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Annual Report 2014
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34.1 Litigation
34.1.1 SET
In 2012, the Group sued the insurance group
because the Stock Exchange of Thailand building
was fire damaged in 2010. The Group 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. On 30
September 2013, the case was dismissed by civil
court. On 27 December 2013, the Group filed petitions
to the appeal court. On 14 November, 2014, the
case was dismissed by Appeal court. As at 31 December
2014 the Group filed petitions to the supreme
court. The outcome of the case has not presently been
finalised. Therefore, the Group has not recorded any
potential income in the financial statements for the
years ended 31 December 2014 and 2013.
34.2 Contingent liabilities
34.2.1 SET
As at 31 December 2014, the SET has letters
of guarantee issued by banks totalling Baht 4.61 million
(2013: Baht 4.61 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
(2013: 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 2014, TCH had not
drawn down the overdraft credit line.
34. Litigation, contingent assets
and contingent liabilities
34.2.2 Subsidiaries
34.2.2.1 On 26 March 2009, a civil lawsuit was
filed against a subsidiary of a parent company, together
with other individuals and juristic persons/entities,
for alleged wrongful acts. The plaintiff was seeking
for alleged damages relating to the forgery of ordinary
share certificates and for the defendant to be jointly
responsible for compensation totalling Baht 223 million.
On 30 November 2011, the case was dismissed by the
Civil court. The plaintiff further appealed to the
Appeal Court. The subsidiary had also filed against
that appeal on 30 May 2012.
On 29 April 2014, the Appeal Court ruled that the
subsidiary and related parties jointly admitted the damage
to the plaintiff. The subsidiary filed petitions to the
Supreme Court on 6 August 2014 and filed against
the plaintiff on 30 September 2014.
As at 31 December 2014 the case is under the
consideration of the Supreme Court. The outcome of
the case has not currently been finalised. Therefore,
the subsidiary has not recorded any potential loss
in the financial statements for the years ended 31
December 2014 and the year 2013. The parent entity
hasinsurance coverage for Financial Institutional
Professional Indemnity Insurance, which cover liability
for such case.
34.2.2.2 On 6 January 2014, the subsidiary was
claimed in a civil lawsuit as joint defendant, together
with other individuals and juristic persons/entities,
related to the performance of certain investment
consultant from member which caused damage to the
plaintiff. The plaintiff was seeking that alleged
damages be jointly responsible for compensation
totalling Baht 0.96 million. On 12 November 2014,
the case was dismissed by civil court. On 9 December
2014, the plaintiff filed petitions to the appeal court
As at 31 December 2014, the subsidiary was in the
process of filing petitions to withdraw the appeal. The
outcome of the case had not currently been finalised.
Therefore, the subsidiary did not record any potential
loss in the financial statements for the year ended
31 December 2014.