Annual Report 2017

127 SET 2017 2016 Subsidiaries Opening balance 2,574,500 1,896,500 Additions 457,000 895,000 Repayments (110,000) (217,000) Closing balance 2,921,500 2,574,500 Interest rate (% per annum) SET 2017 2016 2017 2016 Short-term borrowings from subsidiaries 1.36 - 1.56 1.36 - 2.00 2,921,500 2,574,500 SET 2017 2016 Long-term loans to a subsidiary 5,046,791 - (Unit: Baht’000) (Unit: Baht’000) Short-term borrowings from subsidiaries The Group has a policy of centralising the investments and managed by the SET in order to maximize its efficiency and overall returns. The parent will borrow from its subsidiaries in the form of one-year promissory notes. The interest rate on the loan is based on the floating market interest rate which is referred to the higher interest rate for one-year government bond or one-year fixed deposit on average of 4 banks for corporate credit line of up to Baht 10 million (interest rate may be revised as appropriate). Movements of short-term borrowings from subsidiaries for the years ended 31 December 2017 and 2016 were as follows: (Unit: Baht’000) SET (the parent) lent to a subsidiary to use as a reserve fund to enhance the competitiveness and support the future business expansion. The loan is in the form of non-convertible promissory notes. The redemption is referred to the net return of a private fund plus 0.50% per annum of principle balance. Long-term loans to a subsidiary