading and

stevedoring charges. On 7 February 2019, the Customs Department of Sri Lanka

ordered the subsidiary to pay customs levies and tax totaling LKR 545 million

(approximately Baht 88 million). However, the subsidiary appealed the order since

the subsidiary believes that there have been no irregularities in payment of

levies/duties and there is no basis of such allegation. Based on the currently

available information as at the reporting date and legal counsel opinion, the

management of the subsidiary believes that possibility of the unfavourable result of

the case to the subsidiary is remote and provision has not therefore been recorded.


27

In addition, the Customs Department of Sri Lanka investigated on importation of

cement and other related products of another subsidiary in Sri Lanka. The

management of the subsidiary could not currently assess the impact of this

investigation because the Customs Department has not submitted claim amount

from the tax assessment to the subsidiary. However, the management of the

subsidiary believes that the subsidiary has declared the correct transaction value in

term of “Schedule E” of the Customs Ordinance thereby defrauding government

revenue by way of evading payment of due customs duty and other levies and,

based on the currently available information as at the reporting date and legal

counsel opinion, the management of the subsidiary believes that possibility of the

unfavourable result of the case to the subsidiary is remote and provision has not

therefore been recorded.

24.2.3 A subsidiary in Sri Lanka has disputes relating to income tax assessments for the

years 2004 - 2006 totaling LKR 119.4 million (approximately Baht 19 million) for the

deductibility of interest and royalty claims. However, the subsidiary appealed against

the decision of the Department of Inland Revenue of Sri Lanka. Based on the

currently available information as at the reporting date and legal counsel opinion,

the management of the subsidiary believes that possibility of the unfavourable result

of the case to the subsidiary is remote and provision has not therefore been

recorded.

In addition, the subsidiaries in Sri Lanka have other proceedings/assessments for

general and tax related pending against the subsidiaries. Based on the currently

available information as at the reporting date and opinion of legal counsel and tax

consultants of the subsidiaries, the management of the subsidiaries believes that

possibility of the unfavourable result of the cases to the subsidiaries is remote and

provision has not therefore been recorded.

24.2.4 A subsidiary in Bangladesh has disputes and litigations with relevant authorities

relating to VAT and income tax with the claims/assessments totaling Taka 212

million (approximately Baht 80 million). However, as at 30 June 2021, the

management of the subsidiary had reviewed the merits of those to assess possible

outcomes as well as consideration of the historical assessment result of tax

disputes and litigations in favor of the subsidiary and recorded a provision for the

disputes and litigations of Taka 33 million (approximately Baht 13 million).

24.2.5 In December 2020, the joint venture was alleged by the General Department of

Taxation of Cambodia for underpayment of withholding tax for 2018 - 2020. The

management of the joint venture assessed the maximum exposure on this tax

assessment of USD 0.7 million (approximately Baht 22 million). As at 30 June 2021,

the joint venture recorded a provision for tax assessment in full amount.


28

24.3 Litigation of the Company

As at 30 June 2021, certain former employees filed the claims totaling Baht 46 million

against the Company, seeking additional compensation in excess of both the Company’s

policy and in excess of the Labour Law. Currently, the disputes are under hearing of the

Labour Court. However, the management of the Company had reviewed the merits of those

to assess possible outcomes and recorded a provision for the disputes of Baht 11 million

reflecting the Company’s policy.

25. Commitments

25.1 As at 30 June 2021, the Group had the following significant outstanding commitments:

25.1.1 The Group had outstanding capital expenditure and construction commitments of

Baht 464 million (Separate financial statements: Baht 157 million).

25.1.2 The Group entered into several long-term contracts in respect of lease of the low-

value assets and other services. As at 30 June 2021, the future lease and service

fees payable by the Group under these lease and service contracts of Baht 345

million (Separate financial statements: Baht 288 million).

25.1.3 A subsidiary entered into an agreement with a company in respect of technology

information system and other related services for a period of 5 years, commencing

on 1 February 2020 to 31 January 2025. The subsidiary is committed to pay a fee

on the basis and at the rate as stipulated in the agreement.

25.1.4 A subsidiary entered into several agreements in respect of technology information

system such as accounting system, logistic management system as well as the

related maintenance agreements. The subsidiary is committed to pay a fee on the

basis and at the rates as stipulated in the agreements.

25.1.5 The Company entered into the service agreements with a subsidiary in respect of

the Company’s computer system. The Company is committed to pay the fees on

the basis and at the rate as stipulated in the agreements.

25.1.6 The Group entered into long-term service agreements regarding temporary

employment services. The Group is committed to pay the service fees at the rate

as stipulated in the agreements.

25.1.7 The Group has commitments in respect of raw materials and fuel purchases, logistic

services and sales contracts as required in the normal course of its business.


29

25.1.8 The Company has commitment regarding the contribution to the funds in

accordance with the requirements and legally applicable rate specified by

Department of Primary Industries and Mine.

25.1.9 A subsidiary entered into a technology license agreement with an overseas

company for a period of 10 years, commencing on 6 March 2002 to 5 March 2012,

with an automatic renewal for every 1 year period. The subsidiary is committed to

pay licensing fee on the basis and at the rate as stipulated in the agreement.

25.1.10 A subsidiary entered into several agreements in respect of computer software

license. The subsidiary is committed to pay a license fee on the basis and at the

rates as stipulated in the agreements.

25.1.11 A subsidiary has commitment regarding the contribution to the Power

Development Fund in accordance with the regulation required by the Energy

Regulatory Commission. The contribution is calculated based on the sale

quantities and legally applicable rate.

25.1.12 A subsidiary entered into several agreements regarding sand operation used for

concrete production process for periods between 5 and 8 years. The subsidiary is

committed to pay a fee based on actual production output and the rate as

stipulated in the agreements.

25.2 The associated companies and joint venture entered into several long-term contracts in

respect of lease of the low-value assets and other services. As at 30 June 2021, the future

lease and service fees payable by the associated companies and joint venture under these

lease and service contracts of Baht 54.1 million.

25.3 The joint venture entered into an equipment lease contract with a company to lease the

solar generation equipment for self-generate electricity used for cement production process

with 25-year duration. The joint venture is committed to variable lease payment based on

actual power generated and used.

25.4 The associated companies and joint venture had outstanding capital expenditure and

construction commitments of USD 2.1 million and Baht 13.7 million, totaling approximately

Baht 81.7 million.

26. Foreign currency and interest rate risks

The Group’s exposure to foreign currency risk arises mainly from sales and purchase

transactions that are denominated in foreign currencies. As at 30 June 2021, the Group

hedged its net exposure of foreign currency sales and purchases by using foreign currency

forward contracts. Those hedged positions were highly probable at the reporting date.


30

The Group’s interest rate risk relates primarily to their interest-bearing bank deposits, short-

term loans, bank overdrafts and short-term borrowings, long-term borrowings and

debentures. As at 30 June 2021, the Company had outstanding interest rate swap

agreement to swap the interest rate of long-term loan from the floating rate THBFIX 6

months reference rate plus a margin to a fixed rate of 3 percent per annum.

As at 30 June 2021, the fair value of derivatives is as follows:


Fair value

Loss

Derivatives

Forward exchange contracts 15.3

Interest rate swap 147.6

27. Fair value measurement of financial instruments

As at 30 June 2021, the Group had the financial liabilities that were measured at fair value

using different levels of inputs as follows:


Consolidated


Separate


Level 2 Total Level 2 Total

Financial liabilities measured at fair value

Derivatives

Forward exchange contracts 15.3 15.3 8.1 8.1

Interest rate swap 147.6 147.6 147.6 147.6

As at 30 June 2021, the Group had financial assets and financial liabilities that were not

measured at fair value, though the fair values approximate their carrying value, except for

the following item:


Consolidated


Separate


Level 2 Total Level 2 Total

Financial liabilities disclosed at fair value

Fixed-rate debentures 17,127.4 17,127.4 17,127.4 17,127.4


31

Fair value valuation techniques and inputs for level 2 valuation

The fair value of derivatives has been determined using a discounted future cash flow

model and a valuation model technique. Most of the inputs used for the valuation are

observable in the relevant market, such as spot rates of foreign currencies, yield curves of

the respective currencies and interest rate yield curves. The Group considers to

counterparty credit risk when determining the fair value of derivatives.

The fair values of debentures were based on the latest closing price or the reference

interest rate quoted by the bond market or ask prices or lastest price of comparable market

securities. They were also calculated using the reference price in the secondary market of

bond market that are quoted in an active market.

During the period, there were no transfers of items within the fair value hierarchy.

28. Events after the reporting period

Dividend income from subsidiary

On 12 July 2021, the meeting of the Board of Directors of Siam City Power Co., Ltd.

(“a subsidiary”) passed a resolution to approve the second interim dividend from profit for

the six-month period ended 30 June 2021 of Baht 6.2 per share, totaling Baht 123 million.

The Company will record the dividend income from the subsidiary company in the third quarter

of 2021.

Acquisition of part of assets from subsidiary

On 16 July 2021, the Company entered into the assets sales and purchase agreement to

acquire part of assets which consist of property, plant and equipment and intangible assets

from Globe Cement Company Limited, a subsidiary, at the price of Baht 265 million for the

Company’s cement business.

29. Approval of interim financial statements

These interim financial statements were authorised for issue by the Company's Board of

Directors on 29 July 2021.

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