GPSC FN_ENG

Notes to the financial statements Global Power Synergy Public Company Limited and its Subsidiaries For the year ended 31 December 2017 90 F I N A N C I A L R E P O R T 2 0 1 7 Global Power Synergy Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2017 37 Event after the reporting period At the meeting of the Board of Directors of the Company held on 12 February 2018, the Company ’ s Board of Directors approved the submission for approval at the annual general meeting of the shareholders of the Company the appropriation of 2017 annual dividends at Baht 1.25 per share, totalling Baht 1,872.9 million . After a deduction of the interim dividends of Baht 0.45 per share which were paid to the Company ’ s shareholders in September 2017, the remaining dividends of Baht 0.80 per share, totalling Baht 1,198.6 million This dividend is subject to the approval of the Company ’ s shareholders at the 2018 annual general meeting. 38 Reclassification of accounts Certain accounts in the statement of financial position as at 31 December 2016, which are included in the 2017 interim financial statements for comparative purposes, have been reclassified to conform to the presentation in the 2017 interim financial statements as follows : 2016 Consolidated financial statements Before reclassification Reclassification After reclassification (in thousand Baht) Statement of financial position as at 31 December 2016 81 Generating Authority of Thailand (“ EGAT ”) whereby the Company and a subsidiary will supply the electric energy to EGAT at the agreed quantity and price. As a contracted party with EGAT. The Group entered into agreements with domestic companies to purchase and sell electricity, steam, water for industrial purpose for the period of 15 years or as indicated in the agreements at volume, price as stipulated in agreements . Equity Contribution Agreement As specified in Equity Contribution Agreements between the Group ’ s entities, creditor financial institutions ( as Intercreditor Agent ) and shareholders, the Company and a subsidiary as a shareholder of th se ntities are committed for additional investments to the entities whenever they acquires loans from their creditors in order to constantly maintain debt to equity ratio as specified in the agreements. Loan agreements Under the Group ’ s loan agreements with financial institutions, the Group and the Company, as a shareholder, has some commitments as specified in the agreements such as maintain its shareholding, provide financial support in proportion of its shareholding and additional investment required in order to maintain debt to equity ratio. Letters of Guarantee As at 31 December 2017, the Group and the Company had commitment to local banks and Thailand office of foreign financial institutions for letter of guarantee issued for sale and purchase electricity and natural gas, electricity used, purchase of machinery and rental agreements to certain government sector and private sectors totalling Baht 669.4 million and Baht 207.7 million, respectively (2016: Baht 1,443.0 million and Baht 196.0 million, respectively) . Long-Term Land Lease Agreement The subsidiary has non - cancellable land lease agreement with an oversea company, using for power plant operation in Japan for the period of 20 years commencing from commercial operation date with total rental fee of JPY 45.0 million per annum . The subsidiary has land lease agreement with a domestic individual, using for solar power plant operation for the period of 25 years commencing from commercial operation date . The initial rental fee will be paid at the agreement signed date of Baht 6 . 0 million . The first annual rental fee of Baht 1 . 5 million is due on 1 August 2016 and the remaining instalments will be due on 1 August of years . The annual rental fee will be increase 5 % every three years .