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Annual Report
2015
in specific-purpose funds in two open-ended venture
capital funds. The fair value of investments is measured
by using last bid price at the close of business on the
statement of financial position date by reference to the
Association of Investment Management Companies.
Held-to-maturity debt securities and trading securities
include fixed deposit accounts, bonds and debentures.
The fair value of fixed deposit accounts, which is in
Level 2, ismeasured by using discounted cash flows based on
each contract with an average yield of 4 commercial banks.
The fair value of bonds and debentures are measured by
using the bid yield of debt securities published in the
Thai Bond Market Association at the end of the date in
the statement of financial position.
Valuation techniques used to derive Level 3
fair values
As the Group has a general investment in limited
companieswhich theGroup’s shareholdingwas insignificant,
the Group has no controlling and decision making power in
the invested companies resulting in difficulty in obtaining
the information to support the fair value valuation in practice.
These investments are not in the stock exchange and
do not have any market prices which can be used as fair
value. The Group also do not have any plan for selling these
investments, so the Group did not assess the fair value
for the general investment. Therefore, the Group cannot
disclose the fair value of the general investment in the
notes to the financial statements and have stated these
investments at cost net allowance for impairment (if any).
35. Litigation, contingent assets and
contingent liabilities
35.1 Litigation
35.1.1 SET
In 2012, the Group sued the insurance group for the fire
damages of the Stock Exchange of Thailand building in 2010.
The Group is seeking compensation for alleged damages relating
to dismiss an insurance contract amounting to Baht 123 million
combined with interest rate at 7.50% per annum. The case was
dismissed by civil court and appeal court on 30 September 2013
and 14 November 2014, respectively. The Group filed petitions
to the supreme court. As at 31 December 2015, the case was
under the consideration of 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 2015 and 2014.
35.2 Contingent liabilities
35.2.1 SET
As at 31 December 2015, the SET has letters of guarantee
issued by banks totalling Baht 6.99 million (2014: 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 (2014:
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 2015, TCH had not drawn down
the overdraft credit line.