samtel

3. Risk associated with Dependence on Large Supplier
With regard to the Communication Network and System Installation (Turnkey Projects), the Company orders equipment
from many suppliers. Generally, in bids, major equipment technically approved could be supplied from more than 1
vendor, so the company could select equipment from the vendors with best offer in each project the company would bid.
Therefore, there was no risk in dependence on only one vendor. As a result, there is no risk associated with dependence
on single supplier. Risk associated with Dependence on Large Supplier for the satellite based communication service
business is low because the Company rents signal channel via satellite from Thaicom (Public) Co., Ltd. and 2 satellite
operators based in foreign countries.
4. Credit Risk
The Company has implemented the policy to continually resolve the overdue receivable problems specifically monitored
by the Collection Department. The Company can control over the delinquent amount to a satisfactory level. Besides, the
Company has the policy to assess status and liquidity of each customer before providing services in order to reduce
default account problem which may adversely affect the Company in the future. Most of debtors currently are the
customers with strong financial status such as State Enterprises, Government Agencies and large Corporations; therefore,
default payment risk is at a low level. During the past year, the Company faced payment delay from State Enterprises
and some Government Agencies and caused the Company to incur interest expenses. But bank loan repayment was tied
to project cash flow. Therefore, the Company did not have liquidity problem.
The Company has the policy to reserve 50% of the doubtful debt provision for the receivables with payment due
exceeding 6 months but not over 12 months. In case of over 12 month overdue, the reserve will be fully provisioned.
As of 31 December 2012, the Company recorded debts overdue for 12 months or more of Baht 152 million and set
aside an allowance for doubtful accounts of Baht 13 million. Such allowance is satisfied potential loss, provided that
most are project debtors and have strong financial status as mentioned above.
5. Risk associated with Higher Liabilities after the Acquisition of Portalnet Co., Ltd.
The Company was approved by the Shareholder’s resolution dated April 27, 2012 to acquire Portalnet Co., Ltd. from
M Link Asia Corporation (Public) Co., Ltd. at Baht 1,552 million funded by loan from a local bank. Loan is splited into 2
tranches. For the loan facility amount of Baht 952 million will be repaid in monthly installments of Baht 17.6 million per
month. The first installment will be paid on 31 January 2013. For the loan facility amount of Baht 600 million will be
repaid in quarterly installments of Baht 150 million. The first installment will be paid on 31 March 2013
From Computer Software for Lease Agreement for the core business of the Provincial Electricity Authority (PEA) under
the SPIES Joint Venture in which Portalnet Co., Ltd. Entered, Portalnet will receive monthly rental fee of Baht 53.2 million
per month which is enough to repay monthly installments for the loan facility amount of Baht 952 million. For the loan
facility amount of Baht 600 million will be repaid from monthly cash flow left after repaying loan facility amount of Baht
952 million and cash flow from large scale project which will be completed and delivered within 2013. Therefore, the
Company is confident that risk associated with higher liabilities after the acquisition of Portalnet Co., Ltd. is manageable.
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Annual Report 2012