REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORSAEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED

OpinionWe have audited the consolidated financial statements of AEON Thana Sinsap (Thailand)
Public Company Limited and its subsidiaries (the “Group”) and the separate financial
statements of AEON Thana Sinsap (Thailand) Public Company Limited (the “Company”),
which comprise the consolidated and separate statements of financial position as at
February 28, 2023, and the related consolidated and separate statements of profit or loss,
profit or loss and other comprehensive income, changes in shareholders’ equity and cash flows
for the year then ended, and notes to the financial statements, including a summary ofsignificant accounting policies.
In our opinion, the accompanying consolidated and separate financial statements present
fairly, in all material respects, the financial position of AEON Thana Sinsap (Thailand)
Public Company Limited and its subsidiaries and of AEON Thana Sinsap (Thailand) PublicCompany Limited as at February 28, 2023, and its financial performance and its cash flows
for the year then ended in accordance with Thai Financial Reporting Standards (“TFRSs”).
Basis for Opinion
We conducted our audit in accordance with Thai Standards on Auditing (“TSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated and Separate Financial Statements section of our report.
We are independent of the Group in accordance with Code of Ethics for Professional
Accountants including Independence Standards issued by the Federation of Accounting
Professions (Code of Ethics for Professional Accountants) that are relevant to our audit of
the consolidated and separate financial statements, and we have fulfilled our other ethicalresponsibilities in accordance with the Code of Ethics for Professional Accountants. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.

Deloitte Touche Tohmatsu Jaiyos Auditดีลอยท์ ทูช้ โธมัทสุ ไชยยศ สอบบัญชี
-2-

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of mostsignificance in our audit of the consolidated and separate financial statements of the current
period. These matters were addressed in the context of our audit of the consolidated andseparate financial statements as a whole, and in forming our opinion thereon, and we do notprovide a separate opinion on these matters.
Key Audit Matters

Audit Responses

Allowance for expected credit loss
The allowance for expected credit loss of trade Key audit procedures included
receivables is considered to be a key audit• Reviewed management written policies,
matter as there are management’s judgment andwhich were collaborated from the Groupassumptions applied to the calculation including
and the Company management’s experts,
forward economic looking and post modeland procedures to derive the allowance foradjustments.
expected credit loss estimate. Determined
whether the policies and procedures for the
The Group and the Company have applied Thai
estimation are incorporate with the requirements
Financial Reporting Standard No.9 - Financial
of TFRS 9 and properly approved by theInstruments (“TFRS9”). This standard requires
appropriate level of management
the Group and the Company to recognize• Obtained an understanding of the Group’s andimpairment loss based on expected credit loss.
Company’s design of internal controls oversignificant input data used in the calculation of
The Group and the Company calculated
allowance for expected credit loss, andallowance for expected credit loss on tradecalculation of allowance for expected credit
receivables based on forward-looking information
loss
basis by calculating on a probability‑weighted
credit losses with respective risk of expected cash • Evaluated the design and implementation
shortfalls either based on credit events arising inand performed operating effectivenessthe 12 months from the reporting date or based on
testing of key internal controls overcredit events arising over the lifetime of thesignificant input data used in thefinancial instrument; depending on the significant
calculation of allowance for expected
increase in credit risk (“SICR”) since initialcredit loss, and calculation of allowance forrecognition.
expected credit loss

Deloitte Touche Tohmatsu Jaiyos Auditดีลอยท์ ทูช้ โธมัทสุ ไชยยศ สอบบัญชี
-3-

Key Audit Matters

Audit Responses

Allowance for expected credit loss (continued)
The post model adjustment may also berecorded by the Group and the Company using
credit expert assumptions and judgment where
the inputs, assumptions and/or modelling
techniques do not capture all relevant risk
factors in respect to the current economic
conditions and market circumstances.
Accounting policy for the allowance for expectedcredit loss and detail of allowance for expectedcredit loss were disclosed in Note 3.2.2 and Note 5
to the financial statements, respectively.

• Evaluated the design and implementationand performed operating effectiveness testingof key General Computer Controls over the
IT processing environment for retail financesystem with the involvement of IT specialists• Involved our internal specialists to assess
the model documentation. This included
assessing the appropriateness of model
design, assumptions, inputs, formulas usedand post model adjustments. We tested thedata used in the ECL calculation byreconciling to source systems• Evaluated relevant inputs and assumptions
used by management in each stage of the
expected credit loss calculation by considering
whether the inputs and assumption appear
reasonable, considering the historical loss
experience and adjust this for current observabledata and considering the relationship between
those assumptions and forecast of reasonable
and supportable future economic conditions• Tested calculation of allowance for
expected credit loss for a sample of models• Performed analysis of the Group’s and theCompany’s allowance for expected credit
loss by comparing to historical data andconsidering related macroeconomic factors.

Deloitte Touche Tohmatsu Jaiyos Auditดีลอยท์ ทูช้ โธมัทสุ ไชยยศ สอบบัญชี
-4-

Other Information
Management is responsible for the other information. The other information comprises
information in the annual report, but does not include the consolidated and separate financial
statements and our auditor’s report thereon, which is expected to be made available to us
after the date of this auditor’s report.
Our opinion on the consolidated and separate financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our
responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit, or otherwise appears to bematerially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to management and those charged withgovernance for correction of the misstatement.
Responsibilities of Management and Those Charged with Governance for theConsolidated and Separate Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated andseparate financial statements in accordance with TFRSs, and for such internal control as
management determines is necessary to enable the preparation of consolidated and separate
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, management is responsible
for assessing the Group’s and the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basisof accounting unless management either intends to liquidate the Group and the Company or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial
Statements
Our objectives are to obtain reasonable assurance about whether the consolidated andseparate financial statements as a whole are free from material misstatement, whether due tofraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with TSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these consolidated and separate financial statements.

Deloitte Touche Tohmatsu Jaiyos Auditดีลอยท์ ทูช้ โธมัทสุ ไชยยศ สอบบัญชี
-5-

As part of an audit in accordance with TSAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement of the consolidated and separate
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s and the Company’s internal
control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s andthe Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group and theCompany to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated and separate
financial statements, including the disclosures, and whether the consolidated andseparate financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performanceof the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

Deloitte Touche Tohmatsu Jaiyos Auditดีลอยท์ ทูช้ โธมัทสุ ไชยยศ สอบบัญชี
-6-

From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the consolidated and separate financial
statements of the current period and are therefore the key audit matters. We describe thesematters in our auditor’s report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.

BANGKOK

April 11, 2023

Nisakorn Songmanee
Certified Public Accountant (Thailand)
Registration No. 5035
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION
AS AT FEBRUARY 28, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at

As at

As at

As at

February 28, February 28, February 28, February 28,
2023

2022

2023

2022

4.1

3,816,356

4,235,603

2,159,810

2,639,136

Trade receivables

5

80,667,069

76,839,427

77,833,587

73,982,280

Other receivables

6

518,404

518,100

414,708

412,773

ASSETS
CURRENT ASSETS

Cash and cash equivalents
Trade and other current receivables

Fixed deposits at banks under obligations

7

-

3,000

-

-

Current portion of long-term loan to a subsidiary

8

-

-

27,990-Current portion of loans from purchase of accounts receivable

9

-

-

-

Seller loan in Special Purpose Vehicle for securitization

13-

287,621275,773

Current portion of derivative assets

26

1,047,431

1,047,431

82,380490

82,380Current tax assets

-

7,805

-

-

Other current assets

102,645

101,352

42,95543,071

86,152,395

81,787,667

81,814,102

77,435,413

3,144,652

3,236,973

1,496,409

1,512,440

Total Current Assets
NON-CURRENT ASSETS

Trade and other non-current receivables
Trade receivables
Other receivables

5
6

74,041-

74,041-

Fixed deposits at banks under obligations

7

144,216

41,333--Long-term loan to a subsidiary

8

-

-

83,970Loans from purchase of accounts receivable

9

12,133---

Investments in subsidiaries

10

-

-

1,235,409

1,210,909

11

5,062

5,062

5,062

5,062

12

144,000

144,000

144,000

144,000

Subordinated lendings

14.1

-

-

84,074

84,074

Leasehold improvement and equipment

15523,145622,934

447,217

528,845

Right-of-use assets

16

892,559

611,069

776,685

538,356

Intangible assets other than goodwill

17923,406

920,386

783,252

777,857

Derivative assets

26

684,654

293,795

684,654

293,795

Deferred tax assets

18

2,340,922

2,624,482

2,268,848

2,524,973

Other non-current assets

19

165,501

181,687

146,184

167,847

9,054,291

8,681,721

8,229,805

7,918,402

95,206,686

90,469,388

90,043,907

85,353,815

130,244

Investment in equity securities designated at fair value
through profit or loss
Investment in equity securities designated at fair value
through other comprehensive income

Total Non-current Assets
TOTAL ASSETS

Notes to the financial statements form an integral part of these statements

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT FEBRUARY 28, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at

As at

As at

As at

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

4,485,424

9,171,904

3,440,000

7,941,240

220,728

269,599

200,448248,20721

1,629,459

1,628,020

1,532,329

1,550,316

23

12,836,551

17,090,217

11,273,543

16,317,580

3,798,878-

3,798,878

LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIESBank overdrafts and short-term borrowings
from financial institutions

20

Trade and other current payables
Trade payables
Other payables
Current portion of long-term liabilities
Long-term borrowings
Long-term debentures

25-

Derivative liabilities

26

562,743654,801

562,743654,801

Lease liabilities

22444,127

356,328

389,924

312,304

643,416

379,519608,272

348,000

Current income tax payable
Other current liabilities
Total Current Liabilities

341,614387,092

345,103394,973

21,164,062

33,736,358

18,352,362

31,566,299

39,152,934

30,896,445

37,867,795

28,578,535-

NON-CURRENT LIABILITIESLong-term borrowings

23

Long-term borrowings under securitization project24

1,260,991

1,401,709

Long-term debentures

25

9,580,142

4,460,676

8,107,060

2,987,594

Derivative liabilities

26

876,160

212,925

876,160

212,925

Lease liabilities

22473,541

268,650

412,280

240,121Subordinated borrowings

14.2

84,074

84,074--

Provisions for employee benefit

27

444,377

463,335

405,630

419,132

83,31682,962

71,186

68,102

50,694,544

36,469,067

49,001,102

33,908,118

71,858,606

70,205,425

67,353,464

65,474,417

Other non-current liabilities
Total Non-current Liabilities
TOTAL LIABILITIES-AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT FEBRUARY 28, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at

As at

As at

As at

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

250,000

250,000

250,000

250,000

250,000

250,000

250,000

250,000

478,000

478,000

478,000

478,000

LIABILITIES AND SHAREHOLDERS’ EQUITY (CONTINUED)SHAREHOLDERS’ EQUITY

29

SHARE CAPITAL

Authorized share capital
250,000,000 ordinary shares of Baht 1 eachIssued and paid-up share capital
250,000,000 ordinary shares of Baht 1 each,fully paid

SHARE PREMIUM ON ORDINARY SHARESSURPLUS ON SHARE-BASED PAYMENT TRANSACTION

28

9,265

-

9,265

-

RETAINED EARNINGS

AppropriatedLegal reserve

30

Reserve for business expansion
Unappropriated
OTHER COMPONENTS OF SHAREHOLDERS’ EQUITY

25,00025,00025,00025,0004,850,000

4,850,000

4,850,000

4,850,000

17,382,220

14,808,860

17,167,729

14,703,739

32

Exchange differences on translating
financial statements of foreign operations
Cumulative loss on cash flow hedges
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENTNON-CONTROLLING INTERESTSTOTAL SHAREHOLDERS’ EQUITYTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

Notes to the financial statements form an integral part of these statements(83,454)(95,808)-(89,551)(427,341)(89,551)(427,341)-

22,821,480

19,888,711

22,690,443

19,879,398

526,600

375,252--

23,348,080

20,263,963

22,690,443

19,879,398

95,206,686

90,469,388

90,043,907

85,353,815

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF PROFIT OR LOSSFOR THE YEAR ENDED FEBRUARY 28, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

7,641,755

6,462,205

7,488,114

6,370,437

10,384,552

10,367,574

10,273,844

10,208,931

1,028,530

1,073,176

246,053

308,562

1,696,186

1,423,426

1,638,278

1,423,426

404,572

319,764

404,572

319,764

Collection service income

225,753

209,682-

Insurance broker business income

688,884

682,021688,884

REVENUES

Credit card income
Loan income

33

Hire-purchase income
Other income
Bad debt recovery
Gain on sale of written-off receivables

43

29
627,331

Dividend income--

203,000

334,400

Others261,433

253,574

173,363

123,759

3,276,828

2,888,467

3,108,097

2,828,709

22,331,665

20,791,422

21,116,108

19,716,639

7,962,449

7,671,368

7,282,911

6,924,615

Total Other income
Total Revenues

EXPENSES

Operating and administrative expenses
Directors and managements’ remuneration

34

154,560

161,119

104,425

104,064

Loss on impairment of assets

17

95,497-

95,497-

2,627

11,099

1,041

9,710

36

8,215,133

7,843,586

7,483,874

7,038,389

Finance costs

1,903,841

1,744,665

1,970,310

1,826,482

Expected credit loss

7,262,728

6,629,397

7,070,470

5,771,184

PROFIT BEFORE INCOME TAX

4,949,963

4,573,774

4,591,454

5,080,584

995,818

999,880

880,727

947,3933,954,145

3,573,894

3,710,727

4,133,191

3,815,145

3,553,041

3,710,727

4,133,191

Loss on sale and write-off of leasehold improvement
and equipment and intangible assets other than goodwill
Total Expenses

37

INCOME TAX EXPENSESPROFIT FOR THE YEARPROFIT ATTRIBUTABLE TO :Owners of the parent
Non-controlling interests

20,853--

3,573,894

3,710,727

4,133,191

BAHT

15.26

14.21

14.84

16.53

SHARES

250,000,000

250,000,000

250,000,000

250,000,000

BASIC EARNINGS PER SHAREWEIGHTED AVERAGE NUMBER OF ORDINARY SHARES

139,000
3,954,145

Notes to the financial statements form an integral part of these statements

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED FEBRUARY 28, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

3,954,145

3,573,894

3,710,727

4,133,191

32

12,35425,417--

14,84449,914--32

337,790468,234

337,790468,234

Profit for the year
Other comprehensive income, net of tax
Components of other comprehensive income thatwill be reclassified to profit or loss
Exchange differences on translating
financial statements of foreign operations- Owners of the parent- Non-controlling interests
Gain on cash flow hedges
Components of other comprehensive income thatwill not be reclassified to profit or loss

58,20871,72253,256

67,046

Other comprehensive income for the year, net of tax

423,196615,287

391,046535,280

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,377,341

4,189,181

4,101,773

4,668,471

4,223,497

4,118,414

4,101,773

4,668,471

153,844

70,767--

4,377,341

4,189,181

4,101,773

4,668,471

Gain on remeasurements of defined benefit plans

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO :Owners of the parent
Non-controlling interests

Notes to the financial statements form an integral part of these statements

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED FEBRUARY 28, 2023
UNIT : THOUSAND BAHT
Notes

CONSOLIDATED FINANCIAL STATEMENTS

Owners of the parent
Issued andShare premium

Surplus on

paid-upon ordinary

share-based payment

share capitalsharestransaction

Retained earnings
AppropriatedLegal reserve

Other components of
Unappropriatedshareholders’ equity
Exchange differences

Cumulative loss

businesson translatingon cash flow hedges

expansion

financial statements

Reserve for

Non-

Total

Total

controllingshareholders’owners ofinterests

equitythe parentof foreign operations

Beginning balance as at March 1, 2021

250,000

478,000-

25,0004,850,000

12,471,581(121,225)(895,575)

17,057,781

321,883

17,379,664(662,488)(17,398)(679,886)

Changes during the year
Dividend paid

29.1

-

-

-

-

-

Interim dividend paid

29.2

-

-

-

-

-

-

-

-

Profit for the year
Other comprehensive income(662,488)---(624,996)--(624,996)-(624,996)-

3,553,041--

3,553,041

20,853

3,573,894

-

-

-

-

-

71,722

25,417468,234

565,373

49,914615,287

Ending balance as at February 28, 2022

250,000

478,000-

25,0004,850,000

14,808,860(95,808)(427,341)

19,888,711

375,252

20,263,963

Beginning balance as at March 1, 2022

250,000

478,000-

25,0004,850,000

14,808,860(95,808)(427,341)

19,888,711

375,252

20,263,963

-

-

-

-

-

-

-

-

-

-

-

-

9,265

Changes during the year
Increase in non-controlling interests arisingfrom new investment in a subsidiary--

Surplus on share-based payment transaction

28

-

-

Dividend paid

29.3

-

-

-

-

-

(662,496)--(662,496)(2,746)

29.4

-

-

-

-

-

(637,497)--(637,497)

-

-

-

-

-

-

3,815,145--

3,815,145---

250,000

478,000

Interim dividend paid
Profit for the year
Other comprehensive income
Ending balance as at February 28, 2023

See condensed notes to the financial statements

9,265

9,265

-

-

25,0004,850,000

250-

139,000

250
9,265(665,242)(637,497)
3,954,145

58,20812,354

337,790

408,352

14,844423,196

17,382,220(83,454)(89,551)

22,821,480

526,600

23,348,080

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)
FOR THE YEAR ENDED FEBRUARY 28, 2023
UNIT : THOUSAND BAHTSEPARATE FINANCIAL STATEMENTS

Notes
Issued andShare premium

Surplus on

paid-upon ordinary

share-based payment

share capitalsharestransaction

Retained earnings
AppropriatedLegal reserve

Unappropriated

Other components of

Total

shareholders’ equity

shareholders’

Reserve for

Cumulative loss

equitybusinesson cash flow hedges

expansion

250,000

478,000

-

29.1

-

-

-

-

-

(662,488)-(662,488)

29.2

-

-

-

-

-

(624,996)-(624,996)

Profit for the year

-

-

-

-

-

4,133,191-

4,133,191

Other comprehensive income-

Beginning balance as at March 1, 2021

25,0004,850,000

11,790,986(895,575)

16,498,411

Changes during the year
Dividend paid
Interim dividend paid

-

-

-

67,046468,234

535,280

Ending balance as at February 28, 2022

250,000

478,000-

25,0004,850,000-

14,703,739(427,341)

19,879,398

Beginning balance as at March 1, 2022

250,000

478,000-

25,0004,850,000

14,703,739(427,341)

19,879,398

-

-

-

Changes during the year
Surplus on share-based payment transaction

28

-

-

9,265

Dividend paid

29.3

-

-

-

-

-

Interim dividend paid

29.4

-

9,265

(662,496)-(662,496)

-

-

-

-

-

(637,497)-(637,497)

Profit for the year

-

-

-

-

-

3,710,727-

3,710,727

Other comprehensive income

-

-

-

250,000

478,000

Ending balance as at February 28, 2023

See condensed notes to the financial statements

9,265

25,0004,850,000

53,256

337,790

391,046

17,167,729(89,551)

22,690,443

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED FEBRUARY 28, 2023

UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

3,954,145

3,573,894

3,710,727

4,133,191

CASH FLOWS FROM OPERATING ACTIVITIESProfit for the year
Adjustments for:
Income tax expense

995,818

999,880

880,727

947,393

Expected credit loss

7,262,728

6,629,397

7,070,470

5,771,184

95,497-

95,497-

Loss on impairment of assets
Depreciation of leasehold improvement and equipment
and right-of-use assets
Amortization of intangible assets other than goodwill

810,097

896,111

697,005

755,706

241,503

202,899

197,074

160,671
8,269(Gain) loss on sale of leasehold improvement and equipment
(768)

7,594

(51)

Loss on write-off of leasehold improvement and equipment

and intangible assets other than goodwill

3,395

3,505

1,092

1,441

Employee benefit expense

76,515

111,832

70,337

98,239

Employee joint investment program expense

14,426

Gain on sales of written-off receivables(404,572)-

14,426(319,764)-(404,572)(319,764)

Unrealized gain on exchange rate--

(5,837)(10,750)

Gain on discount received from lease agreements-(11,833)-(11,833)

Gain on cancellation of lease agreements
Interest income
Dividend income(334)(1,399)

(330)

(724)

(13,841,603)(13,286,167)(12,493,503)(11,802,682)-

Finance costs-(203,000)(334,400)

1,903,841

1,744,665

1,970,310

1,826,482

1,110,688

550,6141,600,372

1,222,423(10,962,742)(9,988,237)(11,012,202)(10,086,966)

-

-

-

Operating assets (increase) decrease
Trade and other current receivables
Loans from purchase of accounts receivable(12,623)

Other current assets(2,037)

2,206

118

2,027

Other non-current assets

15,867

10,736

21,6655,432

Trade and other current payables(86,085)(202,520)(112,919)(29,646)

Other current liabilities(39,872)

58,566(49,870)

35,573

647

639

3,671

(678)

Cash paid for operations(9,976,157)(9,567,996)(9,549,165)(8,851,835)

Proceeds from interest income

13,928,127

12,962,299

12,544,148

11,476,511--

203,000

334,400

Operating liabilities increase (decrease)

Other non-current liabilities

Dividend received
Finance costs paid

(1,906,754)(1,719,684)(1,980,343)(1,816,105)

Income tax paid

(544,660)(881,461)(462,091)(793,737)

Employee benefits paid

27

(22,713)(37,256)(13,916)(28,578)

Cash received (paid) from transfer of employees

27

-

-

(3,353)

1,673

within the Group
Cash paid for employee joint investment program
Net cash flows provided by operating activities28(5,161)
1,472,682-(5,161)-

755,902733,119

322,329

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED FEBRUARY 28, 2023

UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

CASH FLOWS FROM INVESTING ACTIVITIESCash received from fixed deposits at banks under obligations

3,050

Cash paid for fixed deposits at banks under obligations
Cash paid for purchase of leasehold improvement and equipment

4.2

-

-

-

(105,200)(2,325)--(211,777)(198,248)(173,463)

2,169

18,211

1,457

1,689

(442,328)(291,549)(397,442)(275,782)

Cash received from sale of leasehold improvements and equipment
Cash paid for purchase of intangible assets other than goodwill

4.2

Cash received from sale of intangible assets other than goodwill
Cash paid for investment in a subsidiary

10

-

12

-

1,642
-

(163,775)--(24,500)(4,264)

Cash paid for investment in equity securities designatedat fair value through other comprehensive income
Cash received from repayment of long-term loan to a subsidiary(144,000)-

Net cash flows used in investing activities-

24,121(144,000)-(754,086)(616,269)(569,827)(586,132)

4.4

116,228,272

92,796,090

113,233,224

87,359,879(87,278,639)

CASH FLOWS FROM FINANCING ACTIVITIESCash received from bank overdrafts and short-termborrowings from financial institutions
Cash repayments for bank overdrafts and
4.4(120,792,355)(93,968,202)(117,734,464)

Cash received from long-term borrowings

short-term borrowings from financial institutions

4.4

22,210,298

7,194,654

20,351,762

6,554,661

Cash repayments for long-term borrowings

4.4(18,590,828)(4,191,220)(16,381,625)(4,191,220)

4.4

-

-

564,624

491,631

Cash received from long-term borrowings under
securitization project
Cash repayments for long-term borrowings under-(564,624)(491,631)

Cash received from long-term debentures

securitization project

4.4

4.4

5,245,000

2,063,600

5,245,000

2,063,600

Cash repayments for long-term debentures

4.4(3,800,000)(3,403,200)(3,800,000)(3,403,200)

Cash paid for lease liabilities

4.4(558,097)(564,337)(488,331)(488,719)

231,809416,869

231,809416,869

Cash received from sales of written-off receivables-

Proceeds from increase in non-controlling interest arisingfrom investment in a subsidiary

250

Cash paid for dividend
Cash paid for interim dividend
Net cash flows used in financing activities

-

-

-

(666,592)(681,842)(662,496)(662,488)(637,497)(624,996)(637,497)(624,996)(1,129,740)(962,584)(642,618)(254,253)(411,144)(822,951)(479,326)(518,056)(8,103)(46,614)-4,235,603

5,105,168

2,639,136

3,157,192

3,816,356

4,235,603

2,159,810

2,639,136

Net decrease in cash and cash equivalents
before effect of exchange rate
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the ending of the year
Notes to the financial statements form an integral part of these statements

4.1-

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED FEBRUARY 28, 2023
NOTE

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.

CONTENTS

Operations of the company
Basis for preparation and presentation of the financial statements
Significant accounting policies
Supplementary disclosures of cash flow information
Trade receivables
Other receivables
Fixed deposits at banks under obligations
Long-term loan to a subsidiary
Loans from purchase of accounts receivable
Investments in subsidiaries
Investments in equity securities designated at fair value through profit or loss
Investment in equity securities designated at fair value through othercomprehensive income
Seller loan in special purpose vehicle for securitization
Subordinated lendings and subordinated borrowing
Leasehold improvement and equipment
Right-of-use assets
Intangible assets other than goodwill
Deferred tax assets
Other non-current assets
Bank overdrafts and short-term borrowings from financial institutions
Other payables
Lease liabilitites
Long-term borrowings
Long-term borrowings under securitization projectLong-term debentures
Derivative financial instuments
Provisions for employee benefits
Employee joint investment program
Shareholders’ equity
Legal reserve
Capital management
Other components of shareholders’ equity
Revenues relating to securitization transaction
Directors and managements’ remuneration
Provident fundExpense by nature
Corporate income tax
Transactions with related parties
Operating Segments
Disclosure of information relating to financial instruments
Credit facilities and letters of guarantee
Significant agreements relating to securitization transaction
Sale of written-off receivables
Approval of financial statements

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED FEBRUARY 28, 2023

1.

OPERATIONS OF THE COMPANY

The Company was registered as a limited company under the Civil and Commercial Codeon September 18, 1992 and registered to be Public Company Limited with the Ministry ofCommerce on August 7, 2001. The Company was listed on The Stock Exchange ofThailand on December 11, 2001. The Company’s head office is located at 388, 27th Floor,
Exchange Tower, Sukhumvit Road, Klongtoey, Bangkok. The Company’s main objective
is to do the retail finance services which consist of credit card, hire-purchase and personalloans, and others. Subsequently, on October 6, 2020, the Company has registered anotherobjective which is to conduct life and non-life insurance brokerage business.
As at February 28, 2023 and 2022, the Company has head office and branches totaling 104
locations and 101 locations, respectively.
AEON Financial Service Co., Ltd., incorporated in Japan, and ACS Capital Corporation
Limited, incorporated in Thailand, are major shareholders with 35.12% and 19.20%
shareholdings, respectively. AEON Co., Ltd., incorporated in Japan, is the ultimate parent
company.
The Company has subsidiaries which are under its control in finance and operations asmentioned in Note 2.4 and Note 10.
Coronavirus Disease 2019 Pandemic
A novel coronavirus (“COVID-19”) pandemic started in early 2020 in Thailand andcountries the Group operate. It clearly affects overall Thailand and global economy,
including the Company and the Group’s employees, customers, business partners andbusiness operations.
In order to mitigate the impacts, the Company provides supports to customers as the relief
measurement for loan to affected customer from the impact of COVID-19, following to the
Bank of Thailand’s the relief measurement to help debtors from the Thai economic
situation, by providing debt restructuring program and reducing minimum payment rates
for credit card and personal loan.
Moreover, AEON Microfinance (Myanmar) Co., Ltd. (the “subsidiary”) has temporarilysuspended new loans to customers due to the impact of the political turmoil in Myanmar
since February 1, 2021. However, the subsidiary has resumed providing new loans toexisting customers starting January 22, 2022. The subsidiary has continuously reduced
operation costs and continued pursuing debt collection
Nevertheless, the Group’s and Company’s management will continue to monitor theongoing development and regularly assess the financial impact in respect of valuation ofassets, provisions and contingent liabilities.

-2-

2.

BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

2.1

The Group and the Company maintain its accounting records in Thai Baht and prepare
their statutory financial statements in the Thai language in conformity with Thai
Financial Reporting Standards and accounting practices generally accepted in
Thailand.
The English version of the consolidated and separate financial statements have been
prepared from the Thai version of the consolidated and separate financial statements
prepared by law. In the event of any conflict or different interpretation of the two different
languages, the Thai version consolidated and separate financial statements in accordancewith the Thai law is superseded.

2.2

The Group’s and the Company’s financial statements have been prepared inaccordance with the Thai Accounting Standard (TAS) No. 1 “Presentation of
Financial Statements” the Regulation of The Stock Exchange of Thailand (SET)
dated October 2, 2017, regarding the preparation and submission of financial
statements and reports for the financial position and results of operations of the listedcompanies B.E. 2560 and the Notification of the Department of Business
Development regarding “The Brief Particulars in the Financial Statement (No. 3)
B.E. 2562” dated December 26, 2019.

2.3

The consolidated financial statements for the years ended February 28, 2023 and 2022
included the accounts of the Company and its subsidiaries. Significant transactions andbalances between the Company and its subsidiaries have been eliminated.
Subsidiaries are entities controlled by the Company. Control exists when the Company
has the power, directly or indirectly, to govern the financial and operating policies of anentity so as to obtain benefits from its activities. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control
commences until the date that control ceases. The accounting policies of subsidiaries
have been changed where necessary to align them with the policies adopted by theGroup.
Loss in a subsidiary are allocated to non-controlling interests even if doing so causes
the non-controlling interests to have a deficit balance.
If the Company losses control in a subsidiary, it will derecognize the assets andliabilities, any non-controlling interests and the other components of shareholders’equity related to the subsidiary. Any surplus or deficit arising from the loss of control
is recognized in profit or loss. If the Company retains any interest in the previous
subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently, it is accounted for as an equity-accounted investee or as an investment inequity securities depending on the level of influence retained.

-3-

2.4

For the years ended February 28, 2023 and 2022, the subsidiaries included in the
consolidated financial statements are as follows:

ACS Servicing (Thailand)Company Limited
ACSI (Thailand) Co., Ltd.
AEON Specialized Bank
(Cambodia) Plc.(4)AEON Microfinance (Myanmar)
Company Limited
AEON Leasing Service (Lao)Company Limited(1)ATS Rabbit Special Purpose
Vehicle Company Limited(3)AEON Asset Management(Thailand) Co., Ltd.(2)Business typeCountry ofregistration

Registration date

Percentage of direct andindirect holdings (%)
2023
2022

Collection servicer

ThailandMarch 13, 2007

100.00100.00Non-life insurance broker
and life insurance broker
Retail finance business

ThailandJuly 1, 2013100.00100.00

Cambodia

October 5, 2011

50.00

50.00

Retail finance business

MyanmarNovember 2, 2012

100.00100.00Retail finance business

Laos

January 11, 2013100.00100.00Special purpose juristic
person in securitization projects
Non-performing assets
management

ThailandMarch 20, 2015

48.75

48.75

ThailandAugust 2, 2022

99.00

-

(1)

The Company indirectly holds shares of AEON Leasing Service (Lao) Company Limited through ACS Servicing (Thailand) Company
Limited with 3.71% shareholding.

(2)

The Company indirectly holds shares of AEON Asset Management (Thailand) Co., Ltd through ACS Servicing (Thailand) Co., Ltd. with
1.00% shareholding.

(3)

The Company has the power to control over ATS Rabbit Special Purpose Vehicle Company Limited because the Company has power toappoint the board of directors and rights to provide certain service which is significantly impacted by the performance of underlying
assets and has rights to get variable return from such company under securitization project.

(4)

The Company has the power to control over AEON Specialized Bank (Cambodia) Pcl. in accordance with the requirement of
TFRS No.10 “Consolidated Financial Statements”.

The significant accounting policies used for the financial statements of the subsidiaries
are adjusted to be the same as those of the Company.
2.5

The financial statements of the subsidiaries used in the preparation of consolidated
financial statements are as of a date or for a period that is different from that of theconsolidated financial statements. However, the Company consolidated thefinancial information of the subsidiaries using the most recent financial statementsof the subsidiaries adjusted for the effects of significant transactions or events that
occur between the date of those financial statements and the date of the consolidated
financial statements. The dates of the end of the reporting period of the financial
statements of the aforementioned subsidiaries are as follows:
The date of the end of the reporting period
in preparation of
the consolidated financial statements
For the years ended
February 28,
February 28,
2023
2022
Subsidiaries
ACS Servicing (Thailand) Company Limited
ACSI (Thailand) Co., Ltd.,AEON Specialized Bank (Cambodia) Plc.
AEON Microfinance (Myanmar) Company Limited
AEON Leasing Service (Lao) Company Limited
AEON Asset Management (Thailand) Co., Ltd.

December 31, 2022
December 31, 2022
December 31, 2022
December 31, 2022
December 31, 2022
December 31, 2022

December 31, 2021
December 31, 2021
December 31, 2021
December 31, 2021
December 31, 2021
-

-4-

2.6

Thai Financial Reporting Standards affecting the presentation and disclosure in thecurrent year financial statements
During the year, the Group and the Company have adopted the revised financial
reporting standards issued by the Federation of Accounting Professions which are
effective for fiscal years beginning on or after January 1, 2022. These financial
reporting standards were aimed at alignment with the corresponding International
Financial Reporting Standards, with most of the changes directed towards revisionof wording and terminology and accounting requirements for interest rate reform Phase 2. The adoption of these financial reporting standards does not have any
significant impact on the Group’s and the Company’s interim financial statements.
Accounting Treatment Guidance on “Guidelines for supporting debtors affected by
COVID-19”
The objective of this accounting treatment guidance is to grant the temporary relief
measures for entities helping their debtors affected from COVID-19 with thesupporting period during January 1, 2022 to December 31, 2023 or until there are
any changes from the Bank of Thailand, which requires the compliance for suchchanges. The entities who support their debtors and elect to apply the temporary
relief measures according to this accounting treatment guidance should disclose
information as specified in this accounting treatment guidance.
For the year ended February 28, 2023, the Group and the Company have adhered tosuch Accounting Treatment Guidance regarding staging of receivables. For
receivables that are credit impaired but still have the potential for repayment, theGroup and the Company will classify the receivables as low credit risk (Stage 1) if
the debtor has been repaying for 3 consecutive months or 3 payment periods,
whichever is longer.
In the case where debt restructuring results in the original effective interest rate notreflecting the projected cash flows from such debts, the Group and the Company
will adhere to such Accounting Treatment Guidance by using the new effective
interest rate to calculate the present value of the restructured debts under theguidelines in the relief measurement to help debtors following the Bank ofThailand’s circular letter.

2.7

Thai Financial Reporting Standards announced in the Royal Gazette but not yet
effective
On August 19, 2022, Thai Financial Reporting Standard No.17 “Insurance
Contracts” has been announced in the Royal Gazette and will be effective for thefinancial statements for the period beginning on or after January 1, 2025 onwards.
On September 26, 2022, the revised Thai Accounting Standards and Thai Financial
Reporting Standards have been announced in the Royal Gazette and will be effective
for the financial statements for the period beginning on or after January 1, 2023
onwards. Standards relevant to the Group and the Company are as follows:-5Thai Accounting Standard No.37 “Provisions, Contingent Liabilities and Contingent Assets”
The amendments specify that the “cost of fulfilling a contract” comprises the “costs
that relate directly to the contract”. Costs that relate directly to a contract consist ofboth the incremental costs of fulfilling that contract (examples would be direct laboror materials) and an allocation of other costs that relate directly to fulfilling contracts(an example would be the allocation of the depreciation charge for an item ofproperty, plant and equipment used in fulfilling the contract). The amendments
apply to contracts for which the entity has not yet fulfilled all its obligations at the
beginning of the annual reporting period in which the entity first applies theamendments. Comparatives are not restated. Instead, the entity shall recognize thecumulative effect of initially applying the amendments as an adjustment to the
opening balance of retained earnings or other component of equity, as appropriate.
Thai Financial Reporting Standard No.9 “Financial Instruments”
The amendment clarifies that in applying the “10 per cent” test to assess whether toderecognize a financial liability, an entity includes only fees paid or received
between the entity (the borrower) and the lender, including fees paid or received byeither the entity or the lender on the other’s behalf. The amendment is applied
prospectively to modifications and exchanges that occur on or after the date theentity first applies the amendment.
The Group’s and the Company’s management will adopt such TFRSs in the
preparation of the Group’s and the Company’s financial statements when it becomes
effective. The Group’s and the Company’s management is in the process to assess
the impact of these TFRSs on the financial statements of the Group and theCompany in the period of initial application.
3.

SIGNIFICANT ACCOUNTING POLICIESThe financial statements have been prepared on the historical cost basis except as disclosed
in the following:
3.1

Cash and cash equivalents
Cash and cash equivalents comprise cash on hands, all deposits at financial
institutions with the original maturities of three months or less and highly liquid
short-term investments, excluding cash at banks used as collateral.

3.2

Financial instruments
Financial assets and financial liabilities are recognized in the Group’s consolidated
statement of financial position and the Company’s separate statement of financial
position when the Group and the Company become a party to the contractual
provisions of the instrument.

-6-

3.2.1 Classification and Measurement
3.2.1.1

Classification
Financial Assets
The Group and Company classify financial assets, depending on thebusiness model of the Group and Company on financial assets andtype of contractual cash flow of financial assets. The Group andCompany classify financial assets as subsequently measured byamortized cost and fair value through profit or loss.
Financial Liabilities
The Group and Company classify all financial liabilities as
subsequently measured by amortized cost.

3.2.1.2

Initial measurement
Financial assets and financial liabilities are initially measured at fairvalue. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) areadded to or deducted from the fair value of the financial assets orfinancial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets orfinancial liabilities at fair value through profit or loss are recognized
immediately in profit or loss.

3.2.1.3

Subsequent measurement
Financial Assets
The Group and Company are subsequently measure financial assets as
below;(1)

Subsequent measurement by Amortized cost
Financial assets are measured subsequently at amortized cost.
The Group and Company using the effective interest method.
The effective interest method is a method of calculating theamortized cost of a financial asset and of allocating interest
income over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash inflow(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs andother premiums or discounts) through the expected life of thefinancial asset, or (where appropriate) a shorter period, to theamortized cost of a financial asset.

-7-

(2)

Subsequent measurement by Fair value through profit or loss(“FVTPL”)
Financial assets that do not meet the criteria for being measured
at amortized cost are measured at FVTPL.
Financial assets at FVTPL are measured at fair value at the endof each reporting period, with any fair value gains or losses
recognized in profit or loss to the extent they are not part of adesignated hedging relationship (see Note 3.2.3 Hedge
accounting). The net gain or loss recognized in profit or loss
includes any dividend or interest earned on the financial asset.
Financial Liabilities
All financial liabilities are measured subsequently at amortizedcost using the effective interest method. The effective interest
method is a method of calculating the amortized cost of afinancial liability and of allocating interest expense over the
relevant period. The effective interest rate is the rate thatexactly discounts estimated future cash payments (including all
fees and points paid or received that form an integral part ofthe effective interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial liability,or (where appropriate) a shorter period, to the amortized costof a financial liability.

3.2.1.4

Derecognition of Financial instruments
Financial Assets
The Group and the Company derecognize a financial asset only when
the contractual rights to the cash flows from the asset expire, or whenit transfers the financial asset and substantially all the risks andrewards of ownership of the asset to another entity. If the Group andthe Company neither transfer nor retains substantially all the risks
and rewards of ownership and continues to control the transferredasset, the Group and the Company recognize its retained interest in
the asset and an associated liability for amounts it may have to pay.
If the Group and the Company retain substantially all the risks andrewards of ownership of a transferred financial asset, the Group andthe Company continue to recognize the financial asset and also
recognizes a collateralized borrowing for the proceeds received.
On derecognition of a financial asset measured at amortized cost, thedifference between the asset’s carrying amount and the sum of theconsideration received and receivable is recognized in profit or loss.

-8-

Financial liabilities
The Group and the Company derecognize financial liabilities when,and only when, the obligation of the Group and the Company aredischarged, cancelled or have expired. The difference between the
carrying amount of the financial liability derecognized and theconsideration paid and payable is recognized in profit or loss.
3.2.2 Impairment of financial assets
The Group and the Company recognize allowance for expected credit loss on
trade receivables using ECL model. The amount of expect credit losses is
updated at each reporting period date to reflect changes in credit risk sinceinitial recognition of the respective financial instrument.
The Group and the Company recognize lifetime ECL when there has beena significant increase in credit risk since initial recognition. However,if the credit risk on the financial instrument has not increased significantly
since initial recognition, the Group and the Company measure the loss
allowance for that financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit loss that will result from all
possible default events over the expected life of a financial instrument. In
contrast, 12-month ECL represents the portion of lifetime ECL that is
expected to result from default events on a financial instrument that are
possible within 12 months after the reporting date.
(i)

Significant increase in credit risk
The Group and the Company compare the risk of a default occurring on thefinancial instrument at the reporting date based on the remaining maturity of
the instrument with the risk of a default occurring that was anticipated for theremaining maturity at the current reporting date when the financial instrument
was first recognized. In assessing whether the credit risk on a financial
instrument has increased significantly since initial recognition, the Group andthe Company consider both quantitative and qualitative information that isreasonable and supportable, including historical experience and forwardlooking information that is available without undue cost or effort.
Despite the foregoing, the Group and the Company assume that the credit risk
on a financial instrument has not increased significantly since initialrecognition if the financial instrument is determined to have low credit risk at
the reporting date. A financial instrument is determined to have low credit
risk if;- The financial instrument has a low risk of default;- The debtor has a strong capacity to meet its contractual cash flow
obligations in the near term; and- Adverse changes in economic and business conditions in the longer term
may, but will not necessarily, reduce the ability of the borrower to fulfil
its contractual cash flow obligations.

-9-

The Group and the Company regularly monitor the effectiveness ofthe criteria used to identify whether there has been a significant increasein credit risk and revises them as appropriate to ensure that the criteria arecapable of identifying significant increase in credit risk before
the amount becomes past due.
(ii)

Definition of default
The Group and the Company consider constituting an event of default forinternal credit risk management policies and historical experience
indicates that financial assets are defaulted by considering information
developed internally or obtained from external sources indicates thatthe debtor is unlikely to pay its creditors, in full.
Irrespective of the above analysis, the Group and the Company consider
that default has occurred when the past due is more than 90 days unlessthe Group and the Company have supportable information to demonstratethat a more lagging default criterion is reasonable.

(iii) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that havea detrimental impact on the estimated future cash flows of that financial
asset have occurred. Evidence that a financial asset is credit-impaired
includes the consideration of following events;- Significant financial difficulty of the issuer or the borrower;- A breach of contract, such as a default or past due event;- The lender(s) of the borrower, for economic or contractual reasons
relating to the borrower’s financial difficulty, having granted to theborrower a concession(s) that the lender(s) would not otherwise
consider; and- It is becoming probable that the borrower will enter bankruptcy or otherfinancial reorganization.
(iv)

Write-off policy
The Group and the Company write off trade receivables when there isinformation indicating that the debtor is in financial difficulty and there is
no realistic prospect of recovery, e.g. when the debtor has been placed
under liquidation or has entered into bankruptcy proceedings, or in the caseof loans to customers, when the days past due are over the period that theManagement determined, whichever occurs sooner. Loans to customers
written off may still be subject to enforcement activities under the Group’s
and the Company’s recovery procedures, taking into account legal advice
where appropriate. Any recoveries made are recognized in profit or loss.

(v)

Measurement and recognition of expected credit loss
The measurement of expected credit loss is a function of the probability ofdefault, loss given default and the exposure at default. The assessment of
the probability of default and loss given default is based on historical data
adjusted by forward-looking information as described above.

- 10 For financial assets, exposure at default is represented by the asset’s grosscarrying amount at the reporting date.
For loan commitments, the exposure includes the amount drawn down asat the reporting date, together with any additional amounts expected to be
drawn down in the future by default date determined based on historical
trend, the Group’s and the Company’s understanding of the specific futurefinancing needs of the debtors, and other relevant forward-looking
information.
If the Group and the Company have measured the loss allowance fora financial instrument at an amount equal to lifetime ECL in the previous
reporting period, but determines at the current reporting date thatthe conditions for lifetime ECL are no longer met, the Group and theCompany measure the loss allowance at an amount equal to 12-month
ECL at the current reporting date.
3.2.3 Hedge accounting
The Group and the Company designate certain derivatives as hedging instruments
in respect of foreign currency risk and interest rate risk in cash flow hedges.
At the inception of the hedge relationship, the Group and the Company
document the relationship between the hedging instrument and the hedged
item, along with its risk management objectives and its strategy forundertaking various hedge transactions. Furthermore, at the inception of thehedge and on an ongoing basis, the Group and the Company document
whether the hedging instrument is effective in offsetting changes infair values or cash flows of the hedged item attributable to the hedged risk,
which is when the hedging relationships meet all of the following hedge
effectiveness requirements;-

There is an economic relationship between the hedged item andthe hedging instrument;-

The effect of credit risk does not dominate the value changes that result
from that economic relationships; and-The hedged ratio of the hedging relationship is the same as that resulting
from the quantity of the hedged item that the Group and the Company
actually hedge and the quantity of the hedging instrument that the Groupand the Company actually use to hedge that quantity of hedged item.

Cash flow hedges
The effective portion of changes in the fair value of derivatives and otherqualifying hedging instruments that are designated and qualify as cash flow
hedges is recognized in other comprehensive income and accumulated under
the heading of cash flow hedging reserve, limited to the cumulative change infair value of the hedged item from inception of the hedge. The gain or loss
relating to the ineffective portion is recognized immediately in profit or loss,
and is included in the “Finance costs” line item.

- 11 -

Amounts previously recognized in other comprehensive income andaccumulated in equity are reclassified to profit or loss in the periods when thehedged item affects profit or loss, in the same line as the recognized hedged
item. However, when the hedged forecast transaction results in the recognitionof a non-financial asset or a non-financial liability, the gains and losses
previously recognized in other comprehensive income and accumulated inequity are removed from equity and included in the initial measurement of thecost of the non-financial asset or non-financial liability.
This transfer does not affect other comprehensive income. Furthermore, if theGroup and the Company expect that some or all of the loss accumulated in the
cash flow hedging reserve will not be recovered in the future, that amount isimmediately reclassified to profit or loss.
3.3

Investment in subsidiaries
Investments in subsidiaries in the separate financial statements are accounted forusing the cost method, less allowances for impairment (if any).
In case impairment in value of investment has occurred, the loss result of investment
is recognized in the statement of profit or loss.
Cost of securities sold is determined by the weighted-average method.

3.4

Leasehold improvement and equipment
Leasehold improvement and equipment are stated at cost less accumulated
depreciation and allowance for impairment (if any).
Depreciation of leasehold improvement and equipment is calculated by the straightline method, based on the estimated useful life of the assets of 3 years and 5 years.

3.5

Intangible assets
Intangible assets are stated at cost less accumulated amortization and allowance for
impairment (if any).
Intangible assets are computer software which are amortized by the straight-line
method over the estimated useful lives of 5 years and 10 years.

3.6

Loans from purchase of accounts receivable and accrued interest
The loans from purchase of accounts receivable represent non-performing
receivables which a subsidiary has purchased from financial institutions and credit
service companies by bidding for debts management and collection. Under thepurchase contracts of non - performing receivables, the subsidiary takes all the risks
in the collection without recourse. The loans from purchase of accounts receivable
are recognized as purchased or originated credit-impaired financial assets. The
subsidiary initially recognizes purchased or originated credit-impaired financial
assets at cost, which comprise purchased amount (fair value as at transaction dateequals or approximates to purchased price) plus direct expense of loans frompurchase of accounts receivable, and presents at amortized cost plus accrued interest
income, net of allowance for expected credit losses.

- 12 -

3.7

Allowance for expected credit losses of loans from purchase of accounts receivable
The loans from purchase of accounts receivable are purchased or originated creditimpaired financial assets. The subsidiary recognizes allowance for expected credit
losses from loans from purchase of accounts receivable as the cumulative changes
in lifetime expected credit losses since initial recognition.
The subsidiary estimates the amount of expected credit losses of loans frompurchase of accounts receivable by calculating the difference between the carrying
amount of loans from purchase of accounts receivable and the present value of
estimated future cash flow, and by discounting the unbiased forecast cash flows
based on reasonable and supportable information that is relevant and available
without undue cost or effort.
The subsidiary uses judgment in estimating the amount and period of expected net
cash inflows in calculating allowance for expected credit losses and credit-adjusted
effective interest rate since initial recognition of loans from purchase of accounts
receivable for recognition of interest income. In estimating cash flows, thesubsidiary considers loss experience and adjusts on the basis of current observable
data. In addition, the subsidiary uses reasonable and supportive forecasts of future
economic conditions that are proven to be statistically correlated, and uses
appropriate judgment to estimate the amount of expected credit losses. The
subsidiary uses judgement in assessing financial situation of debtor, net collateralvalue and future information and uses forward-looking information model tocalculate allowance for expected credit losses.
The subsidiary recognizes the amount of the change in lifetime expected credit
losses of the financial assets as gain or loss from expected credit losses in profit orloss. The subsidiary recognizes favorable changes in lifetime expected credit losses
as a reversal of expected credit losses, even if the lifetime expected credit losses areless than the amount of expected credit losses that were included in the estimatedcash flows on initial recognition.

3.8

LeasesThe Group and the Company as lessee
The Group and the Company assess whether a contract is or contains a lease,at inception of the contract. The Group and the Company recognize a right-of-use asset andcorresponding lease liability with respect to all lease arrangements in which it is the lease.
The lease liability is initially measured at the present value of the lease payments thatare not paid at the commencement date, discounted by using the rate implicit in thelease. If this rate cannot be readily determined, the Group uses its incremental
borrowing rate.

- 13 -

Lease payments included in the measurement of the lease liability comprise:• Fixed lease payments (including in-substance fixed payments), less any lease
incentives receivable;• Variable lease payments that depend on an index or rate, initially measured using
the index or rate at the commencement date;• The amount expected to be payable by the lease under residual value guarantees;• The exercise price of purchase options, if the lease is reasonably certain to exercise
the options; and• Payments of penalties for terminating the lease, if the lease term reflects
the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the consolidated and separate
statements of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect
interest on the lease liability (using the effective interest method) and by reducing thecarrying amount to reflect the lease payments made.
The Group and the Company remeasure the lease liability (and makes a corresponding
adjustment to the related right-of-use asset) whenever:• The lease term has changed or there is a significant event or change in circumstances
resulting in a change in the assessment of exercise of a purchase option, in whichcase the lease liability is remeasured by discounting the revised lease payments
using a revised discount rate.

• The lease payments change due to changes in an index or rate or a change in
expected payment under a guaranteed residual value, in which cases the leaseliability is remeasured by discounting the revised lease payments using
an unchanged discount rate (unless the lease payments change is due to a change ina floating interest rate, in which case a revised discount rate is used).

• A lease contract is modified and the lease modification is not accounted for as aseparate lease, in which case the lease liability is remeasured based on the lease termof the modified lease by discounting the revised lease payments using a revised
discount rate at the effective date of the modification.
The right-of-use assets comprise the initial measurement of the corresponding leaseliability, lease payments made at or before the commencement day, less any lease
incentives received and any initial direct costs. They are subsequently measured atcost less accumulated depreciation and impairment losses.

- 14 -

Right-of-use assets are depreciated over the shorter period of lease term and useful life of
the underlying asset. If a lease transfers ownership of the underlying asset or the cost of
the right-of-use asset reflects that the Group and the Company expect to exercise apurchase option, the related right-of-use is depreciated over the useful life of theunderlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated andseparate statements of financial position.
The Group and the Company apply TAS 36 to determine whether a right-of-use asset
is impaired and accounts for any identified impairment loss as described in
the “Leasehold improvement and equipment” policy.
Variable rents that do not depend on an index or rate are not included in
the measurement the lease liability and the right-of-use asset. The related payments
are recognized as an expense in the period in which the event or condition that triggers
those payments occurs and are included in the line “Operating and Administrative
expenses” in profit or loss.
As a practical expedient, TFRS 16 permits a lessee not to separate non-lease
components, and instead account for any lease and associated non-lease components asa single arrangement. The Group and the Company have used this practical expedient.
3.9

Assets and liabilities in foreign currencies
3.9.1

Functional currency and presentation currency
The consolidated and the separate financial statements are presented in
Baht as the presentation currency.
Items in the financial statements of foreign operations are recorded at theirfunctional currency.

3.9.2

Translation of foreign currency transaction
Transactions in foreign currencies are translated to Thai Baht at the foreignexchange rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at thereporting date are translated to Thai Baht at the foreign exchange rates
ruling at that date. Foreign exchange differences arising on translation arerecognized as profit or loss in statement of profit or loss and othercomprehensive income.
Non-monetary assets and liabilities measured at cost in foreign currencies
are translated to Thai Baht using the foreign exchange rates ruling at thedates of the transactions.

- 15 -

Monetary assets and liabilities for which settlement is neither planned nor
likely to occur in a foreseeable future is treated as part of net investmentin the foreign operation of the Group. Exchange differences arising on amonetary item that forms part of a reporting entity’s net investment in aforeign operation shall be recognized in profit or loss in the separate
financial statements of the reporting entity or the individual financial
statements of the foreign operation, as appropriate. In the financial
statements that include the foreign operation and the reporting entity (e.g.
consolidated financial statements when the foreign operation is a
subsidiary), such exchange differences shall be recognized initially inother comprehensive income and reclassified from equity to profit or loss
on a disposal of the net investment.
3.9.3

Translation of financial statements of foreign operations
The assets and liabilities of foreign entities are translated to Thai Baht at
the foreign exchange rates ruling at the reporting date.
The revenues and expenses of foreign entities are translated to Thai Baht
at rates approximating the foreign exchange rates ruling at the dates of thetransactions.
Foreign exchange differences arising on translation are recognized as othercomprehensive income in the statement of other comprehensive income
and presented as the foreign currency translation reserve in equity until adisposal of the investment.

3.10

Share-based payment
Equity-settled share-based payments to management and employees are measured at
the fair value of the equity instruments at the grant date, and is recognized as employee
expense in the statement of profit or loss along with the recognition of theshareholders’ equity throughout the period that employee is able to access the rights
without restriction. The expense recognized is to be adjusted to reflect the value ofshares under the term of service that is not the term of equity market.

3.11

Recognition of revenues and expenses
Interest income and fee income from purposed loan, hire-purchase receivable, credit
card receivable and personal loan are recognized on an accrual basis using theeffective interest method.
Commission income is recognized on the issue date of the policy.
Collection service income is recognized on an accrual basis when service has been
provided or upon satisfaction of performance obligations.
Bad debt recovery is recorded as income in the statement of profit or loss when received.
Dividend income is recognized on the date the Company’s rights to receive
payments is established.
Other income and expenses are recognized on an accrual basis.

- 16 -

3.12

Provisions for employee benefits
3.12.1

Provident FundThe contribution for employee provident fund is recorded as an expense
when incurred.

3.12.2

Post-employment benefits
The Group and the Company operate post-employment benefits plans under
the Labor Protection Act. Such employee benefits are calculated by anindependent actuary at the end of reporting period using the Projected Unit
Credit Method, which is estimated based on the present value of expected cash
flows of benefits to be paid in the future taken into account the actuarial
assumptions including salaries, turnover rate, mortality rate, years of service
and other factors. Discount rate used in the calculation of provision isreferenced to the yield curve of Thai government bond.
Gain or loss on remeasurements of defined benefit plans are recognized in
the statement of profit or loss and other comprehensive income.

3.13

Deferred revenue from customer loyalty programs
Customer loyalty programs are to grant the points whereby customers are awarded
credits (Points) entitling customers to the rights to redeem within a determined period
under the condition of customer loyalty programs. Obligations from granting the points
to purchase products or get free service in the future are recognized and measured at thefair value of consideration received or receivable which is derived from points expected
to redeemed , multiplied by the estimated fair value per point, referring to the fair valueof the rewards. Such obligations are allocated from consideration received or receivable
and recorded through “Deferred revenue from customer loyalty programs” in thestatement of financial position under “Other payables” and recognized in the statement of
profit or loss as “Credit card income” when the points are redeemed by customers.

3.14

Income tax expense
Income tax expense represents the sum of the tax currently payable and deferred tax.
3.14.1

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit
differs from profit as reported in the statement of profit or loss because it
excludes items of income or expense that are taxable or deductible in otheryears and further excludes items that are never taxable or deductible.
The Company’s current tax is calculated using tax rates that have beenenacted or substantively enacted at the financial statement date.

- 17 -

3.14.2

Deferred tax
Deferred tax is recognized on temporary differences between the carrying
amounts of assets and liabilities in the financial statements andthe corresponding tax bases used in the computation of taxable profit(tax base). Deferred tax liabilities are generally recognized for all taxable
temporary differences, and deferred tax assets are generally recognized for
temporary differences to the extent that it is probable that taxable profits
will be available against which those temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed by the end of eachreporting period. Deferred tax assets shall be reduced to the extent thatutilized taxable profits decrease. Such reduction shall be reversed to theextent that it becomes probable that sufficient taxable profit will beavailable to allow total or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to be applied to the period when the asset is realized or theliability is settled, based on tax rates that have been enacted or
substantively enacted by the end of the reporting period.
Current tax assets and liabilities, and deferred tax assets and liabilities, areoffset when there is a legally enforceable right to set off the recognizedamounts and the Company intends to settle on a net basis or to realize theasset and settle the liability simultaneously and when they relate to income
taxes levied by the same taxation authority.
Income tax expense or income related to profit or loss are presented in the statementof profit or loss and net presented with items recognized directly in shareholders’equity in the statement of profit or loss and other comprehensive income.

3.15

Basic earnings per share
Basic earnings per share are calculated by dividing the net income for the year by the
number of weighted average ordinary shares outstanding during the year. In the case ofa capital increase, the number of shares is weighted according to time of registration of
the paid-up share capital increase. The Company did not have any common shareequivalents outstanding which would have dilutive effects on earnings per share.

3.16

Fair value measurements
In estimating the fair value of an asset or a liability, the Group and the Company take into
account the characteristics of the asset or liability if a producer or supplier of marketable
goods would take those characteristics into the consideration the price that would bereceived to sell an asset or paid to transfer a liability at the measurement date, regardless ofwhether that price is directly observable or estimated using another valuation technique.
Fair values for disclosure in the financial statements are categorized into Level 1, 2 or 3
based on the degree to which the inputs to the fair value measurements are on as follows:
Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets
or liabilities that the entity can access at the measurement date.
Level 2 Inputs are inputs, other than quoted prices included within Level 1, which
are observable for the asset or liability, either directly or indirectly.
Level 3 Inputs are unobservable inputs for the asset or liability.

- 18 -

3.17

Critical accounting judgments and key sources of estimation uncertainty
3.17.1

Use of management’s judgments in applying accounting policies
The preparation of financial statements in conformity with Thai Financial
Reporting Standards (TFRSs) requires the Group and the Company’s
management to exercise various judgments in order to determine theaccounting policies, estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets andliabilities at the date of the financial statements and the reported amountsof revenues and expenses during the year. Although these estimates are
based on management’s reasonable consideration of current events, actual
results may differ from these estimates.
Critical judgments in applying the Group’s and the Company’s accounting
policies are as follows:(1) Allowance for expected credit loss
Management is required to use judgment in estimation in determining
the allowance for expected credit loss of loans to customers andaccrued interest receivables, together with loan commitments. The
calculation of allowance for expected credit loss of the Group and theCompany are based on the criteria of assessing if there has been an
increase in credit risk, the development of complex expected credit loss
model with a series of underlying assumptions, including the choice of
inputs the forecasted macroeconomic variables in the model. Thisestimation has various relevant factors; therefore, the actual results
may differ from estimates.
(2) Deferred revenue from customer loyalty programs
The deferred revenue from customer loyalty programs granted to theCompany’s customers is calculated based on the estimates of redemption
rate of the reward points earned by the customers and fair value of reward
prices, and is presented in the statement of financial position under “Other
payables”.
(3) Provisions for employee benefits
The present value of the provisions for employee benefits depends ona number of factors that are determined on an actuarial basis using
a number of assumptions, including the discount rate. Any changes inthese assumptions will have an impact on the carrying amount of suchprovisions.

- 19 -The Group and the Company determine the appropriate discount rate
at the end of each year. This is the interest rate that should be used todetermine the present value of estimated future cash outflows expected
to be required to settle the provisions for employee benefits. In
determining the appropriate discount rate, the Group and the Company
consider the market yield of government bonds that are denominatedin the currency in which the benefits will be paid, and that have terms
to maturity approximating the terms of the related provisions.
Additional information is disclosed in Note 27.
Past service cost related to plan amendment is recognized as an expensein the statement of profit or loss when the plan amendment is occurred.
The management of the Group and the Company judgmentally consider
that an obligation arises only when the legislation is virtually certain to
be enacted.
(4) Business model assessment
Classification and measurement of financial assets depends on
the results of the SPPI and the business model test (please see financial
assets sections of Note 3.2). The Group and the Company determine
the business model at a level that reflects how groups of financial assets
are managed together to achieve a particular business objective. This
assessment includes judgment reflecting all relevant evidence
including how the performance of the assets is evaluated and theirperformance measured, the risks that affect the performance of theassets and how these are managed and how the managers of the assets
are compensated.
The Group and the Company monitor financial assets measured atamortized cost or fair value through other comprehensive income thatare derecognized prior to their maturity to understand the reason for
their disposal and whether the reasons are consistent with the objectiveof the business for which the asset was held. Monitoring is part of theGroup’s and the Company’s continuous assessment of whether thebusiness model for which the remaining financial assets are held
continues to be appropriate and if it is not appropriate whether there has
been a change in business model and so a prospective change to theclassification of those assets. However, no such changes were required
during the periods presented.
(5) Significant increase in credit risk
As explained in Note 3.2.2, expected credit losses are measured as anallowance equal to 12-month ECL for Stage 1 assets, or equal to lifetime
ECL for Stage 2 or Stage 3 assets. An asset moves to Stage 2 when its credit
risk has increased significantly since initial recognition. TFRS 9 does notdefine what constitutes a significant increase in credit risk. In assessing
whether the credit risk of an asset has significantly increased, the Group andthe Company take into account qualitative and quantitative reasonable andsupportable forward-looking information.

- 20 -

3.17.2Key sources of estimation uncertainty
The Group and the Company have estimates with the assumptions
concerning the future. Although these estimates are based on management’s
reasonable consideration of current events, actual results may differ fromthese estimates. The estimates and assumptions that have a significant riskof causing a material adjustment to the carrying amounts of assets andliabilities within the next financial year are outlined below.
Fair value measurements and valuation processes
In estimating the fair value of an asset or liability, the Group and theCompany use market-observable data to the extent it is available. Where
Level 1 inputs are not available, the Group and Company engage thirdparty qualified valuers to perform the valuation.
Information about valuation techniques and inputs used in determining thefair value of various assets and liabilities are disclosed in Note 40.6.

4.

SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION

4.1

Cash and cash equivalents as at February 28, 2023 and 2022, are as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

Cash
Deposits at bank - call deposits

452,796
3,363,560

666,891
3,568,712

422,844
1,736,966

627,565
2,011,571

Total cash and cash equivalents

3,816,356

4,235,603

2,159,810

2,639,136

- 21 -

4.2

Cash paid for purchase of leasehold improvement and equipment and intangible assets
other than goodwill for the years ended February 28, 2023 and 2022, are as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
For the years ended
February 28, February 28, February 28, February 28,
2023
2022
2023
2022
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Leasehold improvement and equipment
Liabilities recorded - brought forward
Purchase of leasehold improvement andequipmentLess Cash paid for purchase ofleasehold improvement and equipment

34,47025,83934,21823,896

185,962
220,432

206,879
232,718

147,703
181,921174,097
197,993(211,777)(198,248)(173,463)(163,775)

8,655

34,4708,458

34,218146,101

13,521

145,886

13,520342,888488,989

424,129437,650

297,966
443,852

408,148
421,668(442,328)
46,661(291,549)
146,101(397,442)
46,410(275,782)
145,886

Liabilities recorded - carried forward
Intangible assets other than goodwill
Liabilities recorded - brought forward
Purchase of intangible assets other than
goodwill
Less Cash paid for purchase of intangible
assets other than goodwill
Liabilities recorded - carried forward

4.3

The Company had non-cash items relating to sale of the rights on loans receivable to
ATS Rabbit Special Purpose Vehicle Company Limited, a subsidiary, which
the Company had sold loans receivable to. During the years ended February 28, 2023
and 2022 such sale was settled by increasing the Seller loan Account of Baht 11.85
million and Baht 56.15 million, respectively, instead of cash receipt.

4.4

Changes in liabilities arising from financing activities for the years ended February 28,
2023 and 2022 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Beginning

Financing cash flows

Non-cash changes

Cash

Cash

Differences

as atreceivedpaid

on translating

as atforeignFebruary 28,

March 1,
2022

OthersEndingbalancecurrencies

balance

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

9,171,904

116,228,272(120,792,355)(122,397)-

4,485,424

Long-term borrowings

47,986,662

22,210,298(18,590,828)

408,801(25,448)

51,989,485

Long-term debentures

8,259,554

5,245,000(3,800,000)(108,319)(16,093)

9,580,142(558,097)

1,675

849,112*917,668

Bank overdrafts and short-termborrowings from financial
institutions

Lease liabilities

624,978-

- 22 -CONSOLIDATED FINANCIAL STATEMENTS

Beginning

Financing cash flows

balance

Cash

Cash

Differences

Non-cash changes

as atreceivedpaid

on translating

as atforeignFebruary 28,

March 1,
2021

Otherscurrencies

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Endingbalance

2022
Baht ’000

Baht ’000

Bank overdrafts and short-termborrowings from financial
10,379,071

92,796,090(93,968,202)(35,055)

Long-term borrowings

42,821,621

7,194,654(4,191,220)

2,152,012

Long-term debentures

9,425,401

2,063,600(3,403,200)(564,337)

institutions

Lease liabilities

689,629--

9,171,904
9,595

47,986,662

189,811(16,058)

8,259,554

6,705

492,981*624,978*The amount comprises addition of lease agreements and extensions of existing lease agreements.

SEPARATE FINANCIAL STATEMENTS

Beginning

Financing cash flows

balance

Cash

Cash

Differences

Non-cash changes

as atreceivedpaid

on translating

as atMarch 1,

foreignFebruary 28,2022

currencies
Baht ’000

OthersEndingbalance

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

7,941,240

113,233,224(117,734,464)--

3,440,000

44,896,115

20,351,762(16,381,625)

300,533(25,447)

49,141,338

1,401,709

564,624(564,624)-

6,786,472

5,245,000

Bank overdrafts and short-termborrowings from financial
institutions
Long-term borrowings
Long-term borrowings under
securitization projectLong-term debentures
Lease liabilities

552,425-(3,800,000)(488,331)(140,718)

1,260,991(108,319)(16,093)

8,107,060-

738,110*802,204

SEPARATE FINANCIAL STATEMENTS

Beginning

Financing cash flows

balance

Cash

Cash

Differences

Non-cash changes

as atreceivedpaid

on translating

as atforeignFebruary 28,

March 1,
2021

Otherscurrencies

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Endingbalance

2022
Baht ’000

Baht ’000

Bank overdrafts and short-termborrowings from financial
institutions
Long-term borrowings

7,860,000

87,359,879(87,278,639)

40,646,732

6,554,661(4,191,220)

1,489,622

491,631(491,631)

7,952,319

2,063,600(3,403,200)

1,876,347

7,941,240

9,595

44,896,115

Long-term borrowings under
securitization projectLong-term debentures
Lease liabilities

558,595-(488,719)*The amount comprises addition of lease agreements and extensions of existing lease agreements.

-(87,913)1,401,709

189,811(16,058)

6,786,472-

482,549*

552,425

- 23 -

5.

TRADE RECEIVABLES

5.1 Trade receivables as at February 28, 2023 and 2022, consist of the following:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at

As at

February 28, February 28,

Trade receivables

As at

As at

February 28,

February 28,

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

92,675,988

89,626,146

87,599,547

84,065,981

1,260,991

1,401,709

1,260,991

1,401,709

Trade receivables under securitization project- ATS Rabbit Special Purpose Vehicle
Company Limited

93,936,979

91,027,855

88,860,538

85,467,690

Less Allowance for expected credit loss

(10,125,258)(10,951,455)(9,530,542)(9,972,970)

Total trade receivables

83,811,721

80,076,400

79,329,996

75,494,720

Total

As the securitization transaction under the Receivables Sale and Purchase Agreement
for transferred rights on loans receivable with ATS Rabbit Special Purpose Vehicle
Company Limited does not qualify for derecognition of financial assets according to
TFRS 9, the Company continues to recognize the full carrying amount of thesereceivables and uses them as collateral for long-term borrowings under the
securitization project (see Note 5.5).

- 24 -

As at February 28, 2023 and 2022, details of trade receivables are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Due within

Due after

1 year

1 yearBaht ’000

Baht ’000

interest receivable

2,483,958

Less Unearned financing income(251,126)

As at February 28, 2022

Total

Due within

Due after

1 year

1 yearTotal

Baht ’000

Baht ’000

Baht ’000

3,625,375

6,109,333

2,562,979

3,972,671

6,535,650(347,096)(598,222)(277,545)(366,710)(644,255)

2,232,832

3,278,279

5,511,111

2,285,434

3,605,961

5,891,395(185,051)(314,840)(499,891)(283,862)(508,248)(792,110)

2,047,781

2,963,439

5,011,220

2,001,572

3,097,713

5,099,285

44,669,914

208,350

44,878,264

45,513,782

181,622

45,695,404(5,973,197)(27,137)(6,000,334)(6,236,426)(42,362)(6,278,788)

38,696,717

181,21338,877,930

39,277,356

139,260

39,416,616

43,474,347-

43,474,347

39,323,715-

39,323,715(3,624,750)-(3,624,750)(3,880,166)-(3,880,166)

39,849,596
39,849,597-

39,849,597

35,443,549-

35,443,549

4,634

-

4,634

15,593-

15,593

(283)

-

(283)

(391)

-

(391)

4,351

-

4,351

15,202-

15,202

Baht ’000

Hire-purchase receivable
Hire-purchase and accrued

Less Allowance for expectedcredit loss
Hire-purchase and accrued
interest receivable - net
Loans receivable
Loans and accrued interest
receivable
Less Allowance for expectedcredit loss
Loans and accrued interest
receivable - net
Credit card receivable
Credit card and accrued
interest receivable
Less Allowance for expectedcredit loss
Credit card and accrued
interest receivable - net
Receivable from rendering
the collection service
Receivable from rendering
the collection service
Less Allowance for expectedcredit loss
Receivable from rendering
the collection service - net
Receivable from insurance
broker businessTotal trade receivables

68,62380,667,069

3,144,652

68,623

101,748-

101,748

83,811,721

76,839,427

3,236,973

80,076,400

- 25 -SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Due within

Due after

As at February 28, 2022

Total

Due within

Due after

1 year

1 yearBaht ’000

Baht ’000

Total

1 year

1 yearBaht ’000

Baht ’000

Baht ’000

interest receivable

904,756

2,033,501

2,938,257

914,643

2,192,369

3,107,012

Less Unearned financing income(251,126)(347,096)(598,222)(277,545)(366,709)(644,254)

653,630

1,686,405

2,340,035

637,098

1,825,660

2,462,758(73,640)(189,996)(263,636)(109,304)(313,220)(422,524)

579,990

1,496,409

2,076,399

527,794

1,512,440

2,040,234

43,882,307-

43,882,307

44,363,688-

44,363,688(5,697,631)-(5,697,631)(5,733,592)-(5,733,592)

38,184,676-

38,184,676

38,630,096-

38,630,096

42,569,573-

42,569,573

38,539,555-

38,539,555(3,569,275)-(3,569,275)(3,816,854)-(3,816,854)

39,000,298-

39,000,298

34,722,701-

34,722,701

68,623-

68,623

101,689-

101,689

79,329,996

73,982,280

1,512,440

75,494,720

Baht ’000

Hire-purchase receivable
Hire-purchase and accrued

Less Allowance for expectedcredit loss
Hire-purchase and accrued
interest receivable - net

Loans receivable
Loans and accrued interest
receivable
Less Allowance for expectedcredit loss
Loans and accrued interest
receivable - net

Credit card receivable
Credit card and accrued
interest receivable
Less Allowance for expectedcredit loss
Credit card and accrued
interest receivable - net

Receivable from insurance
broker businessTotal trade receivables

77,833,587

1,496,409

- 26 -

5.2 Quality of assets
Staging analysis for trade receivables as at February 28, 2023 and 2022 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Allowance for
expected credit loss
Baht ’000

Total tradereceivables
Baht ’000

85,031,652(4,397,716)

80,633,936

3,564,992(1,658,080)

1,906,912

5,340,335
93,936,979(4,069,462)(10,125,258)

1,270,873
83,811,721

Trade receivables
Baht ’000
Low credit risk receivables (Stage 1)
Significant increase in credit risk receivables(Stage 2)
Default receivables in credit risk
(Stage 3)
Total

CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2022
Allowance for
expected credit loss
Baht ’000

Total tradereceivables
Baht ’000

82,898,746(5,563,984)

77,334,762

3,701,623(1,917,326)

1,784,297

4,427,486
91,027,855(3,470,145)(10,951,455)

957,341
80,076,400

Trade receivables
Baht ’000
Low credit risk receivables (Stage 1)
Significant increase in credit risk receivables(Stage 2)
Default receivables in credit risk
(Stage 3)
Total

SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Allowance for
expected credit loss
Baht ’000

Total tradereceivables
Baht ’000

80,649,277(4,291,875)

76,357,402

3,379,367(1,590,702)

1,788,665

4,831,894
88,860,538(3,647,965)(9,530,542)

1,183,929
79,329,996

Trade receivables
Baht ’000
Low credit risk receivables (Stage 1)
Significant increase in credit risk receivables(Stage 2)
Default receivables in credit risk
(Stage 3)
Total

SEPARATE FINANCIAL STATEMENTS

As at February 28, 2022
Allowance for
expected credit loss
Baht ’000

Total tradereceivables
Baht ’000

78,540,851(5,440,033)

73,100,818

3,348,067(1,768,513)

1,579,554

3,578,772
85,467,690(2,764,424)(9,972,970)

814,348
75,494,720

Trade receivables
Baht ’000
Low credit risk receivables (Stage 1)
Significant increase in credit risk receivables(Stage 2)
Default receivables in credit risk
(Stage 3)Total

- 27 -

Trade receivables as at February 28, 2023 and 2022 classified by aging are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000
Less than 3 months
3 months up
Total
Less Allowance for expected credit loss
Total trade receivables

As atFebruary 28,
2022
Baht ’000

88,798,527
5,138,452
93,936,979(10,125,258)
83,811,721

86,925,982
4,101,873
91,027,855(10,951,455)
80,076,400

SEPARATE FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

84,230,528
4,630,010
88,860,538(9,530,542)
79,329,996

Less than 3 months
3 months up
Total
Less Allowance for expected credit loss
Total trade receivables

82,214,531
3,253,159
85,467,690(9,972,970)
75,494,720

5.3 Troubled debt restructuring
For the years ended February 28, 2023 and 2022, the Company had recognized interest
income on restructured debts totaling Baht 68.59 million and Baht 120.74 million,
respectively.
The Group and the Company had outstanding balances of credit card receivable,
hire-purchase receivable and loans receivable as at February 28, 2023 and 2022,
as follows:
CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Number ofAmountdebtors
Baht ’000
Restructured trade receivables
Non-restructured trade receivables
Total

As at February 28, 2022
Number ofAmountdebtors
Baht ’000

14,696
3,631,664

557,681
93,306,041

21,1603,697,818

801,805
90,108,709

3,646,360

93,863,722

3,718,97890,910,514

SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Number ofAmountdebtors
Baht ’000
Restructured trade receivables
Non-restructured trade receivables
Total

As at February 28, 2022
Number ofAmountdebtors
Baht ’000

14,6292,549,101

556,753
88,235,162

21,142
2,622,002

801,30984,564,692

2,563,730

88,791,915

2,643,144

85,366,001

As at February 28, 2023 and 2022, the Company had no commitment to provide
additional loans to its restructured debtors after debt restructuring.

- 28 -

5.4 Allowance for expected credit loss
Allowance for expected credit loss as at February 28, 2023 and 2022, are as follows:

Low credit risk
receivables(Stage 1)
Balance as at March 1, 2022
Changes in staging*
Changes in risk parameters
New financial assets originated or purchased
Financial assets derecognized
Written-off bad debts
Foreign exchange rate differences
Balance as at February 28, 2023

Balance as at February 28, 2022

Total

Baht ’000
5,563,984
2,175,679(3,496,897)
340,102(159,470)(25,682)

Baht ’000
1,917,326(6,674,830)
6,555,176
8,452(149,973)
1,929

Baht ’000
3,470,145
4,499,151
4,464,121
401,377(201,418)(8,582,931)
19,017

Baht ’000
10,951,455
7,522,400
749,931(510,861)(8,582,931)(4,736)

4,397,716

1,658,080

4,069,462

10,125,258

Low credit risk
receivables(Stage 1)
Balance as at March 1, 2021
Changes in staging*
Changes in risk parameters
New financial assets originated or purchased
Financial assets derecognized
Written-off bad debts
Foreign exchange rate differences

CONSOLIDATED FINANCIAL STATEMENTS
Allowance for expected credit loss
Significant increase in
Default receivables incredit risk receivables
credit risk
(Stage 2)(Stage 3)

CONSOLIDATED FINANCIAL STATEMENTS
Allowance for expected credit loss
Significant increase in
Default receivables incredit risk receivables
credit risk
(Stage 2)(Stage 3)

Total

Baht ’000
5,969,416
1,864,836(2,415,347)
395,135(255,682)
5,626

Baht ’000
1,578,830(4,848,856)
5,150,009
35,497(4,575)
6,421

Baht ’000
4,044,973
2,984,020
3,312,959
517,737
257,097(7,648,916)
2,275

Baht ’000
11,593,219
6,047,621
948,369(3,160)(7,648,916)
14,3225,563,984

1,917,326

3,470,145

10,951,455* The Group and the Company have adhered to the Accounting Treatment Guidance on “Guidelines for supporting debtors affected by COVID-19” in staging (see Note 2.6).

- 29 -SEPARATE FINANCIAL STATEMENTS
Allowance for expected credit loss
Low credit risk
receivables(Stage 1)

Significant increase incredit risk receivables(Stage 2)

Default receivables incredit risk
(Stage 3)

Baht ’000

Baht ’000

Baht ’000

Total

Baht ’000

Balance as at March 1, 2022
Changes in staging*
Changes in risk parameters
New financial assets originated or purchased
Financial assets derecognized
Written-off bad debts

5,440,033
2,167,632(3,496,896)
346,273(165,167)-

1,768,513(6,628,316)
6,555,176(104,671)-

2,764,424
4,460,684
4,464,121
275,297(143,601)(8,172,960)

9,972,970
7,522,401
621,570(413,439)(8,172,960)

Balance as at February 28, 2023

4,291,875

1,590,702

3,647,965

9,530,542

SEPARATE FINANCIAL STATEMENTS
Allowance for expected credit loss
Low credit risk
receivables(Stage 1)

Significant increase incredit risk receivables(Stage 2)

Default receivables incredit risk
(Stage 3)

Baht ’000

Baht ’000

Baht ’000

Total

Baht ’000

Balance as at March 1, 2021
Changes in staging*
Changes in risk parameters
New financial assets originated or purchased
Financial assets derecognized
Written-off bad debts

5,813,007
1,870,437(2,354,321)
359,716(248,806)-

1,489,812(4,791,585)
5,126,038(55,752)-

3,588,984
2,921,148
3,118,297
326,194
56,848(7,247,047)

10,891,803
5,890,014
685,910(247,710)(7,247,047)

Balance as at February 28, 2022

5,440,033

1,768,513

2,764,424

9,972,970* The Group and the Company have adhered to the Accounting Treatment Guidance on “Guidelines for supporting debtors affected by COVID-19” in staging (see Note 2.6).

- 30 -

5.5 Transfers of financial assets
The Company entered into the Receivables Sale and Purchase Agreement with Special
Purposes Vehicle Company, which was incorporated under the Civil and Commercial
Code of Thailand to be special purpose vehicle (SPV) under the Royal Enactment on
Special Purpose Juristic Persons for Securitization B.E. 2540 (1997). Under
the securitization plan which was approved by the Securities and Exchange
Commission (the “SEC”), the Company sold an amount of revolving receivables andthe SPV also appointed the Company to act as the servicer responsible for collecting
payments from its obligor under the Receivables Sale and Purchase Agreement andServicing Agreement.
Details of aforementioned sales of receivables are summarized as follows:
ATS Rabbit*
Approved date of the securitization project by the SEC

October 2, 2015

Initial selling date

October 29, 2015

Type of transferred receivables

Loans receivable

Revolving period

October 2015 - October 2025
(approximately)

Initial sale of receivables
Net book value of initial receivables

Baht

456,076,200

Proceeds from transfer of the rights in receivables

Baht

433,272,390

Subordinated lendings

Baht

50,081,313

Minimum seller loans - pari passu with debentures

Baht

None

Number of contracts
Average principal amount outstanding
Interest rate
* ATS Rabbit Special Purpose Vehicle Company Limited (Subsidiary)

49,225Baht

9,265
25% p.a.

The Company does not recognize other assets obtained in the transfer of financial assets
including retained interests on the financial statements because it is not practical to estimate
their reliable fair values.
On October 22, 2015, the Company entered into the Receivables Sale and Purchase
Agreement with ATS Rabbit Special Purpose Vehicle Company Limited which was
registered as a special purpose vehicle company under the Civil and Commercial Code ofThailand for the purpose of implementing or facilitating the securitization in accordancewith the securitization projects approved by the Office of the SEC on October 2, 2015 fortransferred rights, title, interest and benefits in respect of the Initial Receivables, the Future
Receivables and the Additional Receivables on the term of the Agreement.
During the life of the securitization projects, the Company may repurchase the rights on
the Purchased Receivables with ATS Rabbit in the following circumstances:
1. When the Company has breached its representations and warrantees with respect to
the Purchased Receivables which are ineligible. The Company is obliged to repurchasesuch ineligible receivables on the next Monthly Purchase Date.

- 31 -

2. The Company, as the collection agent, may exercise the Clean up Call Option for
repurchase of remaining Purchased Receivables whenever the continued servicing of
the Purchase Receivables is deemed to be burdensome.
3. The Company may exercise the Tax Redemption Option for repurchase of remaining
Purchased Receivables, where there is incurred taxes other than corporate income tax
and special business tax.
The key financial information of Special Purpose Vehicle Company is as follows:
ATS Rabbit*
As at
As at
February 28, February 28,
2023
2022
Baht ’000
Baht ’000
Statements of financial position
Total assets
Total liabilities
Total shareholders’ equity

2,020,410
2,020,366
44

2,011,344
2,011,300
44

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000
Statements of profit or loss
Total revenues
Bad debts and doubtful accounts
Other operating expenses
Interest expenses
Income tax expense
Net profit

348,025
152,567
92,634
95,9591,373
5,492

368,573
144,060
98,94982,0408,729
34,795* ATS Rabbit Special Purpose Vehicle Company Limited (ATS Rabbit) is the Company’s subsidiary (see Note 2.4 and Note 10).

For the years ended February 28, 2023 and 2022, transactions relating to the transfers offinancial assets under the securitization projects are summarized as follows:
For the years ended
February 28, February 28,
2023
2022
MillionMillion
Baht
Baht
Transfers of future receivables and additional receivables (at book value)- Loans receivable (ATS Rabbit)
Cash collection on behalf of Special Purpose Vehicles- Loans receivable (ATS Rabbit)
Servicing income on cash collection from Special Purpose Vehicles- Loans receivable (ATS Rabbit)

576
576

548
548

923
923

857
857

73
73

78
78

- 32 6.

OTHER RECEIVABLES

Other receivables as at February 28, 2023 and 2022 consist of the following:
CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2023
As at February 28, 2022
Due within
More thanTotal
Due within
More thanTotal
the year
1 yearthe year
1 yearBaht ’000
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Other receivables - related companies(see Note 38.2.1)
Other receivables - other companies
Prepaid expenses
Advance payment
Accrued income
Refundable corporate income tax

4,367
262,544
167,446
49,074
19,22815,74574,041-

4,367
336,585
167,446
49,074
19,22815,745

6,022
174,869
252,290
47,923
21,251
15,745-

6,022
174,869
252,290
47,923
21,251
15,745

Total

518,404

74,041

592,445

518,100-

518,100

SEPERATE FINANCIAL STATEMENTS
As at February 28, 2023
As at February 28, 2022
Due within
More thanTotal
Due within
More thanTotal
the year
1 yearthe year
1 yearBaht ’000
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Baht ’000

7.

Other receivables - related companies(see Note 38.2.1)
Other receivables - other companies
Prepaid expenses
Advance payment
Accrued income
Refundable corporate income tax

72,766
204,022
137,240680-

74,041-

72,766
278,063
137,240
680-

59,236
145,767
207,357
413--

59,236
145,767
207,357
413
-

Total

414,708

74,041

488,749

412,773-

412,773

FIXED DEPOSITS AT BANKS UNDER OBLIGATIONS

As at February 28, 2023 and 2022, 3 subsidiaries have fixed deposits at banks underobligations as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000
Due within 1 year
Reserve in accordance with insurance regulations
Due after 1 year
Pledge as collateral for bank’s letters of guarantee issued
for debt collection service
Legal reserve of the foreign subsidiaries
Total fixed deposits at banks under obligations

As at
February 28,
2022
Baht ’000

-

3,000

3,875
140,341

3,925
37,408144,216

41,333

- 33 -

8.

LONG-TERM LOAN TO A SUBSIDIARY

As at February 28, 2023 and 2022, the Company has long-term loan to a subsidiary(see Note 38.2.1) in the separate financial statements as follows:

Due within
the yearInterest rate
p.a. (%)

Foreign currency
MillionLoans in USD currency
2022 - 2026
8.50
Less Long-term loan to a subsidiary due within 1 year
Total long-term loan to a subsidiary

3.20

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at February 28,
As at February 28,
2023
2022
Baht equivalent
Baht equivalent
Baht ’000
Baht ’000
111,960(27,990)
83,970130,244130,244

Such long-term loan to a subsidiary is unsecured.
9.

LOANS FROM PURCHASE OF ACCOUNTS RECEIVABLE

As at February 28, 2023, loans from purchase of accounts are as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

As at February 28, 2023
Baht ’000
Hire-purchase receivables
Add Accrued Interest
Less Loans receivable due within 1 year frompurchase of accounts receivable
Loans receivable from purchase ofaccounts receivable - net of current portion

11,293
1,330
12,623(490)
12,133On May 24, 2022, ACS Servicing (Thailand) Co., Ltd. (“the Subsidiary”) bought written-off
receivables under hire-purchase agreements by a bidding process from an unrelated local
company (“the seller”) with the selling price of Baht 11.41 million. On the same date, theSubsidiary entered into the Asset Sale and Purchase Agreement with the seller and already paid
the payment in full to the seller. The agreement set out the conditions and terms in respect of thesales, assignment and conveyance of the subsidiary’s rights, title, claim, obligation, liability andinterest in the written-off receivables under hire-purchase agreements.

- 34 -

10.

INVESTMENTS IN SUBSIDIARIESAs at February 28, 2023 and 2022, the Company had investments in subsidiaries (see Note 38.1)
which are accounted for using the cost method in the separate financial statements asfollows:
SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Ownership
Cost%
Baht ’000
ACS Servicing (Thailand) Co., Ltd.
ACSI (Thailand) Co., Ltd.
AEON Specialized Bank (Cambodia) Plc.
AEON Microfinance (Myanmar) Company Limited
AEON Leasing Service (Lao) Company Limited
ATS Rabbit Special Purpose Vehicle Company Limited
AEON Asset Management (Thailand) Company Limited
Total

100.00100.0050.00
100.00
96.29
48.75
98.00

175,349.1
149,224.3
323,580.0
455,403.3
107,333.1
19.5
24,499.7
1,235,409.0

As at February 28, 2022
Ownership
Cost%
Baht ’000
100.00100.0050.00
100.00
96.29
48.75
-

175,349.1
149,224.3
323,580.0
455,403.3
107,333.1
19.5
1,210,909.3

On April 11, 2022, the Board of Directors’ Meeting of ACSI (Thailand) Co., Ltd.
(the “Subsidiary”) had a special resolution to approve the Subsidiary’s dissolution.
Subsequently, on April 28, 2022, the Annual General Meeting of Shareholders of the Subsidiary
had the resolutions to approve the Subsidiary’s dissolution. The Subsidiary has registered thedissolution with the Department of Business Development, Ministry of Commerce onJune 30, 2022. As at February 28, 2023, the Subsidiary is in process of liquidation.
On August 2, 2022, the Company has established a new subsidiary under the name “AEON AssetManagement (Thailand) Company Limited” (the “Subsidiary”), whereas the Company holds
98% of the shares. The initial registered capital is Baht 25 million, which were fully paid. The
objective of the Subsidiary is to purchase and manage non-performing assets.
11.

INVESTMENTS IN EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT
OR LOSS

Investments in equity securities designated at fair value through profit or loss as at
February 28, 2023 and 2022 consist of the following:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Ownership
Fair Value%
Baht ’000
AEON (Thailand) Co., Ltd.(1)PT. AEON Credit Service Indonesia (2)ACS Trading Vietnam Company Limited
Total

3.82
2.59
1.59

5,062
5,062

As at February 28, 2022
Ownership Fair Value%
Baht ’000
3.82
2.59
3.03

5,062
5,062

(1) 340,000 shares of Baht 100 each, Baht 25 called up(2) 173 shares of IDR 30 million each, par value of IDR 30 million, fully paid

The fair values of investments in equity securities designated at fair value through profit or loss
are categorized into level 3.
On December 27, 2022, the Board of Directors’ Meeting of ACS Trading Vietnam Co.,
Ltd. (“ACS Trading Vietnam”) had a resolution to approve the increase of authorized sharecapital from VND 330,000 million to VND 630,000 million. ACS Trading Vietnam
registered its increased share capital on March 3, 2023. However, the Company waived therights to purchase the increased share capital. As a result, the Company’s proportion ofshareholding in ACS Trading Vietnam decreased from 3.03% to 1.59%.

- 35 -

12.

INVESTMENT IN EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH OTHERCOMPREHENSIVE INCOME

Investment in equity securities designated at fair value through other comprehensive
income as at February 28, 2023 and 2022 consist of the following:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Ownership
Fair Value%
Baht ’000
Rabbit Cash Co., Ltd. (1)
Total

18.00

As at February 28, 2022
Ownership
Fair Value%
Baht ’000

144,000
144,000

18.00

144,000
144,000(1) 1,440,000 shares of Baht 100 each, fully paid

On March 29, 2021, the Company has entered into a Joint Venture Agreement with BSS
Holdings Company Limited (“BSS Holdings”) and Humanica Public Company Limited(“HUMAN”) to incorporate a Joint Venture Company under the name of “Rabbit CashCompany Limited”, whereas BSS Holdings, the Company and HUMAN holds 77%, 18% and5%, respectively, of the shares. The initial registered capital is Baht 800 million.
The fair values of investment in equity securities designated at fair value through othercomprehensive income are categorized into level 3.
13.

SELLER LOAN IN SPECIAL PURPOSE VEHICLE FOR SECURITIZATION

Seller loan in Special Purpose Vehicle for securitization as at February 28, 2023 and 2022,
are as follows:
SEPARATE
FINANCIAL STATEMENTS

Seller loan in Special Purpose Vehicle for securitization (see Note 38.2.1)
ATS Rabbit Special Purpose Vehicle Company Limited (ATS Rabbit)
Total Seller loan in Special Purpose Vehicle for securitization

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

287,621287,621275,773
275,773

Subsequent to the sale of the rights in initial loans receivable under securitization project, theCompany received partial payments from ATS Rabbit with Seller Loan Account under
securitization project for sales of the rights in loans receivable to ATS Rabbit during the sales
period of the rights in additional receivables or repurchase period of the rights in loans receivable.
Such Seller Loan Account will decrease from cash repayment when the outstanding amountreaches or exceeds determined level or the duration after the closing date reaches or exceed thedetermined level, or every 3-month period after the payment date as agreed in the agreement,
whichever is earlier.

- 36 -

14.

SUBORDINATED LENDINGS AND SUBORDINATED BORROWINGS

14.1 Subordinated lendings to Special Purpose Vehicle as at February 28, 2023 and 2022,
are as follows:
SEPARATE
FINANCIAL STATEMENTS

Subordinated lendings (see Note 38.2.1)
ATS Rabbit Special Purpose Vehicle Company Limited(ATS Rabbit)
Total subordinated lendings

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

84,074
84,074

84,074
84,074On October 22, 2015, the Company entered into the subordinated term loan
agreement with ATS Rabbit amounting to 5% of transferred rights in initialreceivables (see Note 5.5) and originated transaction cost, and of Future Receivables
and Additional Receivables, which are settled by Seller Loan Account and backed
for each issuance of debentures of ATS Rabbit, for the purposes of partial payment
for the sales of rights in loans receivables.
The term loan is due within the year 2025 and the interest is payable on a monthly basis
at the rate of 12% per annum.
14.2 Subordinated borrowings of Special Purpose Vehicle as at February 28, 2023 and2022, are as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

Subordinated borrowings
ATS Rabbit Special Purpose Vehicle Company Limited(ATS Rabbit)
Total subordinated borrowings

As atFebruary 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

84,074
84,074

84,074
84,074On October 22, 2015, ATS Rabbit, a subsidiary, entered into the subordinated term
borrowings agreement with BSS Holdings Co., Ltd. amounting to 5% of transferred rights
in initial receivables (see Note 5.5) and originated transaction cost and of Future
Receivables and Additional Receivables which are settled by Seller Loan Account andbacked for each issuance of debentures of ATS Rabbit, for the purposes of partial payment
for the purchase of rights in loans receivable.
The term borrowings are due within the year 2025 and the interest is payable on a monthly
basis at the rate of 12% per annum.

- 37 -

15.

LEASEHOLD IMPROVEMENT AND EQUIPMENT

Leasehold improvement and equipment as at February 28, 2023 and 2022 consist of the following:

Cost
Less Accumulated depreciation
Total leasehold improvement and equipment

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

3,851,583(3,328,438)
523,1453,969,403(3,346,469)
622,934

3,146,352(2,699,135)
447,2173,253,824(2,724,979)
528,845

The movements of leasehold improvement and equipment during the years are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2022

Additions

Disposals/Write-off

Transferin (out)

Exchangedifferenceson translating
financialstatements

Endingbalance
as atFebruary 28,
2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

1,109,546
2,845,680
14,177
3,969,403

14,81559,99565
111,087
185,962(113,318)(102,007)(215,325)

59,948(55,880)(85,469)(81,401)(1,131)(5,832)(14)(79)(7,056)

1,069,860
2,741,956
51
39,716
3,851,583(962,868)(2,383,601)(3,346,469)(71,491)(204,621)(4)(276,116)

110,725
100,972
211,697(4,971)
83,48378,512

(236)
4,173
1
3,938

(928,841)(2,399,594)(3)(3,328,438)

Cost
Leasehold improvement
Furniture and office equipment
VehicleAssets under installation
Total
Accumulated depreciation
Leasehold improvement
Furniture and office equipment
VehicleTotal
Total leasehold improvement andequipment

622,934

523,145CONSOLIDATED FINANCIAL STATEMENTS

Beginningbalance
as atAdditions

Disposals/Write-off

Transferin (out)

March 1,
2021
Baht ’000

Baht ’000

Baht ’000

Baht ’000

1,209,098
2,718,689
68,183
3,995,970

39,914
127,885
39,362
207,161(157,007)(83,571)(161)(240,739)

14,781
78,426(93,207)-(977,254)(2,225,261)(3,202,515)(118,659)(229,057)(347,716)

134,996
74,249209,245-

Exchangedifferencesontranslating
financialstatements

Endingbalance
as atFebruary 28,
2022

Baht ’000

Baht ’000

2,760
4,251
7,011

1,109,546
2,845,680
14,177
3,969,403(1,951)(3,532)(5,483)(962,868)(2,383,601)(3,346,469)

Cost
Leasehold improvement
Furniture and office equipment
Assets under installation
Total
Accumulated depreciation
Leasehold improvement
Furniture and office equipment
Total
Total leasehold improvement andequipment

793,455-

622,934

- 38 -SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2022
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Baht ’000

Baht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

Cost
Leasehold improvement
Furniture and office equipment
Assets under installation
Total
Accumulated depreciation
Leasehold improvement
Furniture and office equipment
Total
Total leasehold improvement andequipment

913,875
2,325,772
14,1773,253,824

1,505
36,411
109,788
147,704(90,345)(87,258)(177,603)

59,686(52,042)(85,217)(77,573)884,721
2,222,883
38,7483,146,352(795,374)(1,929,605)(2,724,979)(58,861)(167,972)(226,833)

88,59886,506
175,104(4,959)82,532
77,573(770,596)(1,928,539)(2,699,135)

528,845447,217

SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2021
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Baht ’000

Baht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

Cost
Leasehold improvement
Furniture and office equipment
Assets under installation
Total
Accumulated depreciation
Leasehold improvement
Furniture and office equipment
Total
Total leasehold improvement andequipment

989,237
2,170,300
68,182
3,227,719

30,925
103,892
39,279174,096(120,984)(26,846)(161)(147,991)

14,69778,426(93,123)-

913,875
2,325,772
14,1773,253,824(812,476)(1,771,460)(2,583,936)(94,110)(183,526)(277,636)

111,21225,381
136,593-(795,374)(1,929,605)(2,724,979)

643,783

528,845CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
For the years ended
February 28, February 28, February 28, February 28,
2023
2022
2023
2022
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Depreciation

276,116

347,716

226,833

277,636

As at February 28, 2023 and 2022, costs of fully depreciated leasehold improvement andequipment still in use are as follows:

Consolidated financial statements
Separate financial statements

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

2,365,274
2,159,858

2,331,598
2,125,054

- 39 -

16.

RIGHT-OF-USE ASSETS

Right-of-use assets as at February 28, 2023 and 2022 consist of the following:

Cost
Less Accumulated depreciation
Total right-of-use assets

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

1,511,379(618,820)
892,559

1,370,284(759,215)
611,069

1,233,224(456,539)
776,685

1,123,434(585,078)
538,356

The movements of right-of-use assets during the years are as follows:
Beginningbalance
as atMarch 1,
2022
Baht ’000

CONSOLIDATED FINANCIAL STATEMENTS
Additions
DisposalExchangedifference ontranslating
financialstatements
Baht ’000
Baht ’000
Baht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

Cost
Buildings
Office equipment
VehiclesTotal

1,175,105
116,42278,7571,370,284

761,663
70,394
5,702
837,759(642,671)(44,423)(13,973)(701,067)

4,403
4,403

1,298,500
142,393
70,486
1,511,379

Accumulated depreciation
Buildings
Office equipment
Vehicles
Total
Total right-of-use assets(671,120)(57,236)(30,859)(759,215)
611,069(450,268)(57,754)(25,959)(533,981)

620,61142,595
13,973
677,179(2,803)(2,803)(503,580)(72,395)(42,845)(618,820)
892,559

Beginningbalance
as atMarch 1,
2021
Baht ’000
Cost
Buildings
Office equipment
Vehicles
Total
Accumulated depreciation
Buildings
Office equipment
Vehicles
Total
Total right-of-use assets

CONSOLIDATED FINANCIAL STATEMENTS
Additions
DisposalExchangedifference ontranslating
financialstatements
Baht ’000
Baht ’000
Baht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

1,322,808
166,657
61,735
1,551,200

439,698
49,19949,994
538,891(602,879)(99,434)(32,972)(735,285)

15,47815,4781,175,105
116,42278,7571,370,284(749,818)(102,027)(33,607)(885,452)
665,748(467,526)(53,391)(28,448)(549,365)

554,573
98,182
31,196
683,951(8,349)(8,349)(671,120)(57,236)(30,859)(759,215)
611,069

- 40 -

Beginningbalance
as atMarch 1,
2022
Baht ’000

SEPARATE FINANCIAL STATEMENTS
Additions
Disposal

Baht ’000

Baht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

Cost
Buildings
Office equipment
Vehicles

940,455
107,628
75,351

657,579
68,786
5,702(567,787)(41,911)(12,579)

1,030,247
134,503
68,474

Total

1,123,434

732,067(622,277)

1,233,224(502,495)(54,064)(28,519)(390,453)(54,455)(25,264)545,728
40,404
12,579(347,220)(68,115)(41,204)(585,078)(470,172)598,711(456,539)

Accumulated depreciation
Buildings
Office equipment
Vehicles
Total
Total right-of-use assets

776,685

538,356

Beginningbalance
as atMarch 1,
2021
Baht ’000

SEPARATE FINANCIAL STATEMENTS
Additions
Disposal

Baht ’000

Baht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

Cost
Buildings
Office equipment
Vehicles

1,055,161
156,506
53,081

422,174
42,911
49,952(536,880)(91,789)(27,682)

940,455
107,628
75,351

Total

1,264,748

515,037(656,351)

1,123,434(603,712)(95,544)(29,310)(403,859)(49,679)(26,432)

505,076
91,15927,223(502,495)(54,064)(28,519)(728,566)(479,970)

623,458(585,078)

Accumulated depreciation
Buildings
Office equipment
Vehicles
Total
Total right-of-use assets

536,182

538,356

For consolidated and separate financial statements, the Group and the Company enteredinto several lease agreements, including buildings, office equipment and vehicles, forperiods from less than one year to five years.

- 41 -The maturity analysis of lease liabilities is presented in Note 22.

Amounts recognized in profit or loss
Depreciation on right-of-use assets
Interest expense on lease liabilities
Gain on discount received from lease agreements
Gain on cancellation of lease agreements

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

For the year ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

For the year ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

533,981

548,395

470,172

478,070

35,576

20,48429,94014,861-(11,833)-(11,833)(334)(1,399)

(330)

(724)

For the year ended February 28, 2023, the total cash outflow for leases amount toBaht 558.10 million and Baht 488.33 million in consolidated and separate financial
statements, respectively.
For the year ended February 28, 2022, the total cash outflow for leases amount toBaht 564.34 million and Baht 488.72 million in consolidated and separate financial
statements, respectively.
17.

INTANGIBLE ASSETS OTHER THAN GOODWILL

Intangible assets other than goodwill as at February 28, 2023 and 2022 consist of thefollowing:

Cost
Less Accumulated amortization
Less Allowance for impairment
Total intangible assets other than goodwill

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

5,171,889(4,152,986)(95,497)

4,759,712(3,839,326)-

4,612,451(3,733,702)(95,497)

4,236,912(3,459,055)-

923,406

920,386

783,252

777,857

- 42 -The movements of intangible assets other than goodwill during the years are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Cost
Computer software
Computer software under
installation
Total
Accumulated amortization
Computer software
Allowance for impairment
Computer software under
installation
Total intangible assets otherthan goodwill

Beginningbalance
as atMarch 1,
2022
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Exchangedifferenceson translating
financialstatements
Baht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

Baht ’000

Baht ’000

4,509,982

118,431(3,738)

188,685(8,315)4,805,045

249,730
4,759,712

224,457
342,888(3,738)(107,284)
81,401(59)(8,374)

366,844
5,171,889(3,839,326)(241,503)

2,570(78,512)

3,785(4,152,986)-(95,497)---(95,497)920,386

923,406

CONSOLIDATED FINANCIAL STATEMENTS

Cost
Computer software
Computer software under
installation
Total
Accumulated amortization
Computer software
Total intangible assets otherthan goodwill

Beginningbalance
as atMarch 1,
2021
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Exchangedifferenceson translating
financialstatements
Baht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

Baht ’000

Baht ’000

4,276,039

164,358(38,630)

96,548

11,667

4,509,982

86,506

259,772-(96,548)-249,730

4,362,545

424,130(38,630)-

11,667

4,759,712(3,665,989)(202,899)

37,371-(7,809)(3,839,326)

696,556

920,386
SEPARATE FINANCIAL STATEMENTS

Cost
Computer software
Computer software under installation
Total
Accumulated amortization
Computer software

Beginningbalance
as atMarch 1,
2022
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Baht ’000

Baht ’000

3,988,202
248,710

79,505
218,461-

178,455(100,882)

4,246,162
366,289

4,236,912

297,966-

77,5734,612,451(3,459,055)(197,074)-(77,573)(3,733,702)(95,497)--

Allowance for impairment
Computer software under installation-

Total intangible assets other than goodwill

777,857

Endingbalance
as atFebruary 28,
2023
Baht ’000(95,497)783,252

- 43 -SEPARATE FINANCIAL STATEMENTS

Cost
Computer software
Computer software under installation
Total
Accumulated amortization
Computer software
Total intangible assets other than goodwill

Amortization

Beginningbalance
as atMarch 1,
2021
Baht ’000

Additions

Disposals/Write-off

Transferin (out)

Baht ’000

Baht ’000

Baht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

3,741,837
86,927

151,833
256,315-

94,532(94,532)

3,988,202
248,710

3,828,764

408,148--

4,236,912(3,298,384)(160,671)--(3,459,055)

530,380

777,857

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

241,503

202,899

197,074

160,671

As at February 28, 2023 and 2022, costs of fully amortized computer software still in use
are as follows:
As at
As at
February 28, February 28,
2023
2022
Baht ’000
Baht ’000
Consolidated financial statements
Separate financial statements

3,436,444
3,224,395

3,246,967
3,038,464

- 44 -

18.

DEFERRED TAX ASSETS

Deferred tax assets as at February 28, 2023 and 2022 consist of the following:

Deferred tax assets
Allowance for expected credit loss
Cumulative loss from fair value measurement
investments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax liabilities
Lease agreements
OthersDeferred tax assets

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

1,956,008

2,076,888

1,906,108

1,994,594

4,502
21,30088,052
72,67818,016
147,856
42,075

4,502
8,579
90,24897,89815,255
304,803
26,6197,866
19,09981,866
72,67816,482
147,856
16,8937,866
6,800
83,82697,89813,880304,803
15,3062,350,487

2,624,792

2,268,848

2,524,973

-

-

518
9,047

310
-

9,565

310

2,340,922

2,624,482--

2,268,848

2,524,973

The movements of deferred tax assets and liabilities during the years are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2022
Baht ’000
Deferred tax assets
Allowance for expected credit loss
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax liabilities
Lease agreements
OthersDeferred tax assets

Items asrecognized in
profit or loss

Baht ’000

Items asrecognizedin othercomprehensive
incomeBaht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000
1,956,008

2,076,888(120,880)

-

4,502
8,579
90,24897,89815,255
304,80323,19912,721
12,357(25,220)
2,761(72,500)
18,876(14,553)(84,447)-

4,502
21,30088,052
72,67818,016
147,856
42,0752,621,372(171,885)(99,000)

2,350,487

310(3,420)208
12,467

-

518
9,047

(3,110)12,675-9,565

2,624,482(184,560)(99,000)

2,340,922

- 45 -CONSOLIDATED FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2021
Baht ’000
Deferred tax assets
Allowance for expected credit loss
Non-accrual of interest income
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
Others

Baht ’000

Items asrecognizedin othercomprehensive
incomeBaht ’000

Endingbalance
as atFebruary 28,
2022
Baht ’000

2,256,201
1,815(179,313)(1,815)-

4,502
12,40095,66981,89911,998629,102
29,109(3,821)
12,443
15,9993,257(413,734)(2,490)(17,864)
89,435
-

4,502
8,579
90,24897,89815,255
304,803
26,6193,122,695(569,474)

71,571

2,624,792

154

156

-

154

156

-

3,122,541(569,630)

Deferred tax liabilities
Lease agreements
Deferred tax assets

Items asrecognized in
profit or loss

2,076,888
-

310
310
71,571

2,624,482

SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2022
Baht ’000
Deferred tax assets
Allowance for expected credit loss
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax assets

Items asrecognized in
profit or loss

Baht ’000

Items asrecognizedin othercomprehensive
incomeBaht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

1,994,594(88,486)-

1,906,108

7,866
6,800
83,82697,89813,880304,803
15,306

12,29911,354(25,220)
2,602(72,500)
1,587(13,314)(84,447)-

7,866
19,09981,866
72,67816,482
147,856
16,8932,524,973(158,364)(97,761)2,268,848

2,524,973(158,364)(97,761)2,268,848

- 46 -SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2021
Deferred tax assets
Allowance for expected credit loss
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax assets

19.

Items asrecognized in
profit or loss

Items asrecognizedin othercomprehensive
incomeEndingbalance
as atFebruary 28,
2022

2,178,361(183,767)-

1,994,594

4,502
15,76486,32081,89911,550629,102
15,7373,364(8,964)
14,26815,9992,330(413,734)
(431)

-

7,866
6,800
83,82697,89813,880304,803
15,306

3,023,235(570,935)

72,6732,524,973

3,023,235(570,935)

72,6732,524,973(16,762)
89,435-OTHER NON-CURRENT ASSETS

Other non-current assets as at February 28, 2023 and 2022 consist of the following:

Deposits
Total

20.

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at

As at

As at

As at

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

165,501

181,687

146,184

167,847

165,501

181,687

146,184

167,847BANK OVERDRAFTS AND SHORT-TERM BORROWINGS FROM FINANCIAL INSTITUTIONSBank overdrafts and short-term borrowings from financial institutions as at February 28,
2023 and 2022, consist of the following:
CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Interest rate
p.a. (%)
Baht ’000
Overdrafts in THB currency
Short-term borrowings in THB currency
Short-term borrowings in USD currency
Short-term borrowings in LAK currency
Short-term borrowings in MMK currency
Total

1.85
1.69 - 1.76
5.49 - 6.70
6.62
10.00 - 13.00

3,440,000
627,261
282,076
136,087
4,485,424

As at February 28, 2022
Interest rate
p.a. (%)
Baht ’000
0.75
0.69 - 1.05
0.88 - 6.50
6.13 - 6.60
10.00 - 13.00

1,240
7,940,000
652,016
302,751
275,897
9,171,904

- 47 -SEPARATE FINANCIAL STATEMENTS

Overdrafts in THB currency
Short-term borrowings in THB currency
Total

As at February 28, 2023
Interest rate
p.a. (%)
Baht ’000
1.85
1.69 - 1.76
3,440,000
3,440,000

As at February 28, 2022
Interest rate
p.a. (%)
Baht ’000
0.75
1,240
0.69 - 1.05
7,940,000
7,941,240

Short-term borrowings in THB and foreign currencies from financial institutions areborrowings from various financial institutions in the form of promissory notes and are
unsecured.
21.

OTHER PAYABLES

Other payables as at February 28, 2023 and 2022 are as follows:

Other payable - related companies (see Note 38.2.1)
Other payable - other companies
Deferred revenue from customer loyalty programs
Interest payable
Accrued expenses
Total

22.

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

As at
As at
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

160,714330,396363,388366,602311,229
1,532,329

158,247
284,424
489,490
194,197
423,958
1,550,316

65,253482,305
369,164
382,622330,115
1,629,459

63,118430,304
494,702
209,175
430,721
1,628,020

LEASE LIABILITIES

Lease liabilities as at February 28, 2023 and 2022 are as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

Less Deferred interest
Total

475,687
310,471
121,80764,534
1,419
973,918(56,250)
917,668

369,421268,8314,954
1,035
644,241(19,263)
624,978

416,696
264,685
109,252
59,553
850,186(47,982)
802,204

322,587
245,106
567,693(15,268)
552,425

Classification analysis:
Current
Non-current
Total

444,127
473,541
917,668

356,328
268,650
624,978

389,924
412,280802,204

312,304
240,121552,425

Maturity analysis:
Year 1
Year 2
Year 3
Year 4
Year 5

- 48 -

23.

LONG-TERM BORROWINGSAs at February 28, 2023 and 2022, the Company entered into various long-term borrowings
agreements in THB and foreign currencies as follows:

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 8.50
2.01 - 3.69

23,145.24
723.1020,500.00

Less Current portion of long-term borrowings
Total long-term borrowings

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost2022 - 2027
2022 - 2027
2022 - 2026

CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2022
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 8.50
1.54 - 3.29

25,645.24
656.3019,000.00

Less Current portion of long-term borrowings
Total long-term borrowings

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

SEPARATE FINANCIAL STATEMENTS
As at February 28, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 3.49
2.01 - 3.69

23,145.24
641.1020,500.00

Less Current portion of long-term borrowings
Total long-term borrowings

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost2022 - 2027
2022 - 2025
2022 - 2026

Less Current portion of long-term borrowings
Total long-term borrowings

SEPARATE FINANCIAL STATEMENTS
As at February 28, 2022
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 3.38
1.54 - 3.29

25,645.24
564.3019,000.00

Baht equivalent
Baht ’000
6,053,822
25,488,914
20,500,000(53,251)
51,989,485(12,836,551)
39,152,934

Baht equivalent
Baht ’000
7,363,132
21,651,334
19,000,000(27,804)
47,986,662(17,090,217)
30,896,445

Baht equivalent
Baht ’000
6,053,822
22,640,767
20,500,000(53,251)
49,141,338(11,273,543)
37,867,795

Baht equivalent
Baht ’000
7,363,132
18,560,787
19,000,000(27,804)
44,896,115(16,317,580)
28,578,535

As at February 28, 2023 and 2022, the Company can maintain financial ratios and otherrequirements according to the conditions as specified in the agreement.

- 49 -

24.

LONG-TERM BORROWINGS UNDER SECURITIZATION PROJECT

As at February 28, 2023 and 2022, the Company recognized the cash received and thesettlement by the Seller Loan Account of ATS Rabbit Special Purpose Vehicle Company
Limited for the transferred rights in loans receivable under securitization (see Note 5.5) as
long-term borrowings under securitization project in the separate financial statements in theamount of Baht 1,260.99 million and Baht 1,401.71 million, respectively.
25.

LONG-TERM DEBENTURES

Long-term debentures, representing unsubordinated and unsecured debentures, as at February
28, 2023 and 2022, are as follows:
Issue date

Maturity

No. ofCurrency Par value

date

units

per unit

AmountInterest rate

Term of

As at

As at

p.a. (%)

interest

February 28,

February 28,

payment

2023

2022

Baht ’000

Baht ’000

Company
15/12/2017

15/12/2022 1,000,000

THB

1,000

1,000,000,000

2.93

Semi-annual-

1,000,000

15/11/2019

15/11/2022 2,800,000

THB

1,000

2,800,000,000

2.27

Semi-annual-

2,800,000

15/11/2019

15/11/2024 1,000,000

THB

1,000

1,000,000,000

2.57

Semi-annual

1,000,000

1,000,000

29/12/2021

29/12/2026

70

JPY

100,000,000

7,000,000,000

0.65

Semi-annual

1,830,906

2,009,805

29/11/2022

28/11/2025

100

JPY

100,000,000 10,000,000,000

0.69

Semi-annual

2,615,580-

24/02/2023

24/02/2025 1,000,000

THB

1,000

1,000,000,000

2.99

Semi-annual

1,000,000-

24/02/2023

24/02/2026 1,700,000

THB

1,000

1,700,000,000

3.18

Semi-annual

1,700,000-

8,146,486
Less Debentures issuance costLess Current portion of long-term debentures(23,333)

8,107,060

6,786,472-

Total long-term debentures in separate financial statements

6,809,805(39,426)(3,798,878)

8,107,060

2,987,594

1,473,082

1,473,082

9,580,142

4,460,676

ATS Rabbit Special Purpose Vehicle Company Limited
29/09/2018

28/10/2025 1,473,082

THB

1,000

1,473,082,000

Total long-term debentures in consolidated financial statements

2.84

Monthly(1) On June 17, 2016, the Company’s Annual General Meeting of shareholders of 2016 had
the resolution for the issuance and offering of debentures. An issuing amount of
the debentures is not to exceed Baht 8,000 million. The currency, tenor, interest rate andother conditions will be considered and approved by the Board of Directors’ Meeting later
when the Company is ready for the issuance and offering of debentures.
On August 22, 2016, the Company issued and offered debentures amounting to
USD 15 million to a bank in Japan with interest rate of USD - LIBOR 6 months plus
0.85% per annum, payable on a semi-annual basis, and were due on August 20, 2021.
Such debentures are guaranteed by the same bank.
On August 24, 2016, the Company issued and offered debentures amounting to
Baht 400 million to a non-financial market mutual fund institution investors in
Thailand with interest rate of 2.50% per annum, payable on a quarterly basis, and were
due on July 30, 2019.

- 50 -On December 21, 2016, the Company issued and offered debentures amounting to
Baht 1,000 million to a financial institution and high net worth investors in Thailand withinterest rate of 2.73% per annum, payable on a quarterly basis, and were due on December
21, 2019.
On December 21, 2016, the Company issued and offered debentures amounting to
Baht 1,000 million to public investors in Thailand with interest rate of 3.48% per annum,
payable on a quarterly basis, and were due on December 21, 2021.
On December 30, 2016, the Company issued and offered debentures amounting to
USD 30 million to a bank in Japan with interest rate of USD - LIBOR 6 months plus 0.65%
per annum, payable on a semi-annual basis, and were due on December 30, 2021. Suchdebentures are guaranteed by the same bank.
On August 18, 2017, the Company issued and offered debentures amounting to
Baht 200 million to a mutual fund and a pension fund in Thailand with interest rate of
2.50% per annum, payable on a quarterly basis, and were due on August 18, 2020.
On September 14, 2017, the Company issued and offered debentures amounting to
Baht 300 million to a mutual fund and a pension fund in Thailand with interest rate of 2.50%
per annum, payable on a semi-annual basis, and were due on September 14, 2020.
On September 21, 2017, the Company issued and offered debentures amounting to
Baht 100 million to a mutual fund in Thailand with interest rate of 2.50% per annum, payable
on a semi-annual basis, and were due on September 21, 2020.
On December 15, 2017, the Company issued and offered debentures amounting to Baht
2,000 million to institutional and high net worth investors in Thailand with interest rate of
2.37% per annum, payable on a semi-annual basis, and were due on December 15, 2020.
On December 15, 2017, the Company issued and offered debentures amounting to Baht
1,000 million to institutional and high net worth investors in Thailand with interest rate of
2.93% per annum, payable on a semi-annual basis, and will be due on December 15, 2022.
(2) On June 22, 2018, the Company’s Annual General Meeting of shareholders of 2018 had
the resolution for the issuance and offering of debentures. An issuing amount of
the debentures is not to exceed Baht 10,000 million. The currency, tenor, interest rate andother conditions will be considered and approved by the Board of Directors’ Meeting later
when the Company is ready for the issuance and offering of debentures.
On November 15, 2018, the Company issued and offered debentures amounting to
Baht 2,000 million to institutional and high net worth investors in Thailand withinterest rate of 2.96% per annum, payable on a semi-annual basis, and were due on
November 15, 2020.
On November 15, 2018, the Company issued and offered debentures amounting to
Baht 800 million to institutional in Thailand with interest rate of 3.26% per annum,
payable on a semi-annual basis, and were due on November 15, 2021.

- 51 -On November 15, 2019, the Company issued and offered debentures amounting to
Baht 2,800 million to institutional in Thailand with interest rate of 2.27% per annum,
payable on a semi-annual basis, and were due on November 15, 2022.
On November 15, 2019, the Company issued and offered debentures amounting to
Baht 1,000 million to institutional in Thailand with interest rate of 2.57% per annum,
payable on a semi-annual basis, and will be due on November 15, 2024.
On December 29, 2021, the Company issued and offered debentures amounting to JPY
7,000 million to a bank in Japan with interest rate of 0.65% per annum, payable on asemi-annual basis, and will be due on December 29, 2026. Such debentures areguaranteed by same bank.
(3) On June 24, 2022, the Company’s Annual General Meeting of shareholders of 2022 had theresolution for the issuance and offering of debentures. An issuing amount of the debentures
is not to exceed Baht 10,000 million. The currency, tenor, interest rate and other conditions
will be considered and approved by the Board of Directors’ Meeting later when the
Company is ready for the issuance and offering of debentures.
On November 29, 2022, the Company issued and offered debentures amounting to JPY
10,000 million to a bank in Japan with interest rate of 0.69% per annum, payable on asemi-annual basis, and will be due on November 28, 2025. Such debentures areguaranteed by the same bank.
On February 24, 2023, the Company issued and offered debentures amounting to Baht
1,000 million to institutional and high net worth investors in Thailand with interest rateof 2.99% per annum, payable on a semi-annual basis, and will be due on February 24,
2025.
On February 24, 2023, the Company issued and offered debentures amounting to Baht
1,700 million to institutional and high net worth investors in Thailand with interest rateof 3.18% per annum, payable on a semi-annual basis, and will be due on February 24,
2026.
(4) A subsidiary has offered the debentures to no more than 10 specific investors during
any 4-month period which such offering was approved by the SEC on October 2, 2015.
During the years ended February 28, 2023 and 2022, the subsidiary issued and offered
the long-term refinanced debentures which are unsubordinated and unsecured of Baht
1,473.08 million for partial settlement of the transfer of rights in future receivables andadditional receivables in accordance with conditions in the agreements.
Such debentures are assets-backed debentures under the Securitization Law with fixedinterest rate at 4% per annum for the 3 years period after the first issuance date, andthereafter with a fixed interest rate equal to the corporate bond yield per annum asprescribed in the conditions.

- 52 -Cash flows from a pool of loans receivable will be used to make payments forthe debentures. Interest on the debentures will be payable monthly throughout theirlives commencing on December 18, 2015.
Such debentures will be initially redeemed in 2023 and matured on October 28, 2025with conditions to redeem before the maturity. As at February 28, 2023, the subsidiaryis in the process of considering the redemption plan of debentures. Therefore, theGroup has classified such debentures as non-current liabilities.
As at February 28, 2023 and 2022, the Company can maintain financial ratios and otherrequirements according to the conditions as specified in the agreement.
26.

DERIVATIVE FINANCIAL INSTRUMENTS

The fair values and notional amounts of derivative instruments as at February 28, 2023
and 2022 are as follows:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Fair value
Notional
AssetsLiabilites
amount
Baht ’000
Baht ’000
Baht ’000
Derivatives designated as
cash flow hedges
Cross currency swaps
Interest rate swaps
Less Current portion ofderivative assets /liabilities
Total derivative assets /liabilities

27.

As at February 28, 2022
Fair value
Notional
AssetsLiabilites
amount
Baht ’000
Baht ’000
Baht ’000

1,701,619
30,466
1,732,085

1,380,412
58,491
1,438,903

33,141,075
5,000,000
38,141,075

376,175
376,175

685,049
182,677
867,726

27,933,724
9,000,000
36,933,724(1,047,431)(562,743)(10,473,815)(82,380)(654,801)(10,819,198)

684,654876,160

27,667,260

293,795

212,925

26,114,526

PROVISIONS FOR EMPLOYEE BENEFITSThe Company operates post-employment benefit plans under the Labor Protection Act,
which are considered as unfunded defined benefits plans.
For the years ended February 28, 2023 and 2022, amounts recognized in the statements ofprofit or loss in respect of the post-employment benefit plans are as follows:

Past service cost (reversal)- For employees transferred within
the Group
Current service cost
Interest cost
Loss on settlement
Total

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000(13,343)
62,878
11,57915,401
76,515

4,810
78,392
7,849
20,781
111,832(5,113)55,491
10,801
9,158 70,337

4,810
71,737
7,216
14,476
98,239- 53 -For the years ended February 28, 2023 and 2022, amounts recognized in other comprehensive
income in respect of the post-employment benefit plans are as follows:(Gain) loss on remeasurements ofdefined benefit plans- From financial assumptions changes- From demographic assumptions changes- From experience adjustments
Total

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000(18,373)(27,410)(26,977)(72,760)(66,744)
7,287(30,130)(89,587)(14,426)(27,823)(24,321)(66,570)(62,355)
4,147(25,600)(83,808)

Movements in the present value of the provisions for post-employment benefits for the years
ended February 28, 2023 and 2022 are as follows:

Beginning balance
Past service cost (reversal)- For employees transferred within
the Group
Current service cost
Interest cost
Loss on settlement
Gain on remeasurements of defined
benefit plans
Benefits paid
Increase (decrease) of liabilities fromtransfer of employees within the Group
Ending balance

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28,
February 28,
2023
2022
Baht ’000
Baht ’000

463,335

478,346

419,132

431,606(13,343)
62,878
11,57915,401

4,810
78,392
7,849
20,781(5,113)55,491
10,801
9,158

4,810
71,737
7,216
14,476(72,760)(22,713)(89,587)(37,256)(66,570)(13,916)(83,808)(28,578)--(3,353)

1,673

444,377

463,335

405,630

419,132

The significant actuarial assumptions used to calculate the provisions for post-employment
benefits as at February 28, 2023 and 2022, are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Financial assumptions
Discount rate
Expected rate of salary increase
Demographic assumptions
Turnover rate
Monthly staff
Daily & Temporary staff

As at February 28, 2023
% per annum

As at February 28, 2022
% per annum

0.84 - 3.15
5.0

0.84 - 2.60
5.0

0.0 - 27.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

0.0 - 27.0
Subject to range of age of employees
0.0 - 51.0
Subject to range of age of employees

- 54 -SEPARATE FINANCIAL STATEMENTS

Financial assumptions
Discount rate
Expected rate of salary increase
Demographic assumptions
Turnover rate
Monthly staff
Daily staff

As at February 28, 2023
% per annum

As at February 28, 2022
% per annum

2.85
5.0

2.60
5.0

0.0 - 21.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

0.0 - 17.0
Subject to range of age of employees
0.0 - 51.0
Subject to range of age of employees

Sensitivity analysis on significant actuarial assumptions represents impact of change in thesignificant actuarial assumptions on present value of the provisions for post-employment
benefits without discounting to present value as at February 28, 2023 and 2022, as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000
Financial assumptions
Discount rate
- 1% increase- 1% decrease
Expected rate of salary increase- 1% increase- 1% decrease
Demographic assumptions
Turnover rate
- 1% increase- 1% decrease

As atFebruary 28,
2022
Baht ’000

SEPARATE
FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000(56,381)
67,338(61,892)
74,442(51,755)
61,796(56,479)
67,98860,611(51,729)

68,367(57,821)55,718(47,567)

62,586(52,903)(60,107)
29,504(65,605)
35,836(55,082)
25,981(59,784)
31,721

- 55 -

28.

EMPLOYEE JOINT INVESTMENT PROGRAM

On August 9, 2022, the Company’s Board of Directors’ meeting had the resolution toapprove the Employee Joint Investment Program (“EJIP”), which has started on September 1,
2022. The details of the program are as follows:
EJIP Period

Program period: 5 years (September 1, 2022 to August 31, 2027)
Program contribution period: 3 years (September 1, 2022 to August 31, 2025)

Eligible employees under EJIP

Permanent employees of the Company at Assistant Manager level or higher
and Executive Director level or higher with at least 3 years of service, on a
voluntary basis

EJIP Arrangement

Money paid by employees to participate in the project:
3 - 5 percent of salary
Money paid by executives to participate in the project:
3 - 9 percent of salaryContributions made by the Company to join the program: Equivalent amount
paid by employees or executives into the program, with 3% additional
contribution of the base salary for Talent Employee according to the terms andconditions set by the Company

EJIP Buying Schedule

Monthly

Conditions for holding the securities Sell of shares during year 1 - 3 is not allowed.
All accumulated shares in the first year of the Program are allowed to be soldafter the end of the third year of the Program
All accumulated shares in the second year of the Program are allowed to be
sold after the end of the fourth year of the Program
All accumulated shares in the third year of the Program are allowed to be soldafter the end of the fifth year of the Program
EJIP Manager

Phillip Securities (Thailand) Public Company Limited

Movement of the employee joint investment program for the year ended February 28, 2023
is as follows:
CONSOLIDATED AND SEPARATEFINANCIAL STATEMENTS
As at February 28, 2023
Baht ’000

Balance as at March 1, 2022
Change during the year
- Employee joint investment program expense- Cash paid for employee joint investment program
Balance as at February 28, 2023

14,426(5,161)9,265

For the year ended February 28, 2023, amounts recognized in the statement of profit or loss
in respect of the employee joint investment program are as follows:
CONSOLIDATED AND SEPARATEFINANCIAL STATEMENTS
For the years ended
February 28, 2023
Baht ’000

Operating and administrative expenses
Directors and managements’ remuneration

9,703
4,723
14,426

- 56 -

29.

SHAREHOLDERS’ EQUITY

29.1

On June 24, 2021, the Annual General Meeting of Shareholders had the resolutions toapprove the declaration of final dividends for the year ended February 28, 2021 at the rateof Baht 2.65 per share, totaling Baht 662.50 million. The aforementioned shareholders
included 4,410 shares of foreign shareholders who had no rights to receive dividend inaccordance with regulation of Thailand Securities Depositary, thus the Company paid
dividend to shareholders amounting to Baht 662.50 million on July 20, 2021 in addition to
the interim dividends which had been paid to all shareholders at Baht 1.85 per share,
totaling Baht 462.50 million on November 5, 2020.

29.2

On October 4, 2021, the Company’s Board of Directors’ meeting passed the resolution
to declare interim dividends for the year ended February 28, 2022 at the rate of Baht
2.50 per share to shareholders, totaling Baht 625.00 million. The aforementioned
shareholders included 1,700 shares of foreign shareholders who had no rights to receive
dividend in accordance with regulation of Thailand Securities Depositary, thus theCompany paid dividend to shareholders amounting to Baht 625.00 million on
November 2, 2021.

29.3

On June 24, 2022, the Annual General Meeting of Shareholders had the resolutions toapprove the declaration of final dividends for the year ended February 28, 2022 at therate of Baht 2.65 per share, totaling Baht 662.50 million. The aforementioned
shareholders included 1,300 shares of foreign shareholders who had no rights to receive
dividend in accordance with regulation of Thailand Securities Depositary, thus theCompany paid dividend to shareholders amounting to Baht 662.50 million on July 20,
2022 in addition to the interim dividends which had been paid to all shareholders at Baht
2.50 per share, totaling Baht 625.00 million on November 2, 2021.

29.4

On October 4, 2022, the Company’s Board of Directors’ meeting passed the resolution
to declare interim dividends for the year ended February 28, 2023 at the rate of Baht
2.55 per share to shareholders, totaling Baht 637.50 million. The aforementioned
shareholders included 1,400 shares of foreign shareholders who had no rights to receive
dividend in accordance with regulation of Thailand Securities Depository, thus theCompany paid dividend to shareholders amounting to Baht 637.50 million on
November 2, 2022.

29.5

Under the Securitization project, the subsidiary has to pay dividend to its
shareholders from all remaining amounts after deducting the required accumulated
reserves and payment of all fees and expenses. The subsidiary appropriates interim
dividends after the approval of Board of Directors’ meeting on a monthly basis ateach Monthly Purchase Date as an appropriation of net profit after income tax ofeach month.
ATS Rabbit Special Purpose Vehicle Company Limited’s registered share capitalcomprises 2 groups of ordinary shares and 2 groups of preferred shares. Dividends
from the profits of the subsidiary shall be allocated to the holders of preferred shares
which are non-controlling interests at the rate of 1% of the par value of eachpreferred share. The remaining dividends shall be distributed to the holders ofordinary shares and another group of preferred shares.

- 57 -

30.

LEGAL RESERVE

Pursuant to the Public Limited Companies Act. B.E. 2535 (1992), the Company must
allocate to a reserve fund from the annual net profit, not less than 5% of the annual net profit
deducted by the total accumulated loss brought forward (if any), until the reserve fundreaches an amount of not less than 10% of the registered capital.
As at February 28, 2023 and 2022, the Company’s legal reserve equals to 10% of theregistered share capital.
31.

CAPITAL MANAGEMENTThe Company’s objective in managing capital is to safeguard the Company’s ability tocontinue as a going concern in order to provide returns for shareholders and benefits forother stakeholders.
Monitoring the capital level of the Company is conducted in accordance with the covenant
on financial ratio stipulated in loan agreements.
The Company has been granted the license to operate as a non-financial institution thatprovides personal loans from the Minister of Finance, of which the Company must haveauthorized share capital of at least Baht 50 million.
The Company has the policy to pay dividend of at least 30% of net profit. The dividend
payment is subject to the resolution of the shareholders’ meeting after the Board of
Directors’ approval.
32.

OTHER COMPONENTS OF SHAREHOLDERS’ EQUITYOther components of shareholders’ equity as at February 28, 2023 and 2022 are as follows:

Beginning balance
Exchange differences on translating financial
statements of foreign operations
Gain on cash flow hedges
Ending balance

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000(523,149)(1,016,800)(427,341)(895,575)

12,354
337,790(173,005)

25,417468,234(523,149)

337,790(89,551)468,234(427,341)

Differences on exchange rates relating to translation of the financial statements of foreign
operations to be presented in THB currency are recognized directly in other comprehensive
income and accumulated amount is separately presented under shareholders’ equity asother components of equity.
Cumulative loss on cash flow hedges in shareholders’ equity consists of the effective portionof changes in the fair value of derivatives that are designated and qualified as cash flow hedges
against foreign exchange risk.

- 58 -

33.

REVENUES RELATING TO SECURITIZATION TRANSACTION

For the years ended February 28, 2023 and 2022, the details of revenues from securitizationtransaction incurred from sales of rights in loans receivable to ATS Rabbit Special Purpose
Vehicle Company Limited are included in Loan income for presentation as follows:
SEPARATE
FINANCIAL STATEMENTS

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000
Loan income (see Note 38.2.2)
Interest income from subordinated lendings
Revenue from seller loan in Special Purpose Vehicle
Dividend from investment in Special Purpose Vehicle
Collection servicing income
Total

34.

10,08935,337
2,746
73,410121,582

10,08928,646
17,39878,278134,411

DIRECTORS AND MANAGEMENTS’ REMUNERATION

Directors’ remuneration represents the benefits paid to the Company’s directors inaccordance with Section 90 of the Public Limited Companies Act. Managements’
remuneration represents cash remuneration as salaries and bonus paid to the Company’s
management.
For the years ended February 28, 2023 and 2022, directors and managements’ remuneration are
as follows:

Short-term employee benefits
Directors’ remuneration
Managements’ remuneration
Post-employment benefits
Total

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

14,863134,070
5,627

28,979127,305
4,835

5,507
94,762
4,156

21,98578,483
3,596

154,560

161,119

104,425

104,064

For the years ended February 28, 2023 and 2022, directors’ remunerations which were
included in short-term employee benefits were approved by the Annual General Meeting ofshareholders of the Company held on June 24, 2022 and June 24, 2021, respectively.

- 59 -35.

PROVIDENT FUND

The Company has set up a contributory provident fund. The contribution from employees isdeducted from the monthly salaries, with the Company matching the individual’s contribution.
The Company registered its provident fund in accordance with the Provident Fund Act. B.E. 2530
(1987) on June 1, 1999. This provident fund is managed by an authorized fund manager.
For the years ended February 28, 2023 and 2022, the Company contributed to the provident
fund and recorded as expenses, as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

For the years ended
February 28, February 28,
2023
2022
Baht ’000
Baht ’000

65,415Contributory provident fund36.

65,38457,60856,293

EXPENSES BY NATURE

Total expenses for the years ended February 28, 2023 and 2022 comprised of the following:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28,

February 28,

February 28,

February 28,

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Staff costs

2,602,515

2,589,464

1,909,180

1,927,830

Marketing expenses

1,459,289

1,321,721

1,448,566

1,254,582

Equipment expenses

694,015

619,911554,275

494,489

Depreciation and amortization

1,051,601

1,099,011

894,079

916,377

Communication expenses

211,248

243,283

177,794

205,932

Premises’ expenses

186,851

203,542

156,039

166,619

Outsource collection expenses

634,979

474,344

1,130,187

957,164

Special business tax and duty stamp

563,317519,329548,380

504,034

Printing material expenses

115,772

147,429

106,572

137,065

Transportation expenses

112,401

103,267

67,21264,333

Fees and commissions

188,804

236,804

148,432

208,056

Directors and managements’ remuneration

154,560

161,119

104,425

104,064

Loss on impairment of assets

95,497-

95,497-

Loss on sale and write-off of leasehold
improvement and equipment, and intangible
assets other than goodwill
Other expenses
Total Expenses

2,627

11,099

1,041

9,710

141,657

113,263

142,195

88,1348,215,133

7,843,586

7,483,874

7,038,389

- 60 -37.

CORPORATE INCOME TAXThe Company and its local subsidiaries used tax rate of 20% for corporate income tax anddeferred tax calculations for the years ended February 28, 2023 and 2022.
The foreign subsidiaries used tax rate of 20% - 25% for corporate income tax and deferred
tax calculations for the years ended February 28, 2022. For the years ended February 28,
2023, the foreign subsidiaries used tax rate of 20% - 22% for corporate income tax anddeferred tax calculations.
Income tax expenses of the Company and its subsidiaries are calculated from profit before
tax, added back transactions which are non-deductible expenses and deducted exempted
income under the Revenue Code.
For the years ended February 28, 2023 and 2022, income tax expenses consist of the following:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
For the years ended
February 28, February 28, February 28, February 28,
2023
2022
2023
2022
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Current tax expense for the years
Deferred income tax expense
Income tax expenses per statements of profit or loss

811,258
184,560
995,818

430,250
569,630
999,880

722,363
158,364
880,727

376,458
570,935
947,393

Reconciliations of effective tax rates for the years ended February 28, 2023 and 2022 are as
follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
For the years ended
February 28, February 28, February 28, February 28,
2023
2022
2023
2022
Baht ’000
Baht ’000
Baht ’000
Baht ’000
Accounting profit before income tax
Permanent differences
Temporary differences
Income exempt from tax
Taxable profit
Normal income tax rate (%)
Income tax for the year currently payable
Deferred tax from temporary differences
Income tax expenses per statements of profit or loss
Effective tax rate (%)

4,949,963(195,081)(1,054,405)-

4,573,774
64,225(2,683,485)-

4,591,454
17,926(791,817)(205,746)

5,080,584
8,178(2,854,673)(351,798)

3,700,477
20.00 - 22.00
811,258
184,560
995,818

1,954,514
20.00 - 25.00
430,250
569,630
999,880

3,611,817
20.00
722,363
158,364

1,882,291
20.00
376,458
570,935

880,727

947,393

20.12

21.86

19.18

18.65

- 61 -

38.

TRANSACTIONS WITH RELATED PARTIESThe consolidated and separate financial statements include certain transactions with thesubsidiaries and related parties. The relationship may be by shareholding or the companies
may have the same group of shareholders or directors. The consolidated and separate
financial statements reflect the effects of these transactions on the basis determined by theCompany, the subsidiaries and the related parties which are as follows:
38.1

Investments in subsidiaries (see Note 10) as at February 28, 2023 and 2022 are as
follows:
SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Related parties

Relationship Ownership

Paid-up

As at February 28, 2022

Cost

Ownership

Paid-up

Cost

capitalmethodcapitalmethod%Baht’ 000

Baht ’000%

Baht’ 000

Baht ’000

ACS Servicing (Thailand) Company Limited

Subsidiary

100.00175,349.1

175,349.1

100.00175,349.1

175,349.1

ACSI (Thailand) Co., Ltd.

Subsidiary

100.00149,224.3

149,224.3

100.00149,224.3

149,224.3

AEON Specialized Bank (Cambodia) Plc.

Subsidiary

50.00

643,720.4

323,580.0

50.00

643,720.4

323,580.0

AEON Microfinance (Myanmar) Company

Subsidiary
100.00455,403.3

455,403.3

100.00455,403.3

455,403.3

96.29

111,402.9

107,333.1

96.29

111,402.9

107,333.1

48.75

40.0

19.5

48.75

40.0

19.5

98.00

24.499.7

24,499.7

LimitedAEON Leasing Service (Lao) Company

Subsidiary

LimitedATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited
AEON Asset Management (Thailand)Company Limited
Total

Subsidiary

1,235,409.0--

1,210,909.3

- 62 -

38.2

Business transactions with related parties
38.2.1

Balances with related parties as at February 28, 2023 and 2022, are as
follows:
Related parties

Other receivables (see Note 6)
ACSI (Thailand) Co., Ltd.
ACS Servicing (Thailand) Co., Ltd.
AEON Asset Management (Thailand)Company Limited
AEON Financial Service Co., Ltd.
AEON Credit Service Company
LimitedACS Capital Corporation Limited
ATS Rabbit Special Purpose Vehicle
Company Limited
AEON Specialized Bank (Cambodia) Plc.
AEON (Cambodia) Company Limited
AEON Leasing Service (Lao) Co., Ltd.
AEON Microfinance Myanmar
Company Limited
ACS Trading Vietnam Co., Ltd.
AEON (Thailand) Co., Ltd.

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

Relationship

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

Subsidiary
Subsidiary
Subsidiary

-

-

28
4,412

110
3,069

Major shareholder
Common ultimate
holding company
Shareholder andone common director
Subsidiary
Subsidiary
Common ultimate
holding company
Subsidiary
Subsidiary
Common ultimate
holding company
Common ultimate
holding company

3,072

128

540

646

421

596

Seller loan in Special Purpose Vehicle
for securitization (see Note 13)
ATS Rabbit Special Purpose Vehicle
Company Limited

Subordinated lendings (see Note 14.1)
ATS Rabbit Special Purpose Vehicle
Company Limited
Other payables (see Note 21)
ACSI (Thailand) Co., Ltd.
ACS Servicing (Thailand) Co., Ltd.
AEON (Thailand) Co., Ltd.
AEON Financial Service Co., Ltd.
AEON Credit Service Company
LimitedAEON Bank Ltd.
ATS Rabbit Special Purpose Vehicle
Company Limited

Long-term borrowing under
securitization project (see Note 24)
ATS Rabbit Special Purpose Vehicle
Company Limited
Deposit received
ACS Servicing (Thailand) Co., Ltd.

-

128
-

156

450

51,621
1,812

49,049
1,835

-

-

-

-

2,820

-

-

-

7,807

-

-

334

-

57

334
-

-

4,595
6,022

72,766

4,595
59,236--111,960

130,244--287,621275,773--

84,074

84,074--75,13456
55,814960
60,797

1,076
57,387960
48,871

1,076
51,597

2,560

3,561

866

2,415

936

1,094

884

1,094

65,253

63,11833,999160,714

46,195
158,247--

1,260,991

1,401,709

Subsidiary

-

-

-

Subsidiary
Shareholder andone common director--

81,131

77,928-

5,197
86,32877,928

4,367

Long-term loan to a subsidiary(see Note 8)
AEON Specialized Bank (Cambodia) Plc.

805
2,971

Subsidiary

Subsidiary

Subsidiary

Subsidiary
Subsidiary
Common ultimate
holding company
Major shareholder
Common ultimate
holding company
Common ultimate
holding company
Subsidiary-

Subsidiary

4,163

Deferred revenue
ACS Servicing (Thailand) Co., Ltd.
ACS Capital Corporation Limited

5,197
5,197

- 63 -

38.2.2

Transactions with related parties for the years ended February 28, 2023
and 2022, are as follows:

Related parties

Relationship

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended

For the years ended

February 28, February 28, February 28, February 28,
2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Subsidiary

-

-

-

731

Subsidiary

-

-

-

28,332--

121,582

134,411--290,000

Sale promotion income
ACSI (Thailand) Co., Ltd.

Credit card income
ACSI (Thailand) Co., Ltd.

Revenues relating to securitizationtransaction(included in loan income) (see Note 33)
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited
Collection income
ACS Capital Corporation Limited

Shareholder andone common director

280

71

Dividend income
ACSI (Thailand) Co., Ltd.

Subsidiary--

55,000ACS Servicing (Thailand) Co., Ltd.

Subsidiary--

148,000

44,400--203,000

334,400

Other income
ACSI (Thailand) Co., Ltd.

Subsidiary

-

-

520

11,620ACS Servicing (Thailand) Co., Ltd.

Subsidiary--

27,23021,092ACS Capital Corporation Limited

Shareholder and
5,843

12,606

2,787

3,621

-

-

19,836

11,247

-

-

811

-

-

-

5,637

-

-

-

7,807

-

one common director
AEON Specialized Bank (Cambodia)

Subsidiary

Plc.
AEON Asset Management (Thailand)

Subsidiary

Company Limited
AEON Leasing Service (Lao) Co.,

Subsidiary

Ltd.
AEON Microfinance Myanmar

Subsidiary

Company Limited
ACS Trading Vietnam Co., Ltd.

Common ultimate
holding company

9,151

-

9,151

-

14,994

12,60673,77947,580--540,557

495,993

-

-

3,510

4,502

-

-

544,067

500,495

Operating and administrative expenses
Collection service fee
ACS Servicing (Thailand) Co., Ltd.

Subsidiary

ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited

- 64 -

Related parties

OthersAEON Financial Service Co., Ltd.
AEON Credit Service Company
LimitedAEON Bank Ltd.
AEON (Thailand) Company Limited
ATS Rabbit Special Purpose Vehicle
Company Limited
AEON Leasing Service (Lao)Company Limited
ACS Capital Corporation Limited
AEON Insurance Service Company
Limited (JP)ACS Servicing (Thailand) Co., Ltd.
ACSI (Thailand) Co., Ltd.
AEON Credit Service (Malaysia)
BHD.
ACS Credit Management Co., Ltd.

Finance costs
ATS Rabbit Special Purpose Vehicle
Company Limited
AEON Bank Ltd.
AEON Financial Service Co., Ltd.

Relationship

Major shareholder
Common ultimate
holding company
Common ultimate
holding company
Common ultimate
holding company
Subsidiary

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the years ended
For the years ended
February 28, February 28, February 28, February 28,
2023
2022
2023
2022
Baht ’000
Baht ’000
Baht ’000
Baht ’000
166,871

187,857

113,132

114,398

23,802

11,522

5,613

4,420

9,604

16,428

7,343

6,367

12,592

16,46012,592

16,460--42,954

32,837

-

-

-

-

-

-

1,375
-

-

439

-

Subsidiary
Shareholder andone common director
Common ultimate
holding company
Subsidiary
Subsidiary
Common ultimate
holding company
Common ultimate
holding company

-

60

-

1,321
461

860
214,190-

100
75

233,648

183,448

174,657--

299,947

330,997

7,646
12,525
20,171

7,290
16,101
23,391

299,947

2,575
333,572

249,600
456,560

247,200
452,170249,600
456,560

247,200
452,170

114,400
820,560

113,300
812,670

114,400
820,560

113,300
812,670

Subsidiary
Common ultimate
holding company
Major shareholder

Dividend paid
ACS Capital Corporation Limited
AEON Financial Service Co., Ltd.
AEON Holding (Thailand) Limited-

Shareholder andone common director
Major shareholder
Common ultimate
holding company

Other income for the years ended February 28, 2023 and 2022 includes
computer fee and Finance and Accounting operation services fee charged
to ACS Capital Corporation Limited, ACSI (Thailand) Co., Ltd. and ACS
Servicing (Thailand) Company Limited. Details are as follows:(1) Computer fee
The computer fee is charged to ACS Capital Corporation Limited,
ACSI (Thailand) Co., Ltd. and ACS Servicing (Thailand) Co., Ltd. at
the rate of Baht 200,000 per month, Baht 200,000 per month and Baht
707,349 per month, respectively.
The service fees are determined on a cost-plus basis.

- 65 -

From January 2022 onwards, there is no charge for computer service
from ACSI (Thailand) Co., Ltd.
From August 2022 onwards, the computer fee is charged to AEON
Asset Management (Thailand) Company Limited at the rate of Baht
40,000 per month.
The service fees are determined on general market price and in thenormal course of business.
(2) Finance and Accounting operation services fee
Finance and Accounting operation services fee is charged to ACS
Capital Corporation Limited, ACSI (Thailand) Co., Ltd. and ACS
Servicing (Thailand) Co., Ltd. at the rate of Baht 50,000 per month,
Baht 330,000 per month and Baht 720,000 per month, respectively.
From January 2022 onwards, Finance and Accounting operation
services fee is charged to ACSI (Thailand) Co., Ltd. and ACS
Servicing (Thailand) Co., Ltd. at the rate of Baht 50,000 per monthand Baht 730,000 per month, respectively.
From July 2022 onwards, Finance and Accounting operation services
fee is charged to ACS Servicing (Thailand) Co., Ltd. at the rate of
Baht 731,000 per month.
From August 2022 onwards, Finance and Accounting operation
services fee is charged to AEON Asset Management (Thailand)Company Limited at the rate of Baht 20,000 per month.
From July 2022 onwards, implementation cost of Finance andAccounting system is charged to ACS Capital Corporation Limitedand ACS Servicing (Thailand) Co., Ltd. at the rate of Baht 50,000 per
month and Baht 46,725 per month, respectively.
From July 2022 onwards, maintenance fee of Finance and Accounting
system is charged to ACS Capital Corporation Limited and ACS
Servicing (Thailand) Co., Ltd. at the rate of Baht 3,500 per month and
Baht 83,000 per month, respectively.
All service fees are determined on a cost-plus basis.
-

Revenues relating to securitization transactions are determined by theCompany and subsidiaries in accordance with securitization projects (seeNote 5.5).

-

Collection service fee paid to ACS Servicing (Thailand) Co., Ltd. is basedon general market price and in the normal course of business.

-

Management assistant fee is paid to AEON Financial Service Co., Ltd. asstated in the agreement.

-

Pricing policy for other operating and administrative expenses are
determined by the Company and related parties based on the cost-plus basis.

-

Purchase price of computer programs paid to AEON Credit Service
Systems (Philippines) Inc. as specified in the agreement.

- 66 -

39.

SEGMENT INFORMATIONThe Group presents segment information in respect of the business segments based on
the management and internal reporting structure. The business segments of the Groupconsist of:
Retail finance services
Other business

Consist of credit card, hire-purchase and personal loans and others
Consist of debt collection service and insurance brokerage services

The Group does not have revenues from transactions with a single external customer at 10%
or more of total revenues.
Transactions between segments are recorded on the same basis as the transaction conductedwith the third-party transactions. Transactions between segments are eliminated on
consolidation.
The segment information of the Group was classified by business segment as follows:
39.1 Operating result classified by business for the years ended February 28, 2023 and2022 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

For the year ended February 28, 2023
Retail finance services

Other businesses

Elimination

Total

Baht ’000

Baht ’000-

22,331,665

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

19,918,684

1,318,034

1,094,947

388,571

11,967389,349(789,887)

20,307,255

1,330,001

1,484,296(789,887)

22,331,665

7,962,449

Revenues
Revenue from external customers
Inter - segment revenues-

Expenses
Operating and administrative expenses

7,255,670

696,119582,668(572,008)

Directors and managements’ remuneration

104,424

25,967

24,169-154,560

Loss on impairment of asset

95,497-

95,497--

Loss on sale and write-off of leasehold
improvement and equipment and intangible
1,041

1,135

451

Total expenses

assets other than goodwill

7,456,632

723,221607,288

Finance costs

1,720,897

190,251

Expected credit loss

7,223,037

39,798

Profit before income tax

3,906,689

376,731

Income tax expenses

882,100

Profit for the year

3,024,589

-

2,627

(572,008)

8,215,133

1,734(9,041)

1,903,841

(107)

-

7,262,728

875,381(208,838)

4,949,963

71,751

41,967-

304,980

833,414(208,838)

995,818
3,954,145

- 67 -CONSOLIDATED FINANCIAL STATEMENTS

For the year ended February 28, 2022
Retail finance services

Other business

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

Elimination

Total

Baht ’000

Baht ’000-

20,791,422

Revenues
Revenue from external customers
Inter - segment revenues

19,084,390

1,263,720

443,312

498,077

16,879498,129(1,013,085)

19,582,467

1,280,599

941,441(1,013,085)

20,791,422

6,907,947

648,362

772,900(657,841)

7,671,368

104,064

30,986

26,069--

Expenses
Operating and administrative expenses
Directors and managements’ remuneration

161,119

Loss on sale and write-off of leasehold
improvement and equipment and intangible
9,710

1,000

389

Total expenses

assets other than goodwill

7,021,721

680,348

799,358(657,841)-

7,843,586

11,099Finance costs

1,538,790

214,243

1,726(10,094)

1,744,665

Expected credit loss

5,915,244

713,855

298-

6,629,397

Profit (loss) before income tax

5,106,712(327,847)

140,059(345,150)

4,573,774

Income tax expenses

956,122

8,904

34,854-

Profit (loss) for the year

4,150,590(336,751)

105,205(345,150)

999,880
3,573,894

39.2 Financial position classified by business as at February 28, 2023 and 2022 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Retail finance services

Trade and other receivables

Other business

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000
299,428

Elimination

Total

Baht ’000

Baht ’000(171,512)

84,404,166
1,446,551

79,698,518

4,577,732

1,230,470

153,60369,420(6,942)

9,348,397

694,129664,385(1,350,942)

9,355,969

Total assets

90,277,385

5,425,464

1,033,233(1,529,396)

95,206,686

Total liabilities

67,655,525

4,313,027

153,765(263,711)

71,858,606

Leasehold improvement and equipment andintangible assets other than goodwill
Other assets

CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2022
Retail finance services

Trade and other receivables

Other business

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

75,858,446

4,660,254

1,306,702

144,856

8,343,195

687,801

Total assets

85,508,343

5,492,911

Total liabilities

65,628,919

4,712,649

233,465

Elimination

Total

Baht ’000

Baht ’000(149,860)

80,602,305

98,705(6,943)

1,543,320

635,593(1,342,826)

8,323,763

967,763(1,499,629)

90,469,388

128,388(264,531)

70,205,425

Leasehold improvement and equipment andintangible assets other than goodwill
Other assets

- 68 -40.

DISCLOSURE OF INFORMATION RELATING TO FINANCIAL INSTRUMENTS

40.1

Financial risk management objectives
The Group’s and the Company’s Treasury function provides services to the Groupand the Company in coordinating access to domestic and international financial
markets, monitoring and managing the financial risks relating to the operations of theGroup and the Company through internal risk reports which analyses exposures bydegree and magnitude of risks. These risks include market risk (including foreign
currency risk and interest rate risk), credit risk and liquidity risk.
The Group and the Company seek to minimize the effects of these risks by using
derivative financial instruments to hedge these risk exposures. The use of financial
derivatives is governed by the Group’s and the Company’s policies approved by
the Board of Directors of the Group and the Company, which provide written
principles on foreign currency risk, interest rate risk, credit risk and the use of financial
derivatives and non-derivative financial instruments. Compliance with policies andexposure limits is reviewed by the internal auditors on a continuous basis. The Groupand the Company do not enter into or trade financial instruments, including derivative
financial instruments, for speculative purposes.
The Group’s and the Company’s Treasury function reports quarterly to the Group’s
and the Company’s risk management committee, an independent body that monitors
risks and policies implemented to mitigate risk exposures.

40.2

Market risk
The Group’s and the Company’s activities expose it primarily to the financial risksof changes in foreign currency exchange rates and interest rates (see below).
The Group and the Company enter into a variety of derivative financial instruments tomanage its exposure to foreign currency and interest rate risk, including:• Cross currency swap to hedge the fluctuation exchange rate arising on translationof the Group’s and the Company’s borrowings and debentures; and• Interest rate swaps to mitigate the risk of rising interest rates.
40.2.1 Foreign currency risk management
The Group and the Company have liabilities in foreign currencies, which are
different from their functional currencies. Foreign exchange rate exposures
are managed within approved policy utilizing cross currency swap contracts.
Foreign currency sensitivity analysis
The Group and the Company enter into cross currency swap contracts for all
borrowings and debentures denominated in different currencies fromfunctional currencies. Consequently, the Group and the Company do not
expose risks from the sensitivity of foreign currency.

- 69 -

Cross currency swap contracts
It is the policy of the Group and the Company to enter into cross currency
swap contracts to manage the foreign exchange rate risk associated withborrowings and debentures.
In the current year, the Group and the Company have designated all crosscurrency swap contracts as a hedge of their foreign currency borrowings anddebentures. Regarding the review on the Group’s and the Company’s policy
and due to the increased volatility in foreign exchange rate, it was decided that
100% of foreign currency borrowings and debentures be hedged.
The information of cross currency swap contracts outstanding at the end of
the reporting period, as well as information regarding their related hedged items,
are presented together with the information of interest rate swap contracts(see Note 40.2.2). Cross currency swap contracts assets and liabilities arepresented in “Derivative assets” and “Derivative liabilities” within the statementof financial position (see Note 26 for further details).
40.2.2 Interest rate risk management
The Group and the Company are exposed to interest rate risk because
borrowings and debentures carry floating interest rates. The Group and theCompany, therefore, manage interest rate risk by the use of interest rate swap
contracts to ensure that the Group and the Company do not expose risks fromthe fluctuation of interest rate.
The Group’s and the Company’s exposures to interest rates on financial assets
and financial liabilities are detailed in the liquidity risk management sectionof this Note to the financial statements.
Interest rate sensitivity analysis
The Group and the Company enter into interest rate swap contracts for all
borrowings and debentures carrying floating interest rate, hence, the Groupand the Company do not expose to risks from the sensitivity of interest rate.
Interest rate swap contracts
Under interest rate swap contracts, the Group and the Company agree toexchange the difference between fixed and floating rate interest amounts
calculated on agreed notional principal amounts. Such contracts enable
the Group and the Company to mitigate the risk of changing interest rates.
The fair value of interest rate swaps at the reporting date is determined bydiscounting the future cash flows at the reporting date and the credit risk
inherent in the contract.

- 70 -

The following tables are the information regarding cross currency and interest
rate swap contracts and interest rate swap contracts as at February 28, 2023 and2022, and their related hedged items.

Hedge instruments

Cash flow hedges
Cross currency and interest rate
swap contracts
JPY currency
Less than 1 year
1 to 5 years

CONSOLIDATEDoAND SEPARATE FINANCIAL STATEMENTS
As at February 28, 2023
Contract
Notionalo principal value
Change in fair value Carrying amount ofinterest rateused
the hedging
for calculating
instrument
hedge
assets/(liabilities)
ineffectivenessForeign
Functional
currency
currency% per annum
MillionBaht ’000
Baht ’000
Baht ’000

0.40
0.40 - 0.85

11,242.05
28,903.19

2,940,447
7,559,861
10,500,308-(350,209)(514,373)(864,582)

USD currency
Less than 1 year
1 to 5 years

4.74 - 6.32
5.39 - 6.15

185.00456.106,533,367
16,107,400
22,640,767-

488,797
696,991
1,185,788

Interest rate swap contracts
THB currency
Less than 1 year
1 to 5 years

2.17 - 2.23
1.73 - 2.56-

1,000,000
4,000,000
5,000,000
38,141,075-(11,288)(16,737)(28,025)
293,181o
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
As at February 28, 2022
Hedge instruments

Contract
interest rate

Notionalo principal value

Change in fair value Carrying amount ofused
the hedging
for calculating
instrument assets
hedge
ineffectiveness% per annum

Foreigncurrency
Million

Functional
currency
Baht ’000

Baht ’000

JPY currency
Less than 1 year
1 to 5 years

0.40
0.37 - 0.85

2,500.00
30,145.24

717,788
8,655,150
9,372,938-(65,651)(248,790)(314,441)

USD currency
Less than 1 year
1 to 5 years

0.96 - 1.68
0.85 - 1.83

185.50378.806,101,410
12,459,376
18,560,786-(90,481)
96,0475,566Interest rate swap contracts
THB currency
Less than 1 year
1 to 5 years

0.92 - 1.22
0.83 - 1.24-

4,000,000
5,000,000
9,000,000
36,933,724-(49,506)(133,170)(182,676)(491,551)

Baht ’000

Cash flow hedges
Cross currency and interest rate
swap contracts

- 71 -

The following table details the effectiveness of the hedging relationships and the amounts reclassified from hedging reserve to profit or loss:-

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTSo

For the year ended February 28, 2023

Change in the fair

Hedge

Line item in profit orAmount reclassified

Amount reclassified

Line item

value of hedging

ineffectivenessloss in which hedge

from cash flowfrom cost of

in profit or loss

instrument

recognized inineffectiveness ishedge reserve due tohedging reserve toaffected by therecognized in OCI

profit or loss

includedhedged item affecting

profit or loss

reclassification

Baht ’000

Baht ’000

profit or loss
Baht ’000

Baht ’000

Cash flow hedges
Cross currency and interest rate swap contracts
JPY currency

USD currency(550,141)

1,180,222

-

-

-

-

11,107

13,409Finance costs

642,629-

Other income(137,071)(6,847)

Finance costs(834,844)-

Other income(38,594)-

Interest rate swap contracts
THB currency

154,653-

Total

784,734--(356,773)

Finance costs
6,562

- 72 --CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTSo

For the year ended February 28, 2022

Change in the fair

Hedge

Line item in profit orAmount reclassified

Amount reclassified

Line item

value of hedging

ineffectivenessloss in which hedge

from cash flowfrom cost of

in profit or loss

instrument

recognized inineffectiveness ishedge reserve due tohedging reserve toaffected by therecognized in OCI

profit or loss

includedhedged item affecting

profit or loss

reclassification

Baht ’000

Baht ’000

profit or loss
Baht ’000

Baht ’000

Cash flow hedges
Cross currency and interest rate swap contracts
JPY currency

184,707

-

-

7,387
(97,998)

USD currency

2,287,195--

10,212Finance costs-

Other income(5,393)

2,075

Finance costs(1,968,160)-

Other income

874-

Finance costs

Interest rate swap contracts
THB currency

182,052-

Total

2,653,954--(2,063,290)

12,287

- 73 -

40.3

Credit risk management
Note 5.4 and Note 3.2.2 detail the Group’s and the Company’s maximum exposure
to credit risk and the measurement bases used to determine expected credit loss,
respectively.
Before accepting any new customer, dedicated teams of the Group andthe Company responsible for the determination of credit limits use an external credit
scoring system to assess the potential customer’s credit quality and defines credit
limits by customer. Limits and scoring attributed to customers are reviewed andapproved twice a year by the risk management committee.
Credit approvals and other monitoring procedures are also in place to ensure that
follow-up action is taken to recover overdue debts. Furthermore, the Group andthe Company review the recoverable amount of each trade receivables on
an individual basis at the end of the reporting period to ensure that adequate loss
allowance is made for irrecoverable amounts. In this regard, the directors of theGroup and the Company consider that the Group’s and the Company’s credit risk
are significantly reduced. Trade receivables consist of a large number of customers,
spread across diverse industries and geographical areas. Ongoing credit evaluationis performed on the financial condition of trade receivables.
40.3.1 Overview of the Group’s and the Company’s exposure to credit risk
Credit risk refers to the risk that a counterparty will default on its contractual
obligations resulting in financial loss to the Group and the Company.
As at February 28, 2023 and 2022, the Group’s and the Company’s
maximum exposure to credit risk without taking into account any collateral
held or other credit enhancements, which will cause a financial loss to theGroup and the Company due to failure to discharge an obligation by thecounterparties and financial guarantees provided by the Group andthe Company arise from the carrying amount of the respective recognizedfinancial assets as stated in the consolidated and separate statement offinancial position.
The Group’s and the Company’s current credit risk grading frameworkcomprises the following categories:
Category

Description

Low credit risk
receivables(Stage 1)
Significant increase incredit risk receivables(Stage 2)
Default receivables incredit risk
(Stage 3)
Write-off

The counterparty has a low risk of default
and does not have any past-due amounts

Basis for recognizing
expected credit losses
12-month ECL

Amount is > 30 days past due or there has
been a significant increase in credit risk
since initial recognition

Lifetime ECL not credit-impaired

Amount is > 90 days past due or there isevidence indicating the asset iscredit-impaired

Lifetime ECL credit-impaired

There is evidence indicating that the debtor
is in severe financial difficulty and theGroup has no realistic prospect of recovery

Amount is written-off

- 74 The tables below detail the credit quality of the Group’s and the Company’s financial assets, as well as the Group’s and the Company’s
maximum exposure to credit risk by credit risk rating grades:
CONSOLIDATED FINANCIAL STATEMENTS

Notes

As at February 28, 2023
External
12-month orcredit rating
lifetime ECL

Trade receivables

5

N/A

Fixed deposits at banks under obligations

7

N/A

12-month ECL
Lifetime ECL
12-month ECL

Gross carrying
amount
Baht ’000

Allowance for
ECL
Baht ’000

Net carrying
amount
Baht ’000

85,031,652
8,905,327
144,216
94,081,195(4,397,716)(5,727,542)(10,125,258)

80,633,936
3,177,785
144,216
83,955,937

Gross carrying
amount
Baht ’000

Allowance for
ECL
Baht ’000

Net carrying
amount
Baht ’000

82,898,746
8,129,109
44,33391,072,188(5,563,984)(5,387,471)-

77,334,762
2,741,638
44,33380,120,733

CONSOLIDATED FINANCIAL STATEMENTS

Notes

As at February 28, 2022
External
12-month orcredit rating
lifetime ECL

Trade receivables

5

N/A

Fixed deposits at banks under obligations

7

N/A

12-month ECL
Lifetime ECL
12-month ECL(10,951,455)

- 75 SEPARATE FINANCIAL STATEMENTS

Notes

As at February 28, 2023
External
12-month orcredit rating
lifetime ECL

Trade receivables

5

N/A

Long-term loan to a subsidiary

8

N/A

12-month ECL
Lifetime ECL
12-month ECL

Gross carrying
amount
Baht ’000

Allowance for
ECL
Baht ’000

Net carrying
amount
Baht ’000

80,649,277
8,211,261
111,960
88,972,498(4,291,875)(5,238,667)(9,530,542)

76,357,402
2,972,594
111,960
79,441,956

Gross carrying
amount
Baht ’000

Allowance for
ECL
Baht ’000

Net carrying
amount
Baht ’000

78,540,851
6,926,839
130,244
85,597,934(5,440,033)(4,532,937)(9,972,970)

73,100,818
2,393,902
130,244
75,624,964

SEPARATE FINANCIAL STATEMENTS

Notes

As at February 28, 2022
External
12-month orcredit rating
lifetime ECL

Trade receivables

5

N/A

Long-term loan to a subsidiary

8

N/A

12-month ECL
Lifetime ECL
12-month ECL

- 76 -

40.4

Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors of the Group and the Company, which have established an appropriate
liquidity risk management framework for management of the short, medium andlong-term funding and liquidity management requirements. The Group and theCompany manage liquidity risk by maintaining adequate reserves, banking facilities
and reserve borrowing facilities, by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.
Details of undrawn facilities that the Group and the Company have to further reduce
liquidity risk are disclosed in Note 41.
40.4.1 Liquidity and interest risk tables
The following tables detail the Group’s and the Company’s remaining
contractual maturity for their non-derivative financial assets and financial
liabilities with agreed repayment periods. The tables have been drawn up
based on the undiscounted cash flows of financial liabilities based on theearliest date on which the Group and the Company can be required to pay.
The table includes both interest and principal cash flows. To the extent thatinterest cash flows are floating rate, the undiscounted amount is derived frominterest rate curves at the reporting date.
The contractual maturity is based on the earliest date on which the Groupand the Company may be required to pay.
As at February 28, 2023 and 2022, financial assets and liabilities of theGroup and the Company are classified based on contractual maturities asfollows:

At call
Baht ’000- CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2023
Less than 1
1 - 5 years
More thanNo maturiyyear
5 years
Baht ’000
Baht ’000
Baht ’000
Baht ’000

Total
Baht ’000

Financial assets
Cash and cash equivalents

3,816,356

-

-

-

-

3,816,356

Trade receivables-

80,667,069

3,144,652--

83,811,721

Other recievables-

518,404

74,041--

592,445--

144,216--

144,216

Fixed deposits at banks underobligations
Loans from purchase of accounts
receivable-490

12,133--

12,623

Derivative assets-

1,047,431

684,654--

1,732,085

-

-

-

-

5,062

Investment in equity securities
designated at fair value throughprofit or loss

5,062

Investment in equity securities
designated at fair value throughother comprehensive income
Total financial assets

-

-

-

-

144,000

144,000

3,816,356

82,233,394

4,059,696-

149,062

90,258,508

- 77 -CONSOLIDATED FINANCIAL STATEMENTS-

As at February 28, 2023

At callLess than 1

1 - 5 years

year

More thanNo maturiy

Total

5 years

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

4,485,424

Financial liabilities
Bank overdrafts andshort-term borrowings fromfinancial institutions-

4,485,424---

Trade payables-

220,728---

220,728

Other payables-

1,246,837---

1,246,837

Interest payable-

382,622---382,622Long-term borrowings-

12,836,551

39,152,934--

51,989,485

Long-term debentures--

9,580,142--

9,580,142

Derivative liabilities-

562,743876,160--

1,438,903

Lease liabilities-

444,127

473,541--

917,668

Subordinated borrowings--

84,074--

84,074-

20,179,032

50,166,851--

70,345,883

No maturiy

Total
Baht ’000

Total financial liabilities- CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2022

At callLess than 1

1 - 5 years

year
Baht ’000

Baht ’000

More than
5 years

Baht ’000

Baht ’000

Baht ’000---

4,235,603--

80,076,400

-

-

-

525,905

Financial assets
Cash and cash equivalents

4,235,603-

Trade receivables-

76,839,427

Other recievables-

525,905-

3,000

41,333--44,333

-

-

-

-

5,062

5,062

3,236,973

Fixed deposits at banks underobligations
Investment in equity securities
designated at fair value throughprofit or loss
Investment in equity securities
designated at fair value throughother comprehensive income
Total financial assets

-

-

-

-

144,000

144,000

4,235,603

77,368,332

3,278,306-

149,062

85,031,303

9,171,904

Financial liabilities
Bank overdrafts andshort-term borrowings fromfinancial institutions-

9,171,904---

Trade payables-

269,599---

269,599

Other payables-

1,418,845---

1,418,845

Interest payable-

209,175---

209,175

Long-term borrowings-

17,090,217

30,762,073

134,372-

47,986,662

Long-term debentures-

3,798,878

4,460,676--

8,259,554

Derivative liabilities-

654,801

212,925--

867,726

Lease liabilities-

356,328

268,650--

624,978

Subordinated borrowings--

84,074--

84,074-32,969,747

134,372-

68,892,517

Total financial liabilities-

35,788,398

- 78 -SEPARATE FINANCIAL STATEMENTS-

As at February 28, 2023

At callLess than 1

1 - 5 years

year
Baht ’000

Baht ’000

More thanNo maturiy

Total
Baht ’000

5 years
Baht ’000

Baht ’000

Baht ’000

Financial assets
Cash and cash equivalents

2,159,810

-

-

-

-

2,159,810

Trade receivables-

77,833,587

1,496,409--

79,329,996

Other receivables-

414,708

74,041--

488,749

Long-term loan to a subsidiary-

27,99083,970--111,960

Seller loan in Special Purpose
Vehicle for securitization-

287,621---287,621

Derivative Assets-

1,047,431

684,654--

1,732,085

-

-

-

-

5,062

5,062

-

-

-

-

144,000

144,000--

84,074--

84,074

2,159,810

79,611,337

2,423,148-

149,062

84,343,357

3,440,000

Investment in equity securities
designated at fair value throughprofit or loss
Investment in equity securities
designated at fair value throughother comprehensive income
Subordinated lendings
Total financial assets

Financial liabilities
Bank overdrafts andshort-term borrowings fromfinancial institutions-

3,440,000---

Trade payables-

200,448---

200,448

Other payables-

1,165,727---

1,165,727

Interest payable-

366,602---366,602

Long-term borrowings-

11,273,543

37,867,795--

49,141,338

Long-term borrowings under
securitization project--

1,260,991--

1,260,991

Long-term debentures--

8,107,060--

8,107,060

Derivative liabilities-

562,743876,160--

1,438,903

Lease liabilities-

389,924

412,280--802,204

Total financial liabilities-

17,398,987

48,524,286--

65,923,273

- 79 -SEPARATE FINANCIAL STATEMENTS-

As at February 28, 2022

At callLess than 1

1 - 5 years

year
Baht ’000

Baht ’000

More thanNo maturiy

Total
Baht ’000

5 years
Baht ’000

Baht ’000

Baht ’000

Financial assets
Cash and cash equivalents

2,639,136

-

-

-

-

2,639,136

Trade receivables-

73,982,280

1,512,440--

75,494,720

Other receivables-

412,773---

412,773

Long-term loan to a subsidiary--

130,244--130,244

Vehicle for securitization-

275,773---

275,773

Derivative Assets-

82,380293,795--

376,175

-

-

-

-

5,062

5,062

-

-

-

-

144,000

144,000--

84,074--

2,639,136

74,753,206

2,020,553-

149,062

79,561,957

7,941,240

Seller loan in Special Purpose

Investment in equity securities
designated at fair value throughprofit or loss
Investment in equity securities
designated at fair value throughother comprehensive income
Subordinated lendings
Total financial assets

84,074

Financial liabilities
Bank overdrafts andshort-term borrowings fromfinancial institutions-

7,941,240---

Trade payables-

248,207---248,207

Other payables-

1,356,119---

1,356,119Interest payable-

194,197---

194,197

Long-term borrowings-

16,317,580

28,578,535--

44,896,115

Long-term borrowings under

40.5

securitization project--

1,401,709--

1,401,709

Long-term debentures-

3,798,878

2,987,593--

6,786,471

Derivative liabilities-

654,801

212,925--

867,726

Lease liabilities-

312,304

240,121--552,425

Total financial liabilities-

30,823,326

33,420,883--

64,244,209

Capital risk management
The Group and the Company manage their capital to ensure that the Group andthe Company will be able to continue as going concerns while maximizing the returnto shareholders through the optimization of the debt and equity balance.
The capital structure of the Group and the Company consists of short-term and long-termborrowings in Note 20, Note 23 and Note 24, long-term debentures in Note 25, leaseliabilities in Note 22 and shareholders’ equity of the Group and the Company consistof issued share capital, reserves, unappropriated retained earnings and non-controllinginterests disclosed in Note 29.
The Group’s and the Company’s risk management committee review the capital
structure on a quarterly basis. As part of this review, the committee of the Groupand the Company consider the cost of capital and the risks associated with each classof capital. The Group and the Company are not subject to any externally imposed
capital requirements.

- 80 -

Gearing ratio
The gearing ratio as at February 28, 2023 and 2022 is as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

Debt
Cash and cash equivalents
Net debt
EquityNet debt to equity ratio

SEPARATE
FINANCIAL STATEMENTS

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

As at
February 28,
2023
Baht ’000

As at
February 28,
2022
Baht ’000

71,858,606(3,816,356)
68,042,250
22,821,480
2.98

70,205,425(4,235,603)
65,969,822
19,888,711
3.32

67,353,464(2,159,810)
65,193,654
22,690,443
2.87

65,474,417(2,639,136)
62,835,281
19,879,398
3.16

Debt consists of short-term and long-term borrowings in Note 20, Note 23 andNote 24, long-term debentures in Note 25 and lease liabilities in Note 22.
Equity includes all capital and reserves of the Group and the Company that aremanaged as capital.
40.6

Fair value measurements
The Group’s and the Company’s accounting policies and disclosures require
the determination of fair value, for both financial assets and liabilities.
The fair value is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties in an arm’s length transaction.
When applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset and liability.
Valuation techniques and key inputs used in fair value measurements-

Trade receivables: fair value is subjected to discounted cash flows net ofallowance for expected credit loss.

-

Long-term loan to a subsidiary: fair value is estimated based on the discounted
cash flows using market interest rate.

-

Investment in equity securities designated at fair value through profit or loss:
fair value is calculated based on the discounted cash flows using weighted average
cost of capital.

-

Investment in equity securities designated at fair value through othercomprehensive income: fair value is calculated based on the discounted cash
flows using weighted average cost of capital.

-

Long-term borrowings and debentures: fair value are estimated based on
the discounted cash flows using average current interest rate over the remaining
period to maturity.

1) Fair value
The following tables present the analysis of financial assets and financial
liabilities which are measured at fair value and their fair value hierarchy levelclassification as at February 28, 2023 and 2022:

- 81 -CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Carrying amountFVTPL - derivatives

Fair value

FVTOCIFVTPL - designated

Amortized cost

Fair value

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Cash and cash equivalents

-

-

-

3,816,356

3,816,356

Level 2

Trade receivables

-

-

-

83,811,721

83,811,721

Level 3

Other recievables

-

-

-

592,445592,445

Level 3Fixed deposits at banks under obligations

-

-

-

144,216

144,216

Level 3Loans from purchase of accounts receivable

-

-

-

12,623

12,623

Level 3---

1,732,085

Level 2-

5,062

Level 3-144,000

Level 3designated in hedge relationships

hierarchy
Baht ’000

Financial assets

Derivative assets
Investment in equity securities designated at fair value through profit or loss

1,732,085

-

-

5,062

Investment in equity securities designated at fair value through othercomprehensive income-

144,000
1,732,085

Total financial assets-

144,000

5,062

88,377,361

90,258,508

4,485,424

4,485,424

Level 2Financial liabilities
Bank overdrafts and short-termborrowings from financial institutions

-

-

-

Trade payables

-

-

-

220,728

220,728

Level 3

Other payables

-

-

-

1,246,837

1,246,837

Level 3

Interest payable

-

-

-

382,622382,622

Level 3Long-term borrowings

-

-

-

51,989,485

51,838,176

Level 2Long-term debentures

-

-

-

9,580,142

9,570,608

Level 2---

1,438,903

Level 2Derivative liabilities

1,438,903

Lease liabilities

-

-

-

917,668

917,668

Level 3

Subordinated borrowings

-

-

-

84,074

84,074

Level 3--

68,906,980

70,185,040

Total financial liabilities

1,438,903

- 82 -CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2022
Carrying amountFVTPL - derivatives

Fair value

FVTOCIFVTPL - designated

Amortized cost

Fair value

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Cash and cash equivalents

-

-

-

4,235,603

4,235,603

Level 2

Trade receivables

-

-

-

80,076,400

80,076,400

Level 3

Other recievables

-

-

-

525,905

525,905

Level 3Fixed deposits at banks under obligations

-

-

-

44,33344,333

Level 3---376,175

Level 2-

5,062

Level 3144,000

Level 3designated in hedge relationships

hierarchy
Baht ’000

Financial assets

Derivative assets
Investment in equity securities designated at fair value through profit or loss

376,175

-

-

5,062

Investment in equity securities designated at fair value through ohter
comprehensive income

144,000

376,175

Total financial assets-

144,000

5,062

84,882,241

85,407,478

Financial liabilities
Bank overdrafts and short-termborrowings from financial institutions

-

-

-

9,171,904

9,171,904

Level 2

Trade payables

-

-

-

269,599

269,599

Level 3

Other payables

-

-

-

1,628,020

1,628,020

Level 3

Interest payable

-

-

-

209,175

209,175

Level 3Long-term borrowings

-

-

-

47,986,662

47,974,780

Level 2Long-term debentures

-

-

-

8,259,554

8,301,937

Level 2---867,726

Level 2867,726

Derivative liabilities
Lease liabilities

-

-

-

624,978

624,978

Level 3

Subordinated borrowings

-

-

-

84,074

84,074

Level 3--

68,233,966

69,132,193

Total financial liabilities

867,726

- 83 -SEPARATE FINANCIAL STATEMENTS

As at February 28, 2023
Carrying amountFVTPL - derivatives

Fair value

FVTOCIFVTPL - designated

Amortized cost

Fair value

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Cash and cash equivalents

-

-

-

2,159,810

2,159,810

Level 2

Trade receivables

-

-

-

79,329,996

79,329,996

Level 3

Other recievables

-

-

-

488,749

488,749

Level 3Seller loan in Special Purpose Vehicle for securitization

-

-

-

287,621287,621

Level 3Long-term loan to a subsidiary

-

-

-

111,960

110,357

Level 2---

1,732,085

Level 2-

5,062

Level 3designated in hedge relationships

hierarchy
Baht ’000

Financial assets

Derivative assets
Investment in equity securities designated at fair value through profit or loss

1,732,085
-

-

5,062

Investment in equity securities designated at fair value through othercomprehensive income
Subordinated lendings

144,000-

Total financial assets--

144,000

1,732,085

144,000

Level 384,074

84,074

Level 382,462,210

84,341,754

-

5,062

Financial liabilities
Bank overdrafts and short-termborrowings from financial institutions

-

-

-

3,440,000

3,440,000

Level 2

Trade payables

-

-

-

200,448

200,448

Level 3

Other payables

-

-

-

1,165,727

1,165,727

Level 3

Interest payable

-

-

-

366,602366,602

Level 3Long-term borrowings

-

-

-

49,141,338

48,990,029

Level 2Long-term borrowings under securitization project

-

-

-

1,260,991

1,260,991

Level 3Long-term debentures

-

-

-

8,107,060

8,097,526

Level 2---

1,438,903

Level 2--802,204

802,204

Level 3--64,484,370

65,762,430

Derivative liabilities
Lease liabilities
Total financial liabilities

1,438,903
1,438,903

- 84 -SEPARATE FINANCIAL STATEMENTS

As at February 28, 2022
Carrying amountFVTPL - derivatives

Fair value

FVTOCIFVTPL - designated

Amortized cost

Fair value

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Cash and cash equivalents

-

-

-

2,639,136

2,639,136

Level 2

Trade receivables

-

-

-

75,494,720

75,494,720

Level 3

Other recievables

-

-

-

412,773

412,773

Level 3Seller loan in Special Purpose Vehicle for securitization

-

-

-

275,773

275,773

Level 3Long-term loan to a subsidiary

-

-

-

130,244

128,020

Level 2---

376,175

Level 2-

5,062

Level 3designated in hedge relationships

hierarchy
Baht ’000

Financial assets

Derivative assets
Investment in equity securities designated at fair value through profit or loss

376,175
-

-

5,062

Investment in equity securities designated at fair value through othercomprehensive income
Subordinated lendings

144,000-

376,175

Total financial assets-

144,000

Level 384,074

84,074

Level 379,036,720

79,559,733-

144,000

5,062

Financial liabilities
Bank overdrafts and short-termborrowings from financial institutions

-

-

-

7,941,240

7,941,240

Level 2

Trade payables

-

-

-

248,207248,207

Level 3

Other payables

-

-

-

1,356,119

1,356,119

Level 3

Interest payable

-

-

-

194,197

194,197

Level 3Long-term borrowings

-

-

-

44,896,115

44,884,233

Level 2Long-term borrowings under securitization project

-

-

-

1,401,709

1,401,709

Level 3Long-term debentures

-

-

-

6,786,471

6,828,855

Level 2---867,726

Level 2--552,425

552,425

Level 3--63,376,483

64,274,711

867,726

Derivative liabilities
Lease liabilities
Total financial liabilities

867,726

- 85 -

41.

42.

CREDIT FACILITIES AND LETTERS OF GUARANTEE

41.1

As at February 28, 2023 and 2022, the Company has unused committed andunsecured revolving credit facility agreements with various financial institutions
totaling Baht 3,000 million.

41.2

As at February 28, 2023 and 2022, the Company has unused overdraft facilities withvarious banks totaling Baht 3,090 million and Baht 3,089 million, respectively. Suchoverdraft facilities are unsecured.

41.3

As at February 28, 2023 and 2022, the Company has a bank’s letter of guarantee
issued to suppliers for guarantee payment of Baht 0.50 million. Such letter ofguarantee is unsecured.

41.4

As at February 28, 2022, a foreign subsidiary has unused overdraft facilities with alocal bank in the amount of Baht 30.03 million. Such overdraft facilities are
unsecured. (As at February 28, 2023 : None.)

41.5

As at February 28, 2023 and 2022, a subsidiary has letters of guarantee issued by banks
in the amounts of Baht 1.78 million and Baht 1.63 million, respectively.

SIGNIFICANT AGREEMENTS RELATING TO SECURITIZATION TRANSACTION

42.1

On February 2, 2015, the Company entered into a memorandum of understanding
regarding the cooperation between the Company and BTS Group Holdings PublicCompany Limited (“BTSG”) and Bangkok Smartcard System Company Limited (“BSS”)(a subsidiary of BTSG), for the joint issue of member card under the Co-Branded Rabbit
Program and setting up a special purpose vehicle for the securitization project,
the purpose of securitization through the establishment of a special purpose vehicle ina form of cooperation framework between the Company and BSS Holdings Company
Limited (“BSS Holdings”) (a subsidiary of BTSG), in accordance with the resolution
passed at the meeting of the Board of Directors No. 10/2014, held on December 24, 2014.

42.2

The Company entered into the Receivables Sale and Purchase Agreement with ATS RabbitSpecial Purpose Vehicle Company Limited (ATS Rabbit) (the subsidiary), on October 22, 2015.
Such agreement set out the procedures and terms in respect of the sale and purchase of theInitial Receivables on the Closing Date, for Future Receivables on each Purchase Date andfor Additional Receivables on each Monthly Purchase Date including the rights, obligations
and responsibilities of both parties. Moreover, the Receivables Sale and Purchase
Agreement also set out the terms and conditions in respect of the resale and repurchase of
the Ineligible Receivables and Defaulted Receivables.

42.3

The Company entered into the Servicing Agreement with ATS Rabbit (the subsidiary) on
October 22, 2015. Based on such agreement, the subsidiary appointed the Company (as atransferor and servicer) to provide certain administration services (including record keeping
and producing written reports relating to the Collections), to act as the collection agent andother services for loans receivable in relation to the Purchased Receivables. In addition, theServicing Agreement also set out other relevant terms, such as the scope of the services, thepayment of service fees, the termination of the appointment of the Servicer and the Backup Servicer appointment of the substitute servicer.

- 86 -

43.

SALE OF WRITTEN-OFF RECEIVABLES

43.1

On June 28, 2018, the Company sold written-off receivables under loan agreements
and credit card agreements to ACS Servicing (Thailand) Company Limited (the“buyer”), a subsidiary, with the purchase price of Baht 31.52 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement sets out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On June 28, 2018, which is the closing date as specified in theagreement, the Company received the payment in full from the buyer. However, theGroup has retained substantially all of the risks and rewards of the assets transferredto the buyer which is the subsidiary. Consequently, the Company recorded cash
received from the buyer as deferred revenue which will be recognized as revenue
when the buyer can collect from debtors. The Company has already recognizedrevenue of Baht 0.44 million and Baht 0.97 million as bad debt recovery in the
consolidated and separate statements of profit or loss for the years ended February 28,
2023 and 2022, respectively, and recorded outstanding deferred revenue of Baht
21.32 million and Baht 21.76 million as other current liabilities in the separate
statement of financial position as at February 28, 2023 and 2022, respectively.
Under the Asset Sale and Purchase Agreement, if the buyer wished to sell or transfer
loans receivable that were intended to be a portfolio sale to a third-party, theCompany was entitled to a right to first negotiate with the buyer with regard to apurchase of the portfolio before any third-party. If the negotiation was not concluded
within three months or the Company decided not to make a purchase, the buyer
might sell such loans receivable to a third-party.

43.2

On October 28, 2019, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to ACS Servicing(Thailand) Company Limited (the “buyer”), a subsidiary, with the purchase price of
Baht 59.11 million. On the same date, the Company entered into the “Asset Sale andPurchase Agreement” with the buyer. The agreement sets out the conditions andterms in respect of the sales, assignment and conveyance of the Company’s rights,
title, claim, obligation, liability and interest in the written-off receivables under loan
agreements and credit card agreements. On October 28, 2019, which is the closing
date as specified in the agreement, the Company received the payment in full fromthe buyer. However, the Group has retained substantially all of the risks and rewardsof the assets transferred to the buyer which is the subsidiary. Consequently, theCompany recorded cash received from the buyer as deferred revenue which will berecognized as revenue when the buyer can collect from debtors. The Company has
already recognized revenue of Baht 0.89 million and Baht 1.18 million as bad debt
recovery in the consolidated and separate statements of profit or loss for the year
ended February 28, 2023 and 2022, respectively, and recorded outstanding deferred
revenue of Baht 53.88 million and Baht 54.77 million as other current liabilities inthe separate statements of financial position as at February 28, 2023 and 2022,
respectively.

- 87 -

Under the Asset Sale and Purchase Agreement, if the buyer wished to sell or transfer
loans receivable that were intended to be a portfolio sale to a third-party, theCompany was entitled to a right to first negotiate with the buyer with regard to apurchase of the portfolio before any third-party. If the negotiation was not concluded
within three months or the Company decided not to make a purchase, the buyer
might sell such loans receivable to a third-party.
43.3

On August 31, 2021, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated local
company (the “buyer”) with the purchase price of Baht 319.76 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement set out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On August 31, 2021, which is the closing date as specified in theagreement, the Company received the payment in full from the buyer.
The Company has already recognized gain on sale of written-off receivables totaling
Baht 319.76 million in the consolidated and separate statements of profit or loss forthe year ended February 28, 2022.

43.4

On March 4, 2022, the Company sold written-off receivables under loan agreements
and credit card agreements by a bidding process to an unrelated local company(the “buyer”) with the purchase price of Baht 104.98 million. On the same date, theCompany entered into the “Asset Sale and Purchase Agreement” with the buyer.
The agreement set out the conditions and terms in respect of the sales, assignmentand conveyance of the Company’s rights, title, claim, obligation, liability andinterest in the written-off receivables under loan agreements and credit card
agreements. On March 4, 2022, which is the closing date as specified in theagreement, the Company received the payment in full from the buyer. The Company
has already recognized gain on sale of written-off receivables totaling Baht 104.98
million in the consolidated and separate statements of profit or loss for the years
ended February 28, 2023.
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan agreements
are not legal as specified in the agreement. However, the Company believed thatsuch damage was not significant, therefore, the Company had not recorded suchclaim in the financial statements for the years ended February 28, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wished tosell or transfer loan to a third party, the buyer shall get written approval from theCompany. In addition, a third party shall comply all terms and conditions of theagreement, by entering into the Accession Agreement in form determined by theCompany.

- 88 -

43.5

On October 31, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated local
company (the “buyer”) with the purchase price of Baht 110.39 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement set out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On November 29, 2022, which is the closing date as specified in
the agreement, the Company received the initial payment of Baht 11.04 million. The
buyer has agreed to pay the remaining amount of purchase price amounting to Baht
99.36 million in 8 installments of Baht 12.42 million per each and last installment
will be on November 29, 2024. The Company has already recognized gain on saleof written-off receivables totaling Baht 110.40 million in the consolidated andseparate statements of profit or loss for the years ended February 28, 2023, andrecorded outstanding receivables of Baht 86.93 million as other receivables in the
consolidated and separate statements of financial positions as at February 28, 2023.
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan agreements
are not legal as specified in the agreement. However, the Company believed thatsuch damage was not significant, therefore, the Company had not recorded suchclaim in the financial statements for the years ended February 28, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wished tosell or transfer loan to a third party, the buyer shall get written approval fromthe Company. In addition, a third party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.

43.6

On October 31, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated local
company (the “buyer”) with the purchase price of Baht 57.23 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement set out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On November 29, 2022, which is the closing date as specified in
the agreement, the Company received the payment in full from the buyer. The
Company has already recognized gain on sale of written-off receivables totaling
Baht 57.23 million in the consolidated and separate statements of profit or loss forthe years ended February 28, 2023.

- 89 -

Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan agreements
are not legal as specified in the agreement. However, the Company believed thatsuch damage was not significant, therefore, the Company had not recorded suchclaim in the financial statements for the years ended February 28, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wished tosell or transfer loan to a third party, the buyer shall get written approval fromthe Company. In addition, a third party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.
43.7

On November 29, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated local
company (the “buyer”) with the purchase price of Baht 108.98 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement set out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On November 29, 2022, which is the closing date as specified in
the agreement, the Company received the initial payment of Baht 10.90 million. The
buyer has agreed to pay the remaining amount of purchase price amounting to Baht
98.08 million in 8 installments of Baht 12.26 million per each and last installment
will be on November 29, 2024. The Company has already recognized gain on saleof written-off receivables totaling Baht 108.98 million in the consolidated andseparate statements of profit or loss for the years ended February 28, 2023, andrecorded outstanding receivables of Baht 85.83 million as other receivables in the
consolidated and separate statements of financial positions as at February 28, 2023.
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan agreements
are not legal as specified in the agreement. However, the Company believed thatsuch damage was not significant, therefore, the Company had not recorded suchclaim in the financial statements for the years ended February 28, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wished tosell or transfer loan to a third party, the buyer shall get written approval fromthe Company. In addition, a third party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.

- 90 -

43.8

On November 29, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated local
company (the “buyer”) with the purchase price of Baht 22.98 million. On the samedate, the Company entered into the “Asset Sale and Purchase Agreement” with thebuyer. The agreement set out the conditions and terms in respect of the sales,
assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On November 29, 2022, which is the closing date as specified in
the agreement, the Company received the initial payment of Baht 6.90 million. The
buyer has agreed to pay the remaining amount of purchase price amounting to Baht
16.08 million in 2 installments of Baht 8.04 million per each and last installment
will be on January 31, 2023. The Company has already recognized gain on sale ofwritten-off receivables totaling Baht 22.98 million in the consolidated and separate
statements of profit or loss for the years ended February 28, 2023, and as at February 28,
2023, the Company has received the full amount of payment under the agreement.
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan agreements
are not legal as specified in the agreement. However, the Company believed thatsuch damage was not significant, therefore, the Company had not recorded suchclaim in the financial statements for the years ended February 28, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wishedto sell or transfer loan to a third party, the buyer shall get written approval fromthe Company. In addition, a third party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.

44.

APPROVAL OF FINANCIAL STATEMENTS

These financial statements were approved for issue by the Company’s Board of Directors
on April 11, 2023.