ANNUAL REPORT 2007 รายงานประจำปี - IR Plus

21. Deferred Income
Consist of:
Consolidated
As of
Separate Financial Statements
As of
December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006
Baht Baht Baht Baht
Deferred Income - Beginning 7,800,896.57 7,135,713.56 2,000,000.00 -
Less Amortized During Period (1,273,879.08) (1,334,816.99) (98,235.00) -
Deferred Income - Ending 6,527,017.49 5,800,896.57 1,901,765.00 -
In accordance with the consolidated and the separate financial statement as of December
31, 2007 and 2006, the whole amount of deferred revenue is derived from the event that the
Company and subsidiary has performed the contract to receive instrument equipment support from
one company which is distributor of lubricant oil. It is noted that the Company and subsidiary have
to purchase lubricant oil with such counter party company in total number of 133,333.00 liters
588,000.00 liters respectively, average purchase as monthly basis for every month by the
minimum of 2,222.00 liters and 7,000.00 liters respectively within the period of 60 months and 84
months respectively. It commenced from August 2007 and terminated in July 2012 and
commenced from January 2004 and terminated in December 2010. respectively
If the Company liquidated or retired from distribution of lubricant oil or defaulted in
debt repayment or there is tendency that the company did not use the fund received from support
in the trading promotion or the subsidiary breached any term and covenant, the counter party
company could immediately terminate this contract without any advance notice. Moreover, the
counter party can exercise its claimant right upon the supportive fund. The counter party company
will take the whole purchased merchandise computed by lubricant oil fee given to the Company in
the litre rate of Baht 16.51 per litre. Alternatively, the cost of the counter party company is
computed. The aggregate amount is deducted from the amount the counter party company
provided the support. The remaining amount is returned by the Company to the counter party
company plus interest in the rate of 15% from the overdue amount commenced from the date the
Company received the fund until it is completely repayable.
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