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Moreover, the SET has an obligation to capital commitment subscription in two specific-purpose funds (Note 14) as follows:
1. Fund invested directly in energy, alternative a renewable energy firms and businesses that support the government’s
energy policies. The Asset Management Company will make additional investments from the SET amounting to Baht 18.40
million unless the payment was made in the full amount of capital commitment subscription of due in terms of the 10 years
(3 August 2017).
2. Fund invested in business and industries which have potential growth. The capital commitment subscription has in first
four year, which due on 11 August 2012 (2011: the capital commitment subscription was Baht 6.9 million to Baht 30.0
million).
31. Contingent liabilities and contingent assets
31.1 Contingent assets
31.1.1 SET
During 2012, the SET sued the insurance group. The SET is seeking compensation for alleged damages relating
to dismiss a insurance contract amount Baht 123 million combined with interest rate at 7.50% per annum. As at 31 December 2012,
the case is under the consideration by the Civil court so the outcome of the case has not presently been finalised. Therefore, the SET
has not recorded any potential income in the financial statements for the years ended 31 December 2012.
31.1.2 Jointly-controlled entity
In 2009, the SET restructured the business of Family Know-how Co., Ltd. (Family Know-how) by entering into a
joint venture arrangement with another company, which holds 49.99% of the registered share capital in Family Know-how. The SET
holds 2,500,000 preference shares and the other company holds 2,500,000 ordinary shares. During the period from 1 January 2010 to
31 December 2012, the preference shareholders will be entitled to receive dividends before the ordinary shareholders from the
operating result of Family Know-how. It will receive 10% of the net profit before legal reserve, and also receive dividends from the
remaining net profit according to proportion of share holding in Family Know-how. After this year, all shares will have equal right and
status.
As at 31 December 2012, the SET has accrued dividend income which it has the right to receive at 10% of
Family Know-how’s net profit for the year ended 31 December 2012, amounting to Baht 5.87 million (2011: Baht 4.44 million).
31.2 Contingent liabilities
31.2.1 SET
As at 31 December 2012, the SET has letters of guarantee issued by banks totalling Baht 4.40 million (2011:
Baht 4.40 million) in respect of electricity usage in the ordinary course of business from which management anticipates that no
material liabilities will arise.
The SET has issued a letter of comfort to a bank in respect of an overdraft credit line of Baht 2,400 million (2011:
Baht 2,400 million) granted to Thailand Clearing House Co., Ltd. (TCH), a subsidiary, for clearing and settlement of equity instruments
and derivatives. Under the terms of the letter of comfort, the SET is required to maintain its shareholding at 99.99% of the registered
share capital in TCH to the end of the credit period. In addition, the SET is required to support TCH’s operations to ensure its ability to
repay the debt to the bank. As at 31 December 2012, TCH had not drawn down the overdraft credit line.